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17/04/2015 13:16:04 Marketing Society Presentation Slide 1 Maximising Customer Loyalty and ROI Through Targeted Marketing Campaigns Paul Farrell Head of.

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Presentation on theme: "17/04/2015 13:16:04 Marketing Society Presentation Slide 1 Maximising Customer Loyalty and ROI Through Targeted Marketing Campaigns Paul Farrell Head of."— Presentation transcript:

1 17/04/ :16:04 Marketing Society Presentation Slide 1 Maximising Customer Loyalty and ROI Through Targeted Marketing Campaigns Paul Farrell Head of Marketing O2 Ireland October 2004

2 17/04/ :16:04 Marketing Society Presentation Slide 2 Irish Mobile Market Overview 3.5 million mobile subscribers March % mobile penetration 74% pre-paid 26% post-paid 910 million text messages sent last quarter 25% increase in text messages year on year Market Share - Vodafone 54% O 2 40% Meteor 6%

3 17/04/ :16:04 Marketing Society Presentation Slide 3 Technological change increasingly impacts consumer behaviour and makes them more powerful TIME-SHIFTING AND CUSTOMIZATION BROADERPORTABILITY INCREASED INTERACTIVITY NEW TECHNOLOGIES GREATERSELECTIVITY IMPLICATIONS FOR MEDIA Devalues traditional advertising as audiences fragment and have more control Imposes more creative demands on content and drives higher costs Creates new packaging requirements and new outlets Threatens traditional formats and product bundles NEW REQUIREMENTS 9

4 17/04/ :16:04 Marketing Society Presentation Slide 4 Various user preference measures confirm the ability of mobile to act as a behavioural bridge between old and new media LowMediumHigh BroadcastInternetMobile Span of Attention Choice of Content Willingness to Pay Interactivity Tolerance of Adverts

5 17/04/ :16:04 Marketing Society Presentation Slide 5 However, media’s newfound attention to serving mobile customers will imply the use of similarly complex segmentation - O2 is already responding… Segmentation Dimensions Intensity Age Sex Device Usage Willingness to Pay Motive for Use Private/Business Usage Young Old MaleFemale Mobile Stationary High Low Trans- action Enter- tainment PrivateBusiness No one-dimensional media usage context or user typology Demographic criteria (age, income) becoming less important Instead: combination of demographic and usage specific dimensions Challenge: segmentation criteria must be operational across media types Classical criteriaNew criteria Segment X Segment Y

6 17/04/ :16:04 Marketing Society Presentation Slide 6 Cost Effective Campaign Development The Old Way The New Way Data is King –Timely –Accurate –Segmented Using Technology to identify Trends/Opportunities –Propensity Modelling –CRM is critical –Improved Response Rates Channel Selection –Use of Mobile phone as a Marketing Channel –Trial and incentive –Stimulate usage

7 17/04/ :16:04 Marketing Society Presentation Slide 7 Revenue Stimulation - International Calls The Old Way The New Way Fixed Mobile Substitution - International Callers –To stimulate international voice usage & maximise revenue –To help us gain initiative in the marketplace –To communicate a strong good will & value message –To further gauge price sensitivities & calling behaviours –To provide a database of potential subscribers to Speak easy International Tariff

8 17/04/ :16:04 Marketing Society Presentation Slide 8 Fixed Mobile Substitution to drive Revenues The Old Way The New Way Data –Access to Data through associations/affinity –Overlay with Usage Data –Devlop appropriate Segments Technology –Use of CRM to identify attractiveness –Identify potential new or latent opportunities –Build Trigger models to increase efficiency Channel Selection –Focus on Direct Channels to drive revenue –Localised in language communication –Low to Medium ATL to support Brand Appropriate Customer Segment

9 17/04/ :16:04 Marketing Society Presentation Slide 9

10 17/04/ :16:04 Marketing Society Presentation Slide 10 Press advertising for Easter 50% off promotion

11 17/04/ :16:04 Marketing Society Presentation Slide 11 Advertisement in Filipino Community Newsletter

12 17/04/ :16:04 Marketing Society Presentation Slide 12 Results… Average increase in Revenue 400% Margin 350% Usage 220% Response is greater when planned around event days e.g. Chinese New Year, 4 th July etc. Promotions over shorter periods generate higher revenues SMS & other direct channels are most effective marketing tools for call campaigns “50% off” messages prove just as effective as price point messages yet minimise financial risk. Similar model has been applied to Games, Mobile Web, Ringtones

13 17/04/ :16:04 Marketing Society Presentation Slide 13 Customer Retention - Focus on Value not Volume The Old Way The New Way Apply a Holistic Approach to Prepay Retention –Handset is King –Text is the currency of Prepay –Requirement for relevance in all communications and offers –Proactive approach is essential –Fresh offers and increased frequency

14 17/04/ :16:04 Marketing Society Presentation Slide 14 Value Based Retention - Holistic Approach The Old Way The New Way Data –Over 80% registered Prepay customers –Development of Value based Segmentation –Coloured with Lifestyle and Usage Data Technology –Use of CRM to create propensity models –Use of CRM to apply targeted individualised campaigns –Closed loop measurement across multiple channels Channel Selection –Integration of all key channels –Planning and integration of campaign across channels –Mobile key element of channel mix

15 17/04/ :16:04 Marketing Society Presentation Slide 15 Value Based Retention - Holistic Approach The Old Way The New Way

16 17/04/ :16:04 Marketing Society Presentation Slide 16 Value Based Retention - Holistic Approach The Old Way The New Way Resign –Successful Launch of Prepay Upgrade program 18 months ago –Tailored based on Value of previous usage –Up to 120  euro Call Credit when you upgrade –Over 50% of connections are Upgrades Retain Proactively –Targeting high risk customers across channels –Focus on Value from customer perspective –Tailored offers and choice –Create a full customer view across all touchpoints –Develop Dialogue –Surprise and Delight

17 17/04/ :16:04 Marketing Society Presentation Slide 17 AnalyticsCampaign Management Customer Care/Retail eShop / eServe Propensity Models Profiling Triggering BI Target List Manage Campaigns Measure Effectiveness Full Customer View.. Billing Systems etc. Personalised targeting, of up-sell, cross-sell retain. Value Based Retention - Holistic Approach

18 17/04/ :16:04 Marketing Society Presentation Slide 18 Full Customer View Best Offer & Next Best Offer Click for additional informationAccept or reject offer Additional Offer information Displayed Propensity to Churn

19 17/04/ :16:04 Marketing Society Presentation Slide 19 SMS works… SMS Retention Campaign high risk, high value prepaid - December 2003 Customers offered 20 Free SMS per month for 6 months Communicated directly via SMS to customer Direct Opt in response from customer Text messages applied directly to customer each month Directly linked to Top Up behaviour as an ongoing activity

20 17/04/ :16:04 Marketing Society Presentation Slide 20 O2 Rewards DM and On-Line communication to top 230,000 customers Segmented into 6 versions Lifestyle Gender Demographics Premium Access to Services/Info Unique Offers and Promotions Specific Rewards for Tenure/Usage Revenue Positive

21 17/04/ :16:04 Marketing Society Presentation Slide 21 Results… Prepay Monthly Churn running at 20.6% Targeted Campaigns delivering significant churn reductions Highest Value Segments running at 14% Focus always on proactive customer relevant activity Contact strategy and Frequency is critical Top Two Prepay Value segments show highest customer advocacy Over 80% of high value customers are committed to O2

22 17/04/ :16:04 Marketing Society Presentation Slide 22 THANK YOU ANY QUESTIONS?


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