In the good old days, postpaid service in India meant a premium customer experience, special attention, privileges, and loyalty. The longer you were associated with an operator, the higher your customer value (credit limit) and service. However, today, postpaid users receive little to no added value in terms of customer service or experience. In most cases, it makes no difference whether you are on a prepaid or postpaid plan. With prepaid services now offering unlimited benefits, the distinction between the two has largely disappeared. The postpaid segment has been gradually degraded in every aspect of service standards, as if someone has purposefully done it, bringing postpaid standards down to those of prepaid.
Ideally, we believe that a postpaid customer, who is on a monthly bill cycle and committed to a service provider with a specific plan, should be provided with more value and attention, including exclusivity. But if we observe the current scenario, that is not the case. For some reason, over the years, the postpaid service experience has gradually degraded, making the service less appealing to most users unless someone specifically opts for it.
No Significant CX Enhancement
The software layer available to the customer offers no significant difference between prepaid and postpaid. Although postpaid has some advantages, like “data rollover” and “use now, pay later,” there is no significant customer experience (CX) enhancement for customers. Ideally, this segment of customer experience is delivered via the software of the respective telecom provider. However, the ecosystem (or service layer) has become so poor that staying on a postpaid connection offers no differentiation or exclusivity.
From plans to service offerings, most services available to postpaid users are also available to prepaid users at a much cheaper price, with little to no added value or service exclusivity for postpaid customers. Even international roaming services are available to prepaid users, in the current scenario.
In fact, despite paying a premium and being committed to an operator, there is no loyalty aspect for postpaid users—it has been phased out completely. The service experience and every layer of differentiation appear to have been intentionally changed to push the existing postpaid user base toward prepaid, leaving no significant value in the postpaid segment. Prepaid users get to enjoy personalised offers and packs, whereas postpaid users do not receive any such benefits to make the service more appealing.
Higher Costs with No Added Value
Apart from bulk data and data rollover, there is no significant experience difference for postpaid users now. Even if a customer opts to buy data packs, they come at a higher price with GST extra, while prepaid users enjoy everything at a lower price with GST included. This creates the perception that there is no value or service differentiation for postpaid users.
No Market-Driven Innovation
Additionally, in a dynamic market, prepaid users quickly receive new plans or benefits when competition reacts, allowing them to enjoy the latest advantages. In contrast, postpaid users do not experience such benefits or service exclusivity. Postpaid customers continue paying for their chosen bill plan despite market offers provide more value and benefits.
No Service Differentiation
We believe the software layer provides the service differentiation that defines the customer experience, making them feel the difference between postpaid and prepaid. However, in the current scenario, we see that differentiation is given the least preference. The customer does not experience quality standards, and the overall postpaid customer experience has been degraded.
Even in retail stores, service experience levels and the quality of customer service remain low, offering no appeal for postpaid users. Previously, at least postpaid customers used to receive itemised billing, but now even that service is not properly provided by some operators.
Although operators promise premium or priority customer service, we have personally experienced the awful service levels that even postpaid customers receive. In most cases, the IVR does not even provide an option to connect to customer service easily, leaving customers frustrated when trying to raise a complaint. Many simply avoid wasting time waiting for a resolution.
Conclusion
We believe most of these cases are software-related and are hampering the customer experience. With no significant innovation or differentiation left for postpaid users, it is better to opt for prepaid, as it offers the same level of experience at a much cheaper price. Unless a customer explicitly wants a postpaid connection for a specific requirement, it holds no value in the current scenario.
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