Today I received a call from my mobile phone provider who I’ve been with for 10 years. I have generally been happy with my provider and, until today, had not considered moving. I didn’t have any reason to. Now? I am not so sure.
So what happened?
Apparently, because of my current plan, I am “eligible” for an upgrade. Fantastic news. I thought I should probably listen to this guy as he’s about to make me an offer too good to refuse.
His offer was a 36-month plan, with more data, and that I could get a new phone with this plan. After a bit of probing, he revealed that the phone component of the plan would cost me about $37 per month, or $1332 over the 36-month period. The really good thing, according to this guy, was that there would be no lock-in contract or cancellation fees.
What’s wrong with that would you say?
Well, firstly, if I have been with this provider for 10 years, why would no lock-in contract be a benefit for me? Secondly, if they looked at my data usage they would see that I am not using my current data usage, so why would the offer of extra data be of interest? The new phone offer would also mean I would be pay exactly the same for the phone over 36 months as I would if I bought the phone outright. Finally, he told me (literally!) that the provider doesn’t make any distinction between a loyal customer, like me, who has been with them for 10 years or a customer that has only been with them for 12 months.
Do you think I felt appreciated for being a long term customer by being offered something that’s exactly worth nothing to me? Of course not.
With some basic segmentation, and even the most rudimentary analysis, they would have quickly realised that I should have been excluded from this particular call list. Better yet, they could have devised a campaign specifically targeting long-term customers. Before the call I was not a customer likely to churn, but now? As a direct result of a clumsy up-sell effort I’ve been reminded that being a long term customer means nothing at all.
The standardised texts I receive about my data usage, and when my monthly allowance will reset also perplex me. My latest text informs me that I’ve used 50% of my data with 5 days left to go… What do I do with that? Surely my usage patterns can be used to create a more valuable message?
There is much talk about hyper-personalisation, sophisticated CRM systems and the evolution of customer engagement, yet many organisations are struggling to get even basic segmentation right. This particular company has the data assets to take segmentation to granular level. They can be doing so much more with their data. So why aren’t they?
Our Advanced Analytics team can apply customer analytics tools and techniques that not only help organisations acquire new customers, but they can also grow the value of existing customers and, perhaps most importantly, retain existing customers by guiding micro-marketing efforts. By understanding your customers’ needs you can treat them as an individual and ultimately drive loyalty.
My call with the guy in the call centre ended with him saying “thank you for calling”, but it wasn’t me that called, and maybe that’s the point: If you are not committed to segmenting your customers in a meaningful way, it may be better not to make the call at all. Now my blinkers are off and the provider has jeopardised one of their most valuable assets – a loyal customer.
So, if you know of any good phone plans, or want to avoid this kind of thing happening with your customers, give us a call.
Effective one-on-one communication has the potential to revolutionise marketing, product and pricing strategies. Using sophisticated analytical techniques, like the incorporation of behavioural analysis, businesses can improve response rates, sales, revenue and campaign performance.
Analytics8 has a great deal of experience implementing customer segmentation projects across many industries. We can help you deliver segmentation that creates business value for your organisation.
Talk to us about how we can do more with your data.
350 Kent Street,
Sydney, NSW, 2000
+61 2 9299 4430
350 Collins Street,
Melbourne, VIC, 3000
+61 3 8605 4880