Analytics, KPIs for effective Churn & Loyalty management

Pakistan Mobile Communications (Pvt.) Limited 1

Using Analytics, KPIs and process management to achieve superior customer contact management, churn reduction and loyalty

TMF Management World Middle East 2011

Ehtisham Rao


Broad agenda


Churn in Telcos is a function of size and prepaid proportion

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

0% 20% 40% 60% 80% 100% 120% 140% 160%

Bubble size indicates prepaid subs %

High Churn: Most of these countries are in emerging marketHave high prepaid focus

Low Churn: Mostly high penetration developed market Most have them have smaller prepaid segment

India

Nigeria

China

Egypt

Peru

Brazil

Morocco

Algeria

Pakistan

Philippines

Indonesia*

Japan

South Africa

Belgium

Argentina

Denmark

New – Zeland

SwitzerlandSweden Singapore

Austria

Finland

Market Penetration %

Monthly churn %Monthly Churn %, Penetration and Prepaid % in different countries Q1 2009

Courtesy Capgemini Consulting


As markets mature, costs shift and so should the focus

Churn on the rise: SAC lowers to give way to more operational space in SRC


Drivers; lack of discounts, recognition of loyalty

39%

27%

25%

23%

22%

14%

No reward forcontract renewal

New discount notapplied

CC staff unaware ofservice history

In dark about serviceproblem

No continuity in faultresolution

Not enough choices

Top reasons behind voluntary Churn in Telecom What would have prevented Churn

57%

50%

31%

29%

19%

New discountsapplied

Reward for renewingcontract

Continuity in handlingcomplaints

Keep informed aboutservice problem

Provide greaterchoice

Though operators can take reactive measures such as better conflict management capability among their CC staffs to manage churning customer , proactively discount,

renewal reward etc seem to be more effective in churn managementCourtesy Capgemini Consulting


Loyalty & Churn are flip side of the coin

Business Objectives

Business Transformation

Objectives

Customer Relationship Objectives

Reduce Churn

Increase ARPU

Focus on High Value Customers

Customer Profiling

Improve Customer Experience Delivery

Enable broad communication with Customers

Contribute to Brand Perception

Loya

lty O

bjec

tives Customer Loyalty has a

wide definition that can serve a number of objectives including reduce churn, and increase loyalty, as a rather direct consequence of different programs and campaigns


Loyalty & Churn in continuumCategories DescriptionHigh-level ActionsPrograms

Visible programs and campaigns to

increase loyalty

• Customer gets information about the scheme

• In most cases, the customer signs-up for participating

Bonus point systems

Tiers and clubs

• Bonuses (based on different usages)

• Find a friend• Direct point systems (operators

services)• Multi-partner point systems• Indirect point systems (3rd

party services)• Lotteries• Incoming calls

• Friends and family & communities

• Tiers• Clubs

1

2

“Behind the scene” churn-

prevention actions

• Basic call related information and customer profiling

• Social network analysis• Customer service behavior• Speech analysis

• Pro-active offers from the operators

• Customer doesn’t know she is part of a “program”

Offers based on ‘Analytics’

3


Evolution of customer contact management for campaigns

Customer View

Success Rate

Traditional CampaignEnterprise-InitiatedMarketing-Driven Intrusive 3%

Targeted Campaign

RelevantSegment basedMarketing

20%

Timely Interaction

AppropriateEvent drivenRelationship based

40%

Gartner Group 2003

Customer View

Success Rate

Traditional CampaignEnterprise-InitiatedMarketing-Driven Intrusive 3%

Targeted Campaign

RelevantSegment basedMarketing

20%

Timely Interaction

AppropriateEvent drivenRelationship based

40%

Gartner Group 2003


10 opportunity areas in Customer Lifecycle Management

Courtesy KXEN


Campaign Management OR Marketing Automation

Managing Campaigns is only part of the Marketing Automation phenomenon

• Open, flexible, business intelligence platform• Powerful descriptive and predictive analytics• Pre-built dashboards, personalized access

• Optimize planning & budgeting• Manage content and approvals• Share best practice templates

• Segmentation and targeting• Campaign design and execution• Outbound, inbound, triggered

• Loyalty Program management• Member profiling and management• Promotions and rules definition

• Multi-channel response capture• Collaborative lead management• Integrated ROI analytics

• Closed loop tracking• Role-based, real time analytics• Continuous learning

LoyaltyManagement &

Execution

Response &LeadManagement

Customer

Campaignsand DialogueManagement

Customer & Business Insight

Marketing AnalyticsPlanning &Resource Management

Plan

Manage

Measure

Understand

Execute


The components that must all come together


Strategy / Planning must be integrated with analytics, budgets, and customer engagement data

Customer behavior must be fed back into the marketing planning continuum

The Budget for each campaign must tie in with overall plans and multiple wave execution

Customer engagement must be linked seamlessly in real time with the Marketing planning tools

1

2

3

4

Marketing Automation – The Building Blocks

Marketing automation breaks a linear relationship and results in a continuum of planning and action

Marketing Automation building blocks

Marketing

MarketingPlan/Strategy

Budget/ROI

Customer Engagement

Marketing Analytics

Offer & Price Behavior Results

1

2

3

4


From Campaign Management to Marketing Automation

Teradata Data

Warehouse

Analytics

Source Data

Billing,Payments, Recharge

Customer information

MarketingInfo

CDRs / Pre- and Postpaid

CRM / Retention

Acquisition

Growth

Retention

Strategic Customer Insight Seamless Customer Experience

Real

Tim

e In

tegr

atio

n

Telemarketing

CallCenter

Sales Contact

Orchestration

Multi-Channel, Single WaveDisparate Campaigns

Automation

E-mail

Campaign Management Channels

SMS

Segments

SegmentA

Offer B

Channel C

Campaign A

SegmentV

Offer B

Channel C

Campaign B

SegmentC

Offer B

Channel C

Campaign C

Responses

Budget

Missing Components!

Missing Seamless channel integration (feedback) !

Marketing Analytics

MiningModeling

Reporting ProfilingSegmenting

CampaignDesign

Multi-Channel Campaign Automation

CampaignAutomationBudget

Event-Driven Marketing

EnterpriseRules

Real Time Events

Marketing Automation


Value comes from Analytics indeed!

Pervasive BI built into business processIsolated Power usersReal-time, forward looking insightAfter-the-fact data

Intelligence-driven processes & workflowsReporting results

TOFROM

Analytics driving business valueBI tools


Marketing action is expanding beyond Query and Reporting support

BI Generation

“Here are your reports”

“Explore my data”

“How well are we meeting targets?”

“What should I do next?”

Driving Performance with Information Requires Transformational use of BI

Incr

easi

ng B

usin

ess

Valu

e

“What should I do now, at the moment of contact?”

Transactional

reporting

Query,

OLAP/DW

KPI

Management

Insight Driven

ActionCampaign

Management

Intelligent

InteractionAuto offer

generation

Mobilink’s Estimated Position in the Automated Process


Marketing Challenges, the integration ‘island’


Analytics must supplement the overall Customer contact management strategy


Analytics roadmap


Case- Churn suspect engagement and stabilization (loyalty)

Push to Customer

Engage

Stabilize

Ease of Use

15 day cycles introduced from July 1. 2010 onwards:• New triggers in addition to churn propensity introduced• IT-DWH and BAP teams became part of the same process• CMT tool modified to achieve the 15 day cycle

Stabilization Platform

Qualify engaged customers

Results of the 15 day cycle are convincing• Customer response on campaigns triple folded• Complexity and frequency of the campaigns allowed us to see through

patterns• High value customer engagement seems to be significantly more effective• Using KXEN based campaign for low value customers is inefficient

• Challenge is to convert the engaged customers into stable, revenue generating base.

The Stabilization platform is already available to us;

• Customers moved to the platform based on engagement• Rotational customers could also be moved• Offers made are behavioral, for every 100 Rs recharge, 10 free minutes etc• These customers are on the program for one year so no multiple campaigns

required to keep them engaged• In case customers fall out of the stabilization platform, they get detected

again through KXEN otherwise they are moved out of the churn radar

The platform allows for customers to be contacted automatically once thresholds are achieved;

“Dear customer, you have qualified for 10 free offnet minutes with your Rs 100 recharge, kindly SMS the following code to 1234 to receive your voucher”

This point of customer delivery allows for ramp up of rusty high value customers and allows us to study their behavior while in stabilization phase.

SMS on maturity E Vouchers

Marketing Gap Inactivity Period

Offer & Take up

• Special Of net offers

• Bundles on usage threshold

• Free recharge after X AMT recharges


A complete communication dashboard


Communication Dashboard Overview


Value added through each step of the way

Feedback Loop and Automation

Monitoring / KPIs

Business Understanding

Data Understanding .

Analytical Dataset Modelling Deployment


Cascaded KPIs – the essentials


Monitoring KPIs- exploded


Takeaways

Churn has a strong correlation with location.

Churn as a function of distribution channel

Network intelligence cannot be replicated through back office automation

Loyalty programs should look beyond a narrow set of business objectives


Thank you—any questions?

Ehtisham RaoDirector Business Intelligence & Billing, [email protected]

mailto:[email protected]

Analytics, KPIs for effective Churn & Loyalty management

Business

Transcript of Analytics, KPIs for effective Churn & Loyalty management