How a regional MVNO reduced churn by 28% with Paylode’s telecom loyalty platform

Executive summary

A Dallas-based regional MVNO was losing over 4% of its prepaid users monthly, despite competitive pricing—revealing that affordability alone couldn’t ensure retention. Lacking a structured engagement strategy, the company struggled with churn and low customer lifetime value. To solve this, they partnered with Paylode and integrated its loyalty platform into their app and SMS flows. By rewarding high-value behaviors like on-time payments and plan upgrades, they boosted retention, increased ARPU, and tripled app engagement—all within six months, without relying on margin-eroding discounts.

Challenge

The prepaid user base lacked long-term loyalty, with churn spiking after initial promotions. App adoption was low, limiting the brand’s ability to connect with and retain customers.

High churn and low engagement among prepaid users

Despite attractive plan pricing and offers, the provider was losing up to 4.2% of its customers monthly. Users frequently left after introductory promotions, citing “no reason to stay,” while app engagement sat at just 21%.

Low app adoption and engagement

With only 21% of customers using the mobile app, there was a lack of a consistent, scalable channel to engage users, promote offers, or reinforce loyalty beyond SMS promotions.

Dependence on margin-eating discounts

The promotions strategy relied heavily on discounts that cut into profitability. A new approach was needed to retain users and drive behavior without continuously slashing prices.

Increasing retention with Paylode

Paylode deployed a loyalty and engagement platform in just 10 business days, requiring minimal engineering support. It was designed to reward valuable behaviors, personalize perks, and boost engagement through app and SMS channels.

Behavior-based rewards and dynamic perks

Customers were rewarded for activating auto-pay, referring friends, and staying active—using rotating perks like Starbucks credits and Uber rides. Perks were personalized by zip code and customer type, while internal offers like accessory discounts added more brand value.

Rewarding high-value customer behaviors

The platform incentivized users for actions such as enabling auto-pay, referring friends, and staying active for over six months—turning retention behaviors into reward opportunities.

Segmentation and ZIP code personalization

Users received perks and offers tailored to their plan type and location. This hyper-targeted strategy made the program more relevant and improved reward redemption rates.

Results

With Paylode, the mobile provider replaced discounts with delight, fueling loyalty and revenue growth through seamless reward automation.

Churn decreased, loyalty increased

Churn among prepaid users dropped by 28%, especially in the high-risk first-year user segment, while referral program ROI increased 4x.

320% Increase in app engagement

Daily active users in the mobile app more than tripled, transforming it into a core engagement and retention channel.

11% increase in ARPU

With higher auto-pay adoption and cross-sell success, the provider saw an 11% lift in average revenue per prepaid customer.

Boosting loyalty: A regional MVNO’s Paylode success