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Targeted Campaigning to improve Response!!


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Talking to customers basis their need!

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Targeted Campaigning to improve Response!!

  1. 1. HANSA CEQUITY CAMPAIGNERSharper Competitive Edge with a Focused CampaignManagement Framework
  2. 2. Contents Glossary Executive Summary About the Client Business Situation Solution Space Business Benefits Client Speak About Hansa Cequity Glossary DTH (Direct to Home) is a term used to refer to digital satellite television broadcasts intended for direct home reception, received by a satellite dish and set-top box. ARPU A measure of revenue generated per user or unit, ARPU (Average Revenue per Unit) allows companies to analyse revenue generation and growth at the unit/user level.
  3. 3. Hansa Cequity CampaignerExecutive SummaryHansa Cequity enabled a leading direct-to-home digital satellite television providersharpen its competitive edge bringing about a key shift in the campaignmanagement mindset. The strategy went from a quest for customers who wouldpick up pre-determined offers to a robust intelligent system that identifiedbehavioural shifts in customer patterns and allocated to her the most relevant offer.This was made possible through the implementation of an automated campaignmanagement framework that leveraged sharply defined customer segments andpreference demographics to achieve the objectives of increased Average RevenuePer User (ARPU), reduced churn, and increased acquisitions. The solution designwent beyond conventional approaches to analytics to leading to increased costsavings at the same time.About the ClientOne of India’s leading digital satellite television providers, the company is at theforefront of what is now known as the DTH revolution in the country. A joint venturebetween India’s leading business house and a global broadcasting giant, theirservice offers unmatched choice, control and convenience in TV entertainmentbacked by stellar consumer and technical support at all levels. It has been afirst-mover in offering several innovations in the DTH marketplace, which have sincegone on to become benchmarks in the industry. They are almost synonymous withthe category across the country.Business SituationThe Present and Future of the DTH ExperienceIndia is poised to take over the USA as the world’s largest DTH market . Clocking agrowth of 18%, digital satellite television has become one of the fastest growingconsumer electronics product-service combinations of all time. However, to stayahead in the game the players need to read future trends that now indicate a needfor innovations in non-traditional TV services such as cutting edge 3D viewingexperiences, interactive educational programs, interactive gaming among others.The key is to know your customers and approach them with the right offers at theright time to deliver superior value and capitalize on evolving needs and preferences.The Subscription Model and the ARPU RiddleTThe subscriber model that is at the heart of all DTH services relies on campaigns toits subscriber base to communicate messages of value. As such it makes littlebusiness sense for the service provider to reach out to its large base of consumerswith a communication unless there is confidence that the message will be positivelyreceived. Contact Center agents find it increasingly difficult to deliver value in the call 1
  4. 4. Hansa Cequity Campaignerunless there is proven intelligence that indicates that their message has a highprobability of striking the ‘need’ chord in the consumer’s mind. The scenario issimilar in cases of messages in all other formats – SMS, Email and on-screen. Thus,increased ARPU will be a result of a situation where the customer is gently nudgedin the right direction by a series of meaningful messages that stem from systematic,timely and cost-effective campaigns that are targeted to elicit specific responses.1 Source: DTH Latest Trends and Offers, Pratik Gosalia, August 2010,Articledirectoryzone.comUnderstanding Campaigns and their CriticalityFor the DTH industry, campaigns are the manifestation of marketing thought inaction. An effective series of campaigns can achieve most marketing objectives. Thecampaign types in the client’s arsenal focus on specific needs as illustrated below • ‘It’s time to recharge your account, it’s about to expire’. This is a straight-forward business rule driven campaign that uses simple criteria as triggers. In the case of this example, a scheduled database query on the number of accounts expiring in the next one week lets the system know the list of users to which this specific message needs to go to. It will end in a call to action that directs the user on how to recharge the account. • ‘We notice you’ve subscribed to NDTV Good Times, how about adding TLC to that list?’ This campaign bases its intelligence on being able to predict customer behavioral patterns. If she has subscribed to a lifestyle channel, there is a high possibility that an offer of a channel with similar content will result in a positive conversion. A robust set of behavioral pattern predictions need to be made with extensive sets of use cases. • ‘Though you’ve been using our website to reach us the last six months, we wonder what made you call us yesterday. Could we not answer your questions online?’ This is a campaign type that is driven by a specific event. In this particular example, the campaign could result in cost-savings of getting a customer back to the web-based interaction model rather than depending on the more expensive call-center. Defining the events in a customer’s life-cycle that merit a response in a campaign form is the starting point.What’s keeping us awake at nights? • How can we determine whether a customer is ready to take up an offer? Therefore, how do we determine where the customer lies in the life-cycle of his engagement with the product? Clearly, this is a valuable input to the campaign management system that will be able to then send more meaningful messages out that are timed better. 2
  5. 5. Hansa Cequity Campaigner • How can we get out of the ‘one size fits all’ approach to campaign management? How can we begin a two-way conversation with an individual rather than a faceless statistic? In other words, we need to focus on selling to a customer what he wants out of the product rather than try to push what we feel is right for him at the time. • How do we maximize the impact of the channels of campaign management open to us? Are we being able to extract maximum value out of the database and the networks? How do we measure this?The Shift in MindsetThe key element that preceded the implementation of the solution to address theissues at hand was the shift in mindset. The one-size-fits-all approach began withan offer that was driven by a marketing decision and the campaign was the thrustthat drove that marketing decision to a seemingly logical end. Heres an offer Lets find someone interestedIn contrast, the new approach to campaign began with the customer. Analytics wasin a position to throw up changes in behavior that indicated that there was probablysomething that could be offered to him or her that would be of value. Heres an offer With a change in behavior that suggests a need Lets find someone interested That suits the persons need 3
  6. 6. Hansa Cequity Campaigner How campaigns happen now – One size fits all approachMarketing Executive Data Analyst picks up Marketing Analystdecides on a campaign data cuts for which the validates data and campaign is targeted sends to SMS blaster Campaign recipients The SMS Blaster sends out the campaign to all targeted The Need for a Better Solution • The process of segmenting the customer database is not effective enough, which is why the campaigns end up targeting a lot of people who may not be interested in the offer. A sharper definition of segments that is driven by establishing a behavior oriented propensity to buy is the need of the hour. • Campaigns do not employ business rules to address complex segmentation and intersection. In other words, there appears to be some disconnect between Analytics and Campaign Execution. As such, the campaigns are unable to ride on the promise of automation that analytics provide given the extensive manual intervention involved. 4
  7. 7. Hansa Cequity Campaigner Solution Space The Hansa Cequity Approach: Enabling the Shift in Mindset The key shift in mindset that Hansa Cequity’s solution design brought about was to rely on behavioral shifts as the key driver of the process. An extensive framework that allowed large volumes of data to be converted into actionable behavioral information would allow for the implementation of such a segmentation process. This would begin by the broadening of the role that analytics as a practice played in the campaign design and implementation process. With the types of campaigns and the channels available in mind, there was an exercise undertaken to segment customers based on where they were in the life-cycle, which led to an understanding of the kind of campaigns they might find appealing. Event tracking addressed the large section of campaigns that would depend on a trigger from the customer’s behavior which were modeled to a method of being able to tell which campaigns worked through test and control groups. There was also a strong focus on monitoring customer transactions. Segmentation Event Tracking Modeling Campaigner Setup Campaign Tracking Setting Up of Creation of Building Various Setup multiple Track Campaign Datamart and various event Predictive models campaigns and Efficacy throughcreation of various tracking variables to predict customer schedule them. Test & Control flags and within the behavior and target Build Rules for Mechanism & variables for datamart them with suppression and Monitoring segment appropriate de-duplication Customer identification campaigns Transactions 5
  8. 8. Hansa Cequity Campaigner The Roadmap to Better Campaign Execution Segmentation on The Analytical Edge Transactional Behavior Preferred modes of communication Communication integrated Channel usage behavior seamlessly across channels Product affinity Set Campaign Rules to Pick from Using historical purchase Deviation in behavior from norm behavior to identify future Specification Purchase Behavior product buying preferencesPhase I: Identify Channels and Triggers Phase II: Need driven campaigning Campaign recipients 6
  9. 9. Hansa Cequity CampaignerBusiness BenefitsThe Hansa Cequity Campaigner AdvantageImplementing Hansa Cequity Campaigner led to a sharper competitive edge over thequarter it was implemented in. The results can be broken down into the following broadareas: • The response rate to campaigns increased three-fold. With respect to campaign effectiveness, this was a giant leap that reflected how intuitively relevant the campaigns were and how careful segmentation of the customer database assisted in ensuring that the right campaign reached the right customer at the right time. • Average Product Holding Per customer was increased by 5% while churn came down by 3% in the same period. In a market that is getting fragmented with undifferentiated offers, this is a testimony to how an effective series of campaigns can pre-empt a customer’s need by articulating it before he realizes that he needs it. This translates to resultant ARPU increase of between 5-6% as a result of this framework as against a baseline increase of 2-3%. • The number of packages sold in cross-sell and up-sell went up significantly as a result of analytics that drove fully-automated targeted campaigns at customers displaying a propensity to pick up packages and promos that were relevant to their needs. This accounted for half the total packages sold in this period. • The contact center reported a 10% increase in conversion of pitches on in-bound calls because executives were now better equipped with information on the customer to make an offer that would be more compelling than generic ones as were being made prior to the system’s implementation.ClientSpeak“Hansa Cequitys subscriber preference modeling framework was a key differentiator in ourmarketing efforts. It led to solid business results with our campaign response ratesimproving 3 times over the base rate. Thanks for a fantastic job.”- Chief Marketing Officer“Thanks to Hansa Cequitys subscriber preference model we are now able to better providethe “Right Offer” to “Right Subscriber” and also better engage with them at each opportunityleading to substantial reduction in subscriber churn. Keep up the great work!”- Head, Subscriber Marketing 7
  10. 10. Hansa Cequity CampaignerAbout Hansa CequityHansa Cequity is a provider of technology enabled, analytics driven end-to-endcustomer and marketing intelligence solutions. Our goal is to help companies buildprofitable, empowered customer relationships and engaging experiences by leveragingcustomer information with analytics and technology tools. We build and leverage thepower of marketing databases and automation applications using best-in- classcustomer marketing processes.Website http://blog.hansacequity.comContacts Ajay Kelkar Chief Operating Officer Amit Pote Business Development Roy Wollen Head Analytics & Client Engagement North AmericaAddresses India: 105-106, 1st Floor, Anand Estate, 189-A, Sane Guruji Marg, Mahalakshmi, Mumbai - 400 011 Ph: +91 (22) 43453824 Fax: +91 (22) 43453840 USA: 626, Grove Street, Evanston, Chicago, IL 60201 Ph: +1 (847) 491 6682Note: This document is the exclusive property of Hansa Cequity and it cannot be copied,replicated, or transmitted without permission.For enquiries, please contact: 8