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© 2009 AgillicNot for use or distribution without written
permission. 1
INNOVATION IN MULTICHANNEL MARKETING: DSB S-MOREHow The Danish Railways Drive Brand Equity and Sales using Multi-Channel Marketing
© 2009 AgillicNot for use or distribution without written
permission. 2
Business Challenge and Solution Strategy The vast majority of DSB customers use the rail network as
seldom as possible, simply because travelling by train is:
Low interest Low prestige
DSB wanted to convert a small proportion of low-frequency travellers into high-frequency travellers
DSB have estimated the incremental value of converting a traveller from low-frequency (travels seldom, buys a-ticket-per-trip) into a high-frequency (travels almost daily and has an ’all-you-can-eat’ season ticket) to approximately 600 DKK, or £70 stg per annum
DSB and their agency, Wunderman chose a strategy of frequent interaction with travellers in order to build awareness and maintain Top of Mind with their audience
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First step - DSB Wildcard MGM
About Wildcard For teenagers between 16-25, or students
Up to 50% discount on domestic train tickets and 20% on Øresunds tickets
Special discounts on InterRail, RailPlus Youth, exhibitions, and other major events in Denmark
Business challenge To create and execute a MGM campaign and to test the effect of integrated campaign execution towards holders of DSB
Wildcard Ensure that MGM and integrated marketing actually works Wildcard campaign run twice
Solution Cardholders were sent an email with an incentive to refer one or more friends to purchase a DSB Wildcard. For each friend that
signed up, the person referring received a voucher for a free travel with DSB to a domestic destination of his/her choice.
A B
A/B Test method Two groups were created to test the value of multichannel integration – group A received only the email whereas group B was
also notified by SMS to check their inbox shortly after the email was sent.
Friends Friends
Card HolderCard Holder
Voucher
SMS SMS
Sign Up
Sign Up
Voucher
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permission. 4
Danish Railways increased click-through by 58% utilising simple multichannel mechanisms
Conversion = 100
Conversion = 158
Promotional email: call to action is URL
Campaign microsite – business goal is ’refer-a-
friend’
Promotional email: call to action is URL
Email triggers alert SMS: ’”check your inbox – cool
offer from DSB”
Campaign microsite – business goal is ’refer-a-
friend’
Source: Danish Railways
58% higherconversion
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permission. 5
Next step - DSB Loyalty: S-more
About the DSB Loyalty Programme: S-more Loyalty programme structure with: Bronze, Silver & Gold customers Personalized experience, benefits, events etc. for signed up customers Dynamic content based on customer information, customer value,
activities and seniority More than 25,000 variations
Business challenge Develop loyalty, brand perception and lift customers in hierarchy, capture
customers information and behavior
Solution Create a personal web based loyalty programme (S-more) with dynamic
contents and data collection to ensuring relevance throughout the customer life cycle. Drive traffic with personal trigger-based e-mail/SMS/WAP push.
Subscriptions & new services
High customer vallue
Low customer vallue
New customers
Based on which kind of service a customer
has used, related extra
services/benefits/bonuses/ are offered to pull
him/her up the hierarchy
Services
City Par
City Pas
Benefits
Coffee on train
Fast-track
Bonus
Free trips
Tickets & new services
Season Ticket
Season Ticket & services
Subscriptions & services
Subscriptions & services
3
2
1
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Personalised ‘MyPage’
Customer profile- Name-Membership status- Card
Retrieve Customer Data:“ Answer 3 easy questions and get better advice”
Competitions
Membership benefits
S-train news
Get travel info directly on your mobile
Membership upgrade
S-train news for you travel route
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Events & Competitions
Get your S-event ticket
Get the latest competition info straight to your mobile
Upgrade and get more benefits
Win 5000kr shopping mall gift certificate
Enter this month’s competition
Latest competitions
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permission. 8
S-more now encompasses a broad variety of touchpoints between DSB and its passengers
Social media on
mobile
Personalised Online Portal
Dear John
Regards DSB
SMS, MMS and mobile ticket vouchers
Personalised Emails
Fast track at ticket sale for S-more
Members
TV
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permission. 9
An enormous 11% of travellers in S-More have shifted from low-frequency travellers into the valuable high-frequency segment as a result of S-More
0
20,000
40,000
60,000
Campaign results
Expected Actual
Extract from online’Markedsføring’
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permission. 10
More importantly, DSB’s own calculations indicate that the S-More programme has
increased their revenue by in excess of 29 million Danish Kroner, or £3.5m stg
Revenue
increase
Number of passengers having
upgraded~ 6,050
=Revenue increase
per passenger~ 600 DKK
x29 mio
DKK=
Average lifetime of a passenger~ 8 years
x
