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Why winning operators prefer predictive
customer value management ?




                             Speaker: Christophe MASSON
                             Head of Telecom Products
                             christophe.masson@lumatagroup.com
Our story
What we do

At Lumata, we have demonstrated long-running
marketing expertise in retention & loyalty
program design;

And powered by the Lumata Expression for
Operators platform, we provide proven
End-to-End best-practice marketing solutions.



                      3
What we do

Using data & intelligence at the centre to understand
and anticipate consumer behaviour,


Lumata enables operators worldwide, establish a true 1:1
relationship with their customers and achieve optimum
customer retention and maximise lifetime value in a highly
competitive and rapidly evolving market.
How we do it
The Lumata Expression for Operators is a unique
combination of real-time predictive analytics and trigger
based campaign management tools, designed to action
highly targeted retention, ARPU stimulation and/or loyalty
campaigns instantly. Using cutting-edge technology,
Lumata Expression for Operators can be deployed
rapidly; and coupled with the analytical approach to
customer engagement, ensures optimal return on
investment is realised quickly.
Our Story

  We invest in technology innovation


   “Lumata acquires ACT750, enhancing product leadership for
      telecom operators with best-in-class customer base
                    management solution”




•  Leader in proven loyalty marketing              •  Best in class base management platform
programs                                           •  Predictive analytics
•  CRM analytical driven marketing solutions       •  Next generation technology




                                               6
Our story

 Our technology
 platform and analytics

                    Highly flexible, carrier grade
                    technology platform connected
                    to over 120 operators


Proprietary real-time predictive
analytics and trigger based
decision making engine at the core



                   Deepest CRM & analytics
                   experience in the mobile
                   marketing space




                                                 7
Our story

   Our global reach

   •        London
   •        Paris
   •        Grenoble
   •        Marseille
   •        Munich
   •        Madrid
   •        Milan
   •        Moscow
   •        New Delhi
   •        Singapore
   •        Sydney




200+ technologists, 150+ mobile marketers, 10 years of experience, Market Leader

        8
Lumata client snapshot
  Mobile Operators   Brands and Adv   Publishers




                           9
What we do
What we do

We provide solutions covering the entire
customer journey
Goal: Building a long term relationship with every customer




    Concept Creation      Customer Acquisition:       Customer Development: Customer Retention:
                          Incentivise and create      Develop customer value Reward and retain
                          value for new customers                            valuable customers



                                                 11
What we do

     End to end solution offering
                                                     •  ATL Program design
                                                     •  BTL campaign design
                                                     •  Marketing consultancy

•  self-learning predictive
                  analytics
     (churn, usage, spend)    marketing services
     •  reward optimisation


                              predictive analytics
                                       &
                                 intelligence
                                                     •  High performance
                                                     software
                                  technology         • 500MillionCDRs/
                                                      10hours/Site
                                                     • Java based Real-Time
                                                     Processing Rule Engine




                                      12
What we do

    We provide solutions across the entire customer
    lifecycle

                     develop       maintain         retain          @risk

 ATL Broad-based
marketing programs             Large scale ATL marketing programs




 BTL 1:1 targeted
    campaigns




                                               13
Our Process

We use actionable predictive analytics

                                                            What’s the
                                                            right offer
                                 Who’s at
                                  risk ?

     Sure things


                   Lost causes                   Sleeping         Persuadable
                                                   dogs




                                            14
Our process

Real-time predictive offering

Objectives: Use Predictive Analytics to
improve sales, engagement, and                                                          Winback predicted
retention                                                                     Awake predicted
                                                                                        “voluntary churner”
                                                                               Do nothing
                                                                              “persuadable inactive”
                                                                 Don’t try to retain things”
                                                                               “sure

•  Embedded with Campaigns                       Maximise revenue“lost causes”
                                                                  to
                                                 “persuadable upsell”
   Management module
                                                      Real-time
                                                       Offering
•  Intelligent Self-Learning management
•  Real-time contextual business rules
   and patterns management

                                         Predictive
                                          Scoring




                                                                     Live
                                                                   Analytics
                                         15
Our process

Loyalty & retention programs

Objectives: churn reduction,
generate customers advocacy, brand
awareness, increase CSI
•  Large scale ATL loyalty programs
•  Brand/Voucher management &
   integration
•  Loyalty points, recharge & win
   mechanics
•  Reward mix of network, physical
   and brand prizes,
•  Optional gamification


                                      16
Our process

Revenue development solutions

Objectives: acquire customers,
increase ARPU, stimulate upsell,
cross-sell and stimulate new service
adoption
•  Upsell & cross-sell
•  Micro segmentation approach
•  Predictive analytics on usage and
   spend




                                       17
Our process

Base management solutions

Objectives: engage & stimulate
usages; stimulate services up-sell;
cross-sell and stimulate new service
adoption
•  End to End Solution: from analytics
   to Operation
•  Fully automated and real-time
   solution (including usage
   processing)
•  Prediction Management
•  Campaigns Management



                                         18
Case studies

Lumata program results across all operators


       30%-50%                        20%                         75%
     unique participants on   decrease in churn rate of   Would recommend the
       eligible customers      participating customers    program in the future




         8%-14%                       35%                    60%-80%
       ARPU increase on          increase in CSI of       declared that Operator
    participating customers   participating customers      Brand awareness has
                                                          improved thanks to this




                                       19
Reference Operator Tour
Case Studies – M-Coupon




Orange Wednesdays
Building brand equity through film partnership,
while rewarding high value customers



Results

Most successful programme for mvouchering
across Europe - in its 7th year, 50Mn vouchers
delivered across 6 ‘Orange’ markets

Drive churn reduction, change long term film
viewing behaviour & drive incremental footfall
(UK analysis)




                                                  21
Case Studies – Recharge & Win




Telecom Italia
Innovative, real-time marketing
rewards for TIM’s 25Mn customers



Results

With 2Mn+ redemptions, driving
strong ARPU uplift and CSI scores

Payback within the 1st quarter
of launch.




                                    22
Case Studies – Prepaid Loyalty




Telecom Malagasy
Real-time Prepaid Mobile Loyalty Program and
Community Offers for 1Mn prepaid subscribers



Results

15% churn reduction and a notable ARPU uplift
across the subscriber base

Higher satisfaction and stickiness of “Ye’low”
prepaid customers

Payback within the 1st quarter of launch.




                                                 23
Case Studies – Prepaid Stimulation & Retention Programs




Orange Ivory Coast
Convergent End to End Retention & Revenue Mgt.
solution to Win back dormant subscribers, prevent
churn & increase ARPU of active subscribers



Results
Winback dormant subscribers and increase ARPU
by 25 to 40% (of previous ARPU)

Double ARPU of re-activated subscribers

Significantly increase tenure of the base

Payback within the 1st quarter of launch.




                                                24
Case Studies – Surprise & Delight




MTS Russia & CIS
A complete loyalty program launched in 2008,
rewarding customer based on network usage and
spent



Results
12 Mn program-active customers out of 68 Mn MTS
total base

Minimum spending increase (5USD) to get a prize.

High amount of interaction with regular telecom
and non-telecom prizes distributed

Reduce churn & increase customer Usage
Case Studies – CoBranded M-Vouchering




Orange UK - EAT
Orange customers could go into any EAT store, tap
their NFC enabled device against a poster, spin
the wheel of fortune on their Orange device to
get a free gift from EAT


Results

Customers feel rewarded for their loyalty from
Orange all the while getting educated to NFC
usage.

Thru the underlying Gamification marketing
concept this Orange program was perceived as
differentiating and innovative, and increase CSI
and brand perception.


                                                   26
Case Studies – Convergent Base Mgt.




Telecom Malagasy
Convergent End to End Retention & Revenue Mgt.
solution to increase share of the wallet in Multi-
SIMs environments with micro targeted offers.



Results
40% campaign return rate

After 4 weeks increase ARPU up to 80% on
stimulated subs. (of previous ARPU)

Broadly continue sustaining customer loyalty to
the operator network

Strongly contribute to rapid adoption of M-money



                                                     27
Case Studies




  And many more worldwide…

    30-50%                      6-8 %
unique participants on       ARPU increase on
  eligible customers      participating customers



    30-40%                      >80%
   increase in CSI of       of participants are
participating customers     satisfied with the
                                promotion


                                       28
Case Studies - Gamification




  Telefonica O2

    30-50%                            6-8 %
unique participants on             ARPU increase on
  eligible customers            participating customers



    30-40%                            >80%
   increase in CSI of             of participants are
participating customers           satisfied with the
                                      promotion


                                             29
Case Studies - Gamification




  T-Mobile

    30-50%                            6-8 %
unique participants on             ARPU increase on
  eligible customers            participating customers



    30-40%                            >80%
   increase in CSI of             of participants are
participating customers           satisfied with the
                                      promotion


                                             30
Case Studies - Gamification




  Proximus

    30-50%                            6-8 %
unique participants on             ARPU increase on
  eligible customers            participating customers



    30-40%                            >80%
   increase in CSI of             of participants are
participating customers           satisfied with the
                                      promotion


                                             31
a global leader in operator retention & loyalty




§  Thank you for viewing our Webcast

§  More questions ?
  Please visit : www.lumata.com
  Email. contact@lumatagroup.com
  Tel. +44 20 7613 8900




                            32

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Lumata Webinar – Why Winning Operators Prefer Predictive Customer Value Management

  • 1. Why winning operators prefer predictive customer value management ? Speaker: Christophe MASSON Head of Telecom Products christophe.masson@lumatagroup.com
  • 3. What we do At Lumata, we have demonstrated long-running marketing expertise in retention & loyalty program design; And powered by the Lumata Expression for Operators platform, we provide proven End-to-End best-practice marketing solutions. 3
  • 4. What we do Using data & intelligence at the centre to understand and anticipate consumer behaviour, Lumata enables operators worldwide, establish a true 1:1 relationship with their customers and achieve optimum customer retention and maximise lifetime value in a highly competitive and rapidly evolving market.
  • 5. How we do it The Lumata Expression for Operators is a unique combination of real-time predictive analytics and trigger based campaign management tools, designed to action highly targeted retention, ARPU stimulation and/or loyalty campaigns instantly. Using cutting-edge technology, Lumata Expression for Operators can be deployed rapidly; and coupled with the analytical approach to customer engagement, ensures optimal return on investment is realised quickly.
  • 6. Our Story We invest in technology innovation “Lumata acquires ACT750, enhancing product leadership for telecom operators with best-in-class customer base management solution” •  Leader in proven loyalty marketing •  Best in class base management platform programs •  Predictive analytics •  CRM analytical driven marketing solutions •  Next generation technology 6
  • 7. Our story Our technology platform and analytics Highly flexible, carrier grade technology platform connected to over 120 operators Proprietary real-time predictive analytics and trigger based decision making engine at the core Deepest CRM & analytics experience in the mobile marketing space 7
  • 8. Our story Our global reach •  London •  Paris •  Grenoble •  Marseille •  Munich •  Madrid •  Milan •  Moscow •  New Delhi •  Singapore •  Sydney 200+ technologists, 150+ mobile marketers, 10 years of experience, Market Leader 8
  • 9. Lumata client snapshot Mobile Operators Brands and Adv Publishers 9
  • 11. What we do We provide solutions covering the entire customer journey Goal: Building a long term relationship with every customer Concept Creation Customer Acquisition: Customer Development: Customer Retention: Incentivise and create Develop customer value Reward and retain value for new customers valuable customers 11
  • 12. What we do End to end solution offering •  ATL Program design •  BTL campaign design •  Marketing consultancy •  self-learning predictive analytics (churn, usage, spend) marketing services •  reward optimisation predictive analytics & intelligence •  High performance software technology • 500MillionCDRs/ 10hours/Site • Java based Real-Time Processing Rule Engine 12
  • 13. What we do We provide solutions across the entire customer lifecycle develop maintain retain @risk ATL Broad-based marketing programs Large scale ATL marketing programs BTL 1:1 targeted campaigns 13
  • 14. Our Process We use actionable predictive analytics What’s the right offer Who’s at risk ? Sure things Lost causes Sleeping Persuadable dogs 14
  • 15. Our process Real-time predictive offering Objectives: Use Predictive Analytics to improve sales, engagement, and Winback predicted retention Awake predicted “voluntary churner” Do nothing “persuadable inactive” Don’t try to retain things” “sure •  Embedded with Campaigns Maximise revenue“lost causes” to “persuadable upsell” Management module Real-time Offering •  Intelligent Self-Learning management •  Real-time contextual business rules and patterns management Predictive Scoring Live Analytics 15
  • 16. Our process Loyalty & retention programs Objectives: churn reduction, generate customers advocacy, brand awareness, increase CSI •  Large scale ATL loyalty programs •  Brand/Voucher management & integration •  Loyalty points, recharge & win mechanics •  Reward mix of network, physical and brand prizes, •  Optional gamification 16
  • 17. Our process Revenue development solutions Objectives: acquire customers, increase ARPU, stimulate upsell, cross-sell and stimulate new service adoption •  Upsell & cross-sell •  Micro segmentation approach •  Predictive analytics on usage and spend 17
  • 18. Our process Base management solutions Objectives: engage & stimulate usages; stimulate services up-sell; cross-sell and stimulate new service adoption •  End to End Solution: from analytics to Operation •  Fully automated and real-time solution (including usage processing) •  Prediction Management •  Campaigns Management 18
  • 19. Case studies Lumata program results across all operators 30%-50% 20% 75% unique participants on decrease in churn rate of Would recommend the eligible customers participating customers program in the future 8%-14% 35% 60%-80% ARPU increase on increase in CSI of declared that Operator participating customers participating customers Brand awareness has improved thanks to this 19
  • 21. Case Studies – M-Coupon Orange Wednesdays Building brand equity through film partnership, while rewarding high value customers Results Most successful programme for mvouchering across Europe - in its 7th year, 50Mn vouchers delivered across 6 ‘Orange’ markets Drive churn reduction, change long term film viewing behaviour & drive incremental footfall (UK analysis) 21
  • 22. Case Studies – Recharge & Win Telecom Italia Innovative, real-time marketing rewards for TIM’s 25Mn customers Results With 2Mn+ redemptions, driving strong ARPU uplift and CSI scores Payback within the 1st quarter of launch. 22
  • 23. Case Studies – Prepaid Loyalty Telecom Malagasy Real-time Prepaid Mobile Loyalty Program and Community Offers for 1Mn prepaid subscribers Results 15% churn reduction and a notable ARPU uplift across the subscriber base Higher satisfaction and stickiness of “Ye’low” prepaid customers Payback within the 1st quarter of launch. 23
  • 24. Case Studies – Prepaid Stimulation & Retention Programs Orange Ivory Coast Convergent End to End Retention & Revenue Mgt. solution to Win back dormant subscribers, prevent churn & increase ARPU of active subscribers Results Winback dormant subscribers and increase ARPU by 25 to 40% (of previous ARPU) Double ARPU of re-activated subscribers Significantly increase tenure of the base Payback within the 1st quarter of launch. 24
  • 25. Case Studies – Surprise & Delight MTS Russia & CIS A complete loyalty program launched in 2008, rewarding customer based on network usage and spent Results 12 Mn program-active customers out of 68 Mn MTS total base Minimum spending increase (5USD) to get a prize. High amount of interaction with regular telecom and non-telecom prizes distributed Reduce churn & increase customer Usage
  • 26. Case Studies – CoBranded M-Vouchering Orange UK - EAT Orange customers could go into any EAT store, tap their NFC enabled device against a poster, spin the wheel of fortune on their Orange device to get a free gift from EAT Results Customers feel rewarded for their loyalty from Orange all the while getting educated to NFC usage. Thru the underlying Gamification marketing concept this Orange program was perceived as differentiating and innovative, and increase CSI and brand perception. 26
  • 27. Case Studies – Convergent Base Mgt. Telecom Malagasy Convergent End to End Retention & Revenue Mgt. solution to increase share of the wallet in Multi- SIMs environments with micro targeted offers. Results 40% campaign return rate After 4 weeks increase ARPU up to 80% on stimulated subs. (of previous ARPU) Broadly continue sustaining customer loyalty to the operator network Strongly contribute to rapid adoption of M-money 27
  • 28. Case Studies And many more worldwide… 30-50% 6-8 % unique participants on ARPU increase on eligible customers participating customers 30-40% >80% increase in CSI of of participants are participating customers satisfied with the promotion 28
  • 29. Case Studies - Gamification Telefonica O2 30-50% 6-8 % unique participants on ARPU increase on eligible customers participating customers 30-40% >80% increase in CSI of of participants are participating customers satisfied with the promotion 29
  • 30. Case Studies - Gamification T-Mobile 30-50% 6-8 % unique participants on ARPU increase on eligible customers participating customers 30-40% >80% increase in CSI of of participants are participating customers satisfied with the promotion 30
  • 31. Case Studies - Gamification Proximus 30-50% 6-8 % unique participants on ARPU increase on eligible customers participating customers 30-40% >80% increase in CSI of of participants are participating customers satisfied with the promotion 31
  • 32. a global leader in operator retention & loyalty §  Thank you for viewing our Webcast §  More questions ? Please visit : www.lumata.com Email. contact@lumatagroup.com Tel. +44 20 7613 8900 32