A common business practice in many industries is the so called yield management. Its concerned with strategies that maximize your revenue. The concept is to offer the right product/service to the right customer at the right time for the right price.
AVEROX offers a unique solution whereby the price optimization reports show you how to make more money simply by changing your price. It offers pre-pay subscribers variable discounts which are based on the availability of capacity and demand on their serving cell-also known as dynamic cell based tariffing.
Network Usage & Revenue
In any form of business, long term success is linked to cost leadership. This means that you have to have the lowest cost for delivering a unit of value to the customer.
Your costs are largely the same, irrespective of how many subscribers are using your network at a given time. However, at any given moment, more than 50% of your networks capacity is unused. You must build for peak demand to avoid congestion. Demand varies throughout the day with different profiles in each area. A business district cell will, for example, be very busy during business hours, but quiet in the evening. Conversely, a suburban cell will be quiet during the day and busy in the evening. This means that every cell, at certain times of the day, has a large amount of unused capacity. You are paying for this capacity, but you are delivering no value to your customers from it.
Yet at the same time, you cannot simply cut prices to boost demand. Not all of your customers will respond to price cuts by making more calls. You may easily give away more than you gain. Your network peak load is probably also already under increasing pressure. To keep your high usage, high value, customers happy you cannot afford to boost demand at peak times with low value traffic.
The answer is to implement Intelligent Pricing.
Getting More Value from the Network
The results from existing implementations show a number of effects:
- New, highly price sensitive, users are brought onto the network for the first time
- Existing price sensitive users spend more
- Scheme users are less likely to SIM swap
- More return calls are generated back to scheme users
- Usage at peak times and locations is reduced, relieving the pressure for more network investment
- The network has a clear competitive advantage
Depending on other conditions in the market, results so far have shown overall ARPU improvements of between 5% and 14% for those subscribers who engage with the scheme. The gains from return calls and positive effects on churn are also very real but are more difficult to measure accurately because of the effects of other factors.
- Increase ARPU by up to 5%
- Reduce CAPEX
- Win new customers
- Build loyalty