What’s the best way to price something that has become as critical to our personal and business lives as electricity and water?
Virtually every person in the industrialized world interacts with several telecoms service providers every day, from mobile phone to internet service providers. The pricing of these services is often so complex that customers get confused and few providers make any profit at all.
Telecoms service providers operate in highly regulated environments. They must deal with high capital costs and fast-evolving technologies in a competitive environment. Our experience shows that most telecom companies have been very focused on renewing their service plans and they have used almost every possible combination of service bundles, flat rates, pay-per-use, pre-pay, post-pay, and la carte pricing.
The intention is to find THE service plan that will give them a competitive advantage and a nice profit but before customers have understood the offer, the provider has introduced yet another service plan. Service providers strive to find new customers all the time but the acquisition cost of a new customer is often far greater than the actual revenue generated by that customer.
Smarter pricing gives telecoms operators huge leverage.
Telecom is a fascinating business since the service providers have huge leverage. Implementing smarter pricing strategies and tactics can generate millions of dollars in new revenue and increased profits. Conversely, getting your pricing wrong in telecom is a recipe for losses and reduced market share, something most providers have suffered during the last decade.
Smarter pricing helps telecoms service providers avoid costly mistakes and improve profitability.
PriceGain helps telecoms operators with:
- Effective price optimization for existing services
- Development of new pricing strategies
Most telecom companies have made large investments in new services, only to find their consumers are unwilling to pay for them based on the offered pricing models. PriceGain helps telecom companies establish the willingness to pay for new services and helps them avoid costly mistakes. We also work with our clients to ensure their pricing is perceived as transparent and fair, which is demanded by customers but typically not offered by the service providers.