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Knowing Your Customers: Who Uses Prepaid?

by on 04/04/2013 - 03:01 am

Category: Business Management

As prepaid numbers continue to grow, the kinds of people using them continue to vary. But as a prepaid dealer, it’s important to know the kind of customers that are attracted by prepaid service.

There are five main types of prepaid users; all with different buying patterns and monthly usage. While these customer types aren’t necessarily mutually exclusive, they should paint a pretty accurate picture of the kind of person who gravitates towards a prepaid plan.

Value Seekers

Value Seekers are prepaid users that hunt for value overall. This shouldn’t be mistaken for people looking for the lowest prices, but for the best deals. They want each and every cent to count towards something; no wasted overhead charges and hidden fees.

They are very particular about their phone usage, and can scale up or down depending on the needs as mobile users. However, they do appreciate the value of smartphones and are willing to invest in a premium price as long as they get their money’s worth.

Low Consumption Users

Low consumption users opt for prepaid plans because they don’t use it all that often. They rarely text and prefer to use their trusty landline if ever. They are usually of an older demographic that has been perfectly fine without the conveniences of mobile communication, but have realized that there are times when it is necessary. Often times, the presence of a cellphone on their person is for others to get in touch with them rather than the other way around.  


Heads-of-family, or parents in particular, may not be prepaid users in themselves; but they do rely on prepaid plans for their children. They pay the bills of others in the same household and appreciate having the ability to limit spending on a monthly basis.

They still see the value of post-paid plans, but see prepaid as a cheaper and more manageable financial alternative. They make use of family and group-plans and make the most out of being on the same network as the rest of their family.  

The Credit –Challenged

These particular group of users have problems getting a postpaid contract even if they wanted to. This is often due to bad carrier history, a less-than stellar credit rating, or the lack of sufficient background. The age group of this particular demographic varies since it falls on anyone from undergrads to unemployed middle-agers.

They realize the necessity of staying connected, and are willing to go for cheaper prepaid alternatives to stay in touch. They benefit from pay-as-you-go plans and value plans that allow them a great amount of financial flexibility.  

Out-of-Contract Subscribers

Out-of-contract subscribers have either been burned by on-contract carriers or have deemed it unnecessary to renew their contracts.

While this does not necessarily mean that they have stricken postpaid plans altogether, these group of users often have had a bad experience with a particular carrier, avoiding them altogether. Sometimes, they are not on prepaid for very long, and are simply transitioning as they wait for a good deal from a postpaid carrier they can trust.  

By being able to identify what group (or what mix of groups) your customers fall under, you’ll be better equipped at selling them the plans, the phones and the services that are right for them.

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