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Developing A Successful Loyalty Programme… Fastlink

Developing A Successful Loyalty Programme… Fastlink. Shukri Eid Prepaid Marketing shukrie@fastlink.com.jo. Agenda. Mobile Industry in Jordan. Prepaid Products – Fastlink. Dayman … Loyalty Programme - Definition - Mechanism - Implementation - Evaluation

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Developing A Successful Loyalty Programme… Fastlink

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  1. Developing A Successful Loyalty Programme… Fastlink Shukri EidPrepaid Marketing shukrie@fastlink.com.jo

  2. Agenda • Mobile Industry in Jordan. • Prepaid Products – Fastlink. • Dayman … Loyalty Programme • - Definition • - Mechanism • - Implementation • - Evaluation • Different Retention Schemes.

  3. Jordan – Mobile Penetration • Population: 5.2M • Age Structure • (0-14) 35.2% • (15-64) 61.1% • (>64) 3.7% • GDP – per capita JD1,200 • $1,700 • Mobile Penetration Rate: 23% • July: 2004

  4. Fastlink – Market Share • Fastlink was established in September 1995, offering postpaid mobile services. In 1999, the first prepaid product “EZlink” was introduced. • Fastlink Market Share: 72% • 1,060,000 Subscribers Operators in Jordan Fastlink – 1995 - GSM MobileCom – 2000 - GSM Express – 2004 - IDEN 4th Operator – expected 2005

  5. Prepaid Products • Consumer: For High Day Usage For High Night Usage For Calling Specific Numbers With Reduced Rates For Temporary Users – Visitors & Expatriates

  6. Prepaid Products • Corporate: Student’s Line Other prepaid corporate products designed for: - Organizations - Jordan Armed Forces

  7. Why A Retention Programme? • Protecting the Consumer Prepaid Base. • Competitive Advantage. • Reducing Churn. • Increasing The Active Base. • Building a Loyal Prepaid Community. • Increasing ARPU & MOU’s.

  8. Prepaid Life Cycle – Consumer New Line Validity Grace Reactivation Churn

  9. Loyalty Programme Brand Name!!? Consumer Subscribers Excluding Ziyarah...Why? Up to 20%Free Credit For Active Lines! 1-year Programme Protective Action…

  10. Mechanism • To register, the subscriber has to dial a free number “Dayman Number”. • Registered subscriber has access to check his/her balance, points and status with the programme by calling Dayman Number. • Upon registration, the subscriber chooses the way of being informed about his/her given bonus, either via; • A) AutoDialer B) SMS • Increase awareness!

  11. Mechanism • Getting Free Credit - To get the repeated JD3 “20%” line has to be always Active! - By entering into the Reactivation Period, registration is still valid but any collected points will be deleted.

  12. Implementation • Creating Value @ the Executional Level! • Brand Name! • What does “Dayman” stand for? - Pricing With every JD15, a bonus up to 20% is given. To increase the monthly JD12 recharge to JD15. - Advertising Support Communication with the targeted segment. - Training Call Center & Front Liners; Fastlink Shops & Dealers.

  13. Media – Advertising Campaign • Newspapers & Magazines • Radio • POS Materials “Flyer, Poster… • W.O.M • Outdoors • Fastlink WebSite

  14. Evaluating • Monthly Growth

  15. Evaluating Dayman Subs>Non Dayman Subs. • ARPU But it was a genuine behaviour, higher recharge values. • Churn Rate Dayman Subs<Non Dayman Subs. Dayman Subs>Non Dayman Subs. - (Active/Total Base) With a difference of 20% after 10 months of launch. • No remarkable differences had been found regarding the subscribers behaviour from different products. A slight higher (Bonus Given/Recharge Value) for RAZOR subs., and that is justified by their higher ARPU & MOUs.

  16. Evaluating • (Benefited Subscribers/Participants) • Not all participants had benefited “monthly” from Dayman due to: • Entering into the Reactivation Period. • Not achieving the total of JD15 in that month. • Considered as a registered subscriber, but not aware of the mechanism. • (Bonus Given/Recharge Value) • Feb02: 6.5% • Feb03: 15.2%

  17. Evaluating • Telemarketing Campaign, September 2002 • Questionnaire was designed to serve both Dayman & Non-Dayman subscribers. • Findings: • Dayman subs. follow new promotions offered by Fastlink more than Non-Dayman subs. by a higher difference of 16%. • The highest promotion remembered by both segments was Dayman!! • 7.6% of Dayman subs. did not know about the programme, on the other hand 56.0% of Non-Dayman subs. did not know about it!

  18. Evaluating • Findings – cont; • D) Both segments had heard about Dayman by: • - W.O.M - about 50% of respondents” in both segments • - Newspapers • - Fastlink Employees • - T.V - Dayman was not advertised by any T.V commercials! • - Other Tools of Media • E) 29% of Dayman subscribers claimed that they did not feel any difference with Dayman, why? • Getting extra credit talking more • Talking more losing credit!

  19. Different Retention Schemes • By studying Dayman and its impact on the market, the main concern for all subscribers was to get free bonus regardless of the mechanism. • Market needed a simpler mechanism to get instant bonus, with no need to register “Do not trust any long-term promotion”. • The monthly given bonus “money spent” for Dayman was enormously increasing. • The intention to increase the ARPU/MOU’s has already been achieved.

  20. Different Retention Schemes • In order to capture the created value with Dayman, a decision was taken to stop Dayman after a year and new approaches were adopted and implemented on the Prepaid RoadMap of 2003 & 2004. • Interesting Fact!! • Specific segment “high value recharging behaviour” was getting the big portion of the monthly given bonus!

  21. Prepaid RoadMap - 2003 • February 18th – March 18th, 2003 • 50% Added Bonus With Every Recharge. • All Prepaid products – Consumer & Corporate. February 25th,2003 New Calling Rate Reductions on RAZOR & EZLink. May 13th – June 13th, 2003 25% Added Bonus With Every Recharge. All Prepaid products – Consumer & Corporate. July 15th – September 15th, 2003 Summer Promotion “Prize Draw” 2 Mercedes Cars & 100 Sony Ericsson Handsets. All Prepaid products – Consumer & Corporate. October 7th – October 14th, 2003 50% Added Bonus With Every Recharge. Excluding the JD5 Scratch Card. All Prepaid products – Consumer & Corporate.

  22. Prepaid RoadMap - 2004 • February 14th – February 21st , 2004 • With Every Recharge, A Bonus% Was Given • Bonus% depends on the value of the scratch card used. • Excluding the JD5 Scratch Card. • All Prepaid products – Consumer & Corporate. • April 13th, 2004 • Scratch & Win “with a total value of JD1,000,000” • 10 Mercedes Cars • 300 Siemens handsets • More than 100,000 Scratch Cards October…. November …. December!!

  23. Comparison

  24. The law of Win/Win says… • Let’s not do it your way or my way; let’s do it the best way! • Greg Anderson

  25. Thank you…

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