Pricing Analytics - Pricing Mobile Data, London 2012


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Sagy Gulianka of cVidya talks about how to achieve differentiation in the already mature market of mobile telephony.

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Pricing Analytics - Pricing Mobile Data, London 2012

  1. 1. ANALYTICS Achieving Differentiation In a Mature Market© 2012 – PROPRIETARY AND CONFIDENTIAL INFORMATION OF CVIDYA
  2. 2. Agenda Challenges internal/external A complete framework for pricing excellence Advanced analytics is a key to create shared value Case study: Orange France2
  3. 3. Withdraw Unlimited!Get More Money for Speed3
  4. 4. Trend 2: The Impact Of Tiered Pricing—Shake-Up At The TopTiered pricing plans are effectively constraining the top 1 percent ofmobile users
  5. 5. What is Needed to Consistently Create anEnd To End Pricing Excellence? Monitoring Customer Needs Lunch Competition Validation Offer Design5
  6. 6. Measure The Impact Of New Tariff Launches – Case 1 Question 1: How we can re-coup the risk we’re taking? Launched in 2010, B2C Revenues (in M euro) Generates 25% of Personal Revenues Postpay +9% New Postpay after 1 year (+8) Prepay 84 91 Value at stake was part of 84M of Postpay monthly revenues 35 36% 39% 53 Analysis that identified opportunities to 0 24 25% increase revenues, contributed to +10M 31 33 euros (monthly YoY) incremental revenues 2010 20116
  7. 7. Measure The Impact Of New Tariff Launches – Case 2 Question 2: Postpay migrations in 2009 +204% Can we estimate the revenue we might lose? 155 120 100 53 46 51 55 50 47 46 50 37 Launched in Sep 2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Increase (~200%) in migrations (commissioned commercial act) November 2009 migrations 3 months before & after Improving monthly commitment (+56%) +56% Average Total Bill Diluted in terms of total bill (-16%) -15% Average Monthly Fee 13 11 Carried over the contract life 5 7 deteriorating Operator’s performance Before After7
  8. 8. And There is Much More To Do With Mobile Internet Speed buttons Sales of Service bundle EU Data Bundle content Charge for Premium Content linked Worldwide Device Bundles Storage bundle to Speed/QOS Data Bundle Optimise Throttled Happy hours Off peak offers Dynamic pricing Network (bundles) Social networks Billing Shared bundles Tiered Device pricing Increments KB across devices Portfolio Align Usage & Spend Prepaid data Usage based + Refined volume add-ons Snacking tiers
  9. 9. Zero Rated Plans for Social Networks User traffic with an application or group of applications is not counted against their data allowance 29% of operators sampled have these plans9
  10. 10. Happy Hour (Time Shifting)Encouraging mobile broadband users to shift their internet usage to off-peak hours10
  11. 11. Speed Button Turbo Boost or bandwidth-on- demand option boosts their throughput for specific uses for a predetermined period of time. 6% of operators sampled offer a Turbo Boost option to their customers11
  12. 12. What Else is Needed to Obtain a End to EndMarketing Excellence? Monitoring Customer Automatic Customer Needs Learnin Profile Tailored Real-time Lunch Competition offers per decisions customer Validation Offer Communication, Retention, Design Messages Cross sell12
  13. 13. Tailored Offers Per Customer 200 Ranking = 4 180 Ranking = 11 Competitive Ranking = 1 160 Competitive Rankings = 7 150 140 1st 120 1st Bill 2nd Bill 100 Current plan 100 R1 Portfolio plans 80 Competitors plans 60 Cost 50 40 20 0 0 Pricing Plans Do not offer Pricing Plans Offers are presented based on customer profile and preferences, value to the operator and the competitive landscape13
  14. 14. Retention, Cross and Up-Sell, Advertise You will save 10€ by moving from unlimited to 2GB bundle. Register to this package and get 3 months of free access to live sport streams at premium speed You will save 10€ by moving from unlimited to 2GB bundle. Register to this package and get 1 month of free access to “shape-up” gym club near your office You will save 10€ by moving from unlimited to 2GB bundle14
  15. 15. Communication and Effective Message Customer Interactions/Services … and extra focus to generate effective – CRM: one on one inbound message – Campaign management “We have already – Better plan service “receive 100 free calls” credited your account with 100 calls” – Web self service Accurate offers Improved retention by using the effect Personalized for each customer of “loss aversion” Perfectly timed Italian Operator McKinsey Quarterly: 2/2010 Delivered with precision15
  16. 16. Case Study – Orange France16
  17. 17. Challenges That Orange France Currently Face Competition Customers Goals Free Mobile has acquired a market share of Advise customers on best use of services about 4% of subscribers in France in less Differentiate from competition with services than three months, making it one of the fastest-growing new entrants. Become the number 1 of the customer relationship Sale is the first stage of the customer relationship Experience has to be thought over time17
  18. 18. Allowing Orange France To Fulfill The Promise Of Tariff Personalized Advice You can save up as much as 15 euros My bills are very per month while maintaining your expensive regarding « better current usages. the offer I picked up. plan » We also propose you to discover new I would like to pay usages with our new Internet mobile less offer I would like to do « more for more with my same » You can get unlimited SMS mobile, but I don’t without increasing your bill have a lot of money My mobile phone is You can profit from one extra hour vital for me and I « more for on your voice plan, unlimited calls would like to use it more » to your friends as well as unlimited even more to keep SMS for just a couple euros more in touch with my per month friends18
  19. 19. Orange France Is Thinking Long Term, But Already Doing Better Than Main Competitors Jan ’11 -78% -13% Jan ’12 89 -12% in €, incl. VAT 80 -17% 70 66 58 60 50 49 49 30 30 29 29 24 20 11 10 10 France Belgium Swiss Germany Spain UK Slovakia Poland AustriaSource: Analysys Mason, ARCEP, 2012 Source: Orange, Cheapest offer for unlimited x-net Voice, SIM only19
  20. 20. About cVidya A global leader and innovative provider of Revenue Intelligence solutions for Telecom, Media and Entertainment service providers 150 customers – 20 out of the 30 largest operators 300 employees Global presence in 20 locations Partnership with the world leading vendors20
  21. 21. End-to-End Marketing Excellence CLTV Churn Monitoring Customer Automatic Customer Needs Segment Learning Profile ation Tailored Real-time Lunch OfferImpact™ Competition decisions OfferAdvisor™ offers per customer Validation Offer Communication, Retention, Design Messages Cross sell21
  22. 22. Personalized Video Message To Customers22
  23. 23. THANK YOU!