How ARPU and loyalty increased without slashing prices

Executive summary

Despite strong user acquisition, this MVNO struggled to increase ARPU and differentiate itself from low-cost competitors. By implementing Paylode’s customer engagement platform with tier-based rewards and behavior-driven perks, it saw a 19% increase in ARPU, improved NPS, and a 36% upgrade rate within 90 days.

Challenge

Revenue was stagnant as customers hesitated to move beyond the entry-level plan. Traditional promotions weren't driving long-term behavior change or loyalty.

Flat ARPU despite growing customer base
Over a 9-month period, ARPU remained stagnant, as most customers stuck to the $25 base plan without upgrading.
Lack of incentives for mid-tier growth
Mid-tier users showed little motivation to spend more without deeper discounts, which risked hurting profitability.
Need to differentiate in a price-sensitive market
Needed to stand out from other low-cost MVNOs by offering more perceived value without lowering prices.

Segment-based loyalty and reward system

Paylode’s platform enabled this MVNO to deploy a flexible, tiered reward system that incentivized upgrades, added lines, and consistent payments—with minimal technical setup.

Tier-based perks aligned to plan levels

Each plan tier unlocked exclusive perks, from food discounts to VIP event access—motivating users to move up the value ladder.

Tier-based perks aligned to plan levels
Behavioral Boost actions to drive upgrades

Paylode’s “Boost” logic rewarded specific actions like on-time payments, adding new lines, and consecutive billing without penalties.

Behavioral Boost actions to drive upgrades
Integrated multi-channel engagement

Perks were promoted through in-app notifications, SMS, and email, driving awareness and milestone completions across all user segments.

Integrated multi-channel engagement

Results

The loyalty strategy drove long-term behavior changes and revenue growth, increasing both user satisfaction and profitability in 90 days.

ARPU increased by 19%

The average revenue per user rose significantly, thanks to greater plan upgrades and higher-value user behaviors.

36% plan upgrade rate

Over one-third of users moved to higher-tier plans, drawn by targeted rewards and milestone perks.

Improved NPS from 42 to 61

Customer satisfaction jumped after users saw more tangible value without needing to ask for discounts.

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