4 techniques to increase your revenue per user

Written by Erin Penney

For ISPs, the issue of revenue is twofold: You need to be able to bring in new subscribers, and you need to be able to get a sustainable revenue out of the ones you already have. In many cases, that means scaling up the revenue each subscriber brings in—without overcharging for services, of course.

This two-sided approach is what helps ISPs grow consistently over time, even in highly competitive markets.

But how do ISPs do this? Here are four key strategies leading ISPs use to increase the revenue they generate from each subscriber.

 

Paid priority support

Fun fact: Last year, over half of consumers reported having an issue with their WiFi—but 27% actively chose not to call their ISP for help because of the time and effort involved. That’s a staggering statistic, if you think about it; more than half the people who have WiFi issues would rather deal with it than spend time on the phone taking care of it.

For ISPs, this is a major opportunity to offer an additional service like paid priority support. Clearly, there’s a market out there for faster support options—and since consumers will voluntarily pay more for better service, especially when it comes to their WiFi, it can translate into higher revenue per user.

 

Paid managed WiFi

In general, managed WiFi is popular with ISPs around the world because it gives them some degree of control over the experience subscribers receive. This is important because, well, subscribers often don’t understand their networks or how their own actions impact those networks.

That said, managed WiFi means much more these days than installing a controlled router or other CPE in the subscriber’s home. Today, it’s more involved; you need to be able to see into myriad smart devices, identify tricky problems like placement issues, and help subscribers find and eliminate dead spots.

By offering premium services to help these subscribers set up and manage their WiFi, you can help prevent issues before they happen.

Additional devices and network upgrades

Let’s build on our previous point. Consumers often need additional devices to get the most out of their networks—but won’t know what, how many, or where they should go. In fact, recent data shows that over half of consumers have at least one WiFi dead spot in their homes.

By offering essential devices like network pods and extenders, often as monthly recurring add-ons for existing plans, ISPs can provide better experiences for subscribers. These improved experiences translate to an increase in ARPU, improved NPS scores, and lower churn rates—a win-win for both ISPs and subscribers.

 

Bigger, faster plans

Even now, two years after the start of the COVID-19 pandemic, people around the world are continuing to work and attend school remotely—which puts lots of strain on their home networks.

To help manage these higher loads, subscribers need bigger plans—including more bandwidth and speed. Offering a wider range of plans designed to meet these increasing needs is a simple way to increase your revenue per user, especially when you can identify and upgrade the subscribers who need it most.