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Apr 16

MNOs Must Engage and Graduate Their Prepaid Customer Bases

78% of the world’s mobile subscribers are prepaid – equating to billions of price-sensitive transient consumers. In emerging markets, where prepaid penetration is even higher, mobile network operators (MNOs) are fighting head-to-head to win them over.

They’re stuck in a cycle: price wars continue, multi-SIM consumers churn, and operators try yet again to win back the same customer. But with MNOs’ margins becoming increasingly thin, operators must change tack. The lack of an identity-based relationship with the prepaid customer - as well as an uncertain model - makes forward planning and base management almost impossible. The focus needs to be on quickly and actively engaging to grow a loyal subscriber base, not simply winning back old ones.

In this saturated market, MNOs need to offer meaningful - or contextually relevant - incentives and progressive rewards to drive subscriber loyalty. Digital financial services are already helping to set apart some MNOs in emerging markets, enabling them to build on prepaid subscriber bases by opening up access to new and life-changing services and ultimately increasing customer lifetime value.

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