1White Paper l Capturing & Converting Multi-SIM Users © 2013 LUMATA All Rights Reserved

W H I T E P A P E R

R E T E N T I O N

Capturing & Converting Multi-SIM Users

2© 2013 LUMATA All Rights ReservedWhite Paper l Capturing & Converting Multi-SIM Users

Four key steps for success

1. Identification of multi-SIM users

2. Creation of targeted, personalised campaigns to increase share of wallet

3. Detection of users during the brief period that they are connected to the network

4. Execution of timely campaigns to reach users when their presence is detected

Rewarding usage-based loyalty in prepaid markets

Multi-SIM users pose an interesting challenge. They are loyal to you, but are also loyal to everyone else.

Here is a common scenario we see in prepaid mobile markets: Savvy subscribers purchase SIM cards from multipleoperators to take advantage of their various rate plans but one operator (and mobile number) is favoured over the others.The primary operator receives the biggest share of the subscriber’s wallet since more time is spent on that network andthe number is more widely distributed. The secondary SIM cards are infrequently used and only for very short periods oftime, to check messages or make a few on-network phone calls.

In an attempt to win a greater portion of the Multi-SIM user’s wallet, one of the secondary operators announces a mass-market campaign promoting discounted off-network calls. In response, competitors also begin offering discountsand deals on off-network calling. The end result is a price war that quickly begins to erode profits.

Multiple SIM usage presents both a significant problem and a sizable source of potential revenue for operators worldwide.Operators can increase their share of the wallet, boost revenues and grow their active subscriber base by accuratelytargeting these multi-SIM users and shift their brand preference. Once an operator has become the primary SIM provider,this puts them in a prime position to further boost usage and ARPU through stimulation activities.

In this white paper, we explore a multi-step approach allowing operators to maximise this opportunity.

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risk of entering a profit-eroding price war with competitors.Furthermore, enjoying discounted call rates and receivingan increasing number of calls will eventually encouragemulti-SIM users to gradually switch their primary SIM card.

STEP THREE

Presence Detection

The most critical challenge when targeting multi-SIM usersis to be able to catch them during the brief and randommoments when they are connected to the network andcapable of receiving offers.

Operators require sophisticated real-time presencedetection and real-time campaign management tools thatcan act in a matter of minutes.

If subscriber intelligence is not validated and processed inreal-time, then a campaign cannot be timely launched andthe opportunity will be lost. The multi-SIM user will havealready switched back to his primary SIM card.

STEP FOUR

Campaign Execution

Lumata’s Expression for Operators (E4O) platform enables the filtering and analysis of live events to identify multi-SIMusers and determine subscriber presence on the network.

When an identified multi-SIM user connects to thenetwork, the E4O platform immediately recognises thisevent and automatically launches a personalisedcampaign for this specific user in real-time.

To significantly increase a campaign uptake rate, the offermust reach the subscriber in a matter of minutes, whenthey are still active on their device.

Once operators manage to capture the bulk of their subscribers’ spending, they now have a fantastic opportunityto deploy loyalty programmes and campaigns designed tostimulate usage and increase subscriber value. With E4O,the same capabilities that seamlessly transform multi-SIMusers into active subscribers can also be used to increaseloyalty, tenure and spend.

STEP ONE

Identification

The first and least complex step is to accurately pinpointmulti-SIM users. There are several indicative signs makingthis process relatively straightforward.

For instance, multi-SIM users mainly purchase secondarySIM cards to benefit from reduced on-network call rates.They rarely use these secondary SIM cards and as a result,don’t widely distribute their numbers and receive very few calls.

Multi-SIM users are generally easy to spot: they typicallyhave a low off-net/on-net call ratio, very few mobile terminated calls and no mobile terminated off-network calls.

STEP TWO

Campaign Options

Having identified the multi-SIM users, the operator mustnow craft targeted campaigns to increase their share of wallet and create a preference for their brand. Two types ofcampaigns can be created: above-the-line or below-the-line.

Above-the-line campaigns that engage the entirecustomer base, such as a price reduction on off-networkcalls, represent tactics that may work in some markets.However they usually ignite price wars and representlimited differentiation. Above-the-line campaigns are more effective for large scale loyalty and marketinginitiatives within significant media spend.

More adapted to the multi-SIM issue, below-the-linecampaigns offer a sophisticated approach that allows theoperator to target specific users with relevant and highlypersonalised offers.

For example, a combination of mobile terminated callbonus and tiered usage stimulation offers will encouragepeople to distribute their phone number more broadly and progressively increase usage.

By offering these bonuses individually, operators avoid the inevitable margin destruction that comes with across-the-board, mass market campaigns and reduce the

© 2013 LUMATA All Rights ReservedWhite Paper l Capturing & Converting Multi-SIM Users

4© 2013 LUMATA All Rights ReservedWhite Paper l Capturing & Converting Multi-SIM Users

L U M A T A . C O M

57-63 Scrutton StreetLondonEC2A 4PF

+44 (0)20 7613 8900

contact@lumatagroup.com

Contact us

Contact our team of experts at Lumata to find out how E4O can help you capture and convert multi-SIM users into loyal and profitable customers. Call us now on +44 (0)20 7613 8900 or email contact@lumatagroup.com.

Lumata is a global software and marketing services companyfocused solely on the mobile marketing space. Our goal is to provide operators, brands and advertisers with thetools they need to manage their brand’s interaction withconsumers over mobile. Our 10-year heritage and successis built on a strong foundation of market-leadingtechnology, deep category expertise and a focus ontransparency and measurement. Lumata is backed byFrancisco Partners, a leading technology focused privateequity firm with over $7Bn under management.

Challenges:

An operator based in Sub-Saharan Africa was faced with:

• High churn rate on its prepaid subscriber base (1M)

• Fierce competition creating pressure on ARPU($5, one of the lowest in the world) and further affecting churn behaviour

• Low levels of mobile penetration (less that 40%)

Solution:

Using E4O, the operator’s marketing department designedand launched a Bonus Mobile Terminated campaign. Whenmulti-SIM users were coming back on the operator’snetwork, they were identified within 15 minutes. Anautomatic message was then triggered to engage thesubscribers receiving incoming calls and extend their SIM

card validity to seven days. They were next directlyengaged with usage and ARPU stimulation campaigns.

Results:

Bonus Mobile Terminated Campaign

When the customer retention campaign stopped after 4weeks, the operator’s share of wallet had increased thanksto an 81% ARPU uplift and the campaign had generated a37% return rate. The operator drastically reduced churnand was then able to push unlimited ‘Friend & Family’offers to increase the tenure of the retained subscribers.

CASE STUDY

Increasing share of wallet and reducing multi-SIM effect

Before 1W After 4W After

Number of weeks after campaign end

800

600

400

200

0

Weekly

ARPU in local currency