3/5/2008 11:25:00 AM
T-Mobile claims triumph in Flext retention
T-Mobile has succeeded in retaining the bulk of Flext customers that were at the end of their contracts last year, said MD Jim Hyde this week.
Hyde told Mobile: ‘We spent a lot of money and effort on the experience of those customers and keeping them in what was a very competitive market.
‘There were a lot of people who signed up on Flext, and we were targeted in a big way. Our competitors knew when those customers were up for renewal and they went after us.’
Hyde added: ‘All those customers who signed up for Orange since then are now up for renewal and we will be targeting them [now].’
T-Mobile quickly surpassed one million Flext customers in 2007 after being virtually absent in the second half of the year.
T-Mobile’s growth rate on contract slowed markedly last year from the phenomenal period in 2006. It signed up 165,000 customers in 2007, compared with 733,000 contract customers in 2006.
Financial pressures from parent company Deutsche Telekom has encouraged T-Mobile UK to target high-end prepay last year, which doesn’t drain its budget.
The operator signed up 241,000 prepay customers last year, compared with 190,000 in 2006. Hyde said almost all of this was at the top-end, and that the operator had identified O2 as the only really successful player in the high-end of the prepay market.
‘We felt the market of good-quality prepay was underserved and we looked at that. Part of the strategy is not offering the low-end handsets but it’s also which channels you sell through and the proposition.’ He described the cheap-end of the prepay market as ‘nothing more than window-dressing’.