In the telecom industry, astute decision-making concerning your service offerings can be a key element behind sustained success. If you have already planned how to differentiate yourself as an MVNO and have all the important strategies in place for consistent growth in a competitive market, you still have to figure out a very important point – do you choose prepaid or postpaid plans for your business?
When it comes to offering telephony plans to your customers, you can choose between prepaid and postpaid plans. There are important pros and cons to consider on each side. If you work with a seasoned billing and charging service provider like Telgoo5, you can keep your options open and adopt a service strategy that maximized revenue, retention, and customer loyalty for your business.
Prepaid vs Postpaid
With prepaid plans, customers purchase a set amount of data and phone services from you with an upfront payment. This can then be used for the duration of the plan or until the service limits are exhausted. Prepaid plans are meant for quick and easy adoption.
The benefits of offering prepaid plans include:
- Undisputed revenue in the form of upfront payments
- Seamless onboarding of customers with no credit checks required
- The ability to offer flexible, customizable plans from the very outset
- Preventing overuse
- Preventing revenue loss though defaulting or late-paying customers
Postpaid plans involve a more long-term relationship with customers who pay monthly or yearly fees for their usage plans. The main difference is the fact that payment takes place after the service has been used. This style of service is more in tune with the needs of customers who need unlimited plans and are more likely to use your service heavily.
You can consider offering postpaid plans for the following advantages:
- Consistent revenue and relationship-building with long-term customers
- Catering to customers with large-scale service needs that limited prepaid plans cannot cover
- The opportunity to automatically incentivize heavier use of services with unlimited plans
- The ability to recover revenue by charging customers for overuse
- The opportunity to upsell new service offerings to loyal customers
With careful consideration, it can become evident that both prepaid and postpaid solutions have their perks and you cannot ignore either if you are looking for massive adoption and business growth.
Planning Your Service Offerings
Depending on the target audience you want to cater to, you can either lean heavily towards one of the options or choose to create a balanced service offering that leverages every opportunity. While offering customer prepaid plans can allow for a quick recovery of your investments, offering postpaid services can set your business up for long-term growth.
It’s crucial to have the right billing solutions partner in your corner if you want to make the best use of these opportunities. Working with a company like Telgoo5 offers you a seamless, integrated solution where you can use one centralized platform for charging, rating, and billing.
You can use Telgoo5’s service to create and offer different tariffs and bundle plans, integrate online payments, deals, and discounts, provide value-added services, and still retain the ability to manage both prepaid and postpaid billing requirements from one comprehensive solution. This can also be a great opportunity to avoid having to pass up on either strategy as you grow and evolve your business.