Targeted Campaigning to improve Response!!

HANSA CEQUITY CAMPAIGNER

Sharper Competitive Edge with a Focused Campaign Management Framework

Glossary

Executive Summary

About the Client

Business Situation

Solution Space

Business Benefits

Client Speak

About Hansa Cequity

Contents

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.

Executive SummaryHansa Cequity enabled a leading direct-to-home digital satellite television provider sharpen its competitive edge bringing about a key shift in the campaign management mindset. The strategy went from a quest for customers who would pick up pre-determined offers to a robust intelligent system that identified behavioural shifts in customer patterns and allocated to her the most relevant offer. This was made possible through the implementation of an automated campaign management framework that leveraged sharply defined customer segments and preference demographics to achieve the objectives of increased Average Revenue Per User (ARPU), reduced churn, and increased acquisitions. The solution design went beyond conventional approaches to analytics to leading to increased cost savings at the same time.

About the Client One of India’s leading digital satellite television providers, the company is at the forefront of what is now known as the DTH revolution in the country. A joint venture between India’s leading business house and a global broadcasting giant, their service offers unmatched choice, control and convenience in TV entertainment backed by stellar consumer and technical support at all levels. It has been a first-mover in offering several innovations in the DTH marketplace, which have since gone on to become benchmarks in the industry. They are almost synonymous with the 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 a growth of 18%, digital satellite television has become one of the fastest growing consumer electronics product-service combinations of all time. However, to stay ahead in the game the players need to read future trends that now indicate a need for innovations in non-traditional TV services such as cutting edge 3D viewing experiences, interactive educational programs, interactive gaming among others. The key is to know your customers and approach them with the right offers at the right 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 to its subscriber base to communicate messages of value. As such it makes little business sense for the service provider to reach out to its large base of consumers with a communication unless there is confidence that the message will be positively received. Contact Center agents find it increasingly difficult to deliver value in the call

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Hansa Cequity Campaigner

unless there is proven intelligence that indicates that their message has a high probability of striking the ‘need’ chord in the consumer’s mind. The scenario is similar 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 nudged in 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.com

Understanding Campaigns and their CriticalityFor the DTH industry, campaigns are the manifestation of marketing thought in action. An effective series of campaigns can achieve most marketing objectives. The campaign 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.

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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 the issues at hand was the shift in mindset. The one-size-fits-all approach began with an offer that was driven by a marketing decision and the campaign was the thrust that drove that marketing decision to a seemingly logical end.

In contrast, the new approach to campaign began with the customer. Analytics was in a position to throw up changes in behavior that indicated that there was probably something that could be offered to him or her that would be of value.

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Here's an offer

Let's find someone interested

Here's an offer

Let's find someone interested

With a change in behavior that suggests a need

That suits the person's need

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How campaigns happen now – One size fits all approach

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.

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Marketing Executive decides on a campaign

Data Analyst picks up data cuts for which the campaign is targeted

Marketing Analyst validates data and sends to SMS blaster

The SMS Blaster sends out the campaign to all targeted

Campaign recipients

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Solution SpaceThe Hansa Cequity Approach: Enabling the Shift in MindsetThe 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.

SegmentationSetting Up of Datamart and

creation of various flags and

variables for segment

identification

Event TrackingCreation of

various event tracking variables

within the datamart

ModelingBuilding Various

Predictive models to predict customer behavior and target

them with appropriate campaigns

Campaigner SetupSetup multiple campaigns and schedule them. Build Rules for

suppression and de-duplication

Campaign TrackingTrack Campaign Efficacy throughTest & Control Mechanism &

Monitoring Customer

Transactions

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The Roadmap to Better Campaign Execution

Segmentation on Transactional Behavior

Preferred modes of communicationChannel usage behavior

Product affinity

Communication integrated seamlessly across channels

Set Campaign Rules to Pick fromDeviation in behavior from normSpecification Purchase Behavior

Phase I: Identify Channels and Triggers Phase II: Need driven campaigning

Campaign recipients

Using historical purchase behavior to identify future

product buying preferences

The Analytical Edge

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Business Benefits The Hansa Cequity Campaigner AdvantageImplementing Hansa Cequity Campaigner led to a sharper competitive edge over the quarter it was implemented in. The results can be broken down into the following broad areas:

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 Cequity's subscriber preference modeling framework was a key differentiator in our marketing efforts. It led to solid business results with our campaign response rates improving 3 times over the base rate. Thanks for a fantastic job.”- Chief Marketing Officer

“Thanks to Hansa Cequity's subscriber preference model we are now able to better provide the “Right Offer” to “Right Subscriber” and also better engage with them at each opportunity leading to substantial reduction in subscriber churn. Keep up the great work!”- Head, Subscriber Marketing

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About Hansa CequityHansa Cequity is a provider of technology enabled, analytics driven end-to-end customer and marketing intelligence solutions. Our goal is to help companies build profitable, empowered customer relationships and engaging experiences by leveraging customer information with analytics and technology tools. We build and leverage the power of marketing databases and automation applications using best-in- class customer marketing processes.

Website http://www.hansacequity.com/ Blog http://blog.hansacequity.com

Contacts Ajay Kelkar Chief Operating Officer [email protected]

Amit Pote Business Development [email protected]

Roy Wollen Head Analytics & Client Engagement North America

Addresses 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 6682

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