Telco - Value Based Pricing

The Brief

Our client was seeking to gain market share and grow ARPU in the post-paid mobile market through product enhancements and innovations such as tethering, extra data allowances, data sharing and incremental speed boosts.

The Approach

A large scale quantitative survey utilising a choice modelling experiment was used to understand consumer trade-off behaviour, and to establish the level of consumer value placed on new product innovations.  In particular, the choice experiment allowed us to ascertain consumer willingness to pay and determine whether new product features could be included within headline price, or whether sufficient value was perceived to warrant a price premium being paid.

The Result

A comprehensive model and interactive simulator were developed that allowed the client to ‘road-test’ hundreds of potential product configurations. The research provided guidance on which product features played the greatest role in uncovering pockets of value yet to be discovered, and identified additional potential product configurations beyond those already under consideration. The insights from this research were subsequently used to enhance the client’s post-paid mobile offering to grow share and ARPU.