Case Study: Pricing Promotion Design

Challenge

Optus wanted to come up with an offer that would make people stand up and pay attention – something big.  They wanted to make some aspect of their service FREE as that always gets a lot of attention.  However, they were also aware of how similar promotions had almost crippled mobile networks and they were also quite concerned about potential revenue erosion.

Solution

Engage a specialised analytics and modelling organisation to analyse the usage patterns of their customers and their and competitors current pricing plans to design an offer that would have the big impact they desired but contained network and revenue impact.

Outcome

The promotion, ‘yes’ time, was the mainstay of Optus’ market offering for a good 5 years.  The offer was attractive to the younger demographic which Optus was targetting and increased their market share of this segment.  It was designed to occur at a time when there was excess network capacity and the additional traffic it created was well spread throughout the network so network congestion was only limited to a few hot spots.

 

Pricing Promotion Design