Econsultancy Multichannel Innovation Dsb Agillic

Innovation in multichannel marketing: DSB s-more
How The Danish Railways Drive Brand Equity and Sales using Multi-Channel Marketing

Business Challenge and Solution Strategy
The vast majority of DSB customers use the rail network as seldom as possible, simply because travelling by train is:
Low interest
Low prestige
DSB wanted to convert a small proportion of low-frequency travellers into high-frequency travellers
DSB have estimated the incremental value of converting a traveller from low-frequency (travels seldom, buys a-ticket-per-trip) into a high-frequency (travels almost daily and has an ’all-you-can-eat’ season ticket) to approximately 600 DKK, or £70 stg per annum
DSB and their agency, Wunderman chose a strategy of frequent interaction with travellers in order to build awareness and maintain Top of Mind with their audience

First step - DSB Wildcard MGM
About Wildcard
For teenagers between 16-25, or students
Up to 50% discount on domestic train tickets and 20% on Øresunds tickets
Special discounts on InterRail, RailPlus Youth, exhibitions, and other major events in Denmark
Business challenge
To create and execute a MGM campaign and to test the effect of integrated campaign execution towards holders of DSB Wildcard
Ensure that MGM and integrated marketing actually works
Wildcard campaign run twice
Solution
Cardholders were sent an email with an incentive to refer one or more friends to purchase a DSB Wildcard. For each friend that signed up, the person referring received a voucher for a free travel with DSB to a domestic destination of his/her choice.
A B
A/B Test method
Two groups were created to test the value of multichannel integration – group A received only the email whereas group Bwas also notified by SMS to check their inbox shortly after the email was sent.
SMS
SMS
Friends
Friends
Sign
Up
Sign
Up
Card Holder
Card Holder
Voucher
Voucher

Danish Railways increased click-through by 58% utilisingsimple multichannel mechanisms
Campaign microsite – business goal is ’refer-a-friend’
Promotional email: call to action is URL
58% higher
conversion
Conversion = 100
Campaign microsite – business goal is ’refer-a-friend’
Promotional email: call to action is URL
Conversion = 158
Email triggers alert SMS: ’”check your inbox – cool offer from DSB”
Source: Danish Railways

Next step - DSB Loyalty: S-more
About the DSB Loyalty Programme: S-more
Loyalty programme structure with: Bronze, Silver & Gold customers
Personalized experience, benefits, events etc. for signed up customers
Dynamic content based on customer information, customer value, activities and seniority
More than 25,000 variations
Business challenge
Develop loyalty, brand perception and lift customers in hierarchy, capture customers information and behavior
Solution
Create a personal web based loyalty programme (S-more) with dynamic contents and data collection to ensuring relevance throughout the customer life cycle. Drive traffic with personal trigger-based e-mail/SMS/WAP push.
Services
City Par
City Pas
Benefits
Coffee on train
Fast-track
Bonus
Free trips
Based on which kind of service a customer has used, related extraservices/benefits/bonuses/ are offered to pull him/her up the hierarchy
High customer vallue
Subscriptions & services
1
Subscriptions & services
SeasonTicket & services
2
SeasonTicket
Tickets & new services
3
Low customer vallue
Subscriptions & new services
New customers

Personalised ‘MyPage’
Membership benefits
Membership upgrade
Customer profile
- Name
Membership status
Card
Retrieve Customer Data:
“ Answer 3 easy questions and get better advice”
Competitions
S-train news
Get travel info directly on your mobile
S-train news for you travel route

Events & Competitions
Enter this month’s competition
Get your S-event ticket
Latest competitions
Get the latest competition info straight to your mobile
Win 5000kr shopping mall gift certificate
Upgrade and get more benefits

S-more now encompasses a broad variety of touchpoints between DSB and its passengers
Personalised Mobile Portal
Social media on mobile
Fast track at ticket sale for S-more Members
Personalised Emails
Dear John
Regards DSB
Personalised Online Portal
Facebook
SMS, MMS and mobile ticket vouchers
TV

An enormous 11% of travellers in S-More have shifted from low-frequency travellers into the valuable high-frequency segment as a result of S-More
Extract from online’Markedsføring’

More importantly, DSB’s own calculationsindicatethat the S-Moreprogramme has increased their revenue by in excess of 29 million Danish Kroner, or £3.5m stg
Number of passengers having upgraded
~ 6,050
Revenue increase per passenger
~ 600 DKK
Average lifetime of a passenger
~ 8 years
Revenue increase
29 mio DKK
=
x
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x

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Econsultancy Multichannel Innovation Dsb Agillic

by Turlough Martin on Nov 03, 2009

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Econsultancy Multichannel Innovation Dsb Agillic — Presentation Transcript