The new network, named Giffgaff, has positioned itself as a ‘people-powered’ mobile network, using online recommendation activity and product innovation to reward customers with money off their mobile bills. Similarly to Virgin Mobile, Woolworths, DoDo and TPG here in Australia, Giffgaff will work off the back of O2’s network but will not highlight the O2 brand.
Giffgaff, which is an olde worlde word that means ‘mutual giving’, will operate on a low cost base and offers fixed rate SIM only tarrifs and a range of online tools to allow members to suggest answers to each other’s questions in online user groups. To join, customers need to simply purchase a SIM card at an initial top-up fee of 10 pounds.
Members will then be rewarded for things like referring Giffgaff to a friend, creating user-generated marketing, or voting on business decisions. The more that members get involved, the more money they will get off top ups.
The basic idea behind this new network is to keep telecommunications as simple as possible while adding a social element into the mix to generate interest and to promote the new offering.
Here’s Giffgaff’s explanation as to why consumers should give them a go:
• One simple tariff for voice, text and data.
• We’re online only, which saves us money, which means we can offer you brilliant prices.
• Your calls become cheaper the more you get involved.
• There's no long-term contracts and you can use any existing ‘unlocked’ handset.
• The option to donate your rebate to a charity or cause you care about.
• Play a role in deciding what services we offer.
Giffgaff launches before Christmas 2009 with the pricing model and other unannounced features and benefits to be revealed. Customers can’t preregister at this time, but can leave their email address to receive updates.
Interesting idea and certainly one to watch.
Brand Republic.
Marketing Magazine.
Mobile Industry Review.
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