Adding more incentive to BYOD customers

  • 10
  • Idea
  • Updated 5 years ago
  • Not Planned
1. I love the 10% Tab credits

2. However, as is the wireless buying trend that still remains in this country, customers still value the initial expenses over the long term.

for example: just like with phones, where customers would rather not pay $600 outright for a phone, but rather commit $80+/month and spend more;
similarly:
BYOD customers save an additional 10% on top of the savings over other companies, which works out to be a significant saving in the long-run. However, the initial cost of terminating their contracts is so high they fear leaving right away and don't do the math of staying and being fleeced, or leaving at a premium and making the money back.

I personally have friends who are itching to leave and come to Koodo, after they saw me take the leap and that I am infinitely happier now (s cheaper to dish out one $200 credit to a new customer, than 10% every month indefinitely

I am not an economics major, but I do believe the numbers are on my side.

Thoughts?
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Mo D.

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Posted 5 years ago

  • 10
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Paul Deschamps, Mobile Master

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So are you suggesting a $200 credit for ppl porting from an existing account with another company to Koodo as an incentive to switch that will ease their cancellation fees from their former carrier?
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Mo D.

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tl;dr: yes. exactly that. Kinda like what Wind did a few months back
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Paul Deschamps, Mobile Master

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I really like the idea and think it would definitely bring a lot of customers to Koodo who would love to leave their current provider but can't justify paying the cost of leaving. A credit making their first few months free definitely would help justify an early termination of their present contract to come to Koodo.
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RoryC

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They did that already. I guess it gets expensive though because I haven't seen them repeat it.

http://mobilesyrup.com/2012/09/26/koo...
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Mo D.

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Oh yeah, I remember that... Although, I was referring to all carriers, not just WIND
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Paul Deschamps, Mobile Master

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oh ya I remember that, they must have obviously tried it and it cost them too much or didn't meet what they expected. I still think it's a good idea as I don't see $200 of service costing them actual money like if they were giving away phones.
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Jorden, Mobile Master

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While I don't think this is a bad idea Mo doing some math I think the numbers probably aren't on your side.

Lets say the average Koodo bill is $50. So you would get a $5 BYOD discount each month. In order for that to balance out with the $200 you would have to use Koodo services, without changing devices (assuming you use the tab and are no longer eligible for the BYOD) for over 3 years! ($5*40 = $200)

Sure it creates more buzz in the short term and maybe gets more people to come over but that is a huge amount of money.

Say you get 1000 people to switch in the first month you offer this promo... thats $200,000 of lost revenue (vs $5,000 of the 10% discount people), assuming that stays the same for the full year and suddenly you've lost $2,400,000 in revenue (again vs $60,000), and this is assuming positive word of month doesn't increase the amount of BYOD activations each month!

Now there's a lot of assumptions in that math, and again I agree it's a good idea. I can't see it flying especially not as a long term offering.
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Jorden, Mobile Master

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Also I realize I didn't factor in the continuing $5 per month in my yearly calculation, but knowing it would take 40 months to loose the same amount of income I feel it would have a negligible effect.
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JerryCan

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How about just carrying the 32 and 64 gig iPhones? That would have been a start...

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