August 11th, 2008

How Do We Impact Prepaid Behavior?

By Nir Hakarmeli - Director of Consumer Marketing

In our first post on impacting prepaid behavior we demonstrated how we increased usage within a “mid–ARPU” prepaid segment, using a multi-stage marketing program. What is the strategic impact we achieved? First let us take a look at the before and after status of each phenomenon and then we will explain how we did it.

As we can see in the below graph showing last call date distribution (Phenomenon 1) a subscriber that didn’t talk for 30 days is considered dormant. As a result of our targeted marketing program we managed to reduce the time frame from the last call made (a shift from the right to the left on the graph), where subscribers actually remained active over time. This is based on a three month period that began in January 2008, and three months later we checked how many were still active. So for example, subscribers from day 30 to day 60 in the graph made their last call in March, and subscribers from 61 to 90 made their last call in February. What we managed to do is bring about a shift where more subscribers remained active over time or to put it another way – kept talking!

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August 3rd, 2008

Impacting Prepaid Behavior To Increase Revenues

By Nir Hakarmeli - Director of Consumer Marketing

The big race to retain customers and maintain their level of usage has proven to be extremely challenging in the prepaid sector. Generic characteristics of this service, lack of users’ data and minimal differentiation bring marketing challenges to new heights.

This post is about the best way to overcome these obstacles and go about impacting subscriber behavior in one of the most lucrative revenue sectors for mobile operators - the prepaid sector that is comprised of over 1 bln subscribers worldwide. The following insight is based on our activity with one of the largest prepaid operators in the world.

Our first challenge with this operator was to increase usage within a “mid–ARPU” prepaid segment. Experience has taught us that the best way to impact behavior in this segment is to integrate real time and immediate response tactics into all marketing activities. Here is a real life sample of how we went about increasing top up recharges and voice usage for subscribers with an average top up amount of lower than €10.

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