Know-How Exchange : Customer Behavior

Axx, I imagine you've already checked out this very recent posting, but JUST IN CASE you haven't...

Value Added Services in Telecom

The responses there might be useful.

Why is there so much churn in this industry? Why do people love to hate their telecom provider? Maybe because they have unreliable networks, or they pile on ridiculous fees, or they have horrible customer service. The telecom that solves those problems might stop the churn!

¤ Shelley ¤

I have an idea I have thought about for months now.

Free and unlimited "Anytime" service, charge a VERY small fee for long distance service (like $5 per month, $50 per year), make people BUY the phones for $99-$300 depending on function, and viola.

How many people per year would sign up for that? I would. As a matter of fact, if someone told me all I have to do is buy a $150 phone and I can use it as much as I want for FREE, I'd buy 2 or 3 RIGHT NOW.

You see, they are giving away phones right now, and lowering monthly rates but despite the lower rates, there are still limits. Let go of the greed, make the services easy for EVERYONE to purchase...no credit checks...no billing departments, just backend tech support and signal maintanence, plenty of inventory, CS stations, and that's it.

The costs of operation will reduce and/or even out by getting rid of large departments of scambling employees doing credit checks, sending collection notices, etc. Plus, the bandwidth sold is hardly the corporate cost. How are they all of a sudden able to offer more minute for less while others charge more? Did they buy their towers at Wal-mart?

The retail sales of the phones, accessories, and upgrades (like long distance, GPS, camera phones and pic seding options, internet connection fees, etc would balance it out.

Look at one popular company who is currently blasting a huge campaign. They are offering 1100 anytime minutes for $20 per month AND a free phone that normally costs about $200 at Best Buy. Now, they are in grocery stores, shopping malls, even gas stations trying to get people to sign up. Are the stores letting them do this for free? NO!!! There is a profit share involved which tells you right away there is even MORE room for service if they wanted to give it. Sure, they are getting the phones at large quantities for dirt cheap, but image this:

Instead of $20 per month and a free phone (Approx. $240 per year, per user), Sell the phone for $200 with free unlimited calls, then charge for the upgrades mentioned above. Even subtracting the cost of the phones, the increase in subscribers would be phenominal. Talk about cornering the market. So what happens if every other company does the same? Too late. You did it first....and perhaps you can protect your customer base with constant incentives, and/or a contract in exchange for free service. Would you sign a 5 year contract for guaranteed free cell phone serivce if all you had to do is buy a $200 phone and sign your name?

Look at GPS units. They cost 100 times more than any cell phone PLUS require dozens of satellites at several million a pop to make it all work. You spend a few hundred bucks on a GPS, plug it in and that's it! No bills, no hassles, etc. Why not with cell phones? Like I said, the company can offset/rearrange their revenue streams in order to offer this to everyone and keep (and probably increase) their fat corporate paychecks.

Since I don't own a telecom corp, my idea is useless, but if you use it...rember me..LOL!!!

I hope this helps.

--Blaine Wilkerson
Jett Enterprises Inc.

If I were you, I would consider setting up relationships with membership organizations or clubs, who might somehow benefit from the arrangement (e.g. a portion of the billing goes to the organization, that sort of thing, I believe it has been referred to as "affinity marketing"). I believe most folk have much stronger ties to these organizations than they will ever have to a telecom company.

give away another techno-gadget as a BETA test. Something with a web- address on it.

What? I don't know...a laser gun, a Xenon flashlight/self-defense weapon combo, a videogame, a free movie, ....

What do people want over there? What do people need? What would they use? Find out, invent it if you have to, and give it away with your phones.

Offer a chance to have their ashes launched into outerspace when they die, cryostasis for the chance to see the future, a ride on a submarine, a trip to the US to live with Paris Hilton for a week, every purchase allows you to try out for the new "X Phone - Philippine Idol" TV talent show o be broadcast and sponsored by your company...

just off the top of my head.