U.S. Cellular had to reinvent all their processes to battle churn using loyalty and its rewards instead of mandated renewal contracts. It was extremely complex, but TIBCO Loyalty Lab got them to the finish line on time for an extremely successful launch.
Watch USCC present on-demand http://forms.loyaltylab.com/vod_uscc
3. Creating a Rational Strategy to Engage Irrational Customers
1. A story
Understand Your Environment
2. Get Beyond the Rational
3. Develop Your Strategy… and Your Story
4. Prove Your Rational Case by Measuring Irrational Behavior
5. Create the Irrational Case for Irrational Behavior (i.e. Create Belief)
6. Execute with Excellence
3
10. 4a. Prove Your Rational Case by Measuring Irrational Behavior
Don’t ask them to “say” what they’ll do, watch what they actually do
Scenario 1 of 12 Plan 1 Plan 2
Scenario 1 of 12 Plan 1 Plan 2 Plan 3 Plan 4
Scenario 1 of 12 Plan 1 Plan 2 Plan 3 Plan 4
Service Provider Verizon AT&T Sprint/Nextel T-Mobile
Service Provider
Scenario 1 of 12 Plan 1
Verizon 2
Plan Plan 3
AT&T
Plan 4
Service Provider Verizon AT&T Sprint/Nextel T-Mobile
Free In-Network Calls
Scenario Provider Free In-Network Calls Plan 2
Service 1 of 12 Plan 1
Verizon AT&T Sprint/Nextel 3
Plan Plan 4
T-Mobile
Calling Plan Features None Free Calls To or From Your Favorite 5 Numbers
Free In-Network Calls Rollover Minutes
Free Incoming Calls from Anyone, Anytime
Free In-Network Calls
Service Provider Verizon AT&T Sprint/Nextel T-Mobile
Calling Plan Features None Free In-Network Calls
Free Calls Rollover Minutes Favorite 5 Numbers
To or From Your Rollover Minutes
Free In-Network Calls
Free Incoming Calls from Anyone, Anytime
Calling Plan Features
Estimated Total Monthly Bill $0/$0
None
+$10/+$15
Free Incoming Calls from Anyone, Anytime
Free In-Network Calls
Free Calls Rollover Minutes Favorite 5 Numbers
To or From Your
+$20/+$30
Free In-Network Calls Free In-Network Calls
Rollover Minutes
-$10/-$15
Calling Plan Features Calling Plan Features Discount for Automatic Payment and
Estimated Total Monthly Bill
Billing Discount
5% $0/$0
Paperless Billing
None None+$10/+$15
None
Free Incoming Calls from Anyone, Anytime
Free Calls Rollover Minutes Favorite 5 5% Discount for Automatic Rollover Minutes
To or From Your
+$20/+$30
None
Numbers
-$10/-$15
Paperless Billing
Payment and
Estimated Total Monthly Bill
Billing Discount
Overage Charges
5% Discount for Automatic Payment and
$0/$0
Guaranteed Paperless Billing
Flat Monthly Rate
+$10/+$15
None
Overage Charge Flexible Payments
Standard charge per minute+$20/+$30
over Free Incoming Calls from Anyone, Anytime
Rollover Minutes 5% Discount for Automatic Payment and
None your monthly Standard charge per minute -$10/-$15 monthly
over your
Paperless Billing
allowance with $50 cap allowance
5% Discount for Automatic Payment and 5% Discount for Automatic Payment and
Billing Discount
Estimated Total Monthly Bill $0/$0 +$10/+$15
None Standard charge per minute+$20/+$30
None your monthly Standard charge per minute -$10/-$15 monthly
over over your
Overage Charges
Overage Protection Guaranteed Paperless Billing
None Flat Monthly Rate Overage Charge Flexible Payments
None None Paperless Billing
Overage Protection Notification
allowance with $50 cap allowance
5% Discount for Automatic Payment and 5% Discount for Automatic Payment and
Standard charge per minute over your monthly Standard charge per minute over your monthly
Billing Discount
Overage Charges Guaranteed Paperless Billing None None Advanced Overage Protection Notification
phone with touchscreen (e.g.,
Overage Protection
Phone NoneFlat Monthly Rate Traditional phone with enhanced capabilities
Basic Phone
Overage Charge Flexible Payments
None None with $50 cap
Smartphone or PDA (e.g., Blackberry, iPhone)
allowance Paperless Billing
allowance
Samsung Delve, Samsung Instinct)
Standard charge per minute over your monthly Standard charge per minute(e.g., your monthly
phone with touchscreen over
Advanced Overage Protection Notification
PhoneOverage Charges
Overage Protection Guaranteed Flat Monthly Rate Traditional phone with enhanced capabilities
None Overage Charge Flexible Payments
None Smartphone or PDA (e.g.,None with $50 cap
$300 Phone
Basic Blackberry, iPhone)
Estimated Total Monthly Bill
Phone Price (before rebate)
$0/$0
$50 Free allowance
+$10/+$15
$200 allowance
Samsung Delve, Samsung Instinct)
Advanced phone with touchscreen (e.g.,
Mail-In RebatePhone Protection
Overage
Phone Price (before rebate) Rebate None
$100 Mail-In$300 Phone
Basic None
Traditional phone with enhanced capabilities
None $50 Smartphone or PDA (e.g.,None
None Free Blackberry, iPhone) $50 Mail-In Delve, Protection Instinct)
Overage
Rebate
Samsung $200 Samsung
Notification
Advanced phone with touchscreen (e.g.,
30-Day Phone Price Match
Mail-In RebatePhone
Phone Price (before rebate) None
5% Discount 30-Day Phone Price Match enhanced capabilities andNoneNone PDA (e.g., Blackberry, iPhone)
$100 Mail-In$300 Phone
Rebate
Basic
for Automatic Payment Smartphone or Free
None $50
Traditional phone with None
$50 Mail-In $200
Rebate
Samsung Delve, Samsung Instinct)
Billing ProtectionPrice (before rebate) Swap & Phone Replacement
Discount None
Phone Phone Price Match
30-Day Phone Rebate
Mail-In Battery None
$100 Mail-In$300
Rebate
Paperless Billing
Battery Swap None $50
30-Day Phone Price Match Phone Replacement
NoneNone Free NoneNone
$50 Mail-In $200
Rebate
Phone Protection
30-Day Phone Price Match
Phone Upgrade and Contract Rebate
Mail-In Battery Swap & Phone Replacement
None
$100 Mail-In Rebate 30-Day Phone Price Upgrade Every 2 Years
Phone Match
Battery Swap None Phone Replacement
NoneNone NoneNone
$50 Mail-In Rebate
Requirement
Overage Charges Match Guaranteed Flat Monthly Rate Contract Required after 4 Years Overage Required Every 2Flexible Payments
Charge Years
Phone Protection No Battery Swap & Phone Replacement
Contract Required None after Phone Phone Upgrade Every 2 Years
No Contract RequiredBattery Swap Price Match
30-Day 2 Years No Phone Replacement Contracts NoneNone
Phone Upgrade andPhone Price
30-Day Contract None
Requirement Rewards Program Based on Timeafter 2 Years
Rewards Program No Battery Time with Provider
Rewards Program and Contract Contract Required
Based on Swap & Phone Replacement No Contract Required and Monthly Rewards Program BasedRequired after 4 Years
Phone Upgrade Every 2 Years on Monthly Replacement Rewards Program Based on Time with2 Years
No Contract Spend with Contracts Required Every Provider
Phone Upgrade Protection
Phone Battery Swap
Spend with Provider Provider
Phone None
Requirement Rewards Program Based on Timeafter 2 Years
Rewards Program Rewards Program No Contract Required
Based on Time with Provider No Contract Required and Monthly Rewards Program BasedRequired after 4 Years
No Contract on Monthly Spend with Rewards Program Based on Time with2 Years
Phone Upgrade Every 2 Years Contracts Required Every Provider
Phone Upgrade and Contract
Overage Protection None None
Spend with Provider Provider
Requirement Rewards Program Based on Time and Monthly Rewards Program Based on Monthly Spend with
Rewards Program Rewards Program No Contract Required
Based on Time with Provider No Contract Required after 2 Years No Contract Required after 4 Years Rewards Program Based on Time with2 Years
Contracts Required Every Provider
Spend with Provider Provider
Free Bluetooth Headset with New Phone
Rewards Program Based on Time and Free Universal Charger with New PhoneMonthly Spend with
Monthly Rewards Program Based on
Rewards Program Rewards Program Based on Time with Provider Rewards Program Based on Time with Provider
Spend with Provider Provider
Free Bluetooth Headset with New Phone
Priority Line with Customer Service Calls Free Bluetooth Headset with New Phone
Phone Answered in 60 Seconds Basic Phone
Pre-Ordering of New Phone Models
Traditional phone with enhanced capabilities
Early Access to New Phone Models Phone
Free Universal Charger with New
Free Bluetooth Headset with New Phone
Priority Line with Customer Service Calls Free Bluetooth Headset with New Phone
Priority Line with Dedicated Customer Service
Rewards Available Pre-Ordering of New Phone Models
Annual Overage Forgiveness Voucher Early Access to New Phone Models Phone
Free CompanionCharger with New
Free Universal Line
Free Companion60 Seconds
Answered in Line Representative
Priority Line with Customer Service Calls
Free Bluetooth Headset with New Phone Annual Overage Forgiveness Voucher Priority Line with Dedicated Customer Service
Free Bluetooth Headset with New Phone
Rewards Available Pre-Ordering of New Phone Models Half-Price Phone Replacement Insurance Models Phone
Free Phone Replacement Insurance Free CompanionCharger with New
Early Access to New Phone
Free Universal Line
Phone Price (before rebate)
Rewards Available
Free Companion60 Seconds
Answered in Line
Free Phone Replacement Insurance
$300
Priority Line with Customer Service Calls FreeAnnual Overage Forgiveness Voucher
Phone Replacement Insurance
$50
Representative
Phone Upgrade after 18 Months
Priority Line with Dedicated Customer Service
Free Bluetooth Headset with New Phone
Free Phone Free Companion60 Seconds
after 15 Months Line
Phone UpgradeReplacement Insurance
Half-Price Phone Replacement Insurance
Pre-Ordering of New Phone Models Phone Upgrade FreeAccess to New Phone Models
after 12 Months
Early Companion Line Phone Upgrade after 18 Months
Representative
Answered in
FreeAnnual Overage Forgiveness Voucher
Phone Replacement Insurance Phone Upgrade Free Companion Line
after 12 Months
Half-Price Phone Replacement Insurance Priority Line with Dedicated Customer Service
Rewards Available Phone UpgradeReplacement Insurance
after 15 Months
Free Phone Free Companion Line Phone Upgrade after 18 Months
Mail-In Rebate $100 Mail-In Rebate None
Representative
Free Phone Replacement Insurance Phone Upgrade after 12 MonthsInsurance
Half-Price Phone Replacement
Phone UpgradeReplacement Insurance
Free Phone after 15 Months Phone Upgrade after 18 Months
Rewards Program Bonus Rewards for Payments Rewards Program Bonus Rewards for Payments
Bonus Rewards None None
and Referrals and Referrals Phone Upgrade after 12 Months
Phone Upgrade after 15 Months
30-Day Phone Price Match
Bonus Rewards
Which of these plans do you most and Referrals None
Rewards Program Bonus Rewards for Payments Rewards Program Bonus Rewards for Payments
and Referrals
None 30-Day Phone Price Match
None
Plan 1 Plan 2
Rewards Program Bonus Rewards for Payments Rewards Program Bonus Rewards for Payments Plan 3 Plan 4
prefer?
Bonus Rewards None None
Which of these plans do you most and Referrals and Referrals
Plan 1 Plan 2 Plan 3 Plan 4
Yes, switch to the plan selected above
Phone Protection Battery Swap & Phone Replacement BatteryNoneSwap
Would you switch from your current prefer? Rewards Program Bonus Rewards for Payments Rewards Program Bonus Rewards for Payments
Bonus Rewards None
plan to the one you most prefer/have you most
Which of these plans do and Referrals and Referrals
Plan 1 Plan 2 Plan 3 Plan 4
Would you switch from your current
selected above? No, stay with current plan selected above
prefer? Yes, switch to the plan
plan to the one you most prefer/have you most
Which of these plans do
Would you switch from your current
selected above? No, stay with current plan 1
Yes, switch to the Plan selected above
plan Plan 2 Plan 3 Plan 4
Phone Upgrade
prefer?
plan to the one you most prefer/have
Phone Upgrade and Contract selected above?
Would you switch from your current No, stay with current plan selected above
Yes, switch to the plan
plan to the one you most prefer/have
Requirement selected above? No, stay with current plan
No Contract Required No Contract Required after 2 Years
Rewards Program Based on Time and Monthly
Rewards Program Rewards Program Based on Time with Provider
Spend with Provider
10
23. 6. Execute With Excellence
My Account homepage
Highlights four primary redemption
options (breadth)
Calls out Special Offers
Finishes with two primary accrual
options (survey, referrals)
Contains U.S. Cellular® confidential information. Not for external use or disclosure without
proper authorization.
Page 23
24. 6. Execute With Excellence
Reward Activity page
Descriptions differentiate
between standard earn
(CAPS) and unique or
promo earn
Bonuses include Birthday
(S&D), as well as Referral,
Content/Application
downloads (“Active”)
Finishes with two primary
accrual options (survey,
referrals)
26. Multiple Factors Have Created Significant Market Pressures
The Belief Project: Follow On Research Findings
90% said wireless providers should earn my loyalty, not require it BELIEF REWARDS
by having me sign a contract.
NO CONTRACT
87% said they shouldn’t have to sign a service contract just to stay AFTER THE FIRST
with my current wireless carrier.
84% said 24 months is too long to wait to get a good deal on a new FASTER PHONE
UPGRADES
cell phone
80% said wireless providers should do something about overages OVERAGE
and the big bills that come from them. PROTECTION/CAP
FORGIVENESS
26
27. Initial Results
Top customer satisfaction and network call quality is the foundation of U.S. Cellular.
Below are some awards and top rankings in customer surveys.
2011 Customer Service Champion
JD Power and Associates
Readers' Choice Award 2010 Cellular
Service Providers: Contract Providers
PC Magazine
#1 Cell Phone Service Provider
Consumer Reports Customer Survey
January 2011
2010 Value Enhancement of the
Year Award
Frost & Sullivan
27
28. Initial Results
Overall Satisfaction with Carrier
Mean, All Subscribers in USC Regions
Launch of the
Belief Project
28
29. Initial Results
Would Recommend Carrier**
Top 2 Box
Launch of the
Belief Project
29