Boost Mobile has added to the competitive fray in the prepaid space with a new service that lowers their customers’ monthly bill when they make their payment on time.
The Sprint prepaid brand is lowering customer’s monthly bill by $5 for every six payments they make on time. Customers on Boost’s $50 monthly unlimited plan can drop their bill as low as $35, and customers on the carrier’s $60 BlackBerry unlimited plan can drop their bill as low as $45.
“The concept of rewarding loyalty is one that the wireless industry in general is waking up to, if they’re not already there,” says Andre Smith, a business director at Boost Mobile.
Smith says the new “with shrinkage” plans will help to drive customer loyalty without the use of a contract. “In many respects, you have to work a little harder in the no-contract space because customers can leave whenever they want,” he says.
Smith says about half of the no-contract carrier’s subscribers fail to make a payment on time and have a break in service over a six month period, though most of those subscribers are able to pay their bill and get service back within 10 days.
The new plans don’t penalize customers who miss a payment by dropping the credits they’ve earned towards a reduced monthly bill. Instead, customers on the new plans who miss a payment will not accrue a credit towards lowering their bill. It takes a total of 18 on-time payments to reach the lowest payment tier.
Boost also cut the price of its International Connect plan in half, dropping it to $5 for subscribers who add the feature to a monthly unlimited plan by the end of the year. The offer includes unlimited calling to landlines in more than 150 cities in Mexico, landlines in the Dominican Republic, unlimited calling to landlines and mobile phones to select Asian-Pacific countries and Canada, and unlimited international text messaging from the United States.
“In the postpaid space, loyalty is defined as keeping customers on a contract,” Smith says. “We believe the best loyalty program is having a great offer, dependable service and a trustworthy brand that delivers a reliable service.”