In my recent Blog, I talked about “Why Fiber Stalls and How to Fix it” Discount promotional pricing is not the answer. It triggers churn from roll-off, and erodes ARPU Not to mention, it mimics what the incumbent broadband providers are doing.
Differentiate yourselves with competitive, everyday pricing guaranteed for a small monthly fee ($3-$5/mo.) and no bundling required assuring customers that prices will not go up for five years. We are seeing cable providers like Xfinity promising price guarantees. The difference is Xfinity customers must maintain and TV and Voice with internet.
Replace discounting or running promotional pricing with multi-year guarantees, no strings attached and entice those who have not switched to fiber with transparency, predictability, simplification, and trust. Stability matters.
The Bottom Line
Discounts create urgency, and guarantees create confidence. Confidence drives penetration!
Let’s chat about penetration growth while preserving ARPU- I offer a brief, free 20-minute consultation.
FAQ Section
Q: How do I know our pricing is competitive as “everyday pricing”?
A: Consumer research with a deep competitive analysis, will provide the optimal pricing structure.
Q: Why is promotional pricing a problem for FTTH operators?
A: Promotional pricing disturbs the balance of steady ARPU growth and meeting penetration growth curves.
Q: What is an alternative to discount pricing to gain penetration?
A: Competitive everyday pricing with multi-year price guarantees and no required bundles.
Q: How do price guarantees used by FTTH providers drive customer adoption?
A: Price guarantees build consumer trust and create long- term customer loyalty.
Sources
PWC- “The state of competition in telecoms: Five commercial imperatives to regain an edge” https://www.pwc.com/gx/en/industries/tmt/telecommunications/telco-state-of-competition.html