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  • 1. MEADHBH QUINN LOYALTY & GENERATION Y 13/10/10 PRESENTATION NAME
  • 2. 5 GenY Loyalty insights Gen Y Ireland Connecting with Gen Y What we learned in Acquisition Mobile Youth Switching Loyalty Examples
  • 3. MOBILE YOUTH
  • 4. Gen Y Ireland
  • 5. Ireland & Generation Y - Demographics - Recession mindset - The big insight PRESENTATION NAME
  • 6. - Demographics - Recession mindset - The big insight PRESENTATION NAME
  • 7. Who is generation Y? % 15-24’s Male 51% Female 49% 12 % 12 % Dublin 30% 25 27 % % Total Leinster 55% Source: CSO, 2006
  • 8. Declining Numbers '000 turning 18 x year 75 70 65 60 55 50 45 40 1997 1999 2005 2006 2007 2008 2009 2010 2011 2012
  • 9. Losing young people to emigration Year Immigrants Emigrants Net Population ending migration change April (000) 2007 109.5 42.2 67.3 106.1 2010 30.8 65.3 - 34.5 11.4 28,200 aged 15-24, 29,900 aged 25-34
  • 10. Ireland & Generation Y - Demographics - Recession mindset - The big insight PRESENTATION NAME
  • 11. Ireland’s lost generation? Under-25s unemployment almost doubled since 2007 35,100 unemployed Q2 2007 68,100 unemployed in Q2 2010
  • 12. Unemployment rate by age group % Q2 2007 Q2 2010 15-19 17.0 40.6 20-24 7.8 25.8 25-34 4.4 14.6 35-54 7.2 11.2 55+ 4.2 8.25 Source: CSO Quarterly National Household Survey, Quarter 2 2009, 2010
  • 13. Cautiously Optimistic This group has certainly changed their behavior due to the economic conditions but only to the extent that their optimism is slightly curtailed. They tend to think a little more before they act, but are still acting. Source: Carat Young Irish Adults, Rejecting the recession, June 2009
  • 14. New Serious They have realised that the future may be a somewhat less stable and secure than they thought and while they are still remarkably confident about their personal ability to succeed, they are thinking about the future in a more serious way. Source: Carat Young Irish Adults, Rejecting the recession, June 2009
  • 15. Smarter Choices As with their more “cautious optimism” they are approaching their purchases differently than before. They are a very savvy and informed group and understand that the market conditions bring value and they are making sure that they get the best value out there. Source: Carat Young Irish Adults, Rejecting the recession, June 2009
  • 16. Ireland & Generation Y - Demographics - Recession mindset - The big insight PRESENTATION NAME
  • 17. Different life stages, one mindset 15 24
  • 18. The Youth Market – 15-20 year olds 15-20 year olds 15-25 year olds 164 161 159 162 173 139 153 119 116 123 110 106 104 93 102 95 99 97 94 Like to I am very I have more I like to follow I usually keep Important to Other people I am often Other people I never seem I consider I don't feel I am always I look to my I want to be I ask others I try to fit as Managing my Other people challenge & happy with ability than a well my feelings to be an view me as a bored view me as a to have myself to be a comfortable concerned friends for popular for opinions much into my time is one of view me as a push myself my life as it is most people organised myself individual, not positive worrier enough free creative having to about what inspiration more than day as my biggest risk taker to be the best routine just part of the person time person meet new others think of they ask me possible challenges I can in life crowd people me Source: Carat CCS 2009
  • 19. The Youth Market – 21-25 year olds . 21-25 year olds 15-25 year olds 157 146 151 131 135 123 133 103 117 113 108 111 90 91 100 98 100 99 96 Like to I am very I have more I like to follow I usually keep Important to Other people I am often Other people I never seem I consider I don't feel I am always I look to my I want to be I ask others I try to fit as Managing my Other people challenge & happy with ability than a well my feelings to be an view me as a bored view me as a to have myself to be a comfortable concerned friends for popular for opinions much into my time is one of view me as a push myself my life as it is most people organised myself individual, not positive worrier enough free creative having to about what inspiration more than day as my biggest risk taker to be the best routine just part of the person time person meet new others think of they ask me possible challenges I can in life crowd people me Source: Carat CCS 2009
  • 20. Key findings Times are harder but Gen Y is cautiously optimistic Loyal to the group … choice is social not personal & made in the context of social reaction and implication PRESENTATION NAME
  • 21. Gen Y Ireland Connecting with Gen Y
  • 22. Gen Y love to connect • Nearing 1b users • 100+ million users • Avg user has 130 friends • 50 million tweets per day • 6.1 million members • 2.2 million RSVPs • 180,000 meetups in 45,000 cities a month • 65+ million members • New member joins every second
  • 23. Explosion in social networking & digital • 1 billion facebook users – phenomenal growth in v short period of time.. where to next? – 800 million on various social networking sites at any one time – Social networks are becoming referential sites • By 2013 more internet users on their mobile than via pc – By 2015 more online sales via mobile phone than pc
  • 24. Social Networking ‘phenomena’ states perfectly
  • 25. They continue to enjoy watching TV 25
  • 26. And programmes 26
  • 27. Radio continues to play important part in their lives (weekly listenership) Source JNLR
  • 28. They love the real world too!
  • 29. 15-20 year olds – advertising noticeability . Source: Carat CCS 2009 – advertising noticeability map
  • 30. Socially consumed media drives engagement
  • 31. Gen Y insight #2 personal choice is made in the context of the group PRESENTATION NAME
  • 32. Gen Y Ireland Connecting with Gen Y What we learned in Acquisition
  • 33. Meteors brand positioning Deep psychological Brand Idea Insight: + Rational Benefit Price Advantage = Meteors better value Irish people want to be keeps Irish people more popular & fear being in the loop out of the loop + =
  • 34. Communications Strategy Brand Idea Famous Advertising Meteors better value + Social Identity Real, warm, human, = Irish Social Truisms keeps Irish people more in everyday Ireland the loop + =
  • 35. How Meteor Became a 1,000,000 Customer Brand 2005 2009 • 200,000 customers • 1,000,000 customers • 9% share • 20% share • Prepay only • Full service • Cheap • Value • Rational benefit • Rational & Emotional benefit • For Students, Immigrants • For everyone • Bad coverage • Improving image
  • 36. Gen Y Insight #3 Switching is a social event PRESENTATION NAME
  • 37. New challenge - Retention
  • 38. Gen Y Ireland Connecting with Gen Y What we learned in Acquisition Mobile Youth Switching
  • 39. Pen Portrait -price, ‘free’ and offer conscious 15-17 18-24 25-35  Least likely to top up by €20  Almost 3 in 5 always try and  Almost 3 in 5 always try and in one go (due to expense). top up by €20 to get top up by €20 to get  Most likely to perceive promotion. promotion. themselves to be on free  More likely to perceive  Most likely to perceive any network texts. themselves to be on some themselves to be on free  3 in 5 visiting own operator form of text promotion. call/texts on net.(Thus V2V store in past 3 months.  3 in 5 visiting own operator works) (Opportunity to promote the store in past 3 months.  Half visiting operator’s brand).  Half visiting operator’s website.  Half visiting operator’s website.  One third visiting competitor website.  One quarter visiting stores.  One third visiting competitor competitor stores.  Higher usage (relative to other store. ages).
  • 40. Share of Wallet Pyramid 15-35’s AGE ALL PREPAY AVERAGE MONTHLY SPEND 15-17 18-24 25-35 (€1,031) (€410) (€834) (€1,311) Mobile Average Monthly Spend: €22 €14 €21 €25
  • 41. Heavily influenced by discounts and rewards I normally buy/use brands that reward me for being loyal Strongly agree that ads with Discount coupons influence me Strongly agree that I notice ads with Discount coupons 115 110 105 100 95 90 85 80 Under 25 25-34 35-44 45-54 55-64 Source: Carat CCS 2009
  • 42. ..but also spontaneous for ‘cool’ things Shop around to make sure I'm getting best value for money 91 I have more ability than most people 118 I don't mind paying for quality 93 55-64 I love to buy new gadgets and appliances 45-54 116 35-44 25-34 I buy the newest fashion brands & styles Under 25 available 195 I tend to spend money without thinking 129 International brands have status 145 0 100 200 300 Source: Carat CCS 2009
  • 43. Extent of Switching Providers – Primary Yes All 15-74 Switched in last 12 months Mobile telephone provider 36 27 60% Car Insurance provider 12 56% 26 Broadband/internet access provider 8 15 63% Top-up Grocery Shop 7 12 53% Main grocery shop 6 16 46% Bank/financial institution who offers Current A/C 6 62% 13 service 5 17 36% Fixed/landline telephone provider (Base: All aged 15-24 – 202)
  • 44. Leverage the community nature of switching Network & Coverage Customer Free credit to join Carel Offer (Free THE CORE Website Handsets texts etc) Network my -Price Online store friends are - Range/style Free webtexts Offer on (Smartphone) mechanics Store Perceived cost of calls/texts (perceived as – Staff individual costs unknown) Products & Services – Ambiance Rewards –Mobile internet (treats, freebies) –Roaming availability & cost Source : B&A 2010
  • 45. Recall of Promotions June Oct Age 2010 2009 % 15-24 Those aged 15-24 are % % more aware of 18 27 promotions generally & 22 in particular of Meteor promotions 18 17 34 11 17 11 At an overall level within mobile, 8 4 11 promotions now play a bigger role v 2 years None 67 74 58 ago. Source : Millward Brown Lansdowne, Tracking Survey monthly data
  • 46. Is Generation Y more likely to switch? 12 10 10 8 7 8 7 6 6 6 6 6 5 6 5 6 6 6 Very /fairly all adults 4 5 5 5 Under 25s 4 4 4 4 2 3 3 3 0 N=925 each month PRESENTATION Source : Millward Brown Lansdowne, Tracking Survey monthly NAME data
  • 47. Gen Y insight #4 They are more price conscious But also more attracted to brands that offer social inclusion & are socially current PRESENTATION NAME
  • 48. Gen Y Ireland Connecting with Gen Y What we learned in Acquisition Mobile Youth Switching Loyalty Examples
  • 49. How to drive loyalty • Freebies • Discounts on clothes, flights, music, concert tickets, cinema • Rewards for staying with a brand • Exclusive events • VIP status, log in only, member’s access • The chance to be the first and to bring mates along • Relevant and interesting content PRESENTATION NAME
  • 50. Two campaigns demonstrating loyalty Milestone Rewards 52
  • 51. Goodie Bag 53
  • 52. Milestone Rewards Background: • Meteor was witnessing an increase in prepay churn numbers but more specifically an increase amongst certain customers who were now being attracted by the tactical acquisition offers other operators were putting into the marketplace. • The value profile of those churning shifted dramatically in Nov to March ’09. • As acquisition opportunities slowed down and the market became more saturated and as a result more competitive it was important for operators to begin to place more focus on retention initiatives. 54
  • 53. The Milestone Rewards Program… 55
  • 54. The Milestone Rewards Program… • Aspirational rewards • High perceived value • Achievable spend targets • Regular updates on their spend progress 56
  • 55. The Milestone Rewards Program… • The campaign was communicated by direct mail and text • A micro site showcased the rewards • Rewards were clearly linked to the value of each customers monthly top up • Customers had to stay on the network 3 months to redeem rewards • Each month their balance was communicated via text and updated on the rewards micro site • Customers were offered a reward with a much higher perceived value than was actually the case 57
  • 56. Relevance of Communications - Why  Beginning to feel the recession pinch  80% used social networking sites  47% went to cinema 3+ times every month  51% loved having the latest phone  41% loved gadgets.  54% on Face book daily  65% take at least 2 holidays per year 58
  • 57. Target Profiling & Opt In Target Group  Those on the network 6 months +  Platinum & Gold value customers  Topping up at least €20 every 30 days.  No gender or age restrictions 88,538 Opt In 28,350 Actually Fulfilled 24,150 102,966
  • 58. Effectiveness of Execution - 3 Channel Mechanic DIRECT MAIL Main Objective: Drive Program Opt in & Understanding The DM clearly set out the mechanism behind the offer showing in three clear steps how to get the most out of the offer 60
  • 59. Effectiveness of Execution - 3 Channel Mechanic SMS Main Objective: Drive Awareness & Retain Engagement The SMS was used as a low cost way to tell customers of their balance and ensure they remained constantly engaged and reminded in the program throughout the entire three month period. 61
  • 60. Effectiveness of Execution -3 Channel Mechanic Online Site Main Objective: Offer full transparency on the offer. Be used as point of engagement, and facilitating reward redemption & data capture. Also clearly highlighted to customers what offers they could be availing of should they increase their top up amounts over the period. Facebook used to amplify the offer 62
  • 61. Effectiveness of Execution - 3 Channel Mechanic Online Site 63
  • 62. Effectiveness of Execution - 3 Channel Mechanic Online Site: 64
  • 63. Non-quantifiable benefits... Data Capture & Validation – All customers needed to provide updated details Marketing Opt In - Default opting in to receive all types of marketing communications Customer Engagement - Remained engaged with the offer over a three month period Word of Mouth Communications - Anecdotally there was very positive customer feedback, through the comment cards, research and from general customer feedback. 65
  • 64. Quantified Results.. Top Up Effect: - 24,150 customers fulfilled – 23% Redemption Required Average Top Average Incremental Breakdown% Top Up up in period Top Up top up Before Group 1 46% €101+ €184.70 €151.17 €33.50 Group 2 33% €71-100 €86.90 €81.54 €5.36 Group 3 21% € 50-70 €62.70 €57.95 €4.70 66
  • 65. Goodie Bag Background: • Meteor Milestones was successful in retaining high value customers over time with measurable, profitable pay back. • The underlying conditions that prompted the creation of Meteor Milestones continued: – Acquisition opportunities continued to slow – Meteor experienced continuing competitor competition in it’s traditional market of 15 – 24 year olds • Thorough analysis of customers at several periods post campaign showed that Meteor Milestones was meeting it’s objectives of customer retention and continued value. 67
  • 66. Goodie Bag What changes were made? • Building on the previous campaign, Goodie Bag offered a wider selection of gifts to more of the customer base – 210,000 • The gift options were extended and amended from customer feedback and focus groups 68
  • 67. Goodie Bag… • The Goodie bags campaign reflected the key success of the Milestone Reward programme – It was communicated by direct mail and text – A newly constructed micro site showcased the rewards – Rewards were clearly linked to the value of each customers monthly top – Customers had to stay on the network 3 months to redeem rewards – Each month their balance was communicated via text and updated on the rewards micro site – Customers were offered a reward with a much higher perceived value than was actually the case 69
  • 68. Gen Y insight #5? • Loyal to their tribes more than their brands – Savvy & offer astute • Times are hard, they still spend albeit cautiously • Offer is critical in order to elicit a response • Critical to harness different media in order to communicate the message • Challenge for brands is to remain socially current and connected to their tribes PRESENTATION NAME