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Segment-of-one Blog

Monday, September 27, 2010

Prepaid Customer: What you do is who you are

By Michal Samuels- Marketing Manager

articleimg_september.jpgAnonymity is probably one of the most frustrating factors for marketers servicing the prepaid market. A Prepaid customer purchases a SIM card in a kiosk, leaving behind no trace of identity – unknowingly preventing any segmentation of core services. You cannot maintain an ongoing relationship with the customer – an essential component for building loyalty and for identifying opportunities to increase share of wallet.


Many solution providers solve the segmentation challenge by implementing the “scattergun” approach – essentially releasing massive campaigns with the hope that some customers will respond and make a purchase. This method usually results in low response rates or cannibalization and the offers are often perceived as intrusive. A customer receiving an offer at a bad timing will be upset. For example, receiving an SMS with a top-up offer just after the customer recharged his account. From the loyalty angle, such offers do not contribute towards building a lasting relationship with the customer.
Knowing your Prepaid customers with Pontis
Pontis’ prepaid market approach is based on behavioral segmentation. Or simply put, “what you do is who you are!”
Customers are analyzed and categorized by the way they manage their prepaid account. A few critical parameters are tracked: Current balance, Top-up amount, Speed and profile of consumption. This includes Top-up frequency, which is evaluated by number of days between consecutive top-ups; number of days at zero balance before next top-up; number of days below low-balance (after notification) and before next top-up.

Such data is authentic, available, and most importantly – actionable – meaning, it can drive marketing plans. Once the operator mines usage data and defines the business goal per customer, it is easy to communicate personal offers at the most relevant point of time, tracking response rate and following up with offer adjustments.

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It is worth mentioning that in order to maximize results it is important that the marketing platform be able to automatically fulfill and execute personalized offers to large-scale subscriber base. Success is based on the ability to run multiple micro offers in parallel in no time, track performance through a module integrating analytics and advanced statistical methods, and get receive feedback for rapid follow up.

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