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Case Study:
Strategic Analytics Driving Intelligent Campaigns
Company Background
Challenges Faced
Deploying analytic led strategies to improve retention and cross-sell
Approach
The prepaid market is highly competitive and rife with churn, so Virgin needed to develop a
more lasting relationship with prepaid customers. The strategy was to drive additional revenue
and grow the customer relationship through subscription to downloadable content from their
entertainment site: The Vibe. The Vibe delivers ringtones, music, videos, games and other
content to subscribers.
Digital Alchemy developed a database of past Vibe subscribers, and an analytics model to
understand the attributes and characteristics of those subscribers. Data was provided from a
range of sources, including: cellular & core customer data, daily call usage, recharge & prepaid
balance data, and tolling status.
The propensity model would then be used each month to score current non-subscribers, and
identify those customers with the highest likelihood of subscribing to The Vibe.
Results of the propensity model were then used as input to a campaign, targeting the most
likely customers with an offer to subscribe to The Vibe, with the campaign being
deployed through Unica Affinium.
Virgin Mobile Australia is a leading
consumer-focused mobile and
broadband provider. Kicking off in
October 2000 with a handful of staff
and a whole lot of ambition, Virgin
Mobile immediately made an impact
with fresh, innovative products and
the trademark Virgin service.
Today, Virgin Mobile Australia can
proudly boast flagship retail outlets
across the country, thousands of
partner outlets, staff and over one
million Members.
The model and campaign were run
with tremendous results.
The analysis provided a clear understanding of target segments within the prepaid and
postpaid base, identifying 3 discreet segments with identifying attributes that included age
group, tenure, service usage and recharge patterns.
RESPONSE RATE — PER MONTH
34.5%
As the campaign gained momentum, monthly
response rates of 34.5% were achieved.
GENERATED LIFT
2.5-4.4x
The model generated lift ranging from
2.5 to 4.4 times control group behaviour.
RESPONSE LIFT — PER MONTH
340%
providing a lift of nearly over the control
group. (The lowest lift over the period was still
in excess of 200%.)
Results