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
Lack of incentives for mid-tier growth
Need to differentiate in a price-sensitive market
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.
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.
Integrated multi-channel engagement
Perks were promoted through in-app notifications, SMS, and email, driving awareness and milestone completions across all user segments.
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.
