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Increasing Loyalty with Targeted Campaigns for Mobile Broadband Products

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6 diapositives · 143 Views · Nov 17, 2014

This project focuses on reducing churn by selling mobile broadband products to two customer segments: Fun & Action and Progressives. The goal is to use predictive modelling to define the target groups, design effective campaigns, and achieve high take rates with low costs. Tasks include defining the campaign plan, designing the campaign, developing the right message for each segment, and establishing the required skills, processes, and systems for operational success. The success of the campaign will be evaluated based on the model lift, expected profit, and target group efficiency.

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  1. CRM Project Campaign Planning & Engineering Increasing Loyalty by Selling Mobile Broadband Products Dr. Evangelos Xevelonakis

  2. Defining The Business Problem A Mobile Telecommunication Company has the strategic goal to reduce churn by selling mobile broadband products (Speed, Live TV, MP3-Songs). The retention program should target customers with similar needs and characteristics in order to increase its efficiency and effectiveness. For this purpose the marketing department decided to use a segmentation approach. Two different segments were defined: • The Fun & Action (70 000) • The Progressives (40 000) Fun & Action customers are young looking for fun and love to contact people. They have a vocational education and live in the city. They could be influenced by friends, colleagues and TV. Progressives are extremely comfortableand knowledgeableabout theinternet. They use it for work, online banking, shopping, and sharing price information or for trading. They have a academic education. Typical professions are IT Specialists, Engineers or Marketing specialists. They leave near the city and are seeking actively information. Time and Efficiency are very important for them.

  3. Modelling Customers The Data Analysis Department developed a Propensity to Buy Model using predictive modelling techniques. This model was used to calculate the likelihood of potential customers to accept the offer. The picture compares the performance of a customer selection using the predictive model with the performance of a random selection.

  4. Designing the Customer Program Within the strategic planning the company decided to carry out two customer campaigns: one for the Fun & Actions and one for the Progressives. The developed predictive model should be used for defining the target group. Following parameters could be used for this purpose: Campaign „ Fun & Action“ - Cost for Call Center € 7.— per Contact - expected Take Rate 4% - Margin 25% - Cost of the addresses € 0.4.– per Address - Costs for the Incentive € 40.– per new contract - expected customer revenue €1500.--- per Year Campaign „Progressives“ The decision was to carry out a two step campaign: - Costs for Direct Mail € 4.-- - Cost for the Call Center € 7.-- - expected Take Rate 2% - Margin 25% - Cost of the addresses € 0.4.– per Address - expected customer revenue €. 2000.—

  5. Tasks You are CRM Advisor in the company and you are expected to support the Marketing Department to design a successful campaign. Your goal is to achieve a high take rate with low costs. Following tasks have to be carried out: • Defining the Campaign Plan . Time Frame . Involved persons . etc. • Designing the Campaign . Calculate the model lift . Calculate the annually expected profit for the model based and random based Selection for all deciles (10% steps) . Define the optimal target group using Excel . Discuss the model oriented approach (Risks, chances) . Discuss the limitations of this approach

  6. Tasks • Communication Develop the right message for each segment. Use thereby the segment profiles. • Skills, Process and Systems . Develop the required process for the operational part of the campaign. Use thereby the Event Driven Diagram . Discuss the required systems for carrying out thr campaign . How can you evaluate the success of the campaign?