Talking to customers basis their need!

1. HANSA CEQUITY CAMPAIGNER
Sharper Competitive Edge with a Focused Campaign
Management Framework

2. Contents
Glossary
Executive Summary
About the Client
Business Situation
Solution Space
Business Benefits
Client Speak
About Hansa Cequity
Glossary
DTH (Direct to Home) is a term used to refer to digital satellite
television broadcasts intended for direct home reception, received by a
satellite dish and set-top box.
ARPU A measure of revenue generated per user or unit, ARPU
(Average Revenue per Unit) allows companies to analyse revenue
generation and growth at the unit/user level.

3. Hansa Cequity Campaigner
Executive Summary
Hansa Cequity enabled a leading direct-to-home digital satellite television provider
sharpen its competitive edge bringing about a key shift in the campaign
management mindset. The strategy went from a quest for customers who would
pick up pre-determined offers to a robust intelligent system that identified
behavioural shifts in customer patterns and allocated to her the most relevant offer.
This was made possible through the implementation of an automated campaign
management framework that leveraged sharply defined customer segments and
preference demographics to achieve the objectives of increased Average Revenue
Per User (ARPU), reduced churn, and increased acquisitions. The solution design
went beyond conventional approaches to analytics to leading to increased cost
savings at the same time.
About the Client
One of India’s leading digital satellite television providers, the company is at the
forefront of what is now known as the DTH revolution in the country. A joint venture
between India’s leading business house and a global broadcasting giant, their
service offers unmatched choice, control and convenience in TV entertainment
backed by stellar consumer and technical support at all levels. It has been a
first-mover in offering several innovations in the DTH marketplace, which have since
gone on to become benchmarks in the industry. They are almost synonymous with
the category across the country.
Business Situation
The Present and Future of the DTH Experience
India is poised to take over the USA as the world’s largest DTH market . Clocking a
growth of 18%, digital satellite television has become one of the fastest growing
consumer electronics product-service combinations of all time. However, to stay
ahead in the game the players need to read future trends that now indicate a need
for innovations in non-traditional TV services such as cutting edge 3D viewing
experiences, interactive educational programs, interactive gaming among others.
The key is to know your customers and approach them with the right offers at the
right time to deliver superior value and capitalize on evolving needs and preferences.
The Subscription Model and the ARPU Riddle
TThe subscriber model that is at the heart of all DTH services relies on campaigns to
its subscriber base to communicate messages of value. As such it makes little
business sense for the service provider to reach out to its large base of consumers
with a communication unless there is confidence that the message will be positively
received. Contact Center agents find it increasingly difficult to deliver value in the call
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4. Hansa Cequity Campaigner
unless there is proven intelligence that indicates that their message has a high
probability of striking the ‘need’ chord in the consumer’s mind. The scenario is
similar in cases of messages in all other formats – SMS, Email and on-screen. Thus,
increased ARPU will be a result of a situation where the customer is gently nudged
in the right direction by a series of meaningful messages that stem from systematic,
timely and cost-effective campaigns that are targeted to elicit specific responses.
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Source: DTH Latest Trends and Offers, Pratik Gosalia, August 2010,
Articledirectoryzone.com
Understanding Campaigns and their Criticality
For the DTH industry, campaigns are the manifestation of marketing thought in
action. An effective series of campaigns can achieve most marketing objectives. The
campaign types in the client’s arsenal focus on specific needs as illustrated below
• ‘It’s time to recharge your account, it’s about to expire’. This is a
straight-forward business rule driven campaign that uses simple criteria as
triggers. In the case of this example, a scheduled database query on the
number of accounts expiring in the next one week lets the system know the list
of users to which this specific message needs to go to. It will end in a call to
action that directs the user on how to recharge the account.
• ‘We notice you’ve subscribed to NDTV Good Times, how about adding TLC to
that list?’ This campaign bases its intelligence on being able to predict
customer behavioral patterns. If she has subscribed to a lifestyle channel,
there is a high possibility that an offer of a channel with similar content will
result in a positive conversion. A robust set of behavioral pattern predictions
need to be made with extensive sets of use cases.
• ‘Though you’ve been using our website to reach us the last six months, we
wonder what made you call us yesterday. Could we not answer your questions
online?’ This is a campaign type that is driven by a specific event. In this
particular example, the campaign could result in cost-savings of getting a
customer back to the web-based interaction model rather than depending on
the more expensive call-center. Defining the events in a customer’s life-cycle
that merit a response in a campaign form is the starting point.
What’s keeping us awake at nights?
• How can we determine whether a customer is ready to take up an offer?
Therefore, how do we determine where the customer lies in the life-cycle of his
engagement with the product? Clearly, this is a valuable input to the campaign
management system that will be able to then send more meaningful
messages out that are timed better.
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5. Hansa Cequity Campaigner
• How can we get out of the ‘one size fits all’ approach to campaign
management? How can we begin a two-way conversation with an individual
rather than a faceless statistic? In other words, we need to focus on selling to a
customer what he wants out of the product rather than try to push what we
feel is right for him at the time.
• How do we maximize the impact of the channels of campaign management
open to us? Are we being able to extract maximum value out of the database
and the networks? How do we measure this?
The Shift in Mindset
The key element that preceded the implementation of the solution to address the
issues at hand was the shift in mindset. The one-size-fits-all approach began with
an offer that was driven by a marketing decision and the campaign was the thrust
that drove that marketing decision to a seemingly logical end.
Here's an offer
Let's find someone interested
In contrast, the new approach to campaign began with the customer. Analytics was
in a position to throw up changes in behavior that indicated that there was probably
something that could be offered to him or her that would be of value.
Here's an offer
With a change in behavior
that suggests a need
Let's find someone interested
That suits the person's need
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6. Hansa Cequity Campaigner
How campaigns happen now – One size fits all approach
Marketing Executive Data Analyst picks up Marketing Analyst
decides on a campaign data cuts for which the validates data and
campaign is targeted sends to SMS blaster
Campaign recipients The SMS Blaster sends
out the campaign to all
targeted
The Need for a Better Solution
• The process of segmenting the customer database is not effective enough,
which is why the campaigns end up targeting a lot of people who may not be
interested in the offer. A sharper definition of segments that is driven by
establishing a behavior oriented propensity to buy is the need of the hour.
• Campaigns do not employ business rules to address complex segmentation
and intersection. In other words, there appears to be some disconnect
between Analytics and Campaign Execution. As such, the campaigns are
unable to ride on the promise of automation that analytics provide given the
extensive manual intervention involved.
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7. Hansa Cequity Campaigner
Solution Space
The Hansa Cequity Approach: Enabling the Shift in Mindset
The key shift in mindset that Hansa Cequity’s solution design brought about was to
rely on behavioral shifts as the key driver of the process. An extensive framework
that allowed large volumes of data to be converted into actionable behavioral
information would allow for the implementation of such a segmentation process.
This would begin by the broadening of the role that analytics as a practice played in
the campaign design and implementation process. With the types of campaigns and
the channels available in mind, there was an exercise undertaken to segment
customers based on where they were in the life-cycle, which led to an understanding
of the kind of campaigns they might find appealing. Event tracking addressed the
large section of campaigns that would depend on a trigger from the customer’s
behavior which were modeled to a method of being able to tell which campaigns
worked through test and control groups. There was also a strong focus on
monitoring customer transactions.
Segmentation Event Tracking Modeling Campaigner Setup Campaign Tracking
Setting Up of Creation of Building Various Setup multiple Track Campaign
Datamart and various event Predictive models campaigns and Efficacy through
creation of various tracking variables to predict customer schedule them. Test & Control
flags and within the behavior and target Build Rules for Mechanism &
variables for datamart them with suppression and Monitoring
segment appropriate de-duplication Customer
identification campaigns Transactions
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8. Hansa Cequity Campaigner
The Roadmap to Better Campaign Execution
Segmentation on The Analytical Edge
Transactional Behavior
Preferred modes of communication Communication integrated
Channel usage behavior seamlessly across channels
Product affinity
Set Campaign Rules to Pick from Using historical purchase
Deviation in behavior from norm behavior to identify future
Specification Purchase Behavior product buying preferences
Phase I: Identify Channels and Triggers Phase II: Need driven campaigning
Campaign recipients
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9. Hansa Cequity Campaigner
Business Benefits
The Hansa Cequity Campaigner Advantage
Implementing Hansa Cequity Campaigner led to a sharper competitive edge over the
quarter it was implemented in. The results can be broken down into the following broad
areas:
• The response rate to campaigns increased three-fold. With respect to campaign
effectiveness, this was a giant leap that reflected how intuitively relevant the
campaigns were and how careful segmentation of the customer database
assisted in ensuring that the right campaign reached the right customer at the
right time.
• Average Product Holding Per customer was increased by 5% while churn came
down by 3% in the same period. In a market that is getting fragmented with
undifferentiated offers, this is a testimony to how an effective series of campaigns
can pre-empt a customer’s need by articulating it before he realizes that he needs
it. This translates to resultant ARPU increase of between 5-6% as a result of this
framework as against a baseline increase of 2-3%.
• The number of packages sold in cross-sell and up-sell went up significantly as a
result of analytics that drove fully-automated targeted campaigns at customers
displaying a propensity to pick up packages and promos that were relevant to
their needs. This accounted for half the total packages sold in this period.
• The contact center reported a 10% increase in conversion of pitches on in-bound
calls because executives were now better equipped with information on the
customer to make an offer that would be more compelling than generic ones as
were being made prior to the system’s implementation.
ClientSpeak
“Hansa Cequity's subscriber preference modeling framework was a key differentiator in our
marketing efforts. It led to solid business results with our campaign response rates
improving 3 times over the base rate. Thanks for a fantastic job.”
- Chief Marketing Officer
“Thanks to Hansa Cequity's subscriber preference model we are now able to better provide
the “Right Offer” to “Right Subscriber” and also better engage with them at each opportunity
leading to substantial reduction in subscriber churn. Keep up the great work!”
- Head, Subscriber Marketing
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10. Hansa Cequity Campaigner
About Hansa Cequity
Hansa Cequity is a provider of technology enabled, analytics driven end-to-end
customer and marketing intelligence solutions. Our goal is to help companies build
profitable, empowered customer relationships and engaging experiences by leveraging
customer information with analytics and technology tools. We build and leverage the
power of marketing databases and automation applications using best-in- class
customer marketing processes.
Website http://www.hansacequity.com/
Blog http://blog.hansacequity.com
Contacts Ajay Kelkar
Chief Operating Officer
Ajay.kelkar@cequitysolutions.com
Amit Pote
Business Development
amit.pote@cequitysolutions.com
Roy Wollen
Head Analytics & Client Engagement
North America
Addresses India:
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Evanston,
Chicago, IL 60201
Ph: +1 (847) 491 6682
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