Meteor presentationanpostindustrybreakfast

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