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Friends & Family 2.0 October 14, 2006

Posted by mark in : Telecoms, Wireless , trackback

Interesting suggestion at Telco 2.0 : To have a far greater effect on churn, the Orange “Magic Number” offer (…$Free to call a friend that you choose) should automatically make it free for that friend to call you (as well), if you’re both Orange customers.

As it says there :

Would I dare leave Orange myself if the result was an increase in expense for many of my friends? The social pressure would greatly outweigh the financial considerations.

The cost to Orange is limited, because those on a monthly plan have largely ‘free’ voice calls anyway. (Pre-paid customers have a limited version of the offer. Can you switch?) In a couple of years, the ‘network effect‘ could mean all your calls are free, and you’d resent the fixed cost of a monthly plan for voice; but the Orange business/pricing model will have changed by then, anyway.


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