Abstract
In an increasingly competitive marketplace operators wish to attract the right
(i.e. the highest value) customers. They need to maximise on their investment
in customers to achieve the highest profitability possible and retain those
customers in the face of increasing competition. The maturing markets of
Europe and elsewhere demand that MNOs and MVNOs move from standardised
products for the mass market to more customised products for more profitable
customers. It is becoming increasingly apparent that the customer that spends
the most per month is not necessarily the one delivering the greatest profit
to the MNO' s bottom line. MNOs therefore face a whole new set of challenges -
how do they identify who is the most valuable and then how do they address
them in order to ensure they are retained (or acquired from other operators)?
This report explores the increasing complexity of identifying and targeting
the optimum customers and provides concrete recommendations to help MNOs face
this challenge.
Table of Contents
1. OVERVIEW
2. INTRODUCTION
- 2.1. Background
- 2.2. Report Content
- 2.3. Exchange Rates
3. TARGETING HIGH VALUE CUSTOMERS
- 3.1. Introduction
- 3.2. Segmentation Approaches
- 3.3. Value Based Segmentation Approaches
- 3.3.1. Direct Financial Value
- 3.3.2. Social Network Value
- 3.3.3. Future Value
- 3.4. Definition of High Value Profiles
- 3.4.1. Overlapping Value Approaches
- 3.5. Alternative Segmentation Approaches
4. OPERATOR INITIATIVES
- 4.1. Introduction
- 4.2. Sticky Tariffs
- 4.2.1. Vodafone UK Family Tariff
- 4.2.2. 3 Italia Family Prepay SIM Offer
- 4.2.3. Orange UK Friends Scheme
- 4.2.4. TIM Italy Equipment Discount
- 4.2.5. tele.ring Austria Student plans
- 4.3. Gift Promotions
- 4.3.1. Vodafone UK Handset Promotions
- 4.3.2. T-Mobile Germany Postpay Promotion
- 4.4. Loyalty schemes
- 4.4.1. 3 Italia
- 4.4.2. CellC South Africa Prepay Voice Rewards
- 4.4.3. E-Plus Germany Bonus Minutes for Prepay Top-ups
- 4.5. Contract Extension
- 4.5.1. 3 UK Customer Referral Program
- 4.6. Multiplay bundle offers
- 4.6.1. Orange UK Broadband and Mobile Offer
- 4.6.2. 3 UK X-Series Plan
- 4.7. Handset Promotions
- 4.8. Additional Strategies
- 4.8.1. Exploiting Sub-branding Opportunities
- 4.8.2. Event Based Strategies
- 4.8.3. Individualised Promotions
5. POTENTIAL BENEFITS OF INITIATIVES
- 5.1. Relative Impact of Initiatives
- 5.2. Return on Investment
6. FINDINGS AND RECOMMENDATIONS
- 6.1. High Value is not Always the Most Profitable
- 6.2. MNOs Must Understand Their Customers
- 6.3. Convergence is a Critical Enabler
- 6.4. Targeting Needs is a Key Challenge
- 6.5. Immediate Steps
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