How to reduce churn – the stickiness of sharing data

August 2, 2016 - Openet

The alternative title for this article is ‘how to get value out of a commodity’ or even ‘how to get blood out of a stone’. We have long been saying that data is so abstract that, unless you are very creative, the only way you can sell it is as a commodity. Thus we have been saying that operators need to create products, not just sell more data.

But it seems we may be wrong. If you sell data in creative ways, then not only will people ‘get it’ but they will stick with you, too. The proof is, if not in the pudding, in a new guide-book from real-time specialists, Openet. The benefits of offering shared data plans are clear. For instance, ‘in the US in Q1 2016, the two market leaders, Verizon and AT&T reported monthly churn rates of 0.96% and 1.1% respectively’. Those levels of churn would have been unheard of not so many years ago.

Although the US is at forefront of the sharing game, churn rates across different regions are also at all time lows, and even in the hyper competitive region of SE Asia, there are some signs that sharing works. A ‘leading service provider in Thailand reported 3.7 percent, although in Indonesia this figure has been reported to be as high as 10 percent’.

Read More at Disruptive Views


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