Mobile pricing strategies: the more-for-more strategy does not make customers happier or more loyal

The strategy of upgrading customers to mobile plans with larger data allowances is no longer as viable and effective for mobile service providers as it once was. This is one of the main findings of our annual consumer survey in 2024.

The ‘more-for-more’ strategies are difficult to sell in many countries because a large share of customers already take unlimited data plans.

The relationship between upgrading customers onto plans with larger data allowances, intention to churn and customer satisfaction is not straightforward and does not follow the trend that might be expected.

Customers with unlimited data are less likely to churn (positive for mobile operators) and are less satisfied with mobile services (negative for mobile operators) than customers that take plans with smaller data allowances.

The actions that operators need to take to enhance their mobile propositions are clear: they must find compelling use cases for unlimited data plans and offer new (or more) benefits to customers who take plans with a limited data allowance (from 5GB to 30GB).