Increasing ARPU Through Loyalty & Upsell

Whitepaper

101 Use Cases for 4G and 5G

2022 Edition

 

In this chapter, we explore the new ways in which service providers are driving account value through loyalty programmes and targeted upsell. Enticing consumers to move to a higher tiered plan requires premium services to be part of the package. We look at what types of new services are being promoted to incentivise consumers to avail of new loyalty initiatives and upsell offers. These include the bundling of access to new gaming services to enabling the onboarding of a greater number of connected devices on plans with higher tariffs. We also explore the potential of mobile wallets as an under-utilised ARPU driver.

 

5.4 SK Telecom Launch New Gaming Service to Drive ARPU

Some CSP’s have already built partnerships with 3rd party gaming companies to add new services and drive ARPU. 5G’s low latency capability has enabled an enhanced gaming experience. South Korea Telecom has partnered with Microsoft to provide ‘SKT 5GX Cloud Game’ powered by Xbox, which gives users access to more than 100 games in the Xbox Game Pass catalogue for a monthly fee of circa $14, where users can access the cloud service to play games on Android phones or tablets. SK Telecom has said that the service is also available to subscribers of other mobile carriers in Korea, so they see 5G gaming as a lure to attract new customers as well as generating revenue from their existing base.

 

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