WHO ARE THE SUPER HEROES OF YOUR BRAND?
Transcript of WHO ARE THE SUPER HEROES OF YOUR BRAND?
WHO A RET HE SUPER HEROES OFYOUR B R A ND?DISCOVER HOW TELCOS CAN MAXIMISE BIG DATA ASSETS APRIL 2016
WORK IN PROGRESS
THINGS YOU NEED TO KNOW ABOUT
SUPER CONSUMERS101THEY’RE THE
SUPERHEROESOF YOUR BRAND
2THEY WILL
EVANGELISE YOUR PRODUCTS TO OTHERS
3THEY DRIVE THE LION'S SHARE OF YOUR PROFITS
4THEY’RE FOUND ACROSS MULTIPLE CATEGORIES INCLUDING
CONSUMER PACKAGED GOODS, EDUCATION, FINANCIAL SERVICES, HEALTH CARE, MEDIA, RETAIL AND TELECOMMUNICATIONS
5SUPER CONSUMERS OF ONE CATEGORY TEND TO BE SUPER CONSUMERS OF
9
6THEY’RE BOTH
ECONOMICALLY & EMOTIONALLY INVOLVED IN THE CATEGORY
7THEY’RE
HIGHLY RECEPTIVE TO INNOVATIONS AND OFFERS
8INVOLVE SUPER CONSUMERS FROM THE START, FROM CREATING TO TESTING NEW INNOVATIONS
9THEY’REWILLING TO PAY APREMIUM PRICE
10UNDERSTANDING THEIR MOTIVATIONS CAN PAY BACK TWOFOLD
OTHERCATEGORIES
1Copyright © 2016 The Nielsen Company
OPPORTUNIT Y IS KNOCKING AT YOUR DOOR From the back streets of Jakarta to the peak-hour crush of Seoul
subways, you’ll see one thing in common: everyone is deeply
absorbed in the mobile world. Fingers are tapping, eyes stare at
the screen, deeply engaged in conversation – but not with those
around them. The mobile consumer is everywhere and growing
exponentially. The past decade has seen unprecedented change in
the telecommunications sector in Asia Pacific, and the coming years
show no sign of a slowdown. The availability of smartphones, tablets,
Wi-Fi, 4G networks and e-commerce is changing the way business is
conducted, and driving huge-scale innovation in areas ranging from
customer engagement to retail models. Although the numbers in
certain Southeast Asian markets, like Indonesia and Philippines are
still low, it might be a surprise to some that smartphone penetration
in some parts of Asia, e.g. South Korea, Singapore – significantly
exceeds numbers in the so-called developed world.
You’d think, for a telco operator, Christmas (or Chinese New Year)
had arrived! However, while voice and data services continue to grow
in Asia Pacific, courtesy of the data-hungry tech-savvy consumer,
competition among operators is rife, and the growing footprint of
over-the-top players such as WhatsApp, Skype, Viber, LINE, and
Kakao Talk is stealthily stealing traditional revenue streams of voice
and SMS.
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ON THE HUNT FOR THE MOST PROFITABLE CONSUMERSSo what can telco operators in Southeast Asia do to grow in this
challenging environment? In these days of big data, the most reliable
first step a company facing growing competition can take is to identify
their most profitable customers and leverage the power of data. But
telcos hold an advantage: they sit on an untapped mine of consumer
intelligence – intelligence that many of their customers want them
to use. A McCann study found that 49% of consumers around the
world want their mobile network provider to use their data to provide
them with deals and services better suited to their needs. As one
respondent noted, “When you go to a bar for the first time they don’t
know you, but the more you go the more they know about what you
like…the same would be desirable for a mobile network.”
3Copyright © 2016 The Nielsen Company
MEET THE TELCO SUPER CONSUMERDepending on the market, telco customers run the gamut from
those purchasing one-off pre-paid SIM cards, to those who sign up
with whichever telco offers the best deal that day, to loyal, long-term
consumers with data plans across several devices and services.
The most promising strategy for businesses seeking incremental
revenue from existing services is to target their most profitable
users. Studying their existing spending patterns on current products
and services can provide clues to their future potential, either
persuading them to increase their existing current usage or to add
more products and services. But we also recommend a second filter:
consumers’ level of engagement with your brand.
EXISTING USAGEHOW MANY SERVICES DO THEY
CURRENTLY SUBSCRIBE TO?
ENGAGEMENT LEVELDO THEY INTERACT REGULARLY WITH YOUR WEBSITE, SOCIAL MEDIA FORUMS, CALL CENTRES OR RETAIL STORES?
TELCOS SHOULD ASK THEMSELVESTWO CRITICAL QUESTIONS
ABOUT THEIR CUSTOMERS
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Their involvement with your brand is a clue to how passionate
they are about you, and how strong an advocate they can be for
you in future. It’s not just a matter of making more money from
them. In today’s world of increasing social media, they can become
ambassadors for your brand and inf luence other customers and
potential customers.
We call these consumers, super consumers. They are the subset of
heavy users who are highly engaged with your brand. From other
industries, we have learnt that super consumers are especially
interested in innovative uses of your brand, as well as newer models
and related products and services. They also aren’t particularly price
sensitive: What’s not to like?
By isolating their super consumers, telco providers can focus
on a dedicated niche group likely to drive the highest long-term
profitability per user. Getting to know these consumers well via
customer analytics, identifying potential unmet needs (even before
consumers are aware of them themselves) and ensuring the right
message is sent via their preferred communication channels will
greatly increase the likelihood of long term commitment.
HEAVILY ENGAGED
HEAVYUSER
SUPERCONSUMERSPROFITS PASSION
WHO ARE‘SUPER CONSUMERS’?
5Copyright © 2016 The Nielsen Company
A second step involves determining the extent of a ‘customer’s
potential’. A customer with high spend and engagement is the ‘ideal
consumer’ that should be retained at all costs and should be targeted
with additional product offers to further endorse their loyalty.
Customers with high engagement but low to medium spend should
be offered services that will entice them to ‘stretch their wallet’,
increasing their repertoire of services they use. Volatility refers to
‘disloyal’ consumers who switch between providers’ offers. The key
with this customer group is to convert/steady their spending across
your product portfolio by leveraging different product engagement
tactics (for example if the ‘volatile’ customer uses international
roaming, the telco may offer 10 minutes of free international roaming
after 100 local minutes).
How do you identify these super consumers? A simple method is to
classify your users by level and direction of spend, and their level of
engagement as indicated by time spent on your website (other than
paying the bill or calling the help desk).
HOW DO WE FIND THEM?
DATABASE ANALYTICS
MARKET RESEARCH
PRECISION TARGETING
=+
HOW DO WE ENGAGE THEM?
ENGAGEMENT INDEX
HIGH
MID
LOW
HIGHMIDLOW MID-HIGH
RE-ENGAGE
RE-INVENT
STRETCHRETAIN
VALUE INDEX
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JOHN:TELCO SUPER CONSUMERJohn has been a loyal customer with Terrific Telco for 3 years. He
started by buying pre-paid SIM cards for a Samsung smartphone.
Over time, however, he has upgraded regularly, signing up for
multiple services, and leveraged Terrific’s loyalty benefits (free
international roaming, extra data, free texts, etc.) to move from his
basic prepaid connection and equipment upgrades to post-paid
family plans. He, along with his family, share data and minutes
across multiple lines.
By the time John has become a super consumer, he will be better
informed and more articulate about the benefits of your products and
services than your other customers. As a result, super consumers
are not merely profitable, but they can become social influencers.
By understanding their calling behaviours, telcos can tap into super
consumers’ influence on both existing and non-existing customers.
7Copyright © 2016 The Nielsen Company
ACTIVATING SUPER CONSUMERS
It’s easy to reach Super Consumers, once you know who
they are. But identifying the optimal strategies to change
their behaviour is another matter. Nielsen has come up
with a five-point plan to maximise the value of the telco
Super Consumer.
Any telco super consumer is an integral part of your
business today, but what does he or she have for your
business tomorrow?
Answering this question is the most important input
into tailoring your products and services to drive
incremental spend. Did an expat’s international calling
drop off? Perhaps they are limiting their calling to
when they are within connection distance of a wireless
router. Tailoring the right value-added services might
persuade them to make more calls wherever they
happen to be. Is the user a well-off retiree traveling
abroad all the time? A discount roaming package will
probably make the difference between infrequent and
frequent use. The trick is to find the price point at
which the incremental convenience of using the phone
outweighs the cost, as assessed by the customer.
Getting this right will fuel super consumers’ uptake
of new and innovative offerings.
HOW MUCH MORE ARE THEY WILLING TO STRETCH?
1Understanding the way super consumers use
your products and services is fundamental to
determining their latent needs and their likely
frustrations – and therefore the kinds of new
offerings they haven’t thought of, but will jump on
if they are made available. In an industry in which
annual churn continues to be a primary concern,
building the consumer’s product portfolio creates a
stickier relationship.
Understanding the data you have on the consumer
– data often scattered across the enterprise – is
crucial. Often, this requires making siloed datasets
‘speak’ to each other, allowing you to stitch the
data together in a way that will provide a complete
view of the customer. Once you have this complete
view, you can identify the segment to which the
customer belongs. Predictive optimisation models
can determine the optimal offer strategy that will
resonate with each consumer. When we know what
they want and what they are looking for, it’s easy
to tailor and deliver a precision offering that meets
their unique needs.
THE RIGHT OFFER FOR THE RIGHT CONSUMER
2
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Focussing your efforts on super consumers,
about whom you naturally know the most, makes
media planning and spend significantly more
cost-efficient than targeting a broader base or
a group you know less well – so advertising to
super consumers is likely to be cheaper as well as
generate more revenue. You can know what matters
to your super consumer, what platforms they use to
source knowledge, and what stage they are at in the
buying cycle – all of which allows you to send the
right message to the right customer through the
right channel at the right time.
Getting it right the first time might be difficult,
but if you start to measure the impact you are
having on this key group of consumers, you have
a benchmark to improve. How successful was that
marketing campaign? Did I reach the consumers
I was targeting? By looking at the historical
relationship between marketing spend and
business performance among your super consumer
base, you can determine what is and isn’t working,
and how much you should be investing – in each
product, service, market, region, and so on.
KNOW HOW THEY WANT TO BE EDUCATED AND COMMUNICATED TO
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Telco operators know where their higher value
customers cluster. They can ensure that their
network coverage and their rollout of new technology
is aligned to areas where more of their Super
Consumers are located. Knowing where they shop
and how they shop (i.e. their preferred methods of
interaction) also allows telco operators to prioritise
their sales and distribution network to ensure a
seamless customer experience with your brand.
Location analysis underpins the power of direct
mobile marketing and even outdoor campaigns.
That effectiveness can be especially valuable to
large companies, some of which spend billions of
dollars a year on advertising — and for which a
1% increase in the efficiency of ad spending will
therefore be worth tens of millions of dollars.
TAKE CAREFUL AND CONTINUOUS ACCOUNT OF WHERE YOUR PROFITABLE CONSUMERS ARE
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SUPER CONSUMERS OF ONE CATEGORY TEND TO BE SUPER CONSUMERS OF 9 OTHER CATEGORIES
“”
Predictive analysis can f lag unhappy customers
before they make the decision to leave. Proactively
reaching out to resolve a conflict, providing an
improved service offering or a tailored pricing deal
can help ensure that super consumers stay and
continue to grow with you – not your competitors.
The simple act of reaching out does a lot of the work
– although it’s a bad sign of the state of the industry.
MAKE SURE THEY’RE HAPPY3
9Copyright © 2016 The Nielsen Company
A final note might hold the most profit of all.
Research from Nielsen’s Cambridge group has found that super
consumers of one category tend to be super consumers of nine other
categories. So, when looking for super consumers, don’t restrict
yourself to considering just your own best customers. In today’s world
of big data analytics, we can identify those people who’d love to buy
your product, as well as those people who are already deeply engaged
with a seemingly unrelated product – all stitched together under
a singular and powerful emotional benefit. Any individual you can
identify as a super consumer of, say, three or four non-telco products
is a good candidate for becoming a super consumer of yours.
Activating against this group of “new” consumers can be the key to
unlocking a layer of growth that might otherwise remain elusive.
TAILOR MARKETING CAMPAIGNS AND MESSAGING THAT “TALK” TO YOUR CUSTOMERS ACROSS DIFFERENT LIFE STAGES
WEB OF DIMENSIONS
INFLUENCING BEHAVIOUR
• Needs
• Social inf luences
• Shopping modes & styles
• Demographics & life stages
• Ingrained habits & rules
• Market(ing) dynamics
• Motivations
WHITESPACE OPPORTUNITIES EXTEND BEYOND JUST NEEDS OR MOTIVATIONS
BUDGET-CONSCIOUSI like it with the TV
subscription free
CONVENIENCEI would like to have one
provider for all my needs
FEATURESI like hi-speed
internet on
my mobile
SOCIALMy friends are
my inf luencers
ATTITUDESI feel valued with
personalised messages
CROSS/UPSELL
RETAIN
ACQUIRE
ABOUT NIELSEN
Nielsen Holdings plc (NYSE: NLSN) is a global performance management
company that provides a comprehensive understanding of what consumers
Watch and Buy. Nielsen’s Watch segment provides media and advertising
clients with Total Audience measurement services across all devices where
content — video, audio and text — is consumed. The Buy segment offers
consumer packaged goods manufacturers and retailers the industry’s only
global view of retail performance measurement. By integrating information
from its Watch and Buy segments and other data sources, Nielsen provides
its clients with both world-class measurement as well as analytics that help
improve performance. Nielsen, an S&P 500 company, has operations in over
100 countries that cover more than 90% of the world’s population.
For more information, visit www.nielsen.com/apac.
Copyright © 2016 The Nielsen Company. All rights reserved. Nielsen and
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Trademarks, L.L.C. Other product and service names are trademarks or
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ABOUT OUR AUTHORS
SAGAR TAMANGMANAGING DIRECTOR, TECHNOLOGY AND FINANCIAL INDUSTRY GROUP, SOUTHEAST ASIA , NORTH ASIA , PACIFICNIELSEN
KEYA MUKHERJEEASSOCIATE DIRECTOR,ANALY TIC CONSULTING,SOUTHEAST ASIA,NORTH ASIA, PACIFICNIELSEN
NICOLE CORBET TDIRECTOR,THOUGHT LEADERSHIPAND KNOWLEDGE MANAGEMENT,SOUTHEAST ASIA,NORTH ASIA, PACIFICNIELSEN