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Econsultancy Multichannel Innovation Dsb Agillic


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Econsultancy Multichannel Innovation Dsb Agillic

  1. 1. Innovation in multichannel marketing: DSB s-more<br />How The Danish Railways Drive Brand Equity and Sales using Multi-Channel Marketing<br />
  2. 2. Business Challenge and Solution Strategy<br />The vast majority of DSB customers use the rail network as seldom as possible, simply because travelling by train is:<br />Low interest<br />Low prestige<br />DSB wanted to convert a small proportion of low-frequency travellers into high-frequency travellers<br />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<br />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<br />
  3. 3. First step - DSB Wildcard MGM<br />About Wildcard<br />For teenagers between 16-25, or students<br />Up to 50% discount on domestic train tickets and 20% on Øresunds tickets<br />Special discounts on InterRail, RailPlus Youth, exhibitions, and other major events in Denmark<br />Business challenge<br />To create and execute a MGM campaign and to test the effect of integrated campaign execution towards holders of DSB Wildcard<br />Ensure that MGM and integrated marketing actually works<br />Wildcard campaign run twice<br />Solution<br />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.<br /> A B<br />A/B Test method<br />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.<br />SMS<br />SMS<br />Friends<br />Friends<br />Sign <br />Up<br />Sign <br />Up<br />Card Holder<br />Card Holder<br />Voucher<br />Voucher<br />
  4. 4. Danish Railways increased click-through by 58% utilisingsimple multichannel mechanisms<br />Campaign microsite – business goal is ’refer-a-friend’<br />Promotional email: call to action is URL<br />58% higher<br />conversion<br />Conversion = 100<br />Campaign microsite – business goal is ’refer-a-friend’<br />Promotional email: call to action is URL<br />Conversion = 158<br />Email triggers alert SMS: ’”check your inbox – cool offer from DSB”<br />Source: Danish Railways<br />
  5. 5. Next step - DSB Loyalty: S-more<br />About the DSB Loyalty Programme: S-more<br />Loyalty programme structure with: Bronze, Silver & Gold customers<br />Personalized experience, benefits, events etc. for signed up customers<br />Dynamic content based on customer information, customer value, activities and seniority<br />More than 25,000 variations<br />Business challenge<br />Develop loyalty, brand perception and lift customers in hierarchy, capture customers information and behavior<br />Solution<br />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.<br />Services<br />City Par<br />City Pas<br />Benefits<br />Coffee on train<br />Fast-track<br />Bonus<br />Free trips<br />Based on which kind of service a customer has used, related extraservices/benefits/bonuses/ are offered to pull him/her up the hierarchy<br />High customer vallue <br />Subscriptions & services<br />1<br />Subscriptions & services<br />SeasonTicket & services<br />2<br />SeasonTicket<br />Tickets & new services<br />3<br />Low customer vallue <br />Subscriptions & new services<br />New customers<br />
  6. 6. Personalised ‘MyPage’<br />Membership benefits<br />Membership upgrade<br />Customer profile<br />- Name<br /><ul><li>Membership status
  7. 7. Card</li></ul>Retrieve Customer Data:<br />“ Answer 3 easy questions and get better advice”<br />Competitions<br />S-train news<br />Get travel info directly on your mobile<br />S-train news for you travel route<br />
  8. 8. Events & Competitions<br />Enter this month’s competition<br />Get your S-event ticket<br />Latest competitions<br />Get the latest competition info straight to your mobile<br />Win 5000kr shopping mall gift certificate<br />Upgrade and get more benefits<br />
  9. 9. S-more now encompasses a broad variety of touchpoints between DSB and its passengers<br />Personalised Mobile Portal<br />Social media on mobile<br />Fast track at ticket sale for S-more Members<br />Personalised Emails<br />Dear John<br />Regards DSB<br />Personalised Online Portal<br />Facebook<br />SMS, MMS and mobile ticket vouchers<br />TV<br />
  10. 10. 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<br />Extract from online’Markedsføring’<br />
  11. 11. 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<br />Number of passengers having upgraded<br />~ 6,050<br />Revenue increase per passenger<br />~ 600 DKK<br />Average lifetime of a passenger<br />~ 8 years<br />Revenue increase<br />29 mio DKK<br />=<br />x<br />=<br />x<br />