Pursway-Telco-Case-Study-Q3-20123

Case Study.
Orange Switzerland Prepaid
Customer Retention
After 3 months of using the Pursway IMM solution, Orange was able to reduce
inactivity by more than 5% and show an ROI of 5X in these initial campaigns. Out
of the customers that were retained, 40% were retained without incurring cost.
“
“
Nicolas Demiaux, Retention & Loyalty Propositions
Manager, Orange Communications SA

CASE STUDY:
ORANGE SWITZERLAND PREPAID
CUSTOMER RETENTION
2Pursway Ltd. Pursway® is a registered trademark of Pursway, Ltd. The trademarks and names of other companies and products mentioned
herein are the property of their respective owners. © 2012 Pursway, Ltd. All Rights Reserved
Company profile
Orange Switzerland Communications SA is a leading mobile and
internet telecommunications service provider in Switzerland with
over 1.5m subscribers and a well-earned reputation throughout
Europe as a pioneering operator. The company entered the Swiss
market in June 1999 and has achieved a market share exceeding 20%
with annual revenues in excess of 1.3b CHF in 2010. Orange
Switzerland offers its customers a wide variety of advanced mobile
services.
Business situation
As is the case in most developed countries, mobile penetration in
Switzerland is very high, exceeding 120%. This makes it important for
the success of an operator’s business to retain each customer and
prevent them from churning to other operators. Like many operators,
Orange Switzerland has an active customer retention program aimed
at keeping existing subscribers on its network.
Prior to working with
Pursway we were
modelling prepaid
churn propensity with
a model built using a
standard postpay
analytical package,
based on aggregated
KPI with a data latency
of four weeks. This
was not accurate and
not fast enough to
efficiently take up the
prepay challenge and
reach expectations
“
“
Conventional churn reduction
programs work by using a
variety of tools to predict
which subscribers are likely to
churn based on their behavior,
demographics and analysis of
the overall customer base.
Customers are usually tiered
for retention based on the
overall revenue they generate
for the operator, under the
logic that it is more beneficial
to spend money retaining a
higher revenue customer than
a lower revenue customer.
Typically, customers are
offered discounts, free credit
or other incentives to stay with
the operator.
Stefan Riedel, Director
Customer Base Marketing,
Orange Communications SA

CASE STUDY:
CUSTOMER RETENTION
The PIVO Score is a
great concept – very
innovative. This opens
up new ways to
target and segment
customers. It is a tool
to help us trade off
a volume strategy vs.
a value strategy. It
enables us to adjust
between volume and
value.
“
“
Retainingprepaidmobilecustomersisachallengeformanyoperators.
Unlike postpaid customers, a prepaid subscriber is not locked into
any contractual obligation for a definitive period of time. There is no
need for a customer to notify the operator of their intention to leave
unless they want to port their number to another operator. Most
customers who churn simply acquire a new SIM card and stop using
their old SIM. In addition, many prepaid customers possess multiple
SIM cards and routinely switch between them (partially accounting
for penetration rate in excess of 100%). All of these factors have
confounded the effectiveness of retention programs for prepaid
subscribers. Orange Switzerland turned to Pursway to increase the
effectiveness of its retention program for prepaid customers by
leveraging the power of influencer marketing. Pursway’s team
worked closely with Stefan Riedel, Director of Customer Base
Marketing at Orange Switzerland, in implementing this project.
Solution
Orange Switzerland engaged Pursway to achieve better results in
prepaid retention. Orange Switzerland employed Pursway’s
Influencer Marketing Management (IMM) platform to be able to
identify the social influencers within its customer base. Pursway’s
sophisticated analytics
software is able to
automatically identify and rate
influencers based on their
historical behavior. The
Pursway solution is able to
bring out the actual social
graph inherent in each
customer’s data. Pursway’s
IMM platform also calculates a
unique metric, known as a
PIVO (Pursway Influence Value
Order) score. The PIVO score
is an index that quantifies the
monetary value of the social
influence that a subscriber
exerts over other customers in
the base.
Nicolas Demiaux, Retention &
Loyalty Propositions Manager,

CASE STUDY:
CUSTOMER RETENTION
Our work with
Pursway has evolved
into a true
partnership - to the
point where we view
Pursway as an
extended arm of
Orange Switzerland.
Beyond just providing
us with
analytical results,
Pursway’s
consultants offer
insights and
assistance in
designing actionable
campaigns. We really
appreciate this
consultative ap-
proach. That makes
all the difference.
“
“
By focusing retention efforts on customers with high PIVO (and hence
high social influence) as opposed to high individual revenue, Orange
Switzerland is able to harness the influence that these customers
have over others. In its newly designed retention campaign, the
company specifically targets those customers that have high
influence and presents them with a timely and meaningful retention
offer. In addition to retaining these high influencers, Orange
Switzerland is able to leverage their social influence over other
customers to result in additional customer saves. As a result, overall
retention costs are reduced while campaign ROI and results improve
exponentially. The exact impact is precisely measured through
comparingthecampaignresultstoacontrolgroupofnon-influencers.
In addition to providing its
Influencer Marketing
Management software and
providing the technical
integration services necessary
to feed data into the system,
Pursway’s marketing
consultants worked closely
with Orange Switzerland’s
marketing team in order to
help them understand the
power of influencer marketing
and design marketing
programs that maximize the
impact of influence. Working
together, the team created a
new segmentation of the
customer base based on PIVO
as well as other factors such as
recent usage as well as type
and age of handset. With this
segmentation in hand, the
team then created unique
marketing offers carefully
designed to produce the best
results.
Nicolas Demiaux, Retention &
Loyalty Propositions Manager,

CASE STUDY:
CUSTOMER RETENTION
For more information
Email: info@pursway.com
Address: 20-22 Bedford Row, London, WC1R 4JS, United Kingdom
Website: www.pursway.com
Benefits
After 3 months of deployment and 15 campaign cycles with 3
different offers, Orange Switzerland’s IMM solution has already
shown impressive results. With
all of the campaigns measured
against control groups, Orange
Switzerland is able to precisely
calculate the impact of social
influence on their retention
activity.Asaresultofleveraging
social influence, Orange
Switzerland was able to reduce
inactivity by more than 5% and
show an ROI of 5X in these
initial campaigns. Out of the
customers that were retained,
40% were retained without
incurring cost.
Based on this success, Orange
Switzerland plans to deepen its
use of IMM in the prepaid
segment and is also exploring
further uses of the solution in
other marketing streams.
For Orange
Switzerland, the
collaboration with
Pursway has been
very fruitful. The
viral factor can be
measured and we see
how it amplifies our
retention campaigns
and makes them more
efficient … The basics
are now there and
we will continue to
use this tool. Now
we want to explore
other types of
campaigns that can
leverage influencer
marketing.
“
“
Stefan Riedel, Director
Customer Base Marketing,
Pursway’s partnership
with Orange Switzerland is
extremely rewarding. The
results we have achieved
to date is a clear reflection
of the synergy between
both teams. We expect to
achieve similar gains in
other areas of the business.
Sharifah Amirah,
Solutions Director, Pursway
“
“

Pursway-Telco-Case-Study-Q3-20123

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