[Guest]

Print this page...

Strategies to Acquire and Retain High Value Customers

In an increasingly competitive marketplace operators wish to attract the right (i.e. the highest value) customers. They need to maximise on their investment in customers to achieve the highest profitability possible and retain those customers in the face of increasing competition. The maturing markets of Europe and elsewhere demand that MNOs and MVNOs move from standardised products for the mass market to more customised products for more profitable customers. It is becoming increasingly apparent that the customer that spends the most per month is not necessarily the one delivering the greatest profit to the MNO's bottom line. MNOs therefore face a whole new set of challenges - how do they identify who is the most valuable and then how do they address them in order to ensure they are retained (or acquired from other operators)?

This report explores the increasing complexity of identifying and targeting the optimum customers and provides concrete recommendations to help MNOs face this challenge.

Price: EUR 2,500.00 / GBP 2,000.00

if you would like learn more about this report, or our other work in this topic area and how to subscribe, please contact us

Table of Contents


1
OVERVIEW
1
2
INTRODUCTION
2
2.1
Background
2
2.2
Report Content
2
2.3
Exchange Rates
3
3
TARGETING HIGH VALUE CUSTOMERS
4
3.1
Introduction
4
3.2
Segmentation Approaches
5
3.3
Value Based Segmentation Approaches
6
3.3.1
Direct Financial Value
7
3.3.2
Social Network Value
9
3.3.3
Future Value
11
3.4
Definition of High Value Profiles
11
3.4.1
Overlapping Value Approaches
11
3.5
Alternative Segmentation Approaches
12
4
OPERATOR INITIATIVES
14
4.1
Introduction
14
4.2
Sticky Tariffs
14
4.2.1
Vodafone UK Family Tariff
14
4.2.2
3 Italia Family Prepay SIM Offer
15
4.2.3
Orange UK Friends Scheme
16
4.2.4
TIM Italy Equipment Discount
17
4.2.5
tele.ring Austria Student plans
18
4.3
Gift Promotions
19
4.3.1
Vodafone UK Handset Promotions
19
4.3.2
T-Mobile Germany Postpay Promotion
20
4.4
Loyalty schemes
21
4.4.1
3 Italia
21
4.4.2
CellC South Africa Prepay Voice Rewards
21
4.4.3
E-Plus Germany Bonus Minutes for Prepay Top-ups
22
4.5
Contract Extension
23
4.5.1
3 UK Customer Referral Program
23
4.6
Multiplay bundle offers
24
4.6.1
Orange UK Broadband and Mobile Offer
24
4.6.2
3 UK X-Series Plan
25
4.7
Handset Promotions
26
4.8
Additional Strategies
27
4.8.1
Exploiting Sub-branding Opportunities
27
4.8.2
Event Based Strategies
28
4.8.3
Individualised Promotions
28
5
POTENTIAL BENEFITS OF INITIATIVES
29
5.1
Relative Impact of Initiatives
29
5.2
Return on Investment
30
6
FINDINGS AND RECOMMENDATIONS
31
6.1
High Value is not Always the Most Profitable
31
6.2
MNOs Must Understand Their Customers
31
6.3
Convergence is a Critical Enabler
31
6.4
Targeting Needs is a Key Challenge
31
6.5
Immediate Steps
32