WHO ARE THE SUPER HEROES OF YOUR BRAND?

WHO A RET HE SUPER HEROES OFYOUR B R A ND?DISCOVER HOW TELCOS CAN MAXIMISE BIG DATA ASSETS APRIL 2016

WORK IN PROGRESS

THINGS YOU NEED TO KNOW ABOUT

SUPER CONSUMERS101THEY’RE THE

SUPERHEROESOF YOUR BRAND

2THEY WILL

EVANGELISE YOUR PRODUCTS TO OTHERS

3THEY DRIVE THE LION'S SHARE OF YOUR PROFITS

4THEY’RE FOUND ACROSS MULTIPLE CATEGORIES INCLUDING

CONSUMER PACKAGED GOODS, EDUCATION, FINANCIAL SERVICES, HEALTH CARE, MEDIA, RETAIL AND TELECOMMUNICATIONS

5SUPER CONSUMERS OF ONE CATEGORY TEND TO BE SUPER CONSUMERS OF

9

6THEY’RE BOTH

ECONOMICALLY & EMOTIONALLY INVOLVED IN THE CATEGORY

7THEY’RE

HIGHLY RECEPTIVE TO INNOVATIONS AND OFFERS

8INVOLVE SUPER CONSUMERS FROM THE START, FROM CREATING TO TESTING NEW INNOVATIONS

9THEY’REWILLING TO PAY APREMIUM PRICE

10UNDERSTANDING THEIR MOTIVATIONS CAN PAY BACK TWOFOLD

OTHERCATEGORIES

1Copyright © 2016 The Nielsen Company

OPPORTUNIT Y IS KNOCKING AT YOUR DOOR From the back streets of Jakarta to the peak-hour crush of Seoul

subways, you’ll see one thing in common: everyone is deeply

absorbed in the mobile world. Fingers are tapping, eyes stare at

the screen, deeply engaged in conversation – but not with those

around them. The mobile consumer is everywhere and growing

exponentially. The past decade has seen unprecedented change in

the telecommunications sector in Asia Pacific, and the coming years

show no sign of a slowdown. The availability of smartphones, tablets,

Wi-Fi, 4G networks and e-commerce is changing the way business is

conducted, and driving huge-scale innovation in areas ranging from

customer engagement to retail models. Although the numbers in

certain Southeast Asian markets, like Indonesia and Philippines are

still low, it might be a surprise to some that smartphone penetration

in some parts of Asia, e.g. South Korea, Singapore – significantly

exceeds numbers in the so-called developed world.

You’d think, for a telco operator, Christmas (or Chinese New Year)

had arrived! However, while voice and data services continue to grow

in Asia Pacific, courtesy of the data-hungry tech-savvy consumer,

competition among operators is rife, and the growing footprint of

over-the-top players such as WhatsApp, Skype, Viber, LINE, and

Kakao Talk is stealthily stealing traditional revenue streams of voice

and SMS.

2 WHO ARE THE SUPER HEROES OF YOUR BRAND? | APRIL 2016

ON THE HUNT FOR THE MOST PROFITABLE CONSUMERSSo what can telco operators in Southeast Asia do to grow in this

challenging environment? In these days of big data, the most reliable

first step a company facing growing competition can take is to identify

their most profitable customers and leverage the power of data. But

telcos hold an advantage: they sit on an untapped mine of consumer

intelligence – intelligence that many of their customers want them

to use. A McCann study found that 49% of consumers around the

world want their mobile network provider to use their data to provide

them with deals and services better suited to their needs. As one

respondent noted, “When you go to a bar for the first time they don’t

know you, but the more you go the more they know about what you

like…the same would be desirable for a mobile network.”


MEET THE TELCO SUPER CONSUMERDepending on the market, telco customers run the gamut from

those purchasing one-off pre-paid SIM cards, to those who sign up

with whichever telco offers the best deal that day, to loyal, long-term

consumers with data plans across several devices and services.

The most promising strategy for businesses seeking incremental

revenue from existing services is to target their most profitable

users. Studying their existing spending patterns on current products

and services can provide clues to their future potential, either

persuading them to increase their existing current usage or to add

more products and services. But we also recommend a second filter:

consumers’ level of engagement with your brand.

EXISTING USAGEHOW MANY SERVICES DO THEY

CURRENTLY SUBSCRIBE TO?

ENGAGEMENT LEVELDO THEY INTERACT REGULARLY WITH YOUR WEBSITE, SOCIAL MEDIA FORUMS, CALL CENTRES OR RETAIL STORES?

TELCOS SHOULD ASK THEMSELVESTWO CRITICAL QUESTIONS

ABOUT THEIR CUSTOMERS


Their involvement with your brand is a clue to how passionate

they are about you, and how strong an advocate they can be for

you in future. It’s not just a matter of making more money from

them. In today’s world of increasing social media, they can become

ambassadors for your brand and inf luence other customers and

potential customers.

We call these consumers, super consumers. They are the subset of

heavy users who are highly engaged with your brand. From other

industries, we have learnt that super consumers are especially

interested in innovative uses of your brand, as well as newer models

and related products and services. They also aren’t particularly price

sensitive: What’s not to like?

By isolating their super consumers, telco providers can focus

on a dedicated niche group likely to drive the highest long-term

profitability per user. Getting to know these consumers well via

customer analytics, identifying potential unmet needs (even before

consumers are aware of them themselves) and ensuring the right

message is sent via their preferred communication channels will

greatly increase the likelihood of long term commitment.

HEAVILY ENGAGED

HEAVYUSER

SUPERCONSUMERSPROFITS PASSION

WHO ARE‘SUPER CONSUMERS’?


A second step involves determining the extent of a ‘customer’s

potential’. A customer with high spend and engagement is the ‘ideal

consumer’ that should be retained at all costs and should be targeted

with additional product offers to further endorse their loyalty.

Customers with high engagement but low to medium spend should

be offered services that will entice them to ‘stretch their wallet’,

increasing their repertoire of services they use. Volatility refers to

‘disloyal’ consumers who switch between providers’ offers. The key

with this customer group is to convert/steady their spending across

your product portfolio by leveraging different product engagement

tactics (for example if the ‘volatile’ customer uses international

roaming, the telco may offer 10 minutes of free international roaming

after 100 local minutes).

How do you identify these super consumers? A simple method is to

classify your users by level and direction of spend, and their level of

engagement as indicated by time spent on your website (other than

paying the bill or calling the help desk).

HOW DO WE FIND THEM?

DATABASE ANALYTICS

MARKET RESEARCH

PRECISION TARGETING

=+

HOW DO WE ENGAGE THEM?

ENGAGEMENT INDEX

HIGH

MID

LOW

HIGHMIDLOW MID-HIGH

RE-ENGAGE

RE-INVENT

STRETCHRETAIN

VALUE INDEX


JOHN:TELCO SUPER CONSUMERJohn has been a loyal customer with Terrific Telco for 3 years. He

started by buying pre-paid SIM cards for a Samsung smartphone.

Over time, however, he has upgraded regularly, signing up for

multiple services, and leveraged Terrific’s loyalty benefits (free

international roaming, extra data, free texts, etc.) to move from his

basic prepaid connection and equipment upgrades to post-paid

family plans. He, along with his family, share data and minutes

across multiple lines.

By the time John has become a super consumer, he will be better

informed and more articulate about the benefits of your products and

services than your other customers. As a result, super consumers

are not merely profitable, but they can become social influencers.

By understanding their calling behaviours, telcos can tap into super

consumers’ influence on both existing and non-existing customers.


ACTIVATING SUPER CONSUMERS

It’s easy to reach Super Consumers, once you know who

they are. But identifying the optimal strategies to change

their behaviour is another matter. Nielsen has come up

with a five-point plan to maximise the value of the telco

Super Consumer.

Any telco super consumer is an integral part of your

business today, but what does he or she have for your

business tomorrow?

Answering this question is the most important input

into tailoring your products and services to drive

incremental spend. Did an expat’s international calling

drop off? Perhaps they are limiting their calling to

when they are within connection distance of a wireless

router. Tailoring the right value-added services might

persuade them to make more calls wherever they

happen to be. Is the user a well-off retiree traveling

abroad all the time? A discount roaming package will

probably make the difference between infrequent and

frequent use. The trick is to find the price point at

which the incremental convenience of using the phone

outweighs the cost, as assessed by the customer.

Getting this right will fuel super consumers’ uptake

of new and innovative offerings.

HOW MUCH MORE ARE THEY WILLING TO STRETCH?

1Understanding the way super consumers use

your products and services is fundamental to

determining their latent needs and their likely

frustrations – and therefore the kinds of new

offerings they haven’t thought of, but will jump on

if they are made available. In an industry in which

annual churn continues to be a primary concern,

building the consumer’s product portfolio creates a

stickier relationship.

Understanding the data you have on the consumer

– data often scattered across the enterprise – is

crucial. Often, this requires making siloed datasets

‘speak’ to each other, allowing you to stitch the

data together in a way that will provide a complete

view of the customer. Once you have this complete

view, you can identify the segment to which the

customer belongs. Predictive optimisation models

can determine the optimal offer strategy that will

resonate with each consumer. When we know what

they want and what they are looking for, it’s easy

to tailor and deliver a precision offering that meets

their unique needs.

THE RIGHT OFFER FOR THE RIGHT CONSUMER

2


Focussing your efforts on super consumers,

about whom you naturally know the most, makes

media planning and spend significantly more

cost-efficient than targeting a broader base or

a group you know less well – so advertising to

super consumers is likely to be cheaper as well as

generate more revenue. You can know what matters

to your super consumer, what platforms they use to

source knowledge, and what stage they are at in the

buying cycle – all of which allows you to send the

right message to the right customer through the

right channel at the right time.

Getting it right the first time might be difficult,

but if you start to measure the impact you are

having on this key group of consumers, you have

a benchmark to improve. How successful was that

marketing campaign? Did I reach the consumers

I was targeting? By looking at the historical

relationship between marketing spend and

business performance among your super consumer

base, you can determine what is and isn’t working,

and how much you should be investing – in each

product, service, market, region, and so on.

KNOW HOW THEY WANT TO BE EDUCATED AND COMMUNICATED TO

5

Telco operators know where their higher value

customers cluster. They can ensure that their

network coverage and their rollout of new technology

is aligned to areas where more of their Super

Consumers are located. Knowing where they shop

and how they shop (i.e. their preferred methods of

interaction) also allows telco operators to prioritise

their sales and distribution network to ensure a

seamless customer experience with your brand.

Location analysis underpins the power of direct

mobile marketing and even outdoor campaigns.

That effectiveness can be especially valuable to

large companies, some of which spend billions of

dollars a year on advertising — and for which a

1% increase in the efficiency of ad spending will

therefore be worth tens of millions of dollars.

TAKE CAREFUL AND CONTINUOUS ACCOUNT OF WHERE YOUR PROFITABLE CONSUMERS ARE

4

SUPER CONSUMERS OF ONE CATEGORY TEND TO BE SUPER CONSUMERS OF 9 OTHER CATEGORIES

“”

Predictive analysis can f lag unhappy customers

before they make the decision to leave. Proactively

reaching out to resolve a conflict, providing an

improved service offering or a tailored pricing deal

can help ensure that super consumers stay and

continue to grow with you – not your competitors.

The simple act of reaching out does a lot of the work

– although it’s a bad sign of the state of the industry.

MAKE SURE THEY’RE HAPPY3


A final note might hold the most profit of all.

Research from Nielsen’s Cambridge group has found that super

consumers of one category tend to be super consumers of nine other

categories. So, when looking for super consumers, don’t restrict

yourself to considering just your own best customers. In today’s world

of big data analytics, we can identify those people who’d love to buy

your product, as well as those people who are already deeply engaged

with a seemingly unrelated product – all stitched together under

a singular and powerful emotional benefit. Any individual you can

identify as a super consumer of, say, three or four non-telco products

is a good candidate for becoming a super consumer of yours.

Activating against this group of “new” consumers can be the key to

unlocking a layer of growth that might otherwise remain elusive.

TAILOR MARKETING CAMPAIGNS AND MESSAGING THAT “TALK” TO YOUR CUSTOMERS ACROSS DIFFERENT LIFE STAGES

WEB OF DIMENSIONS

INFLUENCING BEHAVIOUR

• Needs

• Social inf luences

• Shopping modes & styles

• Demographics & life stages

• Ingrained habits & rules

• Market(ing) dynamics

• Motivations

WHITESPACE OPPORTUNITIES EXTEND BEYOND JUST NEEDS OR MOTIVATIONS

BUDGET-CONSCIOUSI like it with the TV

subscription free

CONVENIENCEI would like to have one

provider for all my needs

FEATURESI like hi-speed

internet on

my mobile

SOCIALMy friends are

my inf luencers

ATTITUDESI feel valued with

personalised messages

CROSS/UPSELL

RETAIN

ACQUIRE

ABOUT NIELSEN

Nielsen Holdings plc (NYSE: NLSN) is a global performance management

company that provides a comprehensive understanding of what consumers

Watch and Buy. Nielsen’s Watch segment provides media and advertising

clients with Total Audience measurement services across all devices where

content — video, audio and text — is consumed. The Buy segment offers

consumer packaged goods manufacturers and retailers the industry’s only

global view of retail performance measurement. By integrating information

from its Watch and Buy segments and other data sources, Nielsen provides

its clients with both world-class measurement as well as analytics that help

improve performance. Nielsen, an S&P 500 company, has operations in over

100 countries that cover more than 90% of the world’s population.

For more information, visit www.nielsen.com/apac.

Copyright © 2016 The Nielsen Company. All rights reserved. Nielsen and

the Nielsen logo are trademarks or registered trademarks of CZT/ACN

Trademarks, L.L.C. Other product and service names are trademarks or

registered trademarks of their respective companies. 16/9823

ABOUT OUR AUTHORS

SAGAR TAMANGMANAGING DIRECTOR, TECHNOLOGY AND FINANCIAL INDUSTRY GROUP, SOUTHEAST ASIA , NORTH ASIA , PACIFICNIELSEN

KEYA MUKHERJEEASSOCIATE DIRECTOR,ANALY TIC CONSULTING,SOUTHEAST ASIA,NORTH ASIA, PACIFICNIELSEN

NICOLE CORBET TDIRECTOR,THOUGHT LEADERSHIPAND KNOWLEDGE MANAGEMENT,SOUTHEAST ASIA,NORTH ASIA, PACIFICNIELSEN

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WHO ARE THE SUPER HEROES OF YOUR BRAND?