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Benefits and Challenges of Executing Best Plan Advice Schemes

Best plan advice and tariff optimisation schemes are likely to grow in popularity. The complexity and growth of mobile offers combined with the extension of mobile services into multimedia entertainment will inevitably generate increased consumer demand for simple 'value' guarantees. Tariff Optimisation and Best Plan Advice schemes can address this requirement and deliver strategic long-term benefits that cannot be ignored. However, before embarking on this route, it is vital that the MNO has clarity about what the objectives are and how - and over what length of time - they will be achieved.

In this report we explore/provide:

• The rationale for Tariff Optimisation and Best Plan Advice, market conditions that favour these approaches and the impact of schemes on loyalty and ARPU
• Examination of the differential positioning of these schemes when introduced by dominant monopoly players, incumbents and late market entrants
• Key players, including the solution providers that have promoted and supported implementations of schemes in multiple MNOs
• Case Studies of implemented schemes, including some that have been successful and achieved or exceeded MNO objectives and others that have failed to deliver
• Conclusions and recommendations for MNOs in the area of Tariff Optimisation and Best Plan Advice implementation.

Price: EUR 2,500.00 / GBP 2,000.00

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Table of Contents

1
Overview
1
2
Introduction
3
2.1
Definition
3
2.2
Scope of this Report
3
3
Market Rationale
4
3.1
Consumer Need for Tariff Optimisation
4
3.2
Network Operator Drivers
6
3.2.1
Overview
6
3.2.2
Acquisition Improvements
7
3.2.3
Churn Reduction - Increased Satisfaction and Trust
7
3.2.4
Churn Reduction - Save Strategies
8
3.3
Adoption Barriers in MNOs
8
3.3.1
Revenue Write-Down
8
3.3.2
Regulators
8
3.3.3
Potential for Churn Promotion
9
3.4
Measuring Benefits to MNOs
9
3.5
Benefits to Dominant or Monopoly Providers
10
3.6
Benefits to Incumbents
11
3.7
Benefits to Late Entrants/MVNOs
11
3.8
Customer Segmentation & Communication
12
3.8.1
Optimum Segments
12
3.8.2
Customer Communication
13
4
Key Solution Providers
14
4.1
Background to Tariff Optimisation Solutions
14
4.2
Aperio
21
4.2.1
Background
21
4.2.2
Pricing Authority
21
4.2.3
Smart Save
22
4.2.4
Aperio Implementations
24
4.2.5
Data Basis for Calculations
24
4.2.6
Integration with CRM & Billing Platforms
25
4.2.7
Addressing Prepay Customers
25
4.3
Analysys
27
4.3.1
Background
27
4.3.2
PriceManager
27
4.4
EasyChange
30
4.4.1
Background
30
4.4.2
The EasyChange Platform
30
5
Tariff Optimisation Implementations
31
5.1
Introduction
31
5.2
Sainsbury (Service Provider) UK
31
5.2.1
Introduction
31
5.2.2
Tariff Optimisation Approach
31
5.2.3
Tariff Optimisation Results
33
5.2.4
Solution Provider Perspectives
33
5.3
O2 UK
34
5.3.1
Introduction
34
5.3.2
Tariff Optimisation and Best Plan Advice Approach
34
5.3.3
O2's Current Best Plan Advice
35
6
Analysis & Conclusions
37
6.1
Introduction
37
6.2
Customer Motivations & Market Conditions
37
6.3
Potential Impacts
38
6.4
Prospects for Best Plan Advice and Tariff Optimisation
39
7
Recommendations
41