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PRECISION

MAKETING
Entice | Engage | Enchant

Written by

Amith M D
Copywright @ 2017 by Pelatro

Published 2017 by Pelatro Publishers


Pelatro Plc
49, Queen Victoria Street,
London EC4N 4SA, United Kingdom
Email - info@pelatro.comwww.pelatro.com

ALL RIGHT RESERVED


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embodied in critical articles and reviews. The author
is wholly responsible for the c content.
Chapter 1 Introduction

Mass Marketing is a dying game


In 1978, a researcher found that consumers were confronted with more than 2,000 advertising
messages each day. The same researcher found that in 2007, this number had grown to more
than 5,000 ad messages a day. A 2010 study suggests that the figure has increased by over 300%,
and that consumers are now confronted with over 16,000 advertisements each day.
In 2017, according to HubSpot survey, 81% of consumers have closed a browser or exited a
webpage due to a pop-up ad.
That should statistically mean, 12,960 people are not looking at your advertising efforts.
Targeting your customers would increase your conversion rates. Considering an example,
Apple marketed particular series of advertisements in 2014 that were aimed at a very specific
target market. This advertising campaign involved personifying Mac computers and other
personal computers, commonly known as PCs. Macs were represented by a young, smart,
sharp-looking man, while PCs were represented by an older, portly, and relatively technology-
nave man. In this campaign, Apple was advertising for a target market of young tech-savvy
people, perhaps people who were eager to embrace the future of technology, which Apple
convinced them they could not do if they owned a PC. In 2017, a 17% increase in Mac sale has
been recorded quarter-on-quarter.
Data takes the limelight
Personalized emails, calls and transactions is the go-to strategy. Now that we know
personalization is a plus from Apples example, lets see to what extent that can be achieved
when there are millions of customers to attend to?
For example, take the ever-growing telecom industry. GSMA shows 4.76% increase in unique
mobile subscribers globally as of August 2017. Smartphone sales are strong with penetration up
10 percent year on year. US consumers alone are looking at their devices more than 9 billion
times a day in the aggregate.
The challenge these companies face is not data availability, but data overload. Operators would
benefit from re-evaluating their use of data possessed. By focusing on developing on these data
in a sophisticated approach will help them target and reach potential customers.
Precision Marketing is the way forward
Processing overload of data into meaningful insights help network operators optimize their
marketing revenue. With Precision Marketing consumers preferences are analyzed and
monitored closely. This methos leads to a deeper understanding of consumers needs and varying
behaviours. The consequent marketing solutions grow more aligned with consumer needs to
produce optimum results.
For example, In 2012, Verizon introduced Precision Market Insights. This PMI division uses
location data generated by Verizon Wireless-enabled devices to determine demographic and
other information about people in certain locations and connect it to other places those people
visited. The end result is anonymized data showing, for instance, which percentage of an
audience segment who attended a basketball game then visited a sponsor's burger joint at a
particular time on a given day afterwards.
Leveraging consumer data will help you offer made-to-measure promotions to every individual
or segment while retaining efficiency. Solving persistent problems with sustainable, innovative
solutions through Precision Marketing is what this e-book offers.

Chapter 2 Introduction to Precision Marketing. The power of Precision Marketing and


a case study of Precision Marketing.

What is Precision Marketing?


While there is a consumer backlash in the current economy, marketers must bear in mind that
there is a growing power shift. Consumers have become smarter through the course of their
buying journey. Marketers must make cautious and concerted moves to make themselves heard
to the existing customers, failing to which they might risk losing them to emerging competition
or the ever growing economic scenario.
Precision Marketing begins from harvesting customer data, which determines their behaviour.
The process is then directed towards the customers brand loyalty where persuasive promotional
pieces like ads are side-lined over appealing deals, offers, and gimmicks not only to retain the
existing ones, but also attract the prospects.
The trechnique of precision marketing emphasizes relevance as an integral part of the technique.
In order to achieve relevance, precision marketers solicit personal preferences directly from
recipients and use it to track and determine consumer behaviour. They also collect and analyze
behavioral and transactional data to identify their needs and wants.
There is no margin for sending irrelevant marketing messages across to the target audience.
Throwing messages to the wind in hopes that one's target audience will be on the receiving end
is a surefire way to drive your customers into the arms of another brand.

Lets look at a case study for substantiation:


The Tescos challenge
In the early 1990s, Tesco was losing its customers to competition due to non-sustainable low-
cost marketing strategy. Tescos challenge was not only to retain the existing customers, but also
attract the new ones.

The precision marketing strategy


In order to achieve its objectives, Tesco needed to identify its customer base thoroughly. The
grocery store brand developed Clubcard service to begin the data collection. This application
form assisted in collecting customers names, addresses, and phone nuumbers. The form also
asked basic questions like, number of existing household members and dietry preferences.
The application then offers a set of six optional Clubs. Cooking-oriented club, wine club,
healthy living club, baby & toddler club, christmas saving club and the green living club. The
members of the club were offered special discounts and extra reward points. While the
customers earned extra points, Tesco earned customer information. While Tesco hired a small-
scale analytical firm named, Dunnhumby, it determined that only 10 percent of data is required
to produce 90% of the results rather than the other way around.

The results
Post implementing multiple sub-level strategies, Tesco changed its marketing strategies to a
customer-centric grocery unit. It is now one of the largest grocery chains in the world, with most
loyal followers. The Clubcard application form now has 16 million active members in United
Kingdom which encompasses hal the British households. It also enjoys an international fan
following of 12.5 million members. Tesco proved its mettle with efficient implentation of
precision marketing framework which involved three simple variables:

channel cost
response rate
incremental income
As we see with Tescos example, consumer responses are going to fade if the communication
matrix is similar across the crowd. Either the messaging piece is going to stay in the Spam folder
or be deleted without a second look. Dont expect increased click-rates or open-rates unless you
innovate your marketing strategy. Consider the sweet spot. According to Hubspots study,
Sixteen to thirty email campaigns a month suffice the objectives. Marketers that send 16 - 30
campaigns a month see a click rate more than 2X greater than the click rate of companies
that send 2 or fewer campaigns a month. At this frequency, companies enjoy a median open rate
of 32.4% and median click rate of 6.5%.
Mass marketing ROIs are fast becoming shallow as preferences differ from person to person.
B2B marketers need to step away from operational metrics and towards long-term metrics such
as total value of the customer from designed marketing activities. This paves the way for
Precision Marketing over a mass marketing framework.
Its time to dig deeper into consumer needs and promote relevant products and services to the
relevant audience at the relevant time. The key word here is relevance. Marketing metrics need to
express objectives and measurable business outcomes in the form of revenues and ROIs. The
pressure on marketers to demonstrate a return is intensifying.
Precision Marketing focuses on delivering the right message to the right target audience at the
right time. It emphasizes on relevance and in order to achieve this precision marketers solicit
personal preferences directly from recipients. They collect and analyse behavioural and
transactional data. The process starts from the consumer rather than the point of sale.
The technique dwells on personalized offers and deals, and magical marketing ploys, which
produce satisfied existing customers and negates the risk of losing new customers.
Todays top performing marketers have one thing in common to lay down customer-focused
strategies grounded in rigorous customer insight. When we dont buy irrelevant products, why
sell them?
Development of Precision Marketing
The development of the technique begins with accuracy and focus. The way to move forward in
the strategy is to draft a marketing plan with caution and comprehension. It coincides with the
development of market segmentation, technological advancements and consumer reactions all
the way to the proliferation of mass marketing.
Consider Best Western Hotels. This is the largest hotel chains in the entire world. They cater to
families and business travellers who use hotels frequently. The brand developed an industry
leading reward point system by teaming up with InfoPrint, which programs incentives for
customer loyalty. With successful introduction of travellers to the loyalty program, Best Western
strived forward to gow its membership.

The company had a wealth load of data about their customers, which they had acquired through
online initiatives. After analyzing the data, Best Western decided to use a direct mail marketing
campaign to connect with their existing customers. The goal was to make it easy for the
customers to understand the benefits of the system in order for them to earn more. The
statements presented information in a clear and comprehensive way that allowed customers to
maximize the benefits.
After an 8-week trial run, Best Western proved to be incredibly effective, leading to a 39%
increase in the number of stays and a 34% increase in the length of retention. Furthermore, the
brand enjoyed a 500% more customers signed up for the MasterCard after receiving the new
statement.
As seen in the above case study, the concept of market segmentation is the cornerstone of
precision marketing. The evolution of segmentation was supported by technological
advancements. The shift from traditional to digital enabled an easier capture of consumer data
carving ways for easier consumer insights. There were other factors driving market segmentation
like customer demand, customer expectations and fierce competition. The smaller the chunks in
segmentation, the larger are the chances of accurate marketing strategies.

Power of Precision Marketing


Marketing in todays world poses challenges to engage consumers on a new and relevant level.
The term relevance has never had this much significance.

This is the stage where precision marketing gains momentum. The power rests in the hands of
the consumers and a strategically-designed framework centered around the consumers can
provide large dividends for the marketers. While collecting customer data is the primary
objective of the marketer, there lie 3 key challenges to overcome,
Acquisition of accurate data
Action on data insights
Execution and measurement of acquired data
Whats critical to precision marketing is to gather actionable consumer insights, predict
consumer needs, and predict the propensity to purchase before carrying out a strategy based on
data collection. These techniques have been successfully implemented across sectors such as
banking, finance, telecommunications, insurance, and hospitality. The marketing approach has
paved widened scope for the clients in the areas of retention, ROI and revenue.
Lets take a closer look at precision marketing with a case study for substantiation;
When it comes to relevance, Amazon has mastered the art. From where you place your
cursor to where you pick up your order. The system remains well-structured. It knows
what you think about, look at, and what you wish for.
Conside this, havent we all clicked on the Wish List feature to save products for future
purchases? This enables Amazon to market their products and services according to
consumers specific needs. When you click on it, similar and relevant products appear on
the screen. Thats the reason we see Amazon advertising messages appear on social
media channels.
Capitalizing on its insights, Amazon has branched into other forms of online
merchandise. What is more striking is the way it has held prices in line with physical retail
outlets. It has offered customers a more personal and convenient shopping experience.
Now, thats a peek into effective precision marketing.
Still wondering about the results? Amazon celebrates a 30% annual growth. In the retail
arena, a mere 6% increase is predicted, which shows the shift in consumers purchasing
habits in favour of online buying rather than in-store purchases.
Amazon has set a benchmark in the area of marketing with relevance and accuracy. They
have near-perfected the art of capturing and mining customer data while leveraging these
insights to learn the consumer preferences and priorities of those they desire to engage.
Precision marketing: Why the buzz now?

Diminishing economic demand


Between 2005-07, the economy saw a dip in the rate of consumers savings. This was the
steepest fall since the Great Depression. Consumers grew more cautious in their
spending patterns. Sinking demand forced marketers to rethink their strategies in order
to retain the existing customers and attract new segments. Now, this was impossible
without making a few changes in the existing marketing frameworks.
Marketers during this era have learnt and realised to identify individual cutomer
preferences, and market the products specifically those preferences to give organizations
an edge in the instable economy.

Intensifying competition
When there is an economic slump, it is easy to sit back and play it safe on the strategy
front. Thats the moment you think of your competitors. Smart marketers dont sit still.
Many big market players like Amazon, Apple, and more implement revived business
strategies that leverage customer data, triggering intense competition for consumers
attention and cash flow. In recent years, there has been a significant growth in spending
for online marketing channels. This carves routes for companies to launch new
marketing programmes using social media, viral approaches, personalized emails, paid
search, behavioural targeting and other approaches to differentiate themselves from
rivals.

Adobe suggested customers should have an in-store experience while shopping online.
Consequently, web-based retailers are competing high-quality images with zoom, spin
and colour options that emulate the touch and feel experience while the video feature
simulates a live demonstration.

Advancing Technology
The worldwide market for Business Intelligence (BI) software is set to grow at 9.7%
annually. Big flag companies like IBM, Google, Microsoft and Oracle have invested
billions of dollars to acquire data-based technological capabilities.

According to The Economist, business intelligence was a luxury, which only big
companies enjoyed. With growing technology and the falling prices of software solutions,
companies are gathering more data than ever before.

Marketers incorporate multiple analytical technologies across all of their marketing


practices to drive relevant, engaging content and use predictive customer profiles,
thereby providing higher returns to the business. Ensuring communication models are
aligned with the preferences and priorities of consumers is as vital as market revenue
percentage.
The second factor to consider for marketers is to analyse data acquired to generate
actionable insights. It is not enough for marketers to know what their customers
preferences are, but they also need to predict their consumer needs, and track and
measure consumer behavior.
The third and most vital factor is execution and measuring results in order to test
predictions. Precision marketing is at the growth stage and many trial-and-error methods
are being implemented, which calls for near-accurate predictions and loads of litmus tests
along the way.

Chapter 3 How Precision Marketing works

Dont build links, build relationships. Rand Fishkin


The use of precision marketing, which primarily uses location-based mobile services and big data
analytics to gather insight on consumers, is on the rise. This is due to 3 reasons,
Wide array of consumer choices
Decreasing attention span
Ever-advancing technology
Big brands like Amazon, Apple, Tesco, and many others have already implemented precision
marketing strategies while achieving desired results. It will continue to remain at the pinnacle for
a prospected long-whil owing to the lethal combo of smart phones and the Internet.
So far, we learnt the significance of relevance, precision and need-based content to keep them
interested in the brand. This will make them consider your products and services as the
framework is closely linked to their needs. A smart, relevant and precise approach to data
management will yield marketers a sustainable and competitive advantage.

Lets draw a story on precision marketing for better understanding;


Marketer X was asked to sell a pen to the mass public. Marketer Y was asked to sell a variant of the same
which was on the expensive side. Marketer X targeted the mass market while his counterpart waited and
contemplated. While the former went berserk trying to sell pen after pen to the masses, he covered a minimal
distance over a period of time. The consumers were disappointed by the lack of product innovation and the
messaging didnt come across as attractive enough either. Marketer Xs efforts were in vain as consumers had
become smarter and expected a change in the product.
Marketer Y introduced a simple element with the product. It was called an ink eraser. He segmented the masses
and marketed the product with a simple message saying, whatever you write, good or bad, you can always erase the
past and improve yourself. The message touched the audience. They connected with the pen and remained loyal to
the product. The offer was made with an emotional touch.
Due to overwhelming marketing noise in the world, consumers attention spans have reduced
drastically. Precision marketing has emerged to combat this challenge. It blends data technology
with the creative process and concentrates on customer engagement and preferences. It takes
one-to-one marketing a step further while enabling a far more valuable relationship. It also
generates incremental revenue and ROIs.

Most importantly, precision marketing produces robust results with a 6-step process.
1. Lay out clear-cut objectives

Precision marketing is a journey and as in most cases, the technique starts with defining clear and
precise objectives.

Heres an example for substantiaion;


Rogers Wireless, a Canadian mobile services company. framed a path-breaking marketing
strategy in the telecommunication sector. What if you were presented with a challenge to retain
the existing customers and acquire prospective ones?
They kicked-off by defining crystal-clear objectives at 4 levels customer retention, customer
growth, customer acquisition, and customer reactivation.
Rogers intended to offer rate plans and mobile phones that were priced competitively, as well as
design new plans for smartphones.

They used data warehouses that contained call detail records and subscriber data.
Statisticians assisted marketers to produce insight-driven campaigns.
Sophisticated analytical tools were used to produce targeted offers and deals.
The customer lists shot up from 40 to 200, leaving their competitors awestruck.

2. Collect data in small, precise chunks


Data remains at the core of precision marketing. It is not essential to possess volumes of data to
attain consumer insights. The right information will support your marketing plans and produce
customer loyalty. There are multiple ways you can obtain data demographic data, purchased
or third-part related data, sources from campaign history, consumer behavioral shifts data,
survey and poll data, contact or network history, free-form data (gathered through social media
channels or through focus group discussions). Heres a quick look at an example for clarity;
Oakland A, Americas Base-ball team laid down a strategy to stun the world. They had a task to build a
winning team with a small budget. The strategy centred around the innovate ways to capitalize on acquired
customer data. Beane proved that even the most underfunded team can outcompete through effective analytical
abilities over fat-funded companies.
They hired a data analyst to recognise and create new statistical methodologies. Not just that, they also analyzed
player statistics in a new way while acquiring the undervalued players.
The results showed in their performance with 5 play-off qualification out of 10 mark a significant return on their
investment.
3. Analyze and model the gathered data chunks
This is the stage where you slow down and analyze your collection. Analytical models can remain
creative while sophisticated tools can be utilized to transform raw data into rich actionable
insights. Of course, it does take time to develop. Precision marketers must consider this phase a
building block of the marketing framework. The time and effort to analyze the data is worth it
because the ROI can increase two-fold. Start with the 4-steps on the market segmentation scale
of data analysis traditional, rule-based segmentation, response modelling, predictive analysis.
Heres an exmaple from large hotel chains and their way forward;
Large hotel chains objective was re-engage dormant members. The strategy revolved around creating a high
propensity model to the dormant member database. The company remodelled its business strategies by facing the
task of analyzing and modelling the data insights in place of previous irrelevant email bursts.

4. Strategize with relevance & precision


The market is saturated with content noise. Irrelevant marketing and advertising messages are
splashed across multiple channels leading to consumer frustration. Do you use an existing
campaign or create a new one? What creative process will you implement in your strategic
framework? Using fact-based output of analytics and knowing the highest customer potential for
current and future revenue will aid in generating return for marketing dollars spent. The
overused word strategy can seem overwhelming. Before commencing, consider the following
customer stages low propensity, future propensity, high propensity and best bets. Heres
INGs marketing plan and strategy;
INGs objective was to increase productivity of direct marketing efforts through relevance. The strategy revolved
around implementation of an enterprise-wide campaign management system to support business analytics and
multichannel campaigns. The company laid down its strength by settg up a customer contact team, utilize business
analytics and employ new monitoring and metrics. The response rates to the strategy was a shocker! The rates rose
as high as 60%. Diret marketing costs projected to fall 35% per year. Campaign cycle times improved dropping
from 26 weeks to 4 weeks. The results were visibly efficient.

5. Deploy and channelize actionable insights


Precision marketers must learn the art of delivering timely marketing messages. The acceleration
of the deployment cycle can be executed through different offers and contact scenarios based on
each customers value. There are several ways to implement and deploy data-driven marketing
strategies, from a full-scale implementation to an in-market test for a targeted subset of your
customer base. In-market testing is an easier and more feasible technique for many companies to
follow. Precision marketing gives you the space to litmus-test your ideas and scale them in a
monitored, managed and measured approach. Heres a real-time example;
Large cable providers were at risk of losing customers to increasing Voice over Internet Protocol (VoIP) user base
like Skype and others. The objective was to grow its market share by cross-selling VoIP services to its existing
customers. The strategy was to target high-propensity customers recommeded from the analysis phase with a
relevant VoIP promotion. The promotional pieces were delivered into the must-read monthly cable. The strategy
worked with results shooting a 27% increase in the number of customers responding to the relevant colour.

6. Measure the journey


Revenue and ROI are any marketers bread and butter. The pressure to demonstrate a return on
marketing investments constantly intensifies. Marketing metrics need to express the laid-out
objectives and measurable results in the language of the business such as revenue and ROI. A
sticky note to all prospective precision marketers, what gets measured, gets managed. The
measured results become the focus of attention, the driver of investment, and the means by
which marketers track progress and performance. Todays marketers are spoilt for choice in
deciding the right metric system. But whats important is to pick the system that guides your
marketing investments in the right direction, and assist in spreading the marketing collaterals
through the right channels, to the right consumers at the right time. Heres a real-time example;
Caesars Entertainment was to be bought over by Harrahs Entertainment. This more proved to be an econmic
sensationo while Caesars became the single largest and most profitable gaming company in the world. Caesars
decided to forgo the flash and decided to track, analyze and observe the behaviour of its customers. The brand now
manages 51 resorts across 4 continents. The strategy was implemented effectively in 2 ways,
Utilization of database marketing
Deliver great customer service

Impact of Precision Marketing


As we dive deeper into this technique we realize that the consumer is the king and they dont bargain.
The impact on the market has resulted in double the ROI. Its implementation in the
telecommunication sector has paved the way for other industries to follow. This is evident with
Apple and Amazons cases. Each consumer differs from one another. With the data boom,
consumers gain product information in seconds to make smarter buying decisions. The game is
no more about your customer or my customer. Its a holistic approach to marketing.

Solutions provided by the marketing departments of telcos are taking a shift into new-age
marketing. Although precision marketing has proved to be successful with multiple big brands in
the telecommunications sector adapting to the technique, it is still in the growth phase.

Precision marketing can give you these guaranteed results,

Increased sales, reduction in costs, and greater customer loyalty


Enhanced customer experience through relevant and personalized offers over persuasive
techniques
A win-win situation for customer and company
Focused and specific targeting leads to faster sales
Increased exposure to agents and buyers
Better response to advertising
Attracts higher offers or multiple offers
Increased cash flow to sellers
Lower risk from market fluctuations

Chapter 4 | Precision Marketing channels

Marketing takes a day to learn. Unfortunately it takes a lifetime to master. Philip Kotler
Preision Marketing is at a litmus testing phase. The millenial marketers strategies in comparson
with the traditional marketers are quite different from each other. The technique thrives on data
acquisition and data insights. Many of the strongest market performers lay down customer
centric strategies and derive optimum results for the organization. The ideas that hover around
the versatile technique are in development and open to marketers opinions.
Lets take a closer look at the channels of Precision Marketing;

Omnichannel:
Omni comes from the Latin word Omnis which means all or universal. A common phenomena,
isnt it? Omnichannel is about the true continuity of consumer experience. The key is that it
extends beyond a single brand. It isnt about segregation but about meeting the consumers
preferences holistically. That is the key to target marketing through omnichannel.
In marketing for telecom providers, being omniscient is to perceive and understand the needs of
the consumers from all angles without restriction. And the best way for a customer to perceive
everything is to allow them to own their data and experience the products and services first-
hand, then give them the ability to use it to guide creation and the context of future experiences.
Consider this, our life is continuous, but our customer experience is anything but that. We learn
and have memories of all the good and bad in life. We strive to limit or eliminate the negative
and increase the positive marketing impacts. These patterns that we strive to replicate are the
preferences of the consumers. The ability to have a continuous experience across brands, across
format and across devices that is completely bespoke is a promise, we as marketers need to
deliver consistently.
When telecom brands think customer experience, they need to think omni. Its not about your
customers or their customers, its about all of them. Its a compelling mix! The key here is
holistic understanding of consumer needs and developing marketing strategies centered around
insightful needs. Thats what omnichannel communication stands for.

Telecom brands in todays world are increasingly becoming aware of the idea that the days of
closed data and aggressive offers accompanied by loyalty points, are fast changing. With
precision marketing, if the brands want to start thinking of connecting with the target audience,
it better be through omnichannel, failing which, consumers will not have a continuous and
enhanced experience. The result? They leave!

There are a few key takeaways on the combination of precision marketing and omnichannel
distribution. Millennial marketers, come closer;

In order to explore and discover products and services in the domain, the data must be
transferable, collectable and universal
Customer-centric undertakings will trade data in exchange for significant access to other
data which will outweigh the value of the limited data in your brand
All experiences, offline and online, should allow an individual to identify themselves and
present a brand with the opportunity to access customer preferences

Multichannel marketing:
Multichannel marketing is the practice of interacting and connecting with customers using a
combination of indirect and direct communication channels, be it websites, retail stores, mail
order catalogs, direct mail, emails, mobile, etc and enabling customers to take action in response.
This is usually done preferably to buy your product or service using the consumers choice as a
means. In the most simplistic terms, multichannel marketing is all about choice.

Significance of multichannel marketing

You must be where your customers are. And they are everywhere, arent they? If you as a
marketer need another reason, consider this, multichannel customers spend three to four times
more than single-channel customers do on your message. A fact you can play around with when
its crunch time. Theres no doubt that customers today have much more control over the
buying process than marketers do with selling tactics. Thanks to the proliferation of available
channels, customers have more choices than ever when it comes to how they want to get
information. Today there are more ways to reach customers, both in terms of number and
variety of channels than we could have imagined not so long ago. And as the number of
channels continues to rise, which it will, the need to embrace multichannel marketing will not
only become a good idea, but a critical one.

Lets dig a little deeper with a case study:

The Financial Times (FT) wanted to drive a younger audience to engage with its
publication, and in partnership with Essence, it decided that a multichannel approach
was the answer.

Research found that the path to purchase for the FT was longer than that of less
expensive products, so a higher frequency of messages was the need of the hour.

These messages were delivered through a mix of channels, which included digital
outdoor displays and video pre-roll through tablet devices to target commuters, display
takeovers in offices and mobile video for the lunchtime audience.

The results:

A sustained increase in post click & post impressions


Increased subscriptions, which were tracked through DFA
A sustained overall uplift of FT weekly subscription volumes backed with increased site
traffic
Visits doubled on the mobile site month-on-month while OOH media was running
82% average view completion of video media placements - this is quite a bit higher than
then the industry average of 74%

However, just like any other marketing areas there are challenges to consider:
Targeted messaging With surplus communication channels and countless customer choices,
delivering the right message to the right audience isnt enough. Not only must your customers
receive your message, but they must be attentive, receptive and willing to act regardless of the
channel.

Highly choreographed campaigns - Expecting customers to change channel or device


preferences is unrealistic. As a result, marketers must constantly develop and coordinate highly
orchestrated touch points and micro-campaigns that span multiple channels fluidly, in a way that
the customer finds meaningful and trustworthy.

Marketing response attribution - It is increasingly difficult to know which channels,


campaigns or sequence of touch points contributed to qualified conversions and sales. Knowing
what triggered each response would enable marketers to assess whether or not their marketing
efforts were getting the best results.

3 steps to get it right and avoid future risks,

1. Create and maintain a single view of the customer across all channels
2. Establish a multichannel marketing platform
3. Create consistent customer experiences across all channels

Precision Marketing and Telcos:


Telecommunications is a fast-evolving business moving at a frenetic pace with an expected
global revenue touching trillions by 2019. It has become important for CSPs to aim for
sustainable growth in the wake of market saturation and competition from Over-the-Top (OTT)
players. Not only does the revenue from existing customers have to be increased, but their
retention also needs to be addressed. Telco marketers need to manage revenue growth by
maximizing value from existing customers rather than subscriber acquisition. Generating reports
that acquiring a new customer would cost a CSP five times more than retaining an existing
customer.

To derive increased value from customers, it is essential to understand their requirements,


communicate accordingly and deliver increased value. This intensifies customer centricity, which
is essential to succeed in todays fast-paced marketing era. And this is where precision marketing
comes into play.

For telcos, using precision marketing techniques allows a marketer to become customer-centric,
while bringing together aspects of customer lifecycle, experience and value. It helps them
understand the customer base better and thus, broaden the marketer-consumer relationship.
Precision marketing is poised to have a deep impact in helping telcos become highly customer-
centric. Pelatro, precision marketing service providers are a well-knit marketing unit mentioned in
Gartner.
With the idea of precision marketing, CSPs transformed their business model to adapt to their
customers requirements. The model is adjusted to the needs and expectations of the individual
customer, which is monitored regularly while taking value-added advantage of specific channels
where the customers respond. Operators now listen to every subscriber on every channel and
possess data-driven insights to deliver the right message, to the right person, at the right time via
the right channel. With precise information on the needs and behavior of each customer, the
relevance of these messages become fairly high. Remember the keyword, relevance.

Chapter 5 How Telcos can increase ARPU and decrease churn with Precision
marketing
Dont judge each day by the harvest you reap, but by the seeds you plant Robert Louis Stevenson
Precision Marketing & ARPU
With smarthphones gaining quick signnificance, ARPU includes not only the revenues billed to
the customer each month for usage, but also the revenue generated from incoming calls, payable
within the regulatory interconnection regime. Telecommunications is a fast-paced growing
industry with an expected global revenue of 1.2 Trillion Euros by 2019. With this statistic one
must surely consider the analytical study of precision marketing over traditional marketing
methodoloiges. Does the technique precision marketing increase ARPU?
As there is a shift from traditional to digital media and social media, these wings rely heavily on
ad revenue generated by users. While consumers are generating free accounts, pay close attention
to their ARPU. Variations in the average revenue reflect changes in the companies' ability to
generate results, which thereby have a negative impact on their stock price. This provides the
company a granular view at a per-user or unit basis level and allows it to track revenue sources
and growth, leveraging a positive turnaround. Also, they need to manage revenue growth by
maximizing value from existing customers rather than subscriber acquisition. The value of
retaining an existing customer is much more profitable than acquiring a new segment.
Telecommunications and Internet companies promotional activities center around ARPU.
Precision marketing applied to the telecommunication sector manifests in the form of value-
added services such as entertainment being sold to customers especially in markets where the
primary service offered to the customer, such as telephonic or Internet service, is sold at a
commodity rate. With the idea of precision marketing, CSPs transformed their business model to
adapt to their customers requirement. The model is adjusted to the needs and expectations of
each customer.

As smart marketers, you need to be aware of another criterion called Average Margin Per
User (AMPU), which measures the success of telephone companies. This system centers around
the attention to the margin produced per sold unit, and not the amount of cash (revenue) earned
from each customer. By carrying out such a system, one can afford low volumes and still have a
healthy company. High volumes can also bring a significant edge, but only until competition
forces prices down. With telecom analysts being highly focused on ARPU, precision marketing is
the need of the hour as it focuses primarily on consumer behavior and personal preferences.

Precision Marketing & Churn

Another resulting factor of precision marketing is lowered churn rate, which is directly related to
risk. With consumer relevant marketing strategies implemented in the right direction, risks can
be waved off with ease. Consider this, the customer has made a promise to continue using your
service, but there are a couple of risk factors to be considered. Firstly, the future is unpredictable
and secondly, not all customers will continue to use the product or service as promised. The first
step to tackle this challenge is to estimate the degree of risk involved followed by defining its
level to an acceptable degree. To reduce churn rate is to reduce the risk involved in the lay-down
of marketing strategies. This leaves no margin for uncertainty! Needless to say, more the
uncertainty, more the risk. In the telecommunication segment, the vital factor is to sell in units
rather than use the age-old mass marketing.
Heres a case study for substantiation;
A leading provider of unlimited wireless service has had a long standing relationship with Nielsen to better
understand, find and activate their customers. Utilizing Nielsen ConneXions, a syndicated segmentation system
based on technology behaviors, they were able to identify and engage their best customer segments for increased
effective marketing. The objective of the Telco company was to activate these same successful offline segments online
by finding new customers for its BringYour OwnDevice (BYOD) campaign, and increase their Return on
Ad Spend (ROAS).
The telco was able to use the same consumer segmentation, ConneXions, that they used successfully to market
offline, to find new customers using mobile advertising as well. Nielsen PRIZM Digital was used (with
ConneXions technology selects) to bring the offline segments online for better precision in finding their best
customers for the new mobile ad campaign.
The result was a success for the telco company with 11 M+ Impressions, 94% Decrease in CPM, 16X more
successful in marketing strategies over traditional marketing plans.
In order to execute a plan around the reduction of churn rate, marketers must be well aware of
the actionable factors that determine the fluctuations. Now it doesnt stop just there! The best
churn model will include these actionable factors as components of the precision marketing
model where consumers preferences are tracked, managed and implemented time and again. To
sum up, the best churn model is not the one with the best statistical precision but the one that
provides the best consumer insights to avoid further churn.
Marketing with precision requires practice and constant tracking of consumer behavior. In the
modern era of cutthroat competition, the consumers control your marketing strategies.
Understand the consumer needs first, track and measure their past behavior, predict their future
buying patterns and execute marketing communication collaterals with precision. As a marketer,
the opportunity to connect with consumers has never been this diverse.
Embrace the opportunity and strive towards the path of precision marketing. Remain relevant,
remain a cut above the rest. Remember, its a journey where you define your objectives with the
first step, gather data on the second, analyze and model on the third, strategize on the fourth,
deploy on the fifth, and finally measure on the sixth. There, you have hit the precision marketers
moment!

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