The pre-paid mobile market is intensively competitive among operators, resulting in an incredibly high-churn rate. For operators, the primary goal is customer retention. If customers receive a better price plan from a competitor, it’s highly likely they will switch at the end of their current contract. Orange Spain realised that it needed to engage with its customers in a hyper-relevant way to drive a deeper connection. The campaign needed to demonstrate how much its customers were valued and how staying loyal to the Orange brand would provide them with added value and benefits. These were core driving factors behind its launch of the ‘Recarga y Gana’ campaign with Velti.
The basic tactic was rewarding its customers with prizes for adding credit to their mobile phones. But it was the clever use of data behind this campaign that made it so successful.
The overall campaign strategy was to strengthen Orange’s relationship with its customers by creating an emotional connection through relevant and timely rewards, whilst generating excitement about the brand and driving competitive differentiation in Spain. To ensure the campaign was customer focused and dynamic, Orange worked with Velti to create data-driven business rules and algorithms to drive reward allocation.
At a functional level, the ‘Recarga y Gana’ top-up campaign was rolled out to the entire Orange prepay customer base of approximately 2.2 million. By topping up their mobile phone with up to €10 (£8.75), customers are presented with a one in three chance of winning a prize. If the customer adds over €10 to their mobile phone, they are guaranteed a prize.
In order to capture and maintain customer attention, participation in the campaign was made as simple as possible. For customers to take part, they had to go online to a dedicated Orange Spain mini-site, enter their mobile number and pick a character from the scene available online. After topping up, customers then receive an SMS with a promotional code needed to participate.
The channels to redeem prizes are equally as straight forward. By using the Orange Spain mini-site or its interactive voice recognition service (dialling 1211 on an Orange mobile) users were able to enter their phone number along with the individual promotion code to find out what they had won.
Rather than rolling out the campaign and then sitting back and hoping for the best, the key success driver for this campaign was the data. Velti analysed the behaviour and trends of subscribers to understand their top up value, frequency of top up, method, eligibility, tenure and tariffs. The analysis was then used to further enhance the loyalty program. All data was entered into Velti’s real time engine to ensure that the campaign was delivering the relevant rewards to the right customers.
In particular, the campaign needed to be relevant to the operator’s diverse customer base. This is why the prizes available for participants included non-mobile specific prizes, such as PlayStations, Nintendo 3DS’, Samsung TVs, iPads and others. It appealed to a much wider audience and set of interests. In turn this helped enhance Orange Spain’s value in the customer’s eyes, by engaging with them and giving them something relevant and beyond mobile goodies such as free minutes.
The program has been so successful that it was extended several times and continues 10 months on. Orange Spain is seeing a 25-35% participation/redemption rate which demonstrates that the program is resonating with Orange customers. Looking at a one-year business case with 1 million customers, operators can expect an ARPU increase of around €5.4m (£4.7m) in incremental revenue and churn reduction of around €1.62m (£1.42m).
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