Exploiting Customer Analytics

8/2/2019 Exploiting Customer Analytics

1/24

Exploiting Customer Analytics forImproved Customer Lifecycle

Management

Geetha NadarajanCustomer Intelligence


2/24

Maxis Communications, Malaysia

No 1 operator in Malaysia, 42% market share

Prepaid branded as Hotlink 70% of the Maxis base is Hotlink

Hotlink subscribers are predominantly Youth


3/24

Keywords

Voice of customersVoice of customersCustomer requirementsCustomer requirements


4/24

What is Voice of Customer?

It is a term used to describe customer needs and

his/her perception of our products and services

Source: Six Sigma Handbook, Maxis Communications


5/24

Voice of Customer helps the business answer

the following questions.What satisfies my customer?What satisfies my customer?

What dissatisfies my customer?What dissatisfies my customer?

What is the customerWhat is the customers perception of my products and services?s perception of my products and services?

What is the customerWhat is the customers expectation of my products & services?s expectation of my products & services?

What is the customerWhat is the customers need at the moment?s need at the moment?


6/24

Sample VOC sources

Proactive VOCProactive VOC

Focus GroupsFocus GroupsFaceFace--toto--Face InterviewsFace Interviews

Tele SurveysTele Surveys

Market VisitsMarket VisitsComment CardsComment Cards

Customer Satisfaction IndexCustomer Satisfaction Index

(CSI)(CSI)

Reactive VOCReactive VOC

Customer Enquiries and CentreCustomer Enquiries and CentreWalk InWalk In

Customer ComplaintsCustomer Complaints

Hotline Service InteractionsHotline Service Interactions

Handset Returns and WarrantyHandset Returns and Warranty

ClaimsClaims

Source: Six Sigma Handbook, Maxis Communications


7/24

In a customer centric environment, VOC drivescritical customer requirements

"A customer is the most important visitor on our premises. He is not

dependent on us. We are dependent on him. He is not an interruption to our

work. He is the purpose of it. He is not an outsider to our business. He is a

part of it. We are not doing him a favour by serving him. He is doing us a

favor by giving us an opportunity to do"

MAHATMA GANDHI

VOCVOC

Regular IntervalRegular Interval

Sample DrivenSample Driven

ActionableActionable

CustomerCustomer

RequirementsRequirements

VOC continues to drive requirements to remain relevant and timelVOC continues to drive requirements to remain relevant and timely to customersy to customers


8/24

Incorporating VOC into business operations

Gather VOCGather VOC

Segregate VOC into mutuallySegregate VOC into mutuallyexclusive categoriesexclusive categories

Translate the categories intoTranslate the categories intomeasurable Requirementsmeasurable Requirements

Brainstorm onBrainstorm on

solutions to thesolutions to the

RequirementsRequirements

Test solutions & evaluateTest solutions & evaluate

postposttest resultstest results

Broad implementation of widelyBroad implementation of widelyaccepted solutionsaccepted solutions

1 free

SMS/10

SMSsent(On-net)

Cont

rol

Group

RM0.0

5/min

ofoutgoing on-

net

call

1 free

SMS/mi

n ofoutgoin

g on-net call

A4 B4

A2 B2

A1 B1

A3 B3

A5 B5

A6 B6

A7 B7

A8 B8

C4

C2

C1

C3

C5

C6

C7

C8


9/24

VOC is woven through out customer lifecycle

AcquireAcquire StimulateStimulate RetainRetain

There are ongoing capture of voice of customers through surveysThere are ongoing capture of voice of customers through surveys..

Welcome SurveyWelcome Survey

Ad Hoc SurveysAd Hoc Surveys

Customer Satisfaction SurveyCustomer Satisfaction Survey

HealthcheckHealthcheck SurveySurvey


10/24

Sample Proactive VOC 1:

SMS Spam Tele SurveyWe spoke to over 1,000 Maxis subscribers across the country

There were 7 questions asked to this randomly selected sample

Source: Maxis SMS Spam Survey ResultsMaxis Confidential Restricted


11/24

What we asked

Source: Maxis SMS Spam Survey Results

How many SMS offers/promotions do you normally receive within a week?

Who normally sends these SMS?

Are you happy with promotion/offers you have been receiving from Maxis?

How many SMS do you think is reasonable to be received within a week?

Do you have a time of the day that you would prefer to receive the

promotion/offer SMS from Maxis?

Would you like to receive SMS promos or offers from Maxis alliance partners?

What is your experience withWhat is your experience with

Maxis/3Maxis/3rdrd party sentparty sent smssms??

How well do you tolerateHow well do you tolerate

Maxis/3Maxis/3rdrd party sentparty sent smssms??

SMS-es received are usually related to

Maxis Confidential Restricted


12/24

What the customers said

I think MaxisI think Maxis smssms--eses are mostly related toare mostly related to

Rewards/Special offerRewards/Special offer

I receive more than 5I receive more than 5 smssms--eses per weekper week..

I am happy receiving MaxisI am happy receiving Maxis

promotionalpromotional smssms--eses

I think 3I think 3rdrd partyparty smssms--eses are mostly related to offers toare mostly related to offers todownload from non Maxis sitesdownload from non Maxis sites

I am not happy receiving 3I am not happy receiving 3rdrd partyparty smssms--

eses.. I want to receive only between 2 to 3I want to receive only between 2 to 3

smssms per weekper week..

I want to receiveI want to receive smssms--eses only betweenonly between

8am to 6pm weekdays8am to 6pm weekdays ..Maxis Confidential Restricted


13/24

What we did next

Customer Issues

Too many Maxissms a week

Not happy with 3rd

party sms-es

CustomerRequirements

Not more than x smsper week

Freedom to accept/receive 3rd party sms

Solutions

Organization wide

Promotional SMSBroadcast Policy1

Maxis PreventiveGateway

SMS Blacklist2

RequestingDepartments

CS-Billing

MKTGLay Han-PostpaidLoo Fun-Prepaid

PDIKugan

SalesDaniel Teng

CSAlex

CS-Network

HOD function: Prioritize

campaigns Check content

accuracy Review SMS script Review target

segments Approve/ Reject

broadcast

Gatekeeper function: Prioritize broadcast

based on agreedcriteria*

Control frequencybased on policy**

Approve/ Rejectbroadcast (based onlength of queue for the day &

no of target after de-duping) Manage monthly

broadcast calendar

Must be approved by HOD, not subjected to Gatekeepersprioritization or control

E-Form (Revised)Submission:

Objective

Proposed Script

Target

segments/list# of subscribers

Drop Date

CLMEvelyn

Quality controland approval byHead ofDepartment(HOD)

Gatekeeper

(CLM)

Right to reject:

CS-Support

Mktg-NetworkPlanning

Subscribers

Right to reject: CS-Support to check

for frontliner andcustomer impact

Network Planning tocheck for networkperformance impact

Reject broadcast ifcurrent environmentcannot support thebroadcast

SMS\MMS\WAPPush Delivery:

Network /ISDOperations

E-Form (New)Submission

QC andapproval by

HOD

Planned, analyzed, controlled,prioritized and managed!

Note: If an urgent request for broadcast less than 2 weeks is made, Senior General Manager orabove approval will be required to approve in addition to the HOD a pproval.


12


14/24

Broadcast Prioritization & Frequency

cLow Value

bMid Value

a

Max# SMS/wk

High Value

Prepaid Value Segments

** Value Based Broadcast Frequency:* Broadcast Prioritization Criteria:

Objective Ranking:#1 Revenue Stimulation#2 Churn Management

#3 Information

Expected Net Revenue (RM)

Expected Net Saves (subs)

Information:#1 Tariff/Plans/Rates

#2 Product/Services#3 Events/Road shows#4 Others

A

A1

A2

A3

Timing/ Urgency:#1 Event-Driven#2 ATL Support

#3 Others

B



15/24

Rank based model aids in prioritizing promotional DM

campaigns to launch weeklyThese selected campaigns were ranked based on a objective, expected net revenue, expected net saves& timing to decide on a high priority campaign

33.722ATL1.712210,00050,000ChurnZ

23.60.61Event-Driven3--3--InformationY

1322ATL1-11-100,000

Revenue

StimulationX

RankTotalScore

Weig

htedScore

Score

Timing/Urgency

AverageScore

Expected Net

SavesScore

ExpectedNet

RevenueScore

Object

iveScore

ExpectedNet

SavesScore

ExpectedNet

RevenueScoreObjective

Campaign

Part BPart A

Campaigns with the least score will be considered a high priority campaign and will be ranked high

Note:

1.The scoring will be done by the owner of the broadcast calendar who also has the access & overview ofthe approved e-forms.

2.Should a campaign be de-prioritized, it will be put into queue for the following week and will be scored

again with the new campaigns.

Illustrative



16/24

Sample Proactive VOC 2 :

Stimulation Phase

Subscribers products and services preferences

Reasons for low take up rate

What language do you prefer in

communicating the offer to you?

How would you like us to contact you?

Why did you not take the offer?

How was the offer communicated to you?

Response

67%

Did not

response

18%

Aborted

15%

This survey to more than 1,000 subscribers targeted before in caThis survey to more than 1,000 subscribers targeted before in campaigns was tompaigns was to

determine the perception over cross/up sell offers given thru tdetermine the perception over cross/up sell offers given thru the directhe direct

marketing channel .marketing channel .

* Did not response = Not picking up call

**Aborted = Answer the phone but wish not to participate in the surveyMaxis Confidential Restricted


17/24

Key Finding : Almost half of the respondents do not take upcampaign offers as they perceive the offer is not relevant

to them

Conclusion!

Subscribers perceive offers not relevant indicating targetsegment analysis is most necessary in increasing take rateand effectively reducing the number of contacts made..


Reasons for not taking up the campaign offer

Promotion value not attractive enoughNot relevant to me

Did not understand

Did not believe

Annoyed with many sms-es

Overall Response Rate

12.0%

49.9%

9.8% 10.1% 8.3%9.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Promotion value not

attractive enough

Not relevant to me Did not understand Did not believe Annoyed many sms-es Others

The internal inference was subscribers did not take up offersThe internal inference was subscribers did not take up offers

because they think itbecause they think its a scam..s a scam.. BelieveabilityBelieveability was the issuewas the issue The inference was wrong!The inference was wrong!

Source: Maxis Customer Survey Results


18/24

Target segment analysis was significantly related to

contact rate

Internal : IndependentSamples T-test

External : CustomerSurvey

Test

--

Take toImprove

Compilation of allCompilation of allanalysis/ insightsanalysis/ insights

sourcessources

Take rateP-value =0.325ImpactP-Value = 0.560ContactP-Value = 0.008**

There is significant contact differencebetween campaign with or withoutinsights

** Significant

No/wrong/ insufficientanalysis/insights tosupport

X ActionResult


Control PlanControl Plan

Process Step or X

Owner

Specification/Goal What is the

Control

Method?

How will the

X be

Measured?

Frequency of

Measurement

Who Responsible?

(measurement)

Reaction plan Who is

Responsible? (re-

action plan)

Document Storage

related to this X

Campaign

Management

1.Each campaign must be

driven by at least 1

analysis/insight(requested

analysis, cubes, DBM Data

Catalogue,A & R customerprofile, CI analysis)

2.CLM Idea Generation

Session

Indicate the

source and

period of data

used for the

analysis tosupport each

campaign

Insights

supported/

not

supported

Every

Campaign

CI Delay/Stop

campaign till

analysis

become

available

Campaign

Management

Head Campaign Mgt

Note: Hypothesis Testing above involves statistical techniques


19/24

Comparison of the WAS and NOW of CampaignManagement Process

No/wrong/ insufficient analysis

As-IS

To-Be

Campaign Management

Analytics

Database Management

Identify Target Segment

Identify target

Segment

Campaign

Analysis

n -7

ROI Results

Business

Defined


Design Campaign

Campaign Management

Analysis & Reporting

Customer Insights

Database Management

Identify Target Segment

Organize Idea

Generation

Session

Based on segment criteri, determinepre-sizing count and statistics

Calendar campaigns

with target segment

criteria

n -28Data

Cube

n -30

n -30ROI

Results

Survey Analysis

Cust

Profile/Churn

Insights

Model Profile

Analysis

n= Campaign Month

Ad Hoc

Data Catalogue

Post

Campaign

Analysis


20/24

Campaign net take rate improved significantly

by 300%


7.4%

1.3%

Target 2.6%

A17

A16

A15

A14

A13A1

2

A11A1

0A9A8A7A6A

5A4A3A

2A1

Campaign ID

Pre Review Improve Post Review

Net Take Rate

Note: Net Take Rate is denoted by the difference betweenContacted Group Take Rate and Control Group Take Rate


21/24

Usage lift per target sub improved significantly by

125%

RM0.04

RM0.01

Target

RM0.08

ImprovePre Review Improve Post Review

Impact per Target

A17

A16

A15

A14

A13

A12

A11

A10

A9A8A7A6A5

A4A3A2A1

Campaign ID

Note: Impact per target is denoted by the RM usage lift experiencedby a contacted subscriber versus a subscriber from the control group


22/24

Campaign take rate and usage lift is higher despite contactedsubs reduced by 30%

478 k

126 k

Target200k

ImproveImprove Post Review

Total Contact

A17

A16

A15

A14

A13

A12

A11

A10

A9A8A7A6A5

A4A3A2

Campaign ID

Pre Review

Note: Contact denotes the number of subscribers reachedby a direct marketing campaign


23/24

Other VOC projects

Win back Save Customer Feedbacks

Health check Customer Feedbacks


24/24

Conclusions

Based on VOCs, customer need were identified

and satisfied which improves the relevance &

relationship of the service provider with thecustomers and at the same time meeting businessgoals.

Currently, we are exploring strategic customerengagements based on deeper VOCs from the

perspective of customer needs and preferences.

Exploiting Customer Analytics

Documents

Transcript of Exploiting Customer Analytics