US Road Warriors 2007: Love Them or Lose Them US Road Warriors 2007: Love Them or Lose Them
Abstract The conventional wisdom is that “Road Warriors” are the best and most desirable customers for a wireless operator. The problem is that wireless operators are failing to make high ARPU users feel special. More than 60% do not feel that their wireless operator appreciates their business and over 80% believe that they should do more. The result is that the churn rate for those with a high ARPU is 40% higher than the users with below-average ARPU.
High-ARPU customers tend to travel more than low-ARPU customers. These users are looking for a loyalty program where subscribers earn points for awards, free or low-cost directory assistance, and free batteries and travel chargers.
However, the greatest factor for higher ARPU is the use of a smartphone. The expected revenue of a smartphone subscriber is $3,500 higher than for a cellular phone user that travels the same amount. It would more than pay for itself for a wireless operator to simply give the most expensive smartphone in the catalog to a high-ARPU mobile phone user.
The immediate challenge is making these users more satisfied and less likely to churn. There has been little effort to discriminate on behalf of these users. The wireless operator with the best high-ARPU loyalty program will see the benefits on the bottom line.
Product Number: IN0703554MBM Service: Mobile Business Publication Date: July 2007 Number of Pages: 24 Analyst: Bill Hughes Price: $3,495 U.S. Dollars
