Driving Revenue Enhancement Campaigns - Emagine International

Driving Revenue Enhancement CampaignsThe Maxis Experience7th Annual Customer Retention Forumfor Telecommunications21-24 May 2007SingaporeEvelyn JimenezHead of Customer Lifecycle ManagementMaxis Communications Berhad, Malaysia0®

Presentation Agenda• Maxis and the Malaysian mobile industry• Customer Lifecycle Management• Sample Cases: Revenue EnhancementCampaigns• Learnings1

Malaysia at a glance• Located in Southeastern Asia,Malaysia is basically divided into 2regions: Peninsular Malaysia andEast Malaysia• Land area: 328,550 sq km• Population: 27.8 million (2006 est.)• Median age: 24 years• Multi-cultural society: Malays,Chinese and Indians• GDP (purchasing power parity):$249 billion (2005 est.)• Internet users: 10 million (2005)• Mobile users: 19.7 million (2006)2

Maxis at a glance• Maxis commenced commercially in 1995 andis the market leader in the Malaysian mobilemarket• 3 lines of businesses with prime focus onMobile (supported by Fixed Line/Broadband andInternational Gateway)• We have over 8 million mobile subscribers with 41% market share and 46% industry revenueshare as at end Y2006• Maxis is perceived to be a premium and innovative service provider– Asia’s 200 Most Admired Companies 2006 – No. 1 Overall in Malaysia (The Wall Street JournalAsia)– Malaysia Telecom Awards 2006 – Mobile Service Provider of the Year (Frost & Sullivan)– Asian Mobile News Awards 2006 – Winner of Publisher’s Choice (Charlton Media Group)– National Contact Centre Award 2006 (Customer Relationship Management & Contact CentreAssociation of M’sia)– The Asia HRD Congress 2006 Award for Dato’ Jamaludin Ibrahim• Now entering an exciting new phase in growth, with the international acquisition of 51% stake inNatrindo Telepon Selluler (Indonesia) and 74% in Aircel (India)3

We remain determined to be innovative with newproducts and servicesProduct and services launched in 2004-2006• Recent products Maxis was 1st to market for:• Caller RingTones• Background Music• Push-to-talk• UniFun• Blackberry• Enterprise Desktop SMS• Video Streaming• Java Stock Live!• Personalised Music Portal (“Music Zone”)• 3G Datacard services• Prepaid 3G packs• Main Sponsor in Malaysia for FIFA World Cup 2006• Introduction of New Rate Plans – Total & Easy• Introduced E-reloads, share-a-top-up, residentialbroadband and Maxis TV4

Presentation Agenda• Maxis and the Malaysian mobile industry• Customer Lifecycle Management• Sample Cases: Revenue EnhancementCampaigns• Learnings6

Focusing on churn reduction, revenue enhancement andmigration within the customer’s lifecycleAcquisitionCustomerdevelopmentHarvestWin BackCustomer ValueTarget/acquiresubscriberWelcomeProgramRevenue EnhancementMigrationPro-activity based on “If”events:- Lifetime- Usage/ purchase- BehaviourChurn Prevention/ReductionExpirationTime / insightsAnalyticalinsights• Behaviour Scoring• Response rates• Contact Policy•Segmentation (Value/Needs)• Tariff Plan Optimisation• Cross Sell / Up Sell• Churn Propensity• Churn Segmentation7

Data mining and below-the-line channels are ourenablers toward an effective lifecycle managementFrom….To….• SegmentationStandard Data ReportsData Mining• Predictive Modeling• Customer ProfitabilityTraditional MarketingAbove-the-lineAdvertisingTarget MarketingBelow-the-linechannels• Churn management• Usage stimulation• Plan migration• Tactical rewards• SMS• MMS• WAP Push• Outbound calls• e-DMs8

Presentation Agenda• Maxis and the Malaysian mobile industry• Customer Lifecycle Management• Sample Cases: Revenue EnhancementCampaigns• Learnings10

Tactical Rebates Campaign (Broad Launch)Segmentation ConceptHigh churn risk Active baseOffer ConceptAggressive rewards offerBy tenure bandsStaggered airtime rebatesBy rate planVarious purchase triggersPromo validity11

Happy Hour Test Campaign (Prepaid)Segmentation ConceptActive and Deactive base segmentsOffer ConceptTimeblock based on network utilizationVoice on-net MOU bandsDiscount on on-net local voice callsIncoming Call Usage RatioVarious top-up or purchase triggersRate PlanVarious promo validity days13

Lower entry packages have higher take ratesSegment 12245Segment 2Segment 3Segment 4Segment 5Segment 6Segment 7Segment 800000111122335556677889121214141818Learnings:• Purchase triggerworks better forcertain segments• Subscribers fromcertain tariff planrespond more thanthose in other plan• Presence of a“sweet spot” onpromo validityperiodSegment 91130 5 10 15 2014

Takers’ usage trackingcat Onnet10000900080007000Sum of mou• During the first 3 days of thepromo, total on-net MOUincreased by 24% compared tothe same 3 days the week before• But, overall total MOU throughoutthe day remained the same600050004000call_date09/06/200610/06/200611/06/200616/06/200617/06/200618/06/200630002000100000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23d_hout15

And the next 6 weeks monitoring would show marginallylower usage for target group against control$5,000,000Total Usage (RM)$4,000,000$3,000,000$2,000,000$1,000,000$--2 -1 0 1 2 3 4 5 6Weeks from Campaign DropTotal TargetTotal Control‣ Campaign was not brought to Broad Launch‣ Review of the customer segmentation and redesign of the campaign offer combination16

Applying Prepaid SMS Bundles learnings to PostpaidSegmentation ConceptBy Plan Type, Principal or SupplementaryOffer ConceptSMS Bundle offer combinationsDemographic SegmentsVarious discounted price pointsAverage usage for the past 3 monthsPromo validity, Bundle validityAverage SMS counts per month17

Incremental overall usage lift of 20% after 5 weeksOverall Usage25,000,00020,000,000(RM)15,000,00010,000,0005,000,000δ = 19.9Μ20%↑-Week-2Week-1Week0Week1Week2Week3Week4Week5ControlTargetNote:1.Delta, indicated above, is an average of the difference between target and control group after campaign launch2. Total Usage refers to accumulated total usage of both MOU and SMS18

Free festive content and MMS viral campaignRAMADHAN, DEEPAVALI, HARI RAYA AND CARTOON-ME MMSHighlights:• Effective increating viraleffects butdifficult to track• Increase in overallP2P MMS usagecomparing targetand controlgroups• InformationalMMS serviceswithout incentivealso work19

Presentation Agenda• Maxis and the Malaysian mobile industry• Customer Lifecycle Management• Sample Cases: Revenue StimulationCampaigns• Learnings20

Based on our experience, it takes several componentsto make the CLM operations successfulFocus first on criticalbusiness issuesDedicated CLM teamSkills development,training & consultancyTop Management supportOwnership by thebusiness, not ITAnalytical minds & lotsof creative brainstormingUnified CLMdatamartContinuous campaignmonitoring and transferof learningsEffective execution viatools, processes &quality controls21

Thank Youwww.maxis.com.my22®