2DEGREES Perks Data Deals SMS campaign, offering customers the chance to purchase additional data at massively reduced rates, achieved conversions three times better than expected.
Harnessing the power of perks
A key focus of 2degrees commercial strategy is growing margin through data monetisation. The telco managed to deliver value through its Perks loyalty programme, achieving its key objectives of ARPU (average revenue per unit) growth, loyalty, and churn management.
Customer interviews conducted prior to the launch of 2degrees Perks and previous CVM campaigns have demonstrated the popularity of data as a reward that customers really appreciate. Mobile data is also a controlled cost the company can afford to offer customers at a reduced price, whilst still increasing customer ARPU.
Utilising an SMS campaign appealing to its customers required very little engagement from them, making the offers extremely easy to take up. There was no need to visit a website and go through a checkout process, open up an app or get out a credit card, merely a YES response to an SMS, and data at a great price became instantly available.
By working with the 2degrees Insights team to look at different spend levels and data use across segments and plan types, the marketing team was able to create offers that were relevant (a good fit for a person’s spend level and current data use) and timely (focused on customers who were starting to run low on plan data).
In targeting this campaign, the team looked at customers’ existing data balances, testing varying thresholds to help determine at what level customers would be most likely to take up the offer. They split customers by plan type and data balance, creating 20 segments to test and learn from. Different data amounts and price points were also tested, and four different offers were selected (based on learning from previous campaigns) to understand the price sensitivity of different segments.
The goal was to test price elasticity, maximising revenue per gigabyte of data, while still delivering real value to customers.
The SMS offer was the best fit for the sense of urgency that needed to be conveyed with a limited-time offer – customers had only 48 hours to claim the deal. SMS also required no creative (cheap to use and send) beyond copywriting, which was done in-house. This campaign had no associated costs to build or run.
The goal of this campaign was to deliver a conversion rate of three percent. Perks Data Deals exceeded these targets, delivering a conversion rate of 17.5 percent for Pay Monthly customers and 9.5 percent for Prepay customers. Prepay is a less engaged and more price sensitive customer segment.
Results of the campaign confirmed the assumption that customers with lower data balances would be most likely to convert. What was surprising, was the number of customers with higher data balances who also chose to purchase more data. This behaviour was more common among the Prepay audience on lower value plans who converted at rates of up to 20 percent.
These learnings will see 2degrees expand its targeting to those with even higher data balances as the team rolls out this campaign as part of its lifecycle programme.
Best Data Driven Marketing Initiative
2degrees Perks Data Deals
Anna Gavin; Emma Bourne; Alessandra Parker; Paula Borquez
“Refreshingly simple data-led approach with outstanding results. Heavily optimised activity that saw an impressive uplift in performance.”
2degrees (2degrees Data Clock); Sky Television New Zealand
This article was originally published in the September/October 2022 issue of NZ Marketing. Click here to subscribe.