Developing A Successful Loyalty Programme… Fastlink

Shukri EidPrepaid Marketingshukrie@fastlink.com.jo

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…