It is no mystery that, for telecom service providers (SPs), diversifying your service offerings to allow for more revenue touch-points between you and your current subscribers is the quickest way to increase the average Amount of Revenue Per User (ARPU). The more services you have as a telecom service provider the more opportunity there is to sell individual services, yes?
And ever since the phrase “triple-play” was introduced into the SP marketing vernacular, the industry has been experimenting with different service tiers and bundling campaigns to find the magic combination that appeals to consumers the most. And clearly, the value in multi-service promotions for the voice/video/data providers is that there is power in condensing multiple services into one.
Increasing the ARPU is not merely a value for the service provider, but also a great way to fetch more subscriber approval. Most subscribers prefer to deal with one billing statement from their service provider that groups all monthly services. And simply put, the service provider can offer more flexibility in pricing when multiple services are purchased. Calculating ARPU is more complicated than the scenario above. However, the various business systems which allow telecom team members to carry out the process of building service bundles are key to the bottom line, and are just as important as the products themselves.
Here are a few tips to help increase ARPU:
- Make All Necessary Telecom Data Available To Your Team. When your telecom marketing team is putting together campaigns to increase ARPU, they need access to all real-time subscriber information. These data types incudes current customer service consumption habits, customer location, historical service preferences, favorite channel line-ups, payment history, etc. Sometimes this data is scattered across various business systems within a telecom. All of this data can be aggregated into meaningful business intelligence that will target a more personalized experience to offer the customer. Build queries and smart data to help CSRs and marketing team members make educated decisions that include revenue margins and product trends.
- Make This Data Available Within One Place. The amount of work that goes into signing up a new customer for telecom services costs marketing dollars and time. Identifying these customers when there is no previous record or data to reference them means you have to start from scratch. Minimizing these costs is essential to overall ARPU numbers. It is imperative that the system used to “mine” new customers contains all relevant data and intelligence in one place. Having it in only one place will save an enormous amount of time for CSRs and marketing team members during this process.
- Start With Marketing To The “Low Hanging Fruit”. As is the case with every current and mature telecom service provider business, you already have a subscriber list to access. Your current subscribers are the best place to start your ARPU growth campaign. Because they are your customers, you already track all their necessary information to give them the best, most affordable way to increase their services. You have knowledge of the personal analytics that help build this customer’s profile. Current subscribers cost fewer marketing dollars to build campaigns around and to identify potential bundle upgrades.