How are premium services transforming the prepaid sector?

How are premium services transforming the prepaid sector?

The pace of shifting customer preferences and expectations show no signs of abating. CSPs look to maintain their competitive edge, they’re re-examining their strategies.

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Jenny Plusnina, Business Strategy Manager

Amdocs

02 Jan 2024

How are premium services transforming the prepaid sector?

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In our dynamic industry, the pace of shifting customer preferences and expectations show no signs of abating. As communications service providers (CSPs) look to maintain their competitive edge, they’re re-examining their strategies. This is particularly true in the prepaid segment.

Indeed, prepaid, which was traditionally perceived as a basic, low-cost option, is undergoing a transformative change, emerging as a premium, feature-rich alternative, capable of driving significant growth and deep customer loyalty.

As a business strategy team, it’s our job to analyze market strategies. And what we’ve observed is a growing interest in this particular segment. We’re seeing CSPs exploring innovative approaches as they seek to capture a greater share of the pie, including new directions to generate more revenue, increase customer lifetime value and enhance loyalty. It all points to a strong belief in the segment’s vast, untapped potential and the opportunities it holds for redefining customer experiences.

Here are our three key takeaways from the recent thought leadership sessions we conducted on this topic:

Prepaid as a lifestyle choice

The first step in repositioning prepaid is to shift the narrative. It’s about presenting prepaid not just as a budget-friendly option, but as a lifestyle choice. It involves highlighting the flexibility, control and freedom that prepaid plans offer. It’s also about recognizing the phenomenon of people switching to prepaid due the need for credit checks on postpaid plans.

For example, someone relocating for work might not be eligible for a credit check and therefore opt for prepaid – even if they have a high-income. We believe that creating dedicated offerings that take these parameters into account will enrich the segment with a more diverse consumer base.

Enriching offerings with premium services

As the segment evolves, we’ve noticed that prepaid plans are starting to include more benefits beyond basic offerings. These include high-volume, tiered 5G data plans, longer payment cycles, access to exclusive digital content, and advanced features typically reserved for postpaid plans. Introducing a rich choice of premium elements can enhance the appeal of prepaid and significantly elevate its value proposition.

Tailoring plans to individual needs

The growing ubiquity of GenAI has seen personalization become fundamental to everything we do – including pricing plans. For CSPs, this presents an opportunity to leverage their vast troves of customer data and strongly position themselves to offer individual personalized plans that cater to individual usage patterns, lifestyle preferences and budget constraints. It could mean offering a range of add-ons, exclusive digital services offerings as well as data boosters, allowing customers to build a plan that fits their specific needs. And as we move beyond conventional views, it becomes evident that the prepaid segment is becoming increasingly ripe with opportunities for innovation, growth and customer engagement.

By embracing change and focusing on premium services, personalization and market adaptation, we believe that CSPs can not only meet customer expectations but exceed them, marking a new chapter in the industry, where prepaid is not just a practical choice, but a preferred one – with flexibility, innovation, and customer-centricity leading the way.

To delve deeper into the prepaid strategies and insights, check out our new eBook. It’s a comprehensive guide that provides further analysis, case studies, and actionable steps for harnessing the potential of the prepaid market.
 

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