BY LEONARDO BITTAN

Vodafone Club 2020 Business Case

IE Business School - MDMK2010 – Emerging Media and Mobile Marketing – Prof. Alberto Benbunan – Dec. 2009

Vodafone Club 2020 OverviewPermission Based Multi-Platform Marketing Tool – Since 2008

Vodafone’s Business Model at Club 2020

Vodafone Advertisers

Vodafone Users

Increases Service Usage - Increases LTV – Decreases Churn Rate– Increases Loyalty– Decreases Customer Acquisition Costs - Increases Profit

Provides Added Value – Premium Content

Provides Offers a

nd

Premium Content

Technology & Database

Provides Offers and

Premium Content

Non-Vodafone

UsersExperience Vodafone’s service –Increases Consumers Base - Decreases Acquisition/Conquer Costs –

Increases Profit

Viral marketing Advertising Revenue

Conversion

Conversion

Opens Club 2020 Service for all mobile consumers

Possible advertising pricing models:CPM – CPA (action) – Affiliate – Flat Fee - Hybrid

Mob

ile U

sers

All

ow

Ad

vert

isers

to C

on

tact

Th

em

Is this considered a Pull or a Push service?

Push Messaging Any content sent or by behalf of advertisers and

marketers to a wireless mobile device at a time when the subscriber request it. Push messaging includes audio, short message service (SMS) messages, e-mail, multimedia messaging, cell broadcast, picture message, surveys, or any other pushed advertising or content

Pull Messaging Any content sent to the wireless subscriber upon

request, shortly thereafter, on a one time basis. For example, when the customer request the local weather from a WAP-capable browser, the content of the purpose, including any related advertising, is Pull Messaging

Consumer Advertiser12 3

5 4

Vodafone informs consumers about Club 2020, consumers then request information.

Consumers opt-in for the service and set up their preferences

Vodafone feeds advertisers with the filtered information

Advertisers execute their campaigns accordingly based on the users permission

Vodafone delivers the content to the users

Push

Based on the premise that this channel requires opt-in for all communication initiatives, the whole concept of push vs. pull strategies in the mobile marketing arena is a bit more complex than in other communication environments. Although determining which of the two apply to this particular case could be difficult/confusing, based on the two definition – by MMA – at the bottom of this slide, we can conclude that Club 2020 approached consumers as a push service.

Could this service be considered as Spam by the MMA?

Wireless Spam (MMA definition):

Push messaging that is sent without confirmed opt-in

NOAction Compliant with

Viral Marketing was done among peers and not by any institution nor the operator

CCS-13

Users were informed the cost – if any – of becoming part of Club 2020. Opt-In required.

CCS-37

Promotional and premium content were thoroughly described

CCS-80CCS-81

Prize redemption and contest participation required consideration

CCS-95

Users were informed they were subscribing to a program

CCS-111

Users selected frequency of messages CCS-112

Based on the limited information provided, these are some of the actions done by Vodafone that were compliant with MMA Best Practices

Important note: In theory – based on MMA Consumer Best Practice and Advertising Guidelines, the answer to this question should be ‘no’. However, from the consumers point of view, lack of specifics of the information requested could lead to intrusiveness and users discomfort towards the received messages.

Thank You!