1 / 32

A program for Telco Companies in Wisconsin

A program for Telco Companies in Wisconsin. Arthur Middleton Hughes VP The Database Marketing Institute. It’s a big state. Someone has to provide the phone service for 5.5 million talkative folks. . Land Lines are in trouble. US Phone Landlines Per 100 Population US Statistical Abstract.

marlon
Download Presentation

A program for Telco Companies in Wisconsin

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. A program for Telco Companies in Wisconsin Arthur Middleton Hughes VP The Database Marketing Institute

  2. It’s a big state. Someone has to provide the phone service for 5.5 million talkative folks.

  3. Land Lines are in trouble US Phone Landlines Per 100 Population US Statistical Abstract

  4. Creative Destruction • Monopolies have become competitive • Cable is muscling in on phone companies • Phone companies are fighting back with TV • Both are offering the internet • Wireless is stealing from both • You have to offer many services to survive

  5. Cell Phones Taking Over Annual Household Spending on Telephone Service

  6. You have to offer everything

  7. The effect of bundling • Every additional product that you add improves loyalty and reduces churn by 25%. Adding products boosts revenue AND improves the retention rate of land line customers

  8. To keep subscribers, build A Marketing database A database is more than a list of subscribers It is a tool to use to retain subscribers and to sell them additional products

  9. Marketing Database fed from Operational Database The Marketing Database can be outsourced to a vendor. Advantage: keep the costs down, and control what he does. This is your in house billing database

  10. Determine the lifetime value of your subscribers We are looking at the career of 60,000 subscribers over a three year period. The lifetime profit from each of the 60,000 is $96.33 To beat that we have to improve something.

  11. What can we do to keep them? • Communicate with them often • Put them on automatic paper-free billing • Sell them a second product: DSL, TV

  12. Effect of adding DSL Churn rate down ARPU Up CCPU up CPGA up Revenue up Lifetime value way up.

  13. DSL Boosts Profits

  14. Adding TV: The triple play The LTV has gone down. Why? It is expensive to add TV --much more than to add DSL. And, the churn rate has gone up? Why? Competition from Cable and Satellite.

  15. TV is not a world beater • There is more competition with TV: Cable, Satellite, and over the air. • But TV and Wireless are important ways of staying in the game and keeping your customers. • The main way to win: communicate often.

  16. Why communication is vital • All Wisconsin Telcos have additional services to sell. • All have churn problems. • Solution: set up regular e-mail communications with all subscribers. • Use those communications to sell more services, and keep from losing the subscribers you have now.

  17. E-mails: Low Cost Selling

  18. E-mail – versatile and inexpensive

  19. First step: Automatic Bill Paying “Stop by or call us” You cannot do this on line. What is the benefit to the subscriber?

  20. you cannot sign up on line in Wisconsin “Visit or call our office”

  21. See how AT&T Does Auto Bill Paying

  22. Why AT&T and Verizon send e-mails Automatic Bill Paying is the entry point for monthly e-mails that promote additional products. This is why they pay you $10 or $15 for signing up.

  23. Suppose Wisconsin Telcos used a coop emailing service • One company could provide online bill paying service application service with a link on each Telco website. • Each subscriber would get a weekly e-mail from his Telco, with local news, sports news, and what is on TV this week, plus info about Telco products. • A coop e-mail and text mail service might reach most of the households of WSTCA members with news and promotions from their local Telco.

  24. Each Telco gets their own e-mail service

  25. What does it cost to send e-mails to subscriber homes? • 52 e-mail campaigns per year to for 20 Telcos with 6,000 subscribers per Telco. • Cost $10.00 per thousand. Cost per Telco per year – 20 companies participating, perhaps $3,120 per year for the delivery plus $12,000 per year for the part time editor. • What would be the benefits?

  26. Assumptions • Assume that 20 Telcos participate. • There are 52 e-mail campaigns per year. • There is a monthly contest for e-mail subscribers. One winner of $5,000 per month. To enter: click on an entry box in the e-mail. Nothing to buy. • Each Telco designs their own e-mails. Each has one part time editor @ $1000 per month developing e-mail copy.

  27. What would be in the e-mails? • What sports, events and movies would be on TV this week – time and channel • Local results of local sports teams. • Video of local sports supplied by teams, and their supporters. Local to the Telco area. • Every opened e-mail is an automatic entry in the monthly $5,000 contest. Nothing to buy, • Ads from local merchants • Ads for Telco products

  28. Benefits of the e-mails • Assume each Telco has 6,000 e-mail subscribers • The open rate is 30% because of the $5,000 prize per month. • One half of one percent of the e-mails result in a sale of a Telco product (DSL or TV or PC) with an annual revenue per product of $419.40 • Note, average sales due to e-mails from other companies varies from 0.5% to 3%. • Resulting sales per Telco per year $196,279

  29. Details of the e-mail program Assume a phone company with 6,000 subscribers who sign up for e-mails. Assume 20 Telcos sign up as members to send emails Assume a part time local e-mail editor who gets $1,000 per month for creating the four e-mails sent out by the Telco Over three years the e-mail marketing program could produce total profits of $362,350 per Telco

  30. Services provided by the e-mail vendor company • Link to sign up subscribers and auto bill payers for each member Telco. Telcos do their own billing, and receive all revenue directly from subscribers. • Maintain a central database of subscribers for each Telco. Send e-mails from this database. Telcos can access DB on line and do segmentation. Use cookies so Telco websites and e-mails are personalized. • Shopping cart in e-mails so subscribers can buy services from Telcos on line. • Deliver all e-mails for the Telcos. • Provide a template to each Telco for them to enter their own content for the e-mails.

  31. How to get started • WSTCA enlists members in the project. Get at least 20 to sign up. Set up an e-mail corporation with each Telco an owner. • WSTCA drafts an RFP for a company to provide the services. • Selected vendor creates software for each Telco website to enlist auto bill payers, subscribers, and shopping carts to sell Telco services. Sends both e-mails and cell phone text content. Creates the monthly contest.

  32. Get the books Arthur.hughes@dbmarketing.com 954 767 4558 Arthur Middleton Hughes VP The Database Marketing Institute, Ltd.

More Related