Big Data: Telling the Story of Our Customers. Jay Beltran, Head of Customer Lifecycle Management Globe Telecom, Inc.
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1 Big Data: Telling the Story of Our Customers Jay Beltran, Head of Customer Lifecycle Management Globe Telecom, Inc. October 2, 2013
2 What is Customer Lifecycle Management? At the heart of CLM is the ability to tell the subscriber s story. Understand behaviors and spot opportunities with precision Use programs to increase spend tactically and recognize value
3 Background: Beginning of Globe CLM (2009) PROBLEM High churn rates Prepaid Postpaid Lowering ARPU due to competitive pressure Increasing cost of subscriber retention REASON Company focus on Acquisition No loyalty efforts Unlimited plays & low priced combos Tactical retention promos: raffles, instant freebies STRATEGY CREATION OF UMBRELLA LOYALTY PROGRAM CREATION OF CRM: High value, High velocity, Micro-segmented Campaigns PORTFOLIO MANAGEMENT: Cost Management Avoid Cannibalization Test and Learn
4 Customer Lifecycle Management Drives Loyalty, Retention and Incremental Top-up and Usage Rewards Program Baseline Loyalty Program to stretch subscriber tenure in Globe 100% coverage Micro-segmented CRM Campaigns Targeted incremental top up and usage 100% coverage Recontracting Program Baseline Retention Program for out-of-contract Postpaid Subs All prepaid subs earn points based on load amount Effective CTR of 1% Self funded program through partnership points exchange and premium charging Metrics: Churn Rate Comparison Between Redeemers and Non- Redeemers Micro-segmentation in the form of reload and usage campaigns Lifecycle based segmentation from acqui to churn saves Layering in behavioral segmentation based on transaction analysis Metrics: X% Incremental Revenues versus Global Control Group Proactive Recontracting: High Risk High Value Flair: Journey Milestone Messages Metrics: X% Coverage of Open Base
5 Evolution of CLM Rewards Program CRM Recontracting Loyalty Program Launch and Partnerships First-ever loyalty points program covering prepaid Partnered with SM for points conversion Per Transaction Charging Enhanced Campaign Capabilities and ODS Profiling with better accuracy, shorter latency Segmentation by usage 200 campaigns monthly average Enhanced Recontracting Policies Shift from AUR to MSF based rewarding Early recontracting No decline policy and quick recon resolution 2012 Expanded Points Conversion Partnered with BanKo, BPI, Cityibank, A-deals for Points Exchange Zalora as first client for White label More Broadcast Capacity and Discounting 20M daily broadcast capacity Real-time discounting and rewarding 300 campaigns weekly CTR Reduction 28% coverage of Open Base BR-HUP Split 57% Data Attachment Rate 2013 Points as a Currency Use of points to purchase goods at retail and restaurants Use of points to purchase goods at neighborhood stores Campaigning at Moment of Truth Real-time campaigns at moments of truth Campaigns optimized at a per individual subscriberlevel Proactive Recontracting Proactive: 25% CTR Reactive: 30% CTR
6 Integrated CLM Approach Powered by High Velocity, High Volume, Near Real-time Data Rewards Data TeraData Transaction Data Subscriber Data Billing Data CCB Points Earned RECON Points Redeemed Data Sets Open Base Locked-in Device
7 Processing the Data Analysts Planners Operations Process Performs analysis on campaign results Runs analytics on target segments and tiers Mine data / analytics for customer insights Draws hypotheses for targeted campaigns Translates campaign plans into execution details Configure campaign management Coordinate with stakeholders from different units Output List - segment Micro-segment insights and hypotheses Campaign schedules Campaign Targeted micro-campaigns Execution Campaign Configuration Results Analyze performance of campaigns Tweak micro-campaigns
8 EXAMPLE OF SEGMENTS AND CAMPAIGN INTERVENTIONS
9 Points as a Reward Register to SuperUnli25 4x and earn X reward points! Send X regular SMS and earn X reward points, enough to redeem Y! Load X pesos by June 30 and get X reward points!
10 MultiSIM SUB-SEGMENT HYPOTHESIS OFFER NON-CALLERS (IB ONLY) Maintains Globe SIM primarily to receive inbound calls from his very few Globe friends whom he texts when he wants to be called; Majority of traffic and contacts are on the other network INTER CALLERS Primary reason for maintaining another SIM is atypically not value-driven; Possibly due to loyalty to the brand (more tenured) or other reasons; however, high AllNet25 spend means he is not immune to such G.POSTPAID CALLERS Most tenured; Opted for prepaid because use is low and resist switch to postpaid because of affinity to number; Relatively well-off, thus has greater wallet elasticity Push MDS, which is networkneutral Push to call w/ rates requiring minimal commitment: discounted SuperUnli or auto-unli discounts Push Sancus to reward loyalty Offer discounted all-net rates Cheap long-valid SKUs similar to Postpaid
11 Postpaid Segment of One Campaigns Handset-Driven Offer 1 Offer 2 Bundle Plan Type Handset MDS MDS Apps/Content iphone SuperSURF PowerSURF499 2 apps Blackberry BBMAX BBSOCIAL 2 apps Samsung SuperSURF PowerSURF499 2 apps All-Unli Plans Other Android SuperSURF PowerSURF499 2 apps Other Smartphone PowerSURF499 PowerSURF299 1 app/content Non-smartphone PowerSURF299 na 1 content Untagged Disc Questions based on DQ based on DQ iphone SuperSURF PowerSURF499 2 apps Blackberry BBMAX BBSOCIAL 2 apps Samsung SuperSURF PowerSURF499 2 apps All-New MSP Other Android SuperSURF PowerSURF499 2 apps Other Smartphone PowerSURF499 PowerSURF299 1 app/content Non-smartphone PowerSURF299 na 1 content Untagged Disc Questions na based on DQ Legacy Plans iphone SuperSURF PowerSURF499 2 apps Blackberry BBMAX BBSOCIAL 2 apps Samsung SuperSURF PowerSURF499 2 apps Other Android SuperSURF PowerSURF499 2 apps Other Smartphone PowerSURF499 1 PowerSURF299 app/content Non-smartphone PowerSURF299 na 1 content Untagged Disc Questions na based on DQ Strategy: Segment of ONE for Postpaid 1) Segment base via plan type, handset and usage behavior segmentation 2) Tag & score/re-score 100% of the base with a profile or descriptor e.g. INTL User Monthly flyer Opportunity: Monthly Roaming 3) Create at least 3 matching offers per subscriber e.g. INTL User Monthly flyer Offers: Roaming SKU + Data Roaming BUT, it doesn t stop us from stimulating local SMS, Voice & Data 4) MDS offers based on data tack-on, either cross-sell (for non-users) or upsell (for existing, except for SuperSurf and BB Max subscribers) 5) Multi-channel SMS, OB Call-out (current) Inbound (Sweden CRM) (IVR) For development Online *143# USSD edm Bill (Sweden Phase 2)
12 RESULTS
13 Loyalty Program Highlights Sustained engagement to-date High participation to the program 11.5Mn Live Redeemers to-date 67% penetration vs. loading base (prepaid) Exceeded YTD 2012 target for new redeemers by 68% Redeemers base steady vs. PY, Postpaid on an uptrend due to Sep 11 and Mar 12 redemption push 11.7Mn, +3% vs. PY Program is self funded Cost Management Initiatives resulted to significantly low rewards CTR Premium charging on telco SRP and product cost of non-telco rewards Added in delivery and aggregator fees to points requirement Offering only high-margin telco products as rewards Seasonal pull-outs of low value rewards Net actual CTR is at 0.7%, vs. 5% gross points earning CTR enjoyed by subscribers
14 Loyalty Program Influencing Churn Subscribers highly engaged to the loyalty program exhibits the lowest churn rate
15 CRM Revenue Performance CRM delivered 2-3% incremental revenues above mainstream. 5.0% CRM Contribution Year-on-Year 4.0% 3.0% 2.0% 1.0% 0.0%
16 TIPS
17 Tips on How to Get Started Start with an objective in mind
18 Start with an objective in mind FOR GLOBE: Generate Incremental Revenues Above Mainstream Mainstream CRM 5% incremental revenues May Jun Jul Aug Sep Oct Nov Dec Find opportunities to stretch TOPUP Find opportunities to stretch SPEND
19 Tips on How to Get Started Start with an objective in mind Define success metrics
20 Define success metrics OBJECTIVE: Generate Incremental Revenues Above Mainstream INCREMENTAL REVENUES DECREASED CHURN RATES
21 Tips on How to Get Started Start with an objective in mind Define success metrics Define milestones of success
22 Define milestones of success RETURN ON INVESTMENT CRM delivered 2-3% incremental revenues above mainstream. 5.0% CRM Contribution Year-on-Year 4.0% 3.0% 2.0% 1.0% 0.0%
23 Thank you very much.
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