Campaign Planning

1
CRM Project

• Campaign Planning Engineering
• Increasing Loyalty by Selling Mobile Broadband
  Products
• Dr. Evangelos Xevelonakis

2
Defining The Business Problem

• A Mobile Telecommunication Company has the
  strategic goal to reduce churn by selling mobile
  broadband products (Speed, Live TV, MP3-Songs).
  The retention program should target customers
  with similar needs and characteristics in order
  to increase its efficiency and effectiveness. For
  this purpose the marketing department decided to
  use a segmentation approach. Two different
  segments were defined
• The Fun Action (70 000)
• The Progressives (40 000)
• Fun Action customers are young looking for fun
  and love to contact people. They have a
  vocational education and live in the city. They
  could be influenced by friends, colleagues and
  TV.
• Progressives are extremely comfortable and
  knowledgeable about the internet. They use it for
  work, online banking, shopping, and sharing price
  information or for trading. They have a academic
  education. Typical professions are IT
  Specialists, Engineers or Marketing specialists.
  They leave near the city and are seeking actively
  information. Time and Efficiency are very
  important for them.

3
Modelling Customers

• The Data Analysis Department developed a
  Propensity to Buy Model using predictive
  modelling techniques. This model was used to
  calculate the likelihood of potential customers
  to accept the offer.

Decile Take Rate With No Model Take Rate Using a Model
10 10 35
20 20 60
30 30 70
40 40 78
50 50 85
60 60 90
70 70 94
80 80 97
90 90 99
100 100 100
The picture compares the performance of a
customer selection using the predictive model
with the performance of a random selection.
4
Designing the Customer Program

• Within the strategic planning the company decided
  to carry out two customer campaigns one for the
  Fun Actions and one for the Progressives. The
  developed predictive model should be used for
  defining the target group. Following parameters
  could be used for this purpose
• Campaign Fun Action
• - Cost for Call Center 7. per Contact
• - expected Take Rate 4
• - Margin 25
• - Cost of the addresses 0.4. per Address
• - Costs for the Incentive 40. per new
  contract - expected customer revenue 1500.---
  per Year
• Campaign Progressives
• The decision was to carry out a two step
  campaign
• - Costs for Direct Mail 4.--
• - Cost for the Call Center 7.--
• - expected Take Rate 2
• - Margin 25
• - Cost of the addresses 0.4. per Address
• - expected customer revenue . 2000.

5
Tasks

• You are CRM Advisor in the company and you are
  expected to support the Marketing Department to
  design a successful campaign. Your goal is to
  achieve a high take rate with low costs.
  Following tasks have to be carried out
• Defining the Campaign Plan
• . Time Frame
• . Involved persons
• . etc.
• Designing the Campaign
• . Calculate the model lift
• . Calculate the annually expected profit for the
  model based and random based Selection for all
  deciles (10 steps)
• . Define the optimal target group using Excel
• . Discuss the model oriented approach (Risks,
  chances)
• . Discuss the limitations of this approach

6
Tasks

• Communication
• Develop the right message for each segment. Use
  thereby the segment profiles.
• Skills, Process and Systems
• . Develop the required process for the
  operational part of the campaign. Use thereby the
  Event Driven Diagram
• . Discuss the required systems for carrying out
  thr campaign
• . How can you evaluate the success of the
  campaign?