Innovation Insights
by Stephen Shapiro

Creative Phone Service – And Creative Billing

I just discovered a new phone service called Tabrio.  It claims to provide Skype-like calling rates (ad-supported), without the need for any special headsets or hardware.  In fact, this service runs through your existing phone provider – landline and/or mobile.  You give Tabrio your callback phone number (via their downloadable application).  When you make a call, it first calls you and then it calls the other party.  Clever.

What I like about this model is that it does not rely on my internet bandwidth like Vonage and Skype. I’ve had problems with sound quality on both of these services in the past.

So far, Tabrio sounds great.

I call England a fair amount and also send text messages there.  The Tabrio site claims that the sms rate from the UK to the UK is $.04.

I received $5 of free service to try it out. On the first day I did some test runs. I made one local call, one domestic text and one international text. According to the website, this should have cost me $.12 ($.01 for test call, $.07 for US text and $.04 for UK text).

But what I soon learned is that the rates listed on the website are the “minimum rate per minute.”

Instead of being charged $.12, I was charged $.32!  I did one more text to the UK and that cost me $.21 – 50% more than my mobile provider.

I wrote their customer service and received the following response.

“The rate calculator you see on our website only lists the lowest possible rate to connect the call or send the text message to the destinations you’ve selected. In some cases, our least expensive route may be unavailable to handle a call or text message due to load on their networks, or because we don’t have a route with that provider to the specific location you’re trying to reach. In those cases, the price you pay for a call or text message may be more than what you see on our rates page.”

This feels like a Las Vegas casino partnered with a phone service provider.  Sometimes you get a great rate.  And other times, well, you aren’t so lucky.

Predictability is critical for most customers.  Make sure your innovations don’t result in unwanted surprises.  Customers are willing to deal with some inconvenience if they can save some money.  But spending 50% more while adding extra steps does not make sense.

Although I give Tabrio credit for an interesting model, this is one creative idea that isn’t ringing my bell…yet.

P.S. I just received a call from Christian Jensen, VP, Products and Services for Verb Exchange (the company that  launched Tabrio).  He was extremely friendly and agreeable.  He admitted that there are kinks to work out, and that the product is still in beta.  He also said that they are making changes regarding the publishing of rates.  I will continue to play around with it.  Tabrio has great potential and I would love to see it succeed.