Mobile credit-scoring provider claims operators stand to increase ARPU by 10%, cut churn by 50%.
Profiling prepaid customers and offering them mobile financial services could be worth a whopping $70 billion (€64.15 billion) to the world’s operators, claimed Juvo on Wednesday.
A report published by the company said operators stand to increase ARPU by 10%, cut churn by 50%, and realise a two-fold increase in customer lifetime value.
Good news for Juvo itself of course – the company’s so-called identity-scoring technology is incorporated into an operator’s top-up app. It tracks user behaviour, deriving what is effectively a credit score, which the operator can use as a basis for lending small amounts of voice, data and SMS credit. If a customer proves themselves a worthy credit risk, they qualify to borrow greater amounts of airtime.
Millicom is using Juvo in Central and Latin America, and Cable & Wireless Communications (CWC) is rolling it out in the Caribbean and Latin America.
"Identity-based services deliver unprecedented performance gains – just the impact of credit extensions alone to the global prepaid market could improve revenues, dramatically reduce churn and capture billions of dollars in lost revenue," said Juvo CEO Steve Polsky.
Indeed, according to the GSMA, more than 75% of the world’s mobile users are anonymous prepaid customers.
"When data science is used to turn anonymous subscribers into identified subscribers, operators can unlock the full potential of their brands and subscriber relationships," Polsky said.