1. The Youth Segment Barcelona, 21 October 2004 Raffaella Leproux Vodafone Italy
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5. UPSELLING CARING Maintain the customer base and defend it from competitors attacks Increase the value of the customer base through the usage stimulation Offer to the customers the best service and reward SEGMENTATION Vodafone Italy Customer Base Management UPSELLING CARING RETENTION
6. What’s Segmentation To divide the Customer base in cluster groups with different needs and behaviours in order to create different and appropriate marketing proposition
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8. The Segmentation Methodology YOUTH Seg 1 Seg 2 Seg N Seg4 Seg 3 application of the rule to the entire CB (including new adds) Customer Data Base Seg 1 Seg 2 Seg 3 Seg N Seg 4 Classification rule on sample Segments estimate Seg 1 Seg 2 Seg 3 Seg N Seg 4 variables time Customers Market research* Customer Data Base Segmentation Data Mart Customer Insight Development Modelling
11. What is Youth? /1 Early Teens 12 – 15 years Late Teen s 16 – 19 years Young Adult 20 -24 years Young Professionals 25 -30 years Child 0 – 11 years
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13. Needs overview Share of Time** Stimulation Self expression Communication Fun & Entertainment Information Organisation Share of Mind* YOUTH Self expression Stimulation Communication Fun & Entertainment Information Organisation Share of Mind* Share of Time** ADULTS *Share of Mind is the rank order of need when it occurs ** Share of Time is the frequency of mentions of need across all occasions, with occasions weighted by importance (% penetration of occasion & average duration of occasion) The self expression need is the difference
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22. Messaging Promotions – Price/Volume Elasticity SMS Card 2002 SMS+MMS Card 2003 Christmas Card 2003 SMS+MMS Card 2004 Youth Segment shows a strong increase in SMS and MMS per day usage during Summer and Xmas Promotion Summer 03 Xmas 03 Summer 04
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