u.s. cellular believing in loyalty
DESCRIPTION
U.S. Cellular had to reinvent all their processes to battle churn using loyalty and its rewards instead of mandated renewal contracts. It was extremely complex, but TIBCO Loyalty Lab got them to the finish line on time for an extremely successful launch. Watch USCC present on-demand http://forms.loyaltylab.com/vod_usccTRANSCRIPT
1
Creating a Rational Strategy to Engage Irrational Customers at U.S. Cellular®
John K. Coyle: Sr. Director of Customer Strategy & Marketing
2
Waterloo, Iowa
2006…
3
A story
Creating a Rational Strategy to Engage Irrational Customers
1. Understand Your Environment
2. Get Beyond the Rational
3. Develop Your Strategy… and Your Story
4. Prove Your Rational Case by Measuring Irrational Behavior
5. Create the Irrational Case for Irrational Behavior (i.e. Create Belief)
6. Execute with Excellence
4
1. Understand Your EnvironmentIndustry Realities:
• Lonely in the middle: consolidation – the giants get bigger, prepaid gets bigger, everyone else is bought
$0.04$0.06$0.08$0.10$0.12$0.14$0.16$0.18$0.20$0.22$0.24
2000 2001 2002 2003 2004 2005 2006 2007$0.04$0.06$0.08$0.10$0.12$0.14$0.16$0.18$0.20$0.22$0.24
2000 2001 2002 2003 2004 2005 2006 2007
Price/Minute
40%
50%
60%
70%
80%
90%
100%
2003 2004 2005 2006 2007 2008* 2009* 2010* 2011*150,000
175,000
200,000
225,000
250,000
275,000
300,000
Wireless Penetration Registered Lines
40%
50%
60%
70%
80%
90%
100%
2003 2004 2005 2006 2007 2008* 2009* 2010* 2011*150,000
175,000
200,000
225,000
250,000
275,000
300,000
Wireless Penetration Registered Lines
Subscriber Growth
50%
60%
70%
80%
90%
100%
2006 2007 2008* 2009* 2010* 2011*
Switchers
Switcher/Intender
50%
60%
70%
80%
90%
100%
2006 2007 2008* 2009* 2010* 2011*
Switchers
Switcher/Intender
50%
60%
70%
80%
90%
100%
2006 2007 2008* 2009* 2010* 2011*
Switchers
Switcher/Intender
2000 Snapshot(78MM total subs)
Verizon(25MM)
AT&T(10MM)
Cingular(17MM)
Sprint(7MM)
Alltel(5.9MM)
Nextel(5.0MM)
T-Mobile(2.9MM)
USCC(2.7MM)
Western W. (874K)
Qwest(600K)
Dobson(573k)
Centennial (417K)
Rural (257K)
Triton(243k)
Leap(37K)
2000 Snapshot(78MM total subs)
Verizon(25MM)
AT&T(10MM)
Cingular(17MM)
Sprint(7MM)
Alltel(5.9MM)
Nextel(5.0MM)
T-Mobile(2.9MM)
USCC(2.7MM)
Western W. (874K)
Qwest(600K)
Dobson(573k)
Centennial (417K)
Rural (257K)
Triton(243k)
Leap(37K)
(AT&T) Cingular(66MM)
USCC(6.1MM)
T-Mobile(28MM)
MetroPCS(3.7MM)
Alltel(12.4MM)
2007 Snapshot(256MM total subs)
Leap(2.7MM)
Verizon(64MM)
Sprint (Nextel)(54MM)
(AT&T) Cingular(66MM)
USCC(6.1MM)
T-Mobile(28MM)
MetroPCS(3.7MM)
Alltel(12.4MM)
2007 Snapshot(256MM total subs)
Leap(2.7MM)
Verizon(64MM)
Sprint (Nextel)(54MM)
(AT&T) Cingular(81.6MM)
USCC(6.2MM)
T-Mobile(34MM)
MetroPCS(6.6MM)
2010 Snapshot(+300MM total subs)
Leap(4.7MM)
Verizon(91.2MM)
Sprint (Nextel)(48.3MM)
TracFone(13.2MM)
Understand the Competitive Realities of Your Business
5
1. Understand Your EnvironmentUnderstand the Macro-Economic Realities of Your Operating Environment
Bloomberg
6
2. Get Beyond the Rational
Team Strategic International
Understand the Customer Realities of Your Business: How They Feel
7
2. Get Beyond the RationalUnderstand the Customer Realities of Your Business: How They Feel
8
3. Develop Your Strategy… & Your Story
Defining Metaphor
Use Data to Create a Metaphor, and a Story
9
3. Develop Your Strategy & Your Story
Defining Metaphor: Replace the traditional model of contracts and the penalty of early termination fees with the incentive of rewards. (PV=nRT)
$6B
$9B
10
4a. Prove Your Rational Case by Measuring Irrational Behavior
Don’t ask them to “say” what they’ll do, watch what they actually do
Scenario 1 of 12 Plan 1 Plan 2 Plan 3 Plan 4
Service Provider Verizon AT&T Sprint/Nextel T-Mobile
Calling Plan Features NoneFree In-Network Calls
Free Incoming Calls from Anyone, Anytime
Free In-Network Calls
Free Calls To or From Your Favorite 5 Numbers
Rollover Minutes
Rollover Minutes
Estimated Total Monthly Bill $0/$0 +$10/+$15 +$20/+$30 -$10/-$15
Billing Discount 5% Discount for Automatic Payment and Paperless Billing None None 5% Discount for Automatic Payment and
Paperless Billing
Overage Charges Guaranteed Flat Monthly Rate Overage Charge Flexible Payments Standard charge per minute over your monthly allowance with $50 cap
Standard charge per minute over your monthly allowance
Overage Protection None None None Overage Protection Notification
Phone Basic Phone Traditional phone with enhanced capabilities Smartphone or PDA (e.g., Blackberry, iPhone) Advanced phone with touchscreen (e.g., Samsung Delve, Samsung Instinct)
Phone Price (before rebate) $300 $50 Free $200
Mail-In Rebate $100 Mail-In Rebate None None $50 Mail-In Rebate
30-Day Phone Price Match None 30-Day Phone Price Match None None
Phone Protection Battery Swap & Phone Replacement Battery Swap Phone Replacement None
No Contract Required No Contract Required after 2 Years No Contract Required after 4 Years Contracts Required Every 2 Years
Rewards Program Rewards Program Based on Time with Provider Rewards Program Based on Time and Monthly Spend with Provider
Rewards Program Based on Monthly Spend with Provider Rewards Program Based on Time with Provider
Rewards Available
Free Bluetooth Headset with New Phone
Priority Line with Customer Service Calls Answered in 60 Seconds
Free Companion Line
Free Phone Replacement Insurance
Phone Upgrade after 15 Months
Pre-Ordering of New Phone Models
Annual Overage Forgiveness Voucher
Free Phone Replacement Insurance
Free Universal Charger with New Phone
Early Access to New Phone Models
Free Companion Line
Half-Price Phone Replacement Insurance
Phone Upgrade after 12 Months
Free Bluetooth Headset with New Phone
Priority Line with Dedicated Customer Service Representative
Phone Upgrade after 18 Months
Bonus Rewards Rewards Program Bonus Rewards for Payments and Referrals
Rewards Program Bonus Rewards for Payments and Referrals None None
Which of these plans do you most prefer?
Plan 1 Plan 2 Plan 3 Plan 4
Would you switch from your current plan to the one you most prefer/have
selected above?
Phone Upgrade and Contract Requirement
Phone Upgrade Every 2 Years
Yes, switch to the plan selected above
No, stay with current plan
Scenario 1 of 12 Plan 1 Plan 2 Plan 3 Plan 4
Service Provider Verizon AT&T Sprint/Nextel T-Mobile
Calling Plan Features NoneFree In-Network Calls
Free Incoming Calls from Anyone, Anytime
Free In-Network Calls
Free Calls To or From Your Favorite 5 Numbers
Rollover Minutes
Rollover Minutes
Estimated Total Monthly Bill $0/$0 +$10/+$15 +$20/+$30 -$10/-$15
Billing Discount 5% Discount for Automatic Payment and Paperless Billing None None 5% Discount for Automatic Payment and
Paperless Billing
Overage Charges Guaranteed Flat Monthly Rate Overage Charge Flexible Payments Standard charge per minute over your monthly allowance with $50 cap
Standard charge per minute over your monthly allowance
Overage Protection None None None Overage Protection Notification
Phone Basic Phone Traditional phone with enhanced capabilities Smartphone or PDA (e.g., Blackberry, iPhone) Advanced phone with touchscreen (e.g., Samsung Delve, Samsung Instinct)
Phone Price (before rebate) $300 $50 Free $200
Mail-In Rebate $100 Mail-In Rebate None None $50 Mail-In Rebate
30-Day Phone Price Match None 30-Day Phone Price Match None None
Phone Protection Battery Swap & Phone Replacement Battery Swap Phone Replacement None
No Contract Required No Contract Required after 2 Years No Contract Required after 4 Years Contracts Required Every 2 Years
Rewards Program Rewards Program Based on Time with Provider Rewards Program Based on Time and Monthly Spend with Provider
Rewards Program Based on Monthly Spend with Provider Rewards Program Based on Time with Provider
Rewards Available
Free Bluetooth Headset with New Phone
Priority Line with Customer Service Calls Answered in 60 Seconds
Free Companion Line
Free Phone Replacement Insurance
Phone Upgrade after 15 Months
Pre-Ordering of New Phone Models
Annual Overage Forgiveness Voucher
Free Phone Replacement Insurance
Free Universal Charger with New Phone
Early Access to New Phone Models
Free Companion Line
Half-Price Phone Replacement Insurance
Phone Upgrade after 12 Months
Free Bluetooth Headset with New Phone
Priority Line with Dedicated Customer Service Representative
Phone Upgrade after 18 Months
Bonus Rewards Rewards Program Bonus Rewards for Payments and Referrals
Rewards Program Bonus Rewards for Payments and Referrals None None
Which of these plans do you most prefer?
Plan 1 Plan 2 Plan 3 Plan 4
Would you switch from your current plan to the one you most prefer/have
selected above?
Phone Upgrade and Contract Requirement
Phone Upgrade Every 2 Years
Yes, switch to the plan selected above
No, stay with current plan
Scenario 1 of 12 Plan 1 Plan 2 Plan 3 Plan 4
Service Provider Verizon AT&T Sprint/Nextel T-Mobile
Calling Plan Features NoneFree In-Network Calls
Free Incoming Calls from Anyone, Anytime
Free In-Network Calls
Free Calls To or From Your Favorite 5 Numbers
Rollover Minutes
Rollover Minutes
Estimated Total Monthly Bill $0/$0 +$10/+$15 +$20/+$30 -$10/-$15
Billing Discount 5% Discount for Automatic Payment and Paperless Billing None None 5% Discount for Automatic Payment and
Paperless Billing
Overage Charges Guaranteed Flat Monthly Rate Overage Charge Flexible Payments Standard charge per minute over your monthly allowance with $50 cap
Standard charge per minute over your monthly allowance
Overage Protection None None None Overage Protection Notification
Phone Basic Phone Traditional phone with enhanced capabilities Smartphone or PDA (e.g., Blackberry, iPhone) Advanced phone with touchscreen (e.g., Samsung Delve, Samsung Instinct)
Phone Price (before rebate) $300 $50 Free $200
Mail-In Rebate $100 Mail-In Rebate None None $50 Mail-In Rebate
30-Day Phone Price Match None 30-Day Phone Price Match None None
Phone Protection Battery Swap & Phone Replacement Battery Swap Phone Replacement None
No Contract Required No Contract Required after 2 Years No Contract Required after 4 Years Contracts Required Every 2 Years
Rewards Program Rewards Program Based on Time with Provider Rewards Program Based on Time and Monthly Spend with Provider
Rewards Program Based on Monthly Spend with Provider Rewards Program Based on Time with Provider
Rewards Available
Free Bluetooth Headset with New Phone
Priority Line with Customer Service Calls Answered in 60 Seconds
Free Companion Line
Free Phone Replacement Insurance
Phone Upgrade after 15 Months
Pre-Ordering of New Phone Models
Annual Overage Forgiveness Voucher
Free Phone Replacement Insurance
Free Universal Charger with New Phone
Early Access to New Phone Models
Free Companion Line
Half-Price Phone Replacement Insurance
Phone Upgrade after 12 Months
Free Bluetooth Headset with New Phone
Priority Line with Dedicated Customer Service Representative
Phone Upgrade after 18 Months
Bonus Rewards Rewards Program Bonus Rewards for Payments and Referrals
Rewards Program Bonus Rewards for Payments and Referrals None None
Which of these plans do you most prefer?
Plan 1 Plan 2 Plan 3 Plan 4
Would you switch from your current plan to the one you most prefer/have
selected above?
Phone Upgrade and Contract Requirement
Phone Upgrade Every 2 Years
Yes, switch to the plan selected above
No, stay with current plan
Scenario 1 of 12 Plan 1 Plan 2 Plan 3 Plan 4
Service Provider Verizon AT&T Sprint/Nextel T-Mobile
Calling Plan Features NoneFree In-Network Calls
Free Incoming Calls from Anyone, Anytime
Free In-Network Calls
Free Calls To or From Your Favorite 5 Numbers
Rollover Minutes
Rollover Minutes
Estimated Total Monthly Bill $0/$0 +$10/+$15 +$20/+$30 -$10/-$15
Billing Discount 5% Discount for Automatic Payment and Paperless Billing None None 5% Discount for Automatic Payment and
Paperless Billing
Overage Charges Guaranteed Flat Monthly Rate Overage Charge Flexible Payments Standard charge per minute over your monthly allowance with $50 cap
Standard charge per minute over your monthly allowance
Overage Protection None None None Overage Protection Notification
Phone Basic Phone Traditional phone with enhanced capabilities Smartphone or PDA (e.g., Blackberry, iPhone) Advanced phone with touchscreen (e.g., Samsung Delve, Samsung Instinct)
Phone Price (before rebate) $300 $50 Free $200
Mail-In Rebate $100 Mail-In Rebate None None $50 Mail-In Rebate
30-Day Phone Price Match None 30-Day Phone Price Match None None
Phone Protection Battery Swap & Phone Replacement Battery Swap Phone Replacement None
No Contract Required No Contract Required after 2 Years No Contract Required after 4 Years Contracts Required Every 2 Years
Rewards Program Rewards Program Based on Time with Provider Rewards Program Based on Time and Monthly Spend with Provider
Rewards Program Based on Monthly Spend with Provider Rewards Program Based on Time with Provider
Rewards Available
Free Bluetooth Headset with New Phone
Priority Line with Customer Service Calls Answered in 60 Seconds
Free Companion Line
Free Phone Replacement Insurance
Phone Upgrade after 15 Months
Pre-Ordering of New Phone Models
Annual Overage Forgiveness Voucher
Free Phone Replacement Insurance
Free Universal Charger with New Phone
Early Access to New Phone Models
Free Companion Line
Half-Price Phone Replacement Insurance
Phone Upgrade after 12 Months
Free Bluetooth Headset with New Phone
Priority Line with Dedicated Customer Service Representative
Phone Upgrade after 18 Months
Bonus Rewards Rewards Program Bonus Rewards for Payments and Referrals
Rewards Program Bonus Rewards for Payments and Referrals None None
Which of these plans do you most prefer?
Plan 1 Plan 2 Plan 3 Plan 4
Would you switch from your current plan to the one you most prefer/have
selected above?
Phone Upgrade and Contract Requirement
Phone Upgrade Every 2 Years
Yes, switch to the plan selected above
No, stay with current plan
Scenario 1 of 12 Plan 1 Plan 2 Plan 3 Plan 4
Service Provider Verizon AT&T Sprint/Nextel T-Mobile
Calling Plan Features NoneFree In-Network Calls
Free Incoming Calls from Anyone, Anytime
Free In-Network Calls
Free Calls To or From Your Favorite 5 Numbers
Rollover Minutes
Rollover Minutes
Estimated Total Monthly Bill $0/$0 +$10/+$15 +$20/+$30 -$10/-$15
Billing Discount 5% Discount for Automatic Payment and Paperless Billing None None 5% Discount for Automatic Payment and
Paperless Billing
Overage Charges Guaranteed Flat Monthly Rate Overage Charge Flexible Payments Standard charge per minute over your monthly allowance with $50 cap
Standard charge per minute over your monthly allowance
Overage Protection None None None Overage Protection Notification
Phone Basic Phone Traditional phone with enhanced capabilities Smartphone or PDA (e.g., Blackberry, iPhone) Advanced phone with touchscreen (e.g., Samsung Delve, Samsung Instinct)
Phone Price (before rebate) $300 $50 Free $200
Mail-In Rebate $100 Mail-In Rebate None None $50 Mail-In Rebate
30-Day Phone Price Match None 30-Day Phone Price Match None None
Phone Protection Battery Swap & Phone Replacement Battery Swap Phone Replacement None
No Contract Required No Contract Required after 2 Years No Contract Required after 4 Years Contracts Required Every 2 Years
Rewards Program Rewards Program Based on Time with Provider Rewards Program Based on Time and Monthly Spend with Provider
Rewards Program Based on Monthly Spend with Provider Rewards Program Based on Time with Provider
Rewards Available
Free Bluetooth Headset with New Phone
Priority Line with Customer Service Calls Answered in 60 Seconds
Free Companion Line
Free Phone Replacement Insurance
Phone Upgrade after 15 Months
Pre-Ordering of New Phone Models
Annual Overage Forgiveness Voucher
Free Phone Replacement Insurance
Free Universal Charger with New Phone
Early Access to New Phone Models
Free Companion Line
Half-Price Phone Replacement Insurance
Phone Upgrade after 12 Months
Free Bluetooth Headset with New Phone
Priority Line with Dedicated Customer Service Representative
Phone Upgrade after 18 Months
Bonus Rewards Rewards Program Bonus Rewards for Payments and Referrals
Rewards Program Bonus Rewards for Payments and Referrals None None
Which of these plans do you most prefer?
Plan 1 Plan 2 Plan 3 Plan 4
Would you switch from your current plan to the one you most prefer/have
selected above?
Phone Upgrade and Contract Requirement
Phone Upgrade Every 2 Years
Yes, switch to the plan selected above
No, stay with current plan
Scenario 1 of 12 Plan 1 Plan 2 Plan 3 Plan 4
Service Provider Verizon AT&T Sprint/Nextel T-Mobile
Calling Plan Features NoneFree In-Network Calls
Free Incoming Calls from Anyone, Anytime
Free In-Network Calls
Free Calls To or From Your Favorite 5 Numbers
Rollover Minutes
Rollover Minutes
Estimated Total Monthly Bill $0/$0 +$10/+$15 +$20/+$30 -$10/-$15
Billing Discount 5% Discount for Automatic Payment and Paperless Billing None None 5% Discount for Automatic Payment and
Paperless Billing
Overage Charges Guaranteed Flat Monthly Rate Overage Charge Flexible Payments Standard charge per minute over your monthly allowance with $50 cap
Standard charge per minute over your monthly allowance
Overage Protection None None None Overage Protection Notification
Phone Basic Phone Traditional phone with enhanced capabilities Smartphone or PDA (e.g., Blackberry, iPhone) Advanced phone with touchscreen (e.g., Samsung Delve, Samsung Instinct)
Phone Price (before rebate) $300 $50 Free $200
Mail-In Rebate $100 Mail-In Rebate None None $50 Mail-In Rebate
30-Day Phone Price Match None 30-Day Phone Price Match None None
Phone Protection Battery Swap & Phone Replacement Battery Swap Phone Replacement None
No Contract Required No Contract Required after 2 Years No Contract Required after 4 Years Contracts Required Every 2 Years
Rewards Program Rewards Program Based on Time with Provider Rewards Program Based on Time and Monthly Spend with Provider
Rewards Program Based on Monthly Spend with Provider Rewards Program Based on Time with Provider
Rewards Available
Free Bluetooth Headset with New Phone
Priority Line with Customer Service Calls Answered in 60 Seconds
Free Companion Line
Free Phone Replacement Insurance
Phone Upgrade after 15 Months
Pre-Ordering of New Phone Models
Annual Overage Forgiveness Voucher
Free Phone Replacement Insurance
Free Universal Charger with New Phone
Early Access to New Phone Models
Free Companion Line
Half-Price Phone Replacement Insurance
Phone Upgrade after 12 Months
Free Bluetooth Headset with New Phone
Priority Line with Dedicated Customer Service Representative
Phone Upgrade after 18 Months
Bonus Rewards Rewards Program Bonus Rewards for Payments and Referrals
Rewards Program Bonus Rewards for Payments and Referrals None None
Which of these plans do you most prefer?
Plan 1 Plan 2 Plan 3 Plan 4
Would you switch from your current plan to the one you most prefer/have
selected above?
Phone Upgrade and Contract Requirement
Phone Upgrade Every 2 Years
Yes, switch to the plan selected above
No, stay with current plan
Scenario 1 of 12 Plan 1 Plan 2 Plan 3 Plan 4
Service Provider Verizon AT&T Sprint/Nextel T-Mobile
Calling Plan Features NoneFree In-Network Calls
Free Incoming Calls from Anyone, Anytime
Free In-Network Calls
Free Calls To or From Your Favorite 5 Numbers
Rollover Minutes
Rollover Minutes
Estimated Total Monthly Bill $0/$0 +$10/+$15 +$20/+$30 -$10/-$15
Billing Discount 5% Discount for Automatic Payment and Paperless Billing None None 5% Discount for Automatic Payment and
Paperless Billing
Overage Charges Guaranteed Flat Monthly Rate Overage Charge Flexible Payments Standard charge per minute over your monthly allowance with $50 cap
Standard charge per minute over your monthly allowance
Overage Protection None None None Overage Protection Notification
Phone Basic Phone Traditional phone with enhanced capabilities Smartphone or PDA (e.g., Blackberry, iPhone) Advanced phone with touchscreen (e.g., Samsung Delve, Samsung Instinct)
Phone Price (before rebate) $300 $50 Free $200
Mail-In Rebate $100 Mail-In Rebate None None $50 Mail-In Rebate
30-Day Phone Price Match None 30-Day Phone Price Match None None
Phone Protection Battery Swap & Phone Replacement Battery Swap Phone Replacement None
No Contract Required No Contract Required after 2 Years No Contract Required after 4 Years Contracts Required Every 2 Years
Rewards Program Rewards Program Based on Time with Provider Rewards Program Based on Time and Monthly Spend with Provider
Rewards Program Based on Monthly Spend with Provider Rewards Program Based on Time with Provider
Rewards Available
Free Bluetooth Headset with New Phone
Priority Line with Customer Service Calls Answered in 60 Seconds
Free Companion Line
Free Phone Replacement Insurance
Phone Upgrade after 15 Months
Pre-Ordering of New Phone Models
Annual Overage Forgiveness Voucher
Free Phone Replacement Insurance
Free Universal Charger with New Phone
Early Access to New Phone Models
Free Companion Line
Half-Price Phone Replacement Insurance
Phone Upgrade after 12 Months
Free Bluetooth Headset with New Phone
Priority Line with Dedicated Customer Service Representative
Phone Upgrade after 18 Months
Bonus Rewards Rewards Program Bonus Rewards for Payments and Referrals
Rewards Program Bonus Rewards for Payments and Referrals None None
Which of these plans do you most prefer?
Plan 1 Plan 2 Plan 3 Plan 4
Would you switch from your current plan to the one you most prefer/have
selected above?
Phone Upgrade and Contract Requirement
Phone Upgrade Every 2 Years
Yes, switch to the plan selected above
No, stay with current plan
Scenario 1 of 12 Plan 1 Plan 2 Plan 3 Plan 4
Service Provider Verizon AT&T Sprint/Nextel T-Mobile
Calling Plan Features NoneFree In-Network Calls
Free Incoming Calls from Anyone, Anytime
Free In-Network Calls
Free Calls To or From Your Favorite 5 Numbers
Rollover Minutes
Rollover Minutes
Estimated Total Monthly Bill $0/$0 +$10/+$15 +$20/+$30 -$10/-$15
Billing Discount 5% Discount for Automatic Payment and Paperless Billing None None 5% Discount for Automatic Payment and
Paperless Billing
Overage Charges Guaranteed Flat Monthly Rate Overage Charge Flexible Payments Standard charge per minute over your monthly allowance with $50 cap
Standard charge per minute over your monthly allowance
Overage Protection None None None Overage Protection Notification
Phone Basic Phone Traditional phone with enhanced capabilities Smartphone or PDA (e.g., Blackberry, iPhone) Advanced phone with touchscreen (e.g., Samsung Delve, Samsung Instinct)
Phone Price (before rebate) $300 $50 Free $200
Mail-In Rebate $100 Mail-In Rebate None None $50 Mail-In Rebate
30-Day Phone Price Match None 30-Day Phone Price Match None None
Phone Protection Battery Swap & Phone Replacement Battery Swap Phone Replacement None
No Contract Required No Contract Required after 2 Years No Contract Required after 4 Years Contracts Required Every 2 Years
Rewards Program Rewards Program Based on Time with Provider Rewards Program Based on Time and Monthly Spend with Provider
Rewards Program Based on Monthly Spend with Provider Rewards Program Based on Time with Provider
Rewards Available
Free Bluetooth Headset with New Phone
Priority Line with Customer Service Calls Answered in 60 Seconds
Free Companion Line
Free Phone Replacement Insurance
Phone Upgrade after 15 Months
Pre-Ordering of New Phone Models
Annual Overage Forgiveness Voucher
Free Phone Replacement Insurance
Free Universal Charger with New Phone
Early Access to New Phone Models
Free Companion Line
Half-Price Phone Replacement Insurance
Phone Upgrade after 12 Months
Free Bluetooth Headset with New Phone
Priority Line with Dedicated Customer Service Representative
Phone Upgrade after 18 Months
Bonus Rewards Rewards Program Bonus Rewards for Payments and Referrals
Rewards Program Bonus Rewards for Payments and Referrals None None
Which of these plans do you most prefer?
Plan 1 Plan 2 Plan 3 Plan 4
Would you switch from your current plan to the one you most prefer/have
selected above?
Phone Upgrade and Contract Requirement
Phone Upgrade Every 2 Years
Yes, switch to the plan selected above
No, stay with current plan
Scenario 1 of 12 Plan 1 Plan 2
Service Provider Verizon AT&T
Calling Plan Features NoneFree In-Network Calls
Free Incoming Calls from Anyone, Anytime
Estimated Total Monthly Bill $0/$0 +$10/+$15
Billing Discount 5% Discount for Automatic Payment and Paperless Billing None
Overage Charges Guaranteed Flat Monthly Rate Overage Charge Flexible Payments
Overage Protection None None
Phone Basic Phone Traditional phone with enhanced capabilities
Phone Price (before rebate) $300 $50
Mail-In Rebate $100 Mail-In Rebate None
30-Day Phone Price Match None 30-Day Phone Price Match
Phone Protection Battery Swap & Phone Replacement Battery Swap
No Contract Required No Contract Required after 2 Years
Rewards Program Rewards Program Based on Time with Provider Rewards Program Based on Time and Monthly Spend with Provider
Phone Upgrade and Contract Requirement
Phone Upgrade
11
4b. Create the Rational Case for Rational Behavior
The Rational Data Driven Business Case for Investment:
12
5. Create the Irrational Case for Irrational Behavior (i.e. Belief)
The “Case for Change” Exercise: 2000 Leaders “live”, 12,000 more through “waterfall kit” exercises
13
What’s broken
about wireless…
TODAY ?
14
Is it the Network? Is it the Network?
15
Is it the Network? Is it the Network?
16
Is it Price? Is it Price?
17
Is it Phones? Is it Phones?
18
But… But…
…what are the competition talking about? …what are the competition talking about?
19
What is ACTUALLY broken
about wireless today?…
21
22
My Account homepage
Highlights four primary redemption options (breadth)
Calls out Special Offers
Finishes with two primary accrual options (survey, referrals)
Contains U.S. Cellular® confidential information. Not for external use or disclosure without proper authorization. Page 23
6. Execute With Excellence
Reward Activity page
Descriptions differentiate between standard earn (CAPS) and unique or promo earn
Bonuses include Birthday (S&D), as well as Referral, Content/Application downloads (“Active”)
Finishes with two primary accrual options (survey, referrals)
6. Execute With Excellence
Upgrade OptionsUpgrade options available to each individual line on the account
6. Execute With Excellence
26
Multiple Factors Have Created Significant Market PressuresThe Belief Project: Follow On Research Findings
90% said wireless providers should earn my loyalty, not require it by having me sign a contract.
87% said they shouldn’t have to sign a service contract just to stay with my current wireless carrier.
84% said 24 months is too long to wait to get a good deal on a newcell phone
80% said wireless providers should do something about overages and the big bills that come from them.
BELIEF REWARDS
NO CONTRACT AFTER THE FIRST
FASTER PHONE UPGRADES
OVERAGE PROTECTION/CAPFORGIVENESS
27
#1 Cell Phone Service ProviderConsumer Reports Customer Survey
January 2011
2011 Customer Service Champion JD Power and Associates
Readers' Choice Award 2010 Cellular Service Providers: Contract Providers
PC Magazine
Top customer satisfaction and network call quality is the foundation of U.S. Cellular. Below are some awards and top rankings in customer surveys.
Initial Results
2010 Value Enhancement of the Year Award
Frost & Sullivan
28
Initial Results
Overall Satisfaction with CarrierMean, All Subscribers in USC Regions
Launch of the Belief Project
29
Initial Results
Would Recommend Carrier**Top 2 Box
Launch of the Belief Project
30
31
Thank You