Driving Revenue Enhancement Campaigns
The Maxis Experience
7th Annual Customer Retention Forum
for Telecommunications
21-24 May 2007
Singapore
Evelyn Jimenez
Head of Customer Lifecycle Management
Maxis Communications Berhad, Malaysia
®
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Presentation Agenda
• Maxis and the Malaysian mobile industry
• Customer Lifecycle Management
• Sample Cases: Revenue Enhancement
Campaigns
• Learnings
1
Malaysia at a glance
• Located in Southeastern Asia,
Malaysia is basically divided into 2
regions: Peninsular Malaysia and
East Malaysia
• Land area: 328,550 sq km
• Population: 27.8 million (2006 est.)
• Median age: 24 years
• Multi-cultural society: Malays,
Chinese and Indians
• GDP (purchasing power parity):
$249 billion (2005 est.)
• Internet users: 10 million (2005)
• Mobile users: 19.7 million (2006)
2
Maxis at a glance
• Maxis commenced commercially in 1995 and
is the market leader in the Malaysian mobile
market
• 3 lines of businesses with prime focus on
Mobile (supported by Fixed Line/Broadband and
International Gateway)
• We have over 8 million mobile subscribers with 41% market share and 46% industry revenue
share as at end Y2006
• Maxis is perceived to be a premium and innovative service provider
– Asia’s 200 Most Admired Companies 2006 – No. 1 Overall in Malaysia (The Wall Street Journal
Asia)
– Malaysia Telecom Awards 2006 – Mobile Service Provider of the Year (Frost & Sullivan)
– Asian Mobile News Awards 2006 – Winner of Publisher’s Choice (Charlton Media Group)
– National Contact Centre Award 2006 (Customer Relationship Management & Contact Centre
Association of M’sia)
– The Asia HRD Congress 2006 Award for Dato’ Jamaludin Ibrahim
• Now entering an exciting new phase in growth, with the international acquisition of 51% stake in
Natrindo Telepon Selluler (Indonesia) and 74% in Aircel (India)
3
We remain determined to be innovative with new
products and services
Product and services launched in 2004-2006
• Recent products Maxis was 1st to market for:
• Caller RingTones
• Background Music
• Push-to-talk
• UniFun
• Blackberry
• Enterprise Desktop SMS
• Video Streaming
• Java Stock Live!
• Personalised Music Portal (“Music Zone”)
• 3G Datacard services
• Prepaid 3G packs
• Main Sponsor in Malaysia for FIFA World Cup 2006
• Introduction of New Rate Plans – Total & Easy
• Introduced E-reloads, share-a-top-up, residential
broadband and Maxis TV
4
While acquisition is still needed, customer retention
becomes more critical in a maturing, commoditizing market
• Market reaching maturity with 71% penetration rate
Environment • Intense competition with much lower cost of entry:
Challenges cheaper starter packs and further reduction in tariffs
• Mobile service now a commodity, no longer a luxury
• As revenue starts to slow down, premium
positioning is no longer sustainable
• Subscriber stickiness is a critical business driver
• Growing value-added services and mobile data
business
• Aggressive acquisitions expand the market, but it also
Campaign creates multiple-SIM phenomenon and phantom
Challenges churn
• Targeted CLM campaigns are more efficient and
sustainable on a long-term basis
• Millions of daily CDRs processed to timely, meaningful
and actionable information
• Speed to market
• Quantity and quality of campaign executions
• Campaign effectiveness monitoring
5
Presentation Agenda
• Maxis and the Malaysian mobile industry
• Customer Lifecycle Management
• Sample Cases: Revenue Enhancement
Campaigns
• Learnings
6
Focusing on churn reduction, revenue enhancement and
migration within the customer’s lifecycle
Customer
Acquisition Harvest Win Back
development
Target/ Revenue Enhancement
Customer Value
acquire Migration Churn Prevention/
subscriber
Reduction
Pro-activity based on “If”
events:
Welcome - Lifetime
Program - Usage/ purchase
- Behaviour Expiration
Time / insights
Analytical
insights
• Behaviour Scoring • Contact Policy • Tariff Plan Optimisation • Churn Propensity
• Response rates •Segmentation (Value/Needs) • Cross Sell / Up Sell • Churn Segmentation
7
Data mining and below-the-line channels are our
enablers toward an effective lifecycle management
From…. To….
• Segmentation
• Predictive Modeling
Standard Data Reports Data Mining • Customer Profitability
• Churn management
Traditional Marketing • Usage stimulation
Target Marketing
• Plan migration
• Tactical rewards
Above-the-line Below-the-line
Advertising channels • SMS
• MMS
• WAP Push
• Outbound calls
• e-DMs
8
Presentation Agenda
• Maxis and the Malaysian mobile industry
• Customer Lifecycle Management
• Sample Cases: Revenue Enhancement
Campaigns
• Learnings
10
Tactical Rebates Campaign (Broad Launch)
Segmentation Concept Offer Concept
High churn risk Active base Aggressive rewards offer
By tenure bands Staggered airtime rebates
By rate plan Various purchase triggers
Promo validity
11
Campaign continues to yield good net take rates and
positive ROI
Campaign Net Take Rate(%) Avg 8%
ABL : 2231 6.5%
Highlights:
8.3%
ABL :2221
• 8% net take rate
ABL :2211 8.0%
• RM0.30 impact per target
ABL :2201 9.1%
• Higher net takes for one
ABL :2191 8.3%
tariff plan
8.2%
ABL :2171
• However, higher ROI for
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
another plan
Campaign Impact Per Target (RM) Avg RM0.30
• Highest response rate and
ABL : 2231 0.51
ROI for segment with
highest usage reduction
ABL :2221 1.06
ABL :2211 0.22 • Explore staggered free
SMS offer
ABL :2201 1.03
• Best time in the month to
ABL :2191 -0.54
do campaign drop
-0.61
ABL :2171
-1.00 -0.50 0.00 0.50 1.00 1.50
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Happy Hour Test Campaign (Prepaid)
Segmentation Concept Offer Concept
Active and Deactive base segments Timeblock based on network utilization
Voice on-net MOU bands Discount on on-net local voice calls
Incoming Call Usage Ratio Various top-up or purchase triggers
Rate Plan Various promo validity days
13
Lower entry packages have higher take rates
4
2
Segment 1 5
5
2
5
5
Segment 2 8
2
6 Learnings:
5
Segment 3 5
9 • Purchase trigger
8
3 works better for
7 certain segments
7
14
Segment 4 12
6
• Subscribers from
14
Segment 5 12 18 certain tariff plan
3
18 respond more than
0 those in other plan
0
Segment 6 0
0
1 • Presence of a
0
0
“sweet spot” on
0 promo validity
Segment 7 1
1
period
1
0
1
Segment 8 1
2
1
1
Segment 9 1
1
3
0 5 10 15 20
14
Takers’ usage tracking
cat Onnet
• During the first 3 days of the
Sum of mou
10000 promo, total on-net MOU
increased by 24% compared to
9000 the same 3 days the week before
8000 • But, overall total MOU throughout
the day remained the same
7000
call_date
6000 09/06/2006
10/06/2006
5000 11/06/2006
16/06/2006
17/06/2006
4000
18/06/2006
3000
2000
1000
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
d_hout
15
And the next 6 weeks monitoring would show marginally
lower usage for target group against control
$5,000,000
$4,000,000
Total Usage (RM)
$3,000,000
$2,000,000
$1,000,000 Total Target
Total Control
$-
-2 -1 0 1 2 3 4 5 6
Weeks from Campaign Drop
¾ Campaign was not brought to Broad Launch
¾ Review of the customer segmentation and redesign of the campaign offer combination
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Applying Prepaid SMS Bundles learnings to Postpaid
Segmentation Concept Offer Concept
By Plan Type, Principal or Supplementary SMS Bundle offer combinations
Demographic Segments Various discounted price points
Average usage for the past 3 months Promo validity, Bundle validity
Average SMS counts per month
17
Incremental overall usage lift of 20% after 5 weeks
Overall Usage
25,000,000
20,000,000
15,000,000
(RM)
10,000,000
δ = 19.9Μ
5,000,000 2 0 %↑
-
2
k0
k1
k2
k3
k4
k5
k-
k-
ee
ee
ee
ee
ee
ee
ee
ee
W
W
Control Target
Note:
1.Delta, indicated above, is an average of the difference between target and control group after campaign launch
2. Total Usage refers to accumulated total usage of both MOU and SMS
18
Free festive content and MMS viral campaign
RAMADHAN, DEEPAVALI, HARI RAYA AND CARTOON-ME MMS
Highlights:
• Effective in
creating viral
effects but
difficult to track
• Increase in overall
P2P MMS usage
comparing target
and control
groups
• Informational
MMS services
without incentive
also work
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Presentation Agenda
• Maxis and the Malaysian mobile industry
• Customer Lifecycle Management
• Sample Cases: Revenue Stimulation
Campaigns
• Learnings
20
Based on our experience, it takes several components
to make the CLM operations successful
Dedicated CLM team
Skills development,
training & consultancy
Focus first on critical
business issues
Ownership by the
Top Management support business, not IT
Analytical minds & lots
of creative brainstorming
Unified CLM
datamart
Continuous campaign Effective execution via
monitoring and transfer tools, processes &
of learnings quality controls
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Thank You
www.maxis.com.my
®
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