Question

. Grant Telephony Industry grew enormously the new users embraced mobile technology. The cost required for the new mobile phone was very high because carriers heavily subsidized handset and retailer costs to make it easier for new user to sign up for new service. As a result, carriers face a pressing need to maximize their average return per user (ARPU) by retaining their best customer for as long as possible. This challenge is particularly acute in the face of showing growth due to market saturation and the impending expiration of many original customers’ service plans.(b) Give strategies to implement these goals.

Answer 1

Add value

Before looking at different ways to increase ARPU, it should be emphasized that none of the strategies listed below will be successful in the long term if your customer is not getting additional value. Cross-selling and Up-selling mean solving more problems for the customer. Approaching the strategies listed below with a customer-centric mindset should always be part of the process.

Adjust Pricing

Great SaaS companies continuously update their product adding new features and capabilities not only to improve functionality, but also to enhance usability, scalability or security. Customers get to unlock additional value right away by having access to and using these new capabilities. This continuous innovation cycle is critical to customer success in today’s fast-paced, ever-changing business environment.

2.Introduce Scalable Pricing

In the early days it isn’t uncommon for SaaS businesses to have a very basic pricing model or even a single low flat price. The initial focus isn’t so much trying to maximize revenue per customer as it is signing up a ton of customers to help figure out product/market fit and identify an optimal Go-To-Market strategy. Over time the product evolves and customers start extracting value differently from the product. Some will use a particular set of functionality more. Others will have a lot more users added to their license while a few will start hitting technical volume limits.