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LOYALTY & GENERATION Y
13/10/10
MEADHBH QUINN
PRESENTATION NAME
Loyalty
Examples
Mobile
Youth
Switching
What we
learned in
Acquisition
Connecting
with Gen Y
Gen Y
Ireland
5 GenY Loyalty insights
MOBILE YOUTH
Gen Y
Ireland
- Demographics - Recession mindset- The big insight
PRESENTATION
NAME
Ireland & Generation Y
- Demographics - Recession mindset- The big insight
PRESENTATION
NAME
Who is generation Y?
25%
Dublin 30%
Total Leinster 55%
27%
12%
12%
Source: CSO, 2006
% 15-24’s
Male 51%
Female 49%
Declining Numbers
'000 turning 18 x year
40
45
50
55
60
65
70
75
1997 1999 2005 2006 2007 2008 2009 2010 2011 2012
Losing young people to emigration
Year
ending
April (000)
Immigrants Emigrants Net
migration
Population
change
2007 109.5 42.2 67.3 106.1
2010 30.8 65.3 - 34.5 11.4
28,200 aged 15-24, 29,900 aged 25-34
- Demographics- Recession mindset- The big insight
PRESENTATION
NAME
Ireland & Generation Y
Ireland’s lost generation?
Under-25s unemployment almost doubled since 200735,100 unemployed Q2 2007
68,100 unemployed in Q2 2010
Unemployment rate by age group
Q2 2007 Q2 2010
15-19 17.0 40.6
20-24 7.8 25.8
25-34 4.4 14.6
35-54 7.2 11.2
55+ 4.2 8.25
%
Source: CSO Quarterly National Household Survey, Quarter 2 2009, 2010
Cautiously Optimistic
This group has certainly changed their behavior due to the economic conditions but only to the extent that their optimism is slightly
curtailed. They tend to think a little more before they act, but are still acting. Source: Carat Young Irish Adults, Rejecting the recession, June 2009
New Serious
They have realised that the future may be a somewhat less stable and secure than they thought and while they are still remarkably
confident about their personal ability to succeed, they are thinking about the future in a more serious way.
Source: Carat Young Irish Adults, Rejecting the recession, June 2009
As with their more “cautious optimism” they are approaching their purchases
differently than before. They are a very savvy and informed group and understand
that the market conditions bring value and they are making sure that they get the
best value out there.
Smarter Choices
Source: Carat Young Irish Adults, Rejecting the recession, June 2009
- Demographics - Recession mindset- The big insight
PRESENTATION
NAME
Ireland & Generation Y
15 24
Different life stages, one mindset
106 104 11993 102 95 99
164139
97116 123
161 159 153 162
94110
173
Like to challenge & push myself
to be the best I can in life
I am very happy with
my life as it is
I have more ability than
most people
I like to follow a well
organised routine
I usually keep my feelings to
myself
Important to be an
individual, not just part of the
crowd
Other people view me as a
positive person
I am often bored
Other people view me as a
worrier
I never seem to have
enough free time
I consider myself to be a
creative person
I don't feel comfortable
having to meet new
people
I am always concerned about what
others think of me
I look to my friends for inspiration
I want to be popular
I ask others for opinions more than
they ask me
I try to fit as much into my
day as possible
Managing my time is one of
my biggest challenges
Other people view me as a
risk taker
15-20 year olds 15-25 year olds
The Youth Market – 15-20 year olds
Source: Carat CCS 2009
The Youth Market – 21-25 year olds
Source: Carat CCS 2009
103 90117
91 100 98 100
157 146
99113 108
131 135 123151
96111
133
Like to challenge & push myself
to be the best I can in life
I am very happy with
my life as it is
I have more ability than
most people
I like to follow a well
organised routine
I usually keep my feelings to
myself
Important to be an
individual, not just part of the
crowd
Other people view me as a
positive person
I am often bored
Other people view me as a
worrier
I never seem to have
enough free time
I consider myself to be a
creative person
I don't feel comfortable
having to meet new
people
I am always concerned about what
others think of me
I look to my friends for inspiration
I want to be popular
I ask others for opinions more than
they ask me
I try to fit as much into my
day as possible
Managing my time is one of
my biggest challenges
Other people view me as a
risk taker
21-25 year olds 15-25 year olds
.
PRESENTATION
NAME
Times are harder but Gen Y is cautiously optimistic
Loyal to the group … choice is social not personal & made in the context of social reaction and implication
Key findings
Connecting
with Gen Y
Gen Y
Ireland
Gen Y love to connect• 100+ million users
• 50 million tweets per day
• Nearing 1b users
• Avg user has 130 friends
• 65+ million members
• New member joins every second
• 6.1 million members
• 2.2 million RSVPs
• 180,000 meetups in 45,000 cities a month
Explosion in social networking & digital
• 1 billion facebook users
– phenomenal growth in v short period of time.. where to next?
– 800 million on various social networking sites at any one time
– Social networks are becoming referential sites
• By 2013 more internet users on their mobile than via pc
– By 2015 more online sales via mobile phone than pc
Social Networking ‘phenomena’ states perfectly
They continue to enjoy watching TV
25
And programmes
26
Radio continues to play important part in their lives (weekly listenership)
Source JNLR
They love the real world too!
15-20 year olds – advertising
noticeability
.
Source: Carat CCS 2009 – advertising noticeability map
Socially consumed media drives engagement
PRESENTATION
NAME
Gen Y insight #2
personal choice is
made in the context
of the group
What we
learned in
Acquisition
Connecting
with Gen Y
Gen Y
Ireland
Meteors brand positioning
Deep psychological Insight:
Irish people want to be popular & fear being out of the loop
Rational Benefit
Price Advantage
Brand Idea
Meteors better value keeps Irish people more in the loop
+ =
+ =
Communications Strategy
Famous Advertising
Irish Social Truisms
+ =
+ =Brand Idea
Meteors better value keeps Irish people more in the loop
Social Identity
Real, warm, human, everyday Ireland
How Meteor Became a 1,000,000 Customer Brand
2005
• 200,000 customers
• 9% share
• Prepay only
• Cheap
• Rational benefit
• For Students, Immigrants
• Bad coverage
2009
• 1,000,000 customers
• 20% share
• Full service
• Value
• Rational & Emotional benefit
• For everyone
• Improving image
PRESENTATION
NAME
Gen Y Insight #3
Switching is a social event
New challenge - Retention
Mobile
Youth
Switching
What we
learned in
Acquisition
Connecting
with Gen Y
Gen Y
Ireland
Pen Portrait -price, ‘free’ and offer conscious
Least likely to top up by €20 in one go (due to expense).
Most likely to perceive themselves to be on free any network texts.
3 in 5 visiting own operator store in past 3 months. (Opportunity to promote the brand).
Half visiting operator’s website.
One third visiting competitor store.
15-17
Almost 3 in 5 always try and top up by €20 to get promotion.
More likely to perceive themselves to be on some form of text promotion.
3 in 5 visiting own operator store in past 3 months.
Half visiting operator’s website.
One quarter visiting competitor stores.
18-24
Almost 3 in 5 always try and top up by €20 to get promotion.
Most likely to perceive themselves to be on free call/texts on net.(Thus V2V works)
Half visiting operator’s website.
One third visiting competitor stores.
Higher usage (relative to other ages).
25-35
Share of Wallet Pyramid
Mobile Average Monthly Spend: €22 €14 €21 €25
18-24(€834)
25-35(€1,311)
15-17(€410)
15-35’sALL PREPAY
AVERAGE MONTHLY SPEND (€1,031)
AGE
80
85
90
95
100
105
110
115
Under 25 25-34 35-44 45-54 55-64
I normally buy/use brands that reward me for being loyal
Strongly agree that ads with Discount coupons influence me
Strongly agree that I notice ads with Discount coupons
Source: Carat CCS 2009
Heavily influenced by discounts and rewards
Source: Carat CCS 2009
145
129
195
116
93
118
91
0 100 200 300
International brands have status
I tend to spend money without thinking
I buy the newest fashion brands & styles available
I love to buy new gadgets and appliances
I don't mind paying for quality
I have more ability than most people
Shop around to make sure I'm getting best value for money
55-64
45-54
35-44
25-34
Under 25
..but also spontaneous for ‘cool’ things
Extent of Switching Providers – Primary
(Base: All aged 15-24 – 202)
Mobile telephone provider
Car Insurance provider
Broadband/internet
access provider
Top-up Grocery Shop
Main grocery shop
Bank/financial institution
who offers Current A/C
service
Fixed/landline telephone
provider
Yes Switched in last
12 months
60%
56%
63%
53%
46%
62%
36%
36
12
8
7
6
6
5
All 15-74
27
26
15
12
16
13
17
Leverage the community nature of switching
Network & Coverage
Website
Online store Free webtexts
THE CORENetwork my friends are
on
Rewards
(treats, freebies)
Products & Services
–Mobile internet
–Roaming availability & cost
Store
– Staff
– Ambiance
Customer CarelFree credit to join
Offer (Free texts etc)
Perceived cost of calls/texts (perceived as
individual costs unknown)
Handsets-Price- Range/style (Smartphone)Offer
mechanics
Source : B&A 2010
Recall of Promotions
15-24%
Age
None
27
34
17
11
58
18
17
11
4
74
Oct2009
%
June2010
%
22
18
11
8
67
Those aged 15-24 are more aware of promotions generally & in particular of Meteor promotions
At an overall level within mobile, promotions now play a bigger role v 2 years ago.
Source : Millward Brown Lansdowne, Tracking Survey monthly data
Is Generation Y more likely to switch?
PRESENTATION
NAME
3 3 3
5
6
4
6
5
4
6 6
5
6
45
7
4
6
7 8
5
10
6
6
0
2
4
6
8
10
12
Very /fairly all adults
Under 25s
N=925 each month
Source : Millward Brown Lansdowne, Tracking Survey monthly data
PRESENTATION
NAME
Gen Y insight #4
They are more price conscious
But also more attracted to brands that offer social inclusion & are socially current
Loyalty
Examples
Mobile
Youth
Switching
What we
learned in
Acquisition
Connecting
with Gen Y
Gen Y
Ireland
How to drive loyalty
• Freebies
• Discounts on clothes, flights, music, concert tickets, cinema
• Rewards for staying with a brand
• Exclusive events
• VIP status, log in only, member’s access
• The chance to be the first and to bring mates along
• Relevant and interesting content
PRESENTATION NAME
Two campaigns demonstrating loyalty
52
Milestone Rewards
53
Goodie Bag
Milestone Rewards
Background:
• Meteor was witnessing an increase in prepay churn numbers but more specifically an increase amongst certain customers who were now being attracted by the tactical acquisition offers other operators were putting into the marketplace.
• The value profile of those churning shifted dramatically in Nov to March ’09.
• As acquisition opportunities slowed down and the market became more saturated and as a result more competitive it was important for operators to begin to place more focus on retention initiatives.
54
The Milestone Rewards Program…
55
The Milestone Rewards Program…
56
• Aspirational rewards• High perceived value• Achievable spend targets• Regular updates on their spend progress
The Milestone Rewards Program…
57
• The campaign was communicated by direct mail and text
• A micro site showcased the rewards
• Rewards were clearly linked to the value of each customers monthly top up
• Customers had to stay on the network 3 months to redeem rewards
• Each month their balance was communicated via text and updated on the rewards micro site
• Customers were offered a reward with a much higher perceived value than was actually the case
Relevance of Communications - Why
58
Beginning to feel the recession pinch
80% used social networking sites
47% went to cinema 3+ times every month
51% loved having the latest phone
41% loved gadgets.
54% on Face book daily
65% take at least 2 holidays per year
Target Profiling & Opt In
Target Group
Those on the network 6 months +
Platinum & Gold value customers
Topping up at least €20 every 30 days.
No gender or age restrictions
88,538
102,966
Opt In 28,350
Actually Fulfilled 24,150
60
Effectiveness of Execution - 3 Channel Mechanic
Main Objective:
Drive Program Opt in & Understanding
The DM clearly set out the mechanism behind the offer showing in three clear steps how to get the most out of the offer
DIRECT MAIL
61
Effectiveness of Execution - 3 Channel Mechanic
Main Objective:
Drive Awareness & Retain Engagement
The SMS was used as a low cost way to tell customers of their balance and ensure they remained constantly engaged and reminded in the program throughout the entire three month period.
SMS
62
Effectiveness of Execution -3 Channel Mechanic
Main Objective:
Offer full transparency on the offer. Be used as point of engagement, and facilitating reward redemption & data capture.
Also clearly highlighted to customers what offers they could be availing of should they increase their top up amounts over the period.
Facebook used to amplify the offer
Online Site
63
Effectiveness of Execution - 3 Channel Mechanic
Online Site
64
Effectiveness of Execution - 3 Channel Mechanic
Online Site:
65
Non-quantifiable benefits...
Data Capture & Validation – All customers needed to provide
updated details
Marketing Opt In - Default opting in to receive all types of
marketing communications
Customer Engagement - Remained engaged with the offer over a
three month period
Word of Mouth Communications - Anecdotally there was very
positive customer feedback, through the comment cards, research
and from general customer feedback.
66
Quantified Results..
Redemption Breakdown%
Required Top Up
Average Top up in period
Average Top Up Before
Incremental top up
Group 1 46% €101+ €184.70 €151.17 €33.50
Group 2 33% €71-100 €86.90 €81.54 €5.36
Group 3 21% € 50-70 €62.70 €57.95 €4.70
Top Up Effect: - 24,150 customers fulfilled – 23%
Goodie Bag
Background:
• Meteor Milestones was successful in retaining high value customers over time with measurable, profitable pay back.
• The underlying conditions that prompted the creation of Meteor Milestones continued:
– Acquisition opportunities continued to slow
– Meteor experienced continuing competitor competition in it’s traditional market of 15 – 24 year olds
• Thorough analysis of customers at several periods post campaign showed that Meteor Milestones was meeting it’s objectives of customer retention and continued value.
67
Goodie Bag
What changes were made?
• Building on the previous campaign, Goodie Bag offered a wider selection of gifts to more of the customer base – 210,000
• The gift options were extended and amended from customer feedback and focus groups
68
Goodie Bag…
69
• The Goodie bags campaign reflected the key success of the Milestone Reward programme
– It was communicated by direct mail and text
– A newly constructed micro site showcased the rewards
– Rewards were clearly linked to the value of each customers monthly top
– Customers had to stay on the network 3 months to redeem rewards
– Each month their balance was communicated via text and updated on the rewards micro site
– Customers were offered a reward with a much higher perceived value than was actually the case
Gen Y insight #5?
• Loyal to their tribes more than their brands
– Savvy & offer astute
• Times are hard, they still spend albeit cautiously
• Offer is critical in order to elicit a response
• Critical to harness different media in order to communicate the message
• Challenge for brands is to remain socially current and connected to their tribes
PRESENTATION NAME