Customer retention in the postpay contract segment has improved substantially
in many markets over the past five years with the arrival of smartphones and
24-month contracts, but churn in prepay segments is still troublingly high.
Competitive pressure, free SIMs and an increasing incidence of multiple SIM
ownership fuel customer defections, and in these saturated and competitive
markets, operators are struggling to find retention options that are effective
in combating prepay churn.
In an effort to retain their prepay customers, and to help promote spend in
the prepay market, best practice operators are implementing campaign
management tools and solutions in order to help craft attractive personalised
offers for their customers. These solutions can help operators target small
numbers of their customers who have specific spend and/or usage profiles and
also run a large number of campaigns concurrently, thus reaching a large
proportion of the customer base. Many campaigns targeting prepay customers can
offer significant increases in incremental and overall revenues as well as
helping operators build-up considerable amounts of customer information to
feed into future campaigns.
This report examines what can be achieved with current campaign management
approaches, including best practice implementations already in place and
concludes with concrete recommendations for MNOs seeking to use this approach
to address spend and retention issues in their prepay bases.