A Theoretical Comparison of Postpaid and Prepaid Customer Retention Techniques in India's Telecom Industry

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Published: Feb 1, 2025
DOI: https://doi.org/10.29070/8bx9qm19
Keywords:
Telecom Industry, Customer Retention, Prepaid Users, Postpaid Users, India, Telecom Segmentation

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Authors

Dinesh Kumar Baghelkar

Research Scholar, The ICFAI University, Jaipur, Rajasthan

Dr. Ruchi Gupta

Assistant Professor, The ICFAI University, Jaipur, Rajasthan

Abstract

The Indian telecom industry, among the largest and most dynamic in the world, is marked by intense competition, rapid digital transformation, and a consistently high customer churn rate. With over a billion active subscribers, telecom operators are increasingly focusing on effective customer retention strategies, especially within the prepaid and postpaid segments. This theoretical study offers a comparative analysis of customer retention techniques employed for prepaid and postpaid users in India. Based on existing literature, industry reports, and behavioral models, the paper examines key dimensions such as customer profiles, pricing sensitivity, usage patterns, loyalty programs, switching barriers, and customer engagement mechanisms. The analysis reveals that prepaid retention relies heavily on volume-driven strategies like discounts and gamification, while postpaid retention is anchored in personalized services, bundling, and long-term relationship management. The study provides actionable insights into how telecom providers can tailor their retention approaches to each customer segment, thereby enhancing customer satisfaction, loyalty, and profitability in a rapidly evolving digital landscape.

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Issue

Vol. 20 No. 1 (2025): International Journal of Information Technology and Management (IJITM)

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