"Free" data for low-usage customers

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  • Updated 3 years ago
After a nice meeting, an idea has come into my head.

Summary : Give low-users data a free month with a pre-determined amount of data (amount to be determined) so they get to know what is the world with data on their phone. After this free month, they will automatically be charged a determined amount for this data add-on that can be removed if they want to. Similar to a Netflix subscription.

How can we incite people that don't use much data to actually use some more?

If we give them a free month add-on of a predetermine amount of data to surf the internet, check e-mail, get directions, social media, watch some videos they will then be addicted to and, like a drug (internet is a drug isn't it?), will want to pay money to continue to have this service.

Pay attention that this is not actually free data for everyone. Only for low-users under a certain amount of usage / month. BUT, keep in mind that, following the concept of supply and demand (http://en.wikipedia.org/wiki/Supply_a...), if usage increases (more money in Koodo's pocket) and supply remains infinite (data is already offered to all of us, using the network won't bring extra charges) will lead to a lower price for the same amount. Therefore all the customers will be happy. This is only a supposition though.

After their free month, they will be announced that they have the possibility to continue paying an X$ amount to continue using data for the future months. Yeah, this idea also incorporates the fact that we should have some kind of data add-ons.

What do you guys think?
What is the amount of data for a low user to be happy? Keep in mind they won't surf a lot and they will maybe don't know how this functions
Do you like the idea of data add-ons?
Do you think this will attract new customers? It's a revolutionary system never seen by the big three yet. And this is what Koodo has been trying to do since they came in the cellphone industry, no?

Show some support!!
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Robert, Mobile Master

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Posted 4 years ago

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Daniel Gunn

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I like the idea you have going here, I'll try to answer your questions you've asked so you have some feedback! :)

When I was with Bell a few years ago the lowest data amount you could have was 100 MB. I'd say if they were given a small amount of data for free during the month I could see either 100 - 200 MB, just so that they get a taste of data but not going overboard.

Data add ons would be an awesome thing to have for customers who don't feel they should have to up their plan in order to get an extra amount of data.

I think this would make people want to try Koodo as a service provider because no one else does that, and like you've stated, people would be more apt to keep purchasing data as a feature in their plans.

Gets my vote! :)
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Some random Mobile Master, Mobile Master

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I would expand a bit on this idea.

It's been done on the U.S. side, but still, it'd be nice for everyone to have unlimited access to data, but at something like Edge speeds. Just throttle it down to hell, but leave the pipe open like a dripping faucet.

It would allow MMS users to finally have their way, it would allow people without data plans to at least check 1-2 e-mails and the odd FB post and it would allow heavy users to still be able to receive their M-rated snapchats once they've burned through their 1-2-3-whatever gigabytes they have in their plan. Want full-speed overages? Fine, enable it via SMS and you're back on the left lane, but with overages.

Carriers blame finite bandwidth (instead of greed) to play down unlimited data. Alright, fine. Kill the speed and let the people use it as they see fit.
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Robert, Mobile Master

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It is true that slow speed might frustrate the hell out of people and encourage them to buy "FULL" speed.

It make me remember lite version of apps. Or slow download speed on sharing sites. Limited amount of skips in music apps. Pretty good adjustment you have here!

FREE data for everyone. But you want speed? Go ahead and subscribe for a "premium"
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Some random Mobile Master, Mobile Master

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Moonmack

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I really like the idea of free slow speeds for people who don't really use data, especially since it solves the "why am I charged for using MMS" problem. However, can Koodo offer speeds less than 3G since they don't have a 2G network? I still find 3G reasonably fast for tasks that may be data intensive - music streaming for example.
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Some random Mobile Master, Mobile Master

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Limiting speed is as easy as flipping a switch, Moonmack. It's the carriers who make the process of flipping said switch seem more complicated than it should, hehehe
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DJ

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Nothing is ever free. Somebody has to pay somewhere. Bad idea. My only suggestion is to offer it in incremental add-ons such as 100mb, 500mb, 1gb, 2 - 6gb etc. But also offer phone service only... No data. Let people try whatever level is appropriate for them each 30 days and forget trying to downgrade the speed to get it free.
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Chris Petersens

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Honestly, I don't think the problem is people not using data on their phone. It's a matter of whether they are willing to pay for it, at least for now.....at least that's what I think. This is based on what I have seen on a number of occasions, especially with younger people. They have no qualms buying a phone with all the bells and whistles and just jump from one wi-fi connection (in the city there are lots to choose from) to the next. After all it's free. Once the patience wears off or prices for data come down more they will buy into paying for it. My two cents.
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Robert, Mobile Master

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This is why we should give them a month free. If from 5 people only 1 subscribe... It's still a good thing no?
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Ivan, Mobile Master

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I think so, yes.
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John Burke, Mobile Master

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I like this idea...I seem to recall discussing it about a month ago, hmmm
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Robert, Mobile Master

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What's happened with this idea?
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Some random Mobile Master, Mobile Master

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I was just reading some replies above and there is one thing that would make Koodo not too interested.

Some customers who choose to not use data do so because they don't want/can't pay for it.

Giving them a month of free data would sure be a great incentive, however, it also won't make money magically appear in their wallets.

So even if they'd LOVE to get data addons or a data plan, they just won't for financial reasons.

I think people are already well aware of what data can do for them, if they're not paying for it, it's likely for financial reasons and having a free month isn't gonna change that. :(
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Robert, Mobile Master

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The financial cost will benefit Koodo because of how many customer will change for a data plan with this deal. Who needed Netflix when it first appeared? No one, but they stil gave 3 mth free to everyone and then BAM they become the best streaming company in North America and almost everyone has, or had a Netflix account. Keep in mind that almost all the plans now include data. People on grandfathered plan that do not use data, may be intereted to pay 5$ more per month to have some. You know what they say : "Just in case".

Everyone around them has data, why don't I? Let's just try. They'll LOVE the free month then they'll want to switch
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Some random Mobile Master, Mobile Master

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Of course, Robert. However, if the financial aspect was the reason people did not want data before, it's hardly going to change anything. Cash doesn't just appear like that. Some people's budget is calculated down to the dollar.
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Robert, Mobile Master

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I do understand what you're saying. But how many people are on that side 5,10, 50% of people that have no data? No one know, but it could be worth trying as a "projet-pilote" like they say in Quebec. If it doesn't work, then they have lost some money from their big stash by giving some to their customers. Who tries nothing gets nothing.
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BobTheElectrician

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There's a market segment that just doesn't want to get involved in computers, laptops, smart phones, etc. Especially on the phone side. They want to call and text but can do without the slot-machine symphony of notifications and a lot of "complicated" settings. Offering them "free" data will not change their lifestyle and will double or triple the traffic on the tech support phone lines.

On the other extreme, there are those who can't put the phone down for more than 5 minutes without checking email, facebook, etc. Too much data will never be enough. They'll use up the free allotment the first day.

I would rather budget my data and use wifi whenever possible.

Data and how to make the most of it.

http://community.koodomobile.com/kood...

So I'm afraid free samples won't turn into revenue on this one.
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Robert, Mobile Master

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The thing is it's going to be free for people who don't have data. And I don't think all those people who don't have data are the ones described par your first market segment. Plus, if they don't want any data, they won't try the first month free, right? Only people that will be interested will try.

And where there is interest, there is potential for more revenue.
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RudyW

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Everyone wants data, just not everyone wants to pay for it. :-)
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Elinor

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Almost every plan offered by Koodo already includes data.

The only post-paid plan that doesn't is the simply dreadful $30 talk and text plan. But wait - the $35 plan fills that gap, offering a small amount of data AND 100 extra minutes for $5 more.

The only reason I see for people to stay on the talk and text plan is because they simply don't want to "waste" $5 a month on data and extra minutes they won't use. They don't seem a likely target for a "free data teaser" that turns into an expense. If they DID become interested in data, they'd switch to the $35 plan (which is less lucrative to Koodo).

The prepaid basic plan also serves the talk and text crowd as well as customers who want the ability to pay for data used, not a set limit per month.

What do the prepaid plans have in common? They provide the customer with control over usage and freedom from paying for unwanted extras. Again, giving them a "teaser" of data will not result in extra revenue for Koodo. These folks already know what they want.
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BobTheElectrician

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And more specifically, they generally know what they DON'T want.
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Mark Kokolsky

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If I remember correctly, 3-4 years ago Koodo actually used to give the first 10 days of data free. This allowed customers to do any updates when they first got their phone, download some apps and stuff, and also get a brief snapshot of what their usage would be. While this is gone, it could be a cool idea to bring it back. Although im sure it got turfed because people probably abused it and went nuts with it. Even now, I think Koodo does offer a VERY small buffer of data usage before they start charging. But its made more for people who accidentally launch the google search on their phone, not people who accidentally download a 200mb update.
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Sheila

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Mark, this isn't gone. It's still there where 10 days of data is free. It's only for new activations

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