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Customer INSIGHT in the world of Telecom

Truls Erik Johnsen, Director of Brand Insight

Telenor ASA | Group Industrial Development | Markets | Brands 2015

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Introduction - Customer insight in the world of Telecom

Content of presentation

Introduction

What is insight

Methods

Perspectives

Systemizing knowledge

Case study example

Industrializing insight

Building a insight driven company

Designing a Brand insight system

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Introduction

Truls Erik Johnsen

Ethnologist and Director of Brand Insight, Telenor Group Industrial Development

Responsibilites:

Project manager of Telenor MAP projects Insight tools and methods

Fields of interest:

Cross cultural communication patterns Economic strategies Youth cultures Transnationalities User driven innovation Design research Bicycles

Contact info:

truls-erik.johnsen@telenor.com

Who?

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Why INSIGHT

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Telenor – on of the major mobile operators in the world

170 million mobile subscriptions

Over 30 000 employees

Present in markets with 1.6 billion people

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A constant need for information about our customers

Market information Customer

behaviour Spending patterns

Service usage

Handset types

Service use forecasting

Brand management

Strategy and investments Competitor

analysis

Household economy Education level

Rural/urban

Family structure

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How to get INSIGHT

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How to get INSIGHT?

Qualitative research

Quantitative research

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Qualitative research

In-depth interviews

Focus groups

Observation

Participation

In addition we do desktop studies as preparation for qualitative fieldwork where we look into demographics, culture, telecom-related background information, previous and current initiatives related to proposed activity, etc.

Qualitative research provides us rich data on behaviour, culture, technology use, family structures. It gives us an opportunity to understand the respondents life-world. How he or she (or they?)

understand their world, their life, their opportunities and challenges. And through that it provides a starting point for development of new theories, services, tools or methods.

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Quantitative research

Surveys

Spesific case-by-case surveys to cover a spesific theme

Running trackers to follow performance in the market

Omnibus-style surveys that covers a multitude of

themes

Database mining

Utilizing the knowledge that is hidden in our servers.

Data mining to understand call patterns, service use,

handsets in the customer base etc.

Quantiative research provides us with data on spesific themes or patterns, however it lacks resolution when it comes to questions like “How” and “Why”. It provides hard data on key factors

that can be utilized either to measure perfomance or to get an overview of the market.

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qualitative INSIGHT -an example from Malawi

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Contextualizing

customers

Goals:

Information

+ Education

+ Inspiration

=Better decisions

Challenges:

Socio-economic

background of

management

(Tribe?)Language

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Tools:

•Pictures

•Story telling

•Context information

A picture _do_ tell more

than a thousand words..

Contextualizing

customers

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Economic strategies are

shaped/invented locally

Provide an understanding

of:

•Seasonal changes

•Monetary economy

•Family structure

•Consumption power

•Economic stability (or

lack thereof)

Contextualizing

customers

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Selling second hand

car parts in Malawi is

quite different than

selling cell-phones in

Norway

Provide an

understanding of:

•Trade routes

•Limited resources

•Entrepreneurship

•Economy

Contextualizing

customers

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Coverage maps and hard

facts does’nt necessarily

give the final answer

Customer Insight provide

an understanding of:

•Communication needs

•Strategies to overcome

tech hurdles

•How prejudice can

shapes business cases

Contextualizing

customers

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A Norwegian worldview

does’nt provide the best

understanding of local

worldview….

Provide an understanding

of:

•Religious practices

•Gender roles

•Local communities

Contextualizing

customers

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Industrializing INSIGHT

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Industrializing insight

Building a insight driven company

Systemized and international

approach

Designing a Brand insight system

Turning insight into strategy

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All strategies are based on market segmentation and

customer insight through the Telenor Marketing Platform

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Insight Strategy Follow-up

Who they are? What they value? What they do?

Who to serve? What to offer? How to deliver?

How are we performing? What can be done to improve?

Net promoter system/closed feedback loop

Telenor Marketing Platform

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Telenor MAP (Market Assessment of Performance)

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One basic questionnaire with local

adaption

Values, needs, behavior

Brand specific, market and comp.

Media and channel usage

Telecom usage behavior and

buying criteria

Socio demographics

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Extensive market research

CONSUMER BUSINESS

What are the important needs and values

What are the distribution of the needs/values

How do we match the needs and values of our customers

A unique value and need framework

CONSUMER

BUSINESS

20 consumer values

Describe the core needs

of people

15 Business values

Describe the core needs

of businesses

Telenor MAP - an extensive market research with a unique value

framework, within both consumer and business market

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Fundamental hypothesis of Telenor MAP – the link between

customer and brand values

BUY FIT

The Moment of Truth = Fit between perception and projection

CUSTOMER

• Values, needs

• Preferences

• Desires

• Aspirations

PERCEPTION

The individual absorbs

a brand's promises and projections,

tests it (unconsciously) against

his/her individual value and need

profile

BRAND

• Brand Communication

• Functional attributes

• Brand name, symbols

• Users (peer group)

PROJECTION

By all marketing activities, esp.

communication and design, or by

its user peer group a brand

addresses a certain set of values

and transports a brand promise

NOT BUY NO FIT

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Fundamental hypothesis of Telenor MAP – the link between

customer and brand values

BUY FIT

The Moment of Truth = Fit between perception and projection

CUSTOMER

• Values, needs

• Preferences

• Desires

• Aspirations

PERCEPTION

The individual absorbs

a brand's promises and projections,

tests it (unconsciously) against

his/her individual value and need

profile

BRAND

• Brand Communication

• Functional attributes

• Brand name, symbols

• Users (peer group)

PROJECTION

By all marketing activities, esp.

communication and design, or by

its user peer group a brand

addresses a certain set of values

and transports a brand promise

NOT BUY NO FIT

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MAP is about understanding and acting on customer values

MAP framework and example questions

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All customers are asked

questions about their values

Profiling of customers

Red = Values that the customer disagree with, or that is not important to him/her

Blue = Values that the customer agree with, and that are more important to him/her

Segmentation; Clustering of people with similar values,

needs and behavior

Thrill I like challenging experiences I like to test my limits

Prestige (status) I like it when others look up to me I like to be the center of attention

Total cost I will always go for the cheaper product Price is the only thing I consider when I buy something

“When I select a mobile network provider I always consider at the phones they offer.” “When I select a mobile network provider it is important to me that they have high mobile data quality”

Main provider, spending, voice, SMS, data usage, KPI’s, data services, preferences, fixed, media usage, device etc

Needs

Usage

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The Telenor MAP value framework indicates whether a person,

group or brand does or does not stand for a specific value

Example “mobile internet users”:

• Avergage 25 years old

• Male dominated

• Above average in income

• Above average level of education

• Works full time

MAP is the sum of individual Consumer Profiles

INTERPRETATION

• The mobile internet user is a very modern, progressive person

• He or she finds new, innovative technology very thrilling and demands customized, service-oriented and top-quality products

• Money is not an issue for the mobile internet user (to a certain degree, at last)

• Classical or ethical values do not matter for the mobile internet user– open to new things and does not worry about society or the environment

RED = Values that Peter disagree with, or that is not important to Peter

BLUE = Values that Peter agree with, and that are more important to him

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The brand profile “comes to life” when we summarize all the brand

users – the total customer base

Degree of sharing the same values

Blank profile

• No clear common values

• Customers “all over the place”

• Brand is purchased by “all”

• Natural start is to define a

clear target segment

A very distinct profile

• The brand or service is

purchased by people with

distinct and similar needs

Weak profile A more distinct profile

Completely different strategic challenges

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MAP identifies the “global” mobile broadband user…

Sweden Hungary Thailand

Denmark Norway

Telenor MAP clearly shows that the mobile broadband users have

the similar value and need structure Across markets

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There are several approaches to developing segmentation models, such as geographic / regional, demographic (age, gender, family life cycle), psychographic (e.g. the Profiler, price attitudes), and behavior (e.g. telecom spend, usage of mobile data)

The Telenor approach is developed as a combined approach in segmentation, deploying K-means clustering, including input variables among the following: Demographics; price orientation; attitudes to value statements (the Profiler); and telecom attitudes and behavior

A wide range of alternative models are tested; the mathematically sound ones are subjected to a “sanity and relevance check”, to see if the model discriminates according to, among other factors: Telecom spend, Mobile data usage, and Demographics

Developing segmentation models

Description of segmentation process | Model overview

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