Check and change your bill now: Who gets everything from your mobile phone subscription?

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Many Swiss mobile phone users pay hundreds of francs more each year for their mobile phone subscriptions. This is often because of convenience: People are intimidated by the effort a change requires. Or you are overwhelmed by the confusing mess of offers, as more and more providers compete for customers’ favor.

Comparison portals or a digital subscription store can help here. This is a customer-facing platform that optimizes subscription switching and serves as an ideal interface between users and providers. The Zurich start-up is the first company in Switzerland to offer this service and is based on the model of hotel provider booking.com. In other words, the best possible offers are determined for customers in the entire market and offered on favorable terms. In total, a user with alao saves 50 to 80 percent on mobile phone subscriptions from common Swiss providers.

This is how high prices come about

But how can this be? “The reason for this lies in the different cost structures,” says Walter Salchli from Alao. The telecommunications professional has worked in the subscription business for many years for various providers and is fully familiar with the cost calculations of various companies. He founded his own company four years ago and recruited larger investors. “Mobile phone subscription providers have many different roles that go beyond selling subscriptions and create high costs,” he explains. This means, for example, expanding and maintaining the mobile network or operating your own stores; This includes technology, store rent, infrastructure and of course personnel costs.

All of these budget items are included in calculating subscription prices. Generally, minutes are imported and calculated into a business scenario, including data, roaming, international calls, and foreign calls. “After all, the costs incurred need to be lower than the subscription price,” says Salchli. Added to this was the so-called confusion. This refers to a churn rate calculated based on the assumed churn of all customers and added to each subscription to compensate for that churn. Since overhead costs are calculated quite tightly, most providers do not consider it possible to discount the price as this would significantly reduce the profit margin. Therefore, larger discounts may only be offered to new customers.

Cheap thanks to digitalization and efficiency

The price structure in Alao is different. Many of the previously mentioned cost factors do not play a role because the company is completely digital and extremely efficient and can therefore focus solely on selling referrals and subscriptions; This drives down tariffs. Additionally, due to the high number of subscriptions sold, alao receives better offers and special promotions from providers, which has a positive impact on the price.

The customer also benefits from alao taking over the number porting and termination of the old contract free of charge. There is no activation fee like with “normal” mobile phone contracts. Additional coupons and refunds can be added to the much cheaper tariff: alao transfers the commission it receives from the providers to its users proportionally.

“As easy as ordering pizza”

Alao’s company structure affects not only the price but also customer service. The digital mobile phone subscription store allows users to get their ideal subscription in five minutes. The laborious replacement procedure is no longer necessary. “Our new technology and efficient processes enable us to make purchasing more effective,” explains Walter Salchli. «We focused entirely on the customer and put the subscription of their dreams at the center. Because we know the market and our customers’ needs, we also ensure that switching providers is fun.”

All processes and technologies developed by Alao are designed to virtually recreate the customer experience when purchasing a subscription. Salchli: “Simply put, switching providers is as easy for us as ordering pizza.”

The algorithm developed by Alao analyzes customer needs quickly and independently and produces the most suitable offer for the customer. Similar to booking.com, alao calls it best deal guarantee. It’s a well-received concept: alao has by far the highest user rating on Google of any company in the telecommunications industry, with 4.7 stars.

Source : Blick