Friday, 16 October 2009

Proposed Giffgaff Pricing

I read the giffgaff blog post a few days ago asking how they should organise their pricing and it made me think quite a bit. Here is what I came up with, and have posted on the giffgaff forum:

Calls and texts

As packages just make life easier,especially by preventing customers from thinking "this call is going to cost me a fortune, hurry up and let's put the phone down" which is associated with per min/text billing, obviously it wouldn't cost a fortune with gifffgaff but there is still that feeling of money draining away when paying per min or per text. This is definetely not the case with packages as, as a customer you feel that you payed for it so you might as well use as much of it therefore you're going to call more and enjoy doing so. However with packages comes the feeling of being ripped off when you don't use much of your plan.

The key is therefore to ensure flexibility between both models, to maximise customer satisfaction.

I think therefore that having four plans on offer and anything over that is billed on a per text/min basis being the best option available. Also being able to switch from one package to the other on a monthly basis would also be great as it gives usage flexibility to the customer.

So here's what pricing plan I would see:

-no package (existing but not necessarily advertised)

-5£ package with x texts and mins

-10£ package with y texts and mins

-15£ package with z texts and min

Per min and per text charges over that with their individual pricing (ie X/per min and Y/text ; X and Y don't have to be equal)


(P.S: Giffgaff will not be charging for data during the first 6 month and no roaming data as systems won't be in place for the launch. )

I think the data plans should have:

-a monthly cap rather than a daily cap would be definetely much nicer.

-and tethering should be included in an data packages for smartphones (iPhone in particular :smileyhappy: , I reffer to those packages as "unlimited" later on ). The potential issue with this might be excessive data usage we have to admit it. However, by giving a combined "phone data" +"tethering data" package I think most of the users will be disciplined and involved enough in the giffgaff project to keep themselves under control to prevent putting giffggaff in a difficult situation.

Therefore maybe 4 monthly data packages:

- 20 Mo/month @ 2£

-500Mo/month @ 5£

-"unlimited" with fair usage of 3Go/month @10£

-"heavy usage unlimited" with fair usage of 6Go/month @15£

I think having a robust EU roaming data package would also be great, ie in the 500Mo range at a pricing of 60£ perhaps

Obviously that will have to wait for quite a bit but I see it as a very attractive offer in terms of quantity and usage , the pricing itself could be higher (not 300£ high please) but it would be very innovative.

Pricing being a rough schematic throughout obviously


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