Why it's time to take a proactive approach to your price plans
4 reasons your business needs price plan recommendations
August 06, 2019
No one likes being ripped off.
Whether we’re buying for ourselves, our family, or our work – we all want the best deal.
But, hand on heart, can you say you’re extending the same courtesy to your customers?
Is your pricing truly transparent?
Come February 2020, for UK-based telecommunications providers, offering the best possible pricing will no longer be a matter of choice. New Ofcom regulations will make it compulsory to provide end-of-contract notifications, along with the best available tariffs.
But, whether it’s a requirement or not, there’s a compelling list of reasons your business should be proactively offering customers the best tariff they can get.
In this blog we’ll introduce our latest solution, Price Plan Recommendations, before exploring why now’s the time to take a proactive approach to giving your customers the best deal available.
What is Price Plan Recommendations?
Price Plan Recommendations is a new tool from CloudSense that empowers you to easily recommend the best available deal for your customers – whether they’re individuals, SMBs or enterprises.
The technology uses a multi-stage process to collect and cluster usage data, before predicting and simulating invoices to provide tailored price plan recommendations.
Recommendations are created for individuals or large subscriber groups based on needs analysis and historical usage. Large user base prices are predicted by using machine learning and artificial intelligence to cluster groups into similar usage profiles. Invoices are then simulated to demonstrate cost comparisons for proposed price plans over time.
Price Plan Recommendations can be automated on the channel of your choice and tailored to different use cases and requirements.
For example, you could integrate directly into sales and customer service or share recommendations via billing, messaging or your preferred marketing channels.
Why should you recommend your best price plans?
1. Meet new regulations
Let’s cover the new regulations again, because no one wants to be fined for breaching compliance.
New Ofcom regulations mean CSPs in the UK must send customers end-of-contract notifications in the run up to the end of their fixed commitment period. In addition, all customers must receive information on the best available tariffs. (The regulations start on the 15th February 2020 and you can get the latest information from Ofcom here.)
The regulations cover everyone – all the way from individuals, to SMBs and enterprises.
And the inclusion of businesses is significant.
Calculating the best tariff for one person may seem simple enough, but predicting the same for large subscriber groups of business users quickly becomes complicated.
This is particularly true if a business’ needs are evolving – say they’re opening a new office abroad and require more bandwidth for roaming.
So, if you are going to be affected by the new regulation, the countdown is already on. Not just to comply, but to tie your compliance into a smooth cx.
If you’re not a UK-based telco you can breathe easy for now.
But there’s a growing global trend for regulation around price options and complexity. The Australian and Dutch energy markets have already been hit, and we wouldn’t be surprised to see regulation spread further across industries and geographies.
As we mentioned in the introduction, even if you’re not preparing for new best pricing regulation, there’s mounting evidence you should practice best price plan recommendations anyway. Let’s explore why.
2. Improve your NPS
Customer experience will overtake price and product as the key brand differentiator by 2020.
And a sizeable portion of meeting your customers’ evolving cx expectations will involve being more proactive.
In fact, by 2020, 75% of business buyers expect companies will anticipate their needs and make relevant suggestions before they initiate contact.
This includes preempting and troubleshooting problems – for example proactively compensating service outages. Or delivering proactive pending order notifications to keep customers in the loop (and minimize your inbound calls and returns).
It’s also time to add proactive best price plan recommendations to the list.
In an era where your customer holds all the power, if you wait until they threaten to leave before stating your best offer, it’s probably too late.
By then you’re fighting to just keep them – not providing the exceptional ongoing experience necessary to win customer loyalty today.
But there’s no need to push your customer to the precipice of contract cancellation.
Instead, during moments of risk or need, you can proactively engage customers with best prices. Whether that’s during usage spikes and end of contracts, or new price plans and framework agreement negotiations.
That way you’re providing a great cx, boosting your NPS and you can expect to see customer loyalty and revenues follow this upward curve.
3. Cut churn & grow customer lifetime value (CLV)
Building loyalty and lifetime value are both essential for buoyant long-term revenues.
This is most easily demonstrated with a couple of statistics:
- It costs 5x as much to attract a new customer than to keep one.
- Existing customers are 50% more likely to try new products.
With these stats in mind, it’s prudent to reward loyalty, not penalize it.
Giving your customers the best available price instantly increases their loyalty – it shows you’re looking out for them.
And you can take this a step further by offering the right tariff to suit your customer’s emotional needs. Do they want predictability, minimal risk or the lowest projected spend possible? The ability to tailor your tariffs provides the personalized touch that keeps customers sticky to your brand.
By building trust and loyalty through transparency you’ll also increase the likelihood your customers will buy your adjacent products and services, or recommend you to other people.
As a result, using Price Plan Recommendations is a smart step to increasing both CLV and average revenue per user (ARPU).
4. Increase sales & improve your customer service
By straddling compliance and sales with Price Plan Recommendations you can get the best of both worlds: a better customer service and increased sales.
This is particularly true if you embed your pricing tool in your platform of engagement, close to your customer. That way your sales and customer service agents are armed with another way to win over customers. On any channel your customer interacts with you, and whatever the context, your people can offer the best price plan possible – and action it in real-time.
If they can analyze usage and tailor the best option available for individuals, families or businesses, your customer-facing teams can instantly offer more value.
This ability to satisfy needs, whether they’re known or unknown, positions your people as trusted advisors to your customers.
Ultimately, the trust, transparency and actionable insights best pricing will give your people will empower them to both increase conversions and retention.
Fast-track compliance & transform your cx with Price Plan Recommendations
Price Plan Recommendations give you the opportunity to take a leap forward – with both your compliance and cx.
Putting regulation aside, in an era of customer-centricity, giving your customers the best available price plan will soon become customer experience best practice.
The ease with which your customers can switch service providers means you can’t afford to slip-up in meeting their expectations. And, with customer retention costs far below acquisition spend, fostering customer loyalty and lifetime value through your cx is the smartest, fastest route to increased revenues.
Price plan recommendations put you on the fast track to achieving these goals.