“If you take nothing else from this post, remember that my bill was cut in half. Seriously. No marketing spin…real dollars.” – Walowizard
Over two months ago we introduced and began selling our new Republic Refund Plan that pays you back for unused cellular data. This new plan offering was the culmination of our first Republic Labs project called Maestro. Close to two thousand of our members participated in our Maestro trial, a number we were grateful and humbled to accept. The quantitative and qualitative feedback provided in this, our very first lab, was crucial to us tweaking the offer prior to making it generally available to everyone on July 7th, 2015. As of this writing, we now have over fifty thousand (wow!!!) Republic service lines on our Republic Refund Plan. With more users waiting in the wings to transition on their upcoming billing cycle date, it’s safe to say we are incredibly pleased with how things are going.
Oh, and the savings those fifty thousand users have generated for themselves is huge! Our average user on these new plans paid only $13.821 for a month’s worth of service in August. That’s amazing! WiFi is the way, and we’ve had great success helping people offload more cell data onto affordable WiFi when available with our new app and service. We call that a landslide win for the power of WiFi for staying better connected. Let’s put that $13.82 in cost for our average member a bit more in perspective: Based on reported and calculated financial results from the most recent quarter, an average user spent $53.05 on Verizon Wireless, $46.12 on Sprint, $44.45 on T-Mobile, $41.07 on AT&T2. That’s a considerable cost difference! If you have a friend or family member on one of these other carriers we think you can probably now afford to buy them a drink(s) and talk about their wireless plan. 🙂
But enough about our competition…how are we doing relative to saving our users money vs. what they were paying for Republic phone service before?
- Folks previously on our 3G $25/month plan are saving $8.56 on average per month which amounts to a 34% savings! That’s over a cool $100 in annualized savings back in their pockets!
- Folks previously on our LTE $40/month plan are saving $19.91 on average per month which amounts to a 50% savings! An astounding roughly $239 in annualized savings!
- If you’re on the $10 plan, that stays that way, but for those who want a little bit of cell data on demand, we’ve seen $10 members using an additional $2.93 worth of cellular high speed data when they want. 🙂
We note that these results are roughly in-line with what we saw and communicated in our Maestro lab, which for those of us who stress about forecasting accuracy is a nice relief! Phew!
We also wanted to share a bit on who’s using our new Republic Refund Plans. It’s pretty much a solid distribution across device type. And, the majority of existing members who’ve chosen to transition into the new plans have come from our 3G plans ($25/month) followed by our Talk & Text plans ($10/month).
The great majority of members (new + folks that have transitioned) on the new plans are selecting our 0.5GB plan (roughly 40%). That was all thanks to you! The 0.5GB option didn’t originally exist when we started the Maestro lab and it was your collective feedback that made it happen! We continue to love and support all our members and thank you for making Republic ever better. There’s always more to come and we’re excited to have you all be a part of it!
1: Stated ARPUs are calculated based on average usage across all Republic Refund Plan members from August 2015 and exclude taxes and fees.
2: Calculated ARPUs for Verizon, Sprint, T-Mobile and AT&T based on Q215 results and calculated as a blend of post-paid and pre-paid accounts.