Developing A Successful Loyalty Programme… Fastlink
Shukri EidPrepaid [email protected]
Agenda
• Mobile Industry in Jordan.
• Prepaid Products – Fastlink.
• Dayman … Loyalty Programme - Definition - Mechanism - Implementation - Evaluation
• Different Retention Schemes.
Jordan – Mobile Penetration
Population: 5.2M
Age Structure (0-14) 35.2% (15-64) 61.1% (>64) 3.7%
GDP – per capita JD1,200$1,700
Mobile Penetration Rate: 23%
July: 2004
Fastlink – Market Share
Fastlink was established in September 1995, offering postpaid mobile services. In 1999, the first prepaid product “EZlink” was introduced.
Fastlink Market Share: 72% 1,060,000 Subscribers
18%
82%Postpaid PrepaidOperators in Jordan
Fastlink – 1995 - GSMMobileCom – 2000 - GSMExpress – 2004 - IDEN4th Operator – expected 2005 72%
28%
Fastlink MobileCom
Prepaid Products
Consumer:
For High Day Usage
For High Night Usage
For Calling Specific Numbers With Reduced Rates
For Temporary Users – Visitors & Expatriates
Prepaid Products
Corporate:
Student’s Line
Other prepaid corporate products designed for:
- Organizations
- Jordan Armed Forces
Why A Retention Programme?
- Protecting the Consumer Prepaid Base.
- Competitive Advantage.
- Reducing Churn.
- Increasing The Active Base.
- Building a Loyal Prepaid Community.
- Increasing ARPU & MOU’s.
Prepaid Life Cycle – Consumer
Churn
New Line Validity
Reactivation
Grace
Loyalty Programme
Consumer Subscribers
Up to 20% Free Credit
1-year Programme
Brand Name!!?
Excluding Ziyarah...Why?
For Active Lines!
Protective Action…
Mechanism- To register, the subscriber has to dial a free number
“Dayman Number”. - Registered subscriber has access to check his/her
balance, points and status with the programme by calling Dayman Number.
- Upon registration, the subscriber chooses the way
of being informed about his/her given bonus, either via;
A) AutoDialer B) SMS
Increase awareness!
Mechanism- Getting Free Credit
Total Recharge Value (JD) Given Free Credit (JD)
First JD15 JD1
Second JD15 JD2
With every JD15 after JD3 (20%)
- To get the repeated JD3 “20%” line has to be always Active!
- By entering into the Reactivation Period, registration is still valid but any collected points will be deleted.
Implementation Creating Value @ the Executional Level!
- Brand Name! What does “Dayman” stand for? - Pricing With every JD15, a bonus up to 20% is given. To increase the monthly JD12 recharge to JD15. - Advertising Support Communication with the targeted segment. - Training Call Center & Front Liners; Fastlink Shops & Dealers.
Media – Advertising Campaign
- Radio
- Newspapers & Magazines
-Outdoors
- POS Materials “Flyer, Poster…
- Fastlink WebSite
-W
.O.M
Evaluating - Monthly Growth
Feb-02 Mar-02 Apr-02 May-02 J un-02 J ul-02 Aug-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 J an-03 Feb-03 Mar-03
Date
Su
bsc
rib
ers
Dayman Subscribers
40% (3months)
60% (6months)
77% (12months)
Evaluating
- ARPU
- Churn Rate Dayman Subs<Non Dayman Subs.
- (Active/Total Base)
Dayman Subs>Non Dayman Subs.
Dayman Subs>Non Dayman Subs.
- No remarkable differences had been found regarding the subscribers behaviour from different products. A slight higher (Bonus Given/Recharge Value) for RAZOR subs., and that is justified by their higher ARPU & MOUs.
But it was a genuine behaviour, higher recharge values.
With a difference of 20% after 10 months of launch.
Evaluating - (Benefited Subscribers/Participants) Not all participants had benefited “monthly” from
Dayman due to:
Entering into the Reactivation Period.
Not achieving the total of JD15 in that month.
Considered as a registered subscriber, but not aware of the mechanism.
- (Bonus Given/Recharge Value) Feb02: 6.5%
Feb03: 15.2%
Evaluating Telemarketing Campaign, September 2002
Questionnaire was designed to serve both Dayman & Non-Dayman subscribers.
Findings:A) Dayman subs. follow new promotions offered by
Fastlink more than Non-Dayman subs. by a higher difference of 16%.
B) The highest promotion remembered by both segments was Dayman!!
C) 7.6% of Dayman subs. did not know about the programme, on the other hand 56.0% of Non-Dayman subs. did not know about it!
Evaluating Findings – cont;D) Both segments had heard about Dayman by:- W.O.M - about 50% of respondents” in both segments
- Newspapers- Fastlink Employees- T.V - Dayman was not advertised by any T.V commercials! - Other Tools of Media E) 29% of Dayman subscribers claimed that they did not
feel any difference with Dayman, why? Getting extra credit talking more Talking more losing credit!
Different Retention Schemes- By studying Dayman and its impact on the
market, the main concern for all subscribers was to get free bonus regardless of the mechanism.
- The monthly given bonus “money spent” for Dayman was enormously increasing.
- Market needed a simpler mechanism to get instant bonus, with no need to register “Do not trust any long-term promotion”.
- The intention to increase the ARPU/MOU’s has already been achieved.
Different Retention Schemes
In order to capture the created value with Dayman, a decision was taken to stop Dayman after a year and new approaches were adopted and implemented on the Prepaid RoadMap of 2003 & 2004.
Interesting Fact!!
Specific segment “high value recharging behaviour” was getting the big portion of the monthly given bonus!
Prepaid RoadMap - 2003 February 18th – March 18th, 2003 50% Added Bonus With Every Recharge. All Prepaid products – Consumer & Corporate.
May 13th – June 13th, 2003 25% Added Bonus With Every Recharge. All Prepaid products – Consumer & Corporate.July 15th – September 15th, 2003 Summer Promotion “Prize Draw” 2 Mercedes Cars & 100 Sony Ericsson Handsets. All Prepaid products – Consumer & Corporate.
October 7th – October 14th, 2003 50% Added Bonus With Every Recharge. Excluding the JD5 Scratch Card. All Prepaid products – Consumer & Corporate.
February 25th,2003 New Calling Rate Reductions on RAZOR & EZLink.
Prepaid RoadMap - 2004February 14th – February 21st , 2004 With Every Recharge, A Bonus% Was GivenBonus% depends on the value of the scratch card used.
Excluding the JD5 Scratch Card. All Prepaid products – Consumer & Corporate.
April 13th, 2004Scratch & Win “with a total value of JD1,000,000” 10 Mercedes Cars 300 Siemens handsets More than 100,000 Scratch Cards
October…. November …. December!!
Comparison
Debatable Points! DaymanOther loyalty
Schemes
Duration of Program > <
Flexibility < >
Awareness = =
Cost “Money Spent” Bigger margins Easier to control
Recharging Behaviour = =
Educating potential market Mechanism - details Direct, simple
Impact on market Slower Faster
The law of Win/Win says…
Let’s not do it your way or my way; let’s do it the best way!
Greg Anderson
Thank you…