Monday, August 29, 2005

Merchant Retailers Target Customer Segments For Bill Payment Services & Systems-Prepaid Cellular

Merchant Retailers Target Customer Segments

Global sales of cell phones will reach nearly 800 million this year, annual tally will surpass 1 billion in 2009., also estimated 2.6 billion mobile phones will be in use by the end 2009.

Historically, prepaid programs have targeted poor-credit to whom carriers would refuse postpaid services. These customers represent one-third of the U.S. population and make up a large percentage of the under-penetraed segments. Their credit history usually prevent them from abtaining a cellular phone. In addition to the low-credit customer, there exist customer segment for which the prepaid plan structure is inherently attractive. This overall market potential is larger and more diverse. The identified five additional major target segments. On the consumer side, 1) occasional users, 2) young adult users, and 3) the Hispanic market are ideal prepaid customers. On the business user side, 4) small business owners and 5) transient business travelers represent attractive segments.

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