Earning More Revenue from Prepaid Mobile Users: How To Monetize the Gap Between Recharges

Earning More Revenue from Prepaid Mobile Users: How To Monetize the Gap Between Recharges

In the world of prepaid mobile data, subscribers have all the control. Without a monthly contract that refreshes voice and data automatically, the subscriber chooses exactly where, when, and how they top up. It’s a given in the industry that these schedules are extremely personal and hard to predict, which puts telcos in the tricky situation of not knowing when or how their prepaid revenue will come in.

Unpredictable prepaid cycles are risky business, and can cause extremely high churn.

How risky exactly? When a prepaid user’s behavior changes, especially if the gap between their rechargets gets longer over time, there is up to an 80% chance that the user will churn. In the hyper-competitive global market, where 78% of users are prepaid, it’s a major challenge.

Our team at Brigr has worked with global telco leaders for more than 10 years, and we know increasing customer retention by shortening this cycle (and growing ARPU along the way!) is a strategic priority. However, traditional methods of pumping out new plans and promos to appease this customer base no longer work.

Mapping out consumer behavior and meeting subscribers’ needs in real-time is key to addressing this challenge.

When this is done right, it also leads to higher customer retention and loyalty. The importance of the customer experience isn’t exactly headline news - according to EY, 82% of operators place customer experience management in their top 3 strategic priorities.

“82% of operators place customer experience management in their top 3 strategic priorities”

Figuring out how to do this can be expensive. Here are a few common strategies in the industry:

  • Advertising campaigns to acquire users from competitors
  • Upselling / cross-selling new packages or promos to existing users
  • Engagement via social and digital channels to win back churned users

What is missing is the ability to automatically target users when they are at the highest risk of churn, which is also often when they are facing challenges with their service. The analytics firm Exacaster says that identifying, and acting on, these high-risk users early is one of the top 3 challenges to an effective prepaid retention plan. One type of high-risk subscriber we work with at Brigr is the subscriber who is between topups, and finds themselves with a zero data balance.

You can target users in the topup gap by offering the ability to use their apps, even with a zero balance.

At Brigr our technology enables telecommunications companies to generate data revenue from users they otherwise wouldn’t have been able to reach (like those who have a zero balance or are visiting from abroad). To start using Brigr, telcos simply adapt a single billing rule change, and our free Enterprise data solution and Loyalty tool begins to generate revenue immediately.

Once Brigr is enabled, zero-balance users can connect to any of our registered partner apps, and we pay the telco full-price for the data used.

Since the gap between recharges will never go away completely, we help telcos monetize this time and keep their subscribers happy.

Our enterprise data and loyalty tool helps telcos monetize this gap where users are typically unreachable, not lengthen or interrupt it.

Subscriber Behavior Without Brigr:

Subscriber Behavior With Brigr:

But won’t this discourage users from topping up, I hear you ask? In fact, we’ve found the opposite. Because we only offer access to a few key partner apps, Brigr doesn’t provide connection at the expense of existing topups. Subscribers still need to recharge to use apps that drive the heaviest data traffic -- like social media, video streaming, and OTT messaging.

Far from discouraging users from recharging, Brigr provides connection in a few impactful ways that increase customer satisfaction, and make subscribers more loyal to their current provider.

A great example comes from our work in Russia, where many users complain of a time lag between purchasing a topup, and having access to the data on their device. With Brigr, subscribers can still hail a cab or make a mobile payment during this time, reducing the number of disgruntled calls to customer support. As a bonus, the data they use during this time is actually above and beyond their pending topup, meaning extra revenue for the telco.

To recap, by using a service like Brigr, telcos stand to gain:

  • Higher ARPU
  • Extra topline revenue
  • Stronger customer experience
  • Increased subscriber loyalty

To learn more about how we work the magic, pop us an email at info@brigr.com or check out our products here!