The vast majority of businesses today offer or sometimes impose subscription programs that force them to use their services. Alternatively, there emerged companies with different strategies that make it easier for customers to quit. ClassPass is the company with such an approach, and its managers try to offer more applicable and appropriate services in lieu of those the client is refusing to use further (Kassel, 2020). Some similar companies were also criticized for the complexity of unsubscribing policy that presents stress for the customers instead of pleasant service (Kassel, 2020). Thus, the given strategy is an effective way of raising competitiveness in the market.
This strategy gives the customers the feeling of freedom of choice, consequently increasing their trust level. The plan, where the potential clients can try the services for a discounted price before the subscription, can be also viewed as a similar approach. The buyers have the impression of confidence in their actions, which helps to retain them for a more extended period and later address the service provider (Jain & Jordan, 2017). It stimulates the increase in loyalty of the customers, which positively affects the attractiveness as well as the profitability.
This report will examine the applicability of the approach, as mentioned above, for the mobile connection service providers in Hong Kong. This region is chosen for its relatively high state of development and a wide range of customers. There are three major groups of consumers, namely permanent residents, frequently traveling businessmen, and tourists. The first category of consumers needs to have a reliable and permanent service type. The class of often commuters requires the option of unsubscription for some time similar to the projected policy. The last group is the one with which the company builds short-term relationships but can gain a significant reputation and profit.
CITIC Telecom International Limited is one of the mobile service providers in the region for which the unsubscribing policy would be beneficial (Zhang et al., 2017). The corporation can achieve higher results and become more competitive upon providing the opportunity for its customers to pause the services when not used instead of “burning” the package. This measure can be quite attractive because people are always interested in the services that conserve their money. For now, there is no other business implementing it (Zhang et al., 2017). It is the reason why there is a possibility of increasing business competitiveness and taking the opportunity to provide services on the same or even higher level than the four major Chinese corporations.
The named approach is prospective for CITIC Telecom International Limited because of the probable effective positioning and relative freedom compared to primary service providers (Office of the Communications Authority, 2019). Being a mobile virtual network operator, the business has an enormous scope of possibilities to develop (Zhang et al., 2017). The company managers can enlarge the customer body by attracting those who are not usually assisted. Furthermore, such positioning may also be engaging for permanent residents as in the current situation. People use internet services more than mobile applications. The possibility to suspend the services anytime gives the positive sense of security of the funds.
To conclude, providing the customers with a chance of pausing or retention from the subscription and saving personal funds is a novel approach of high interest. The named strategy can help to grow a better reputation and present an excellent alternative to existing market leaders considering mobile network providers. As a result, companies such as CITIC Telecom International Limited are able to increase their profitability levels, possibly.
References
Jain, P. & Jordan, S. J. (2017). Cancellation latency: the good, the bad, and the ugly.Financial Management, 46, 377-407.
Kassel, M. (2020). Subscription companies make quitting easier. The Wall Street Journal.
Office of the Communications Authority. (2019). Choice of Service Providers. Web.
Zhang, H., Liu, N., Chu, X., Long, K., Aghvami, A., & Leung, V. C. M. (2017). Network slicing based 5G and future mobile networks: mobility, resource management, and challenges. IEEE Communications Magazine, 55(8), 138-145.