Turns out PAYG subscribers aren’t very loyal – who knew?

What’s the trick to creating loyalty for prepaid mobile subscriptions? Knowing who your customers actually are, apparently.

According to research from Juvo, using data-science driven mobile financial services will improve customer loyalty and profitability in the prepaid market. It’s a sound theory, albeit an already recognized one, however identifying, understanding and driving individual customer behaviour allows operators to transform their customer relationships.

“We’re only scratching the surface of what is possible with data science-led digital transformation,” said Steve Polsky, CEO of Juvo. “Identity-based services deliver unprecedented performance gains – just the impact of credit extensions alone to the global prepaid market could improve revenues, dramatically reduce churn and capture billions of dollars in lost revenue, and more broadly over 1.5 billion people globally lack any form of legally recognised identity.

“When data science is used to turn anonymous subscribers into identified subscribers, operators can unlock the full potential of their brands and subscriber relationships.”

In terms of the specifics, Juvo claims using a more personalized approach to prepaid mobile contracts can achieve the following:

  • Prepaid ARPU increases by 10-15% within the first 30 days of deployment
  • Prepaid churn reduced by 50% within 90 days of deployment
  • Lifetime value for each subscriber doubles
  • According to the GSMA, more than 75% of mobile users around the world are anonymous prepaid subscribers

While it may seem obvious, Juvo has taken the idea of customer analysis and engagement one step further. The team claim by using a number of machine learning and predictive credit algorithms, customers can be assigned personalized financial identities. This essentially creates a risk profile, allowing providers to offer a number of different new mobile financial products.

One comment

  1. Avatar Pat Scanlan 03/05/2017 @ 7:45 pm

    Well surprise surprise !
    Major operators have treated prepaid subscribers like the scum of the earth. Why would they expect loyalty due to extortionate charges, no online Billing hence no recourse to settling call charges disputes. the worst customer and technical support… and this is based on services provided in republic of Ireland.. by main cartel..

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