22 MAY 2018

Case study: How to improve digital service user retention?

POSTED UNDER Case Study Digital Goods Direct Carrier Billing Mobile Marketing Payments Subscriptions
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Mattias Liivak

Head of Marketing & PR, Fortumo

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Juniper Research estimates that mobile operators will generate $9 billion in revenue by 2022 from carrier billing. The main growth drivers for the volume increase are music and video streaming merchants.

The dominant business model used by such merchants is subscription billing, where access to entertainment is sold on a daily, weekly or monthly basis and users are automatically charged at the end of the previous cycle.

However, a significant number of subscription payments for these merchants fail and the customers churn out. The primary reason is insufficient account balance as most consumers in emerging markets use a prepaid SIM card.

In this case study, we take a look at how Fortumo is resolving the problem together with telcos to increase user retention and maximize revenue for all sides involved.

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