Fueled by an intensely competitive operating environment in Indonesia’s mobile sector, Indosat Ooredoo partnered with Comviva in delivering a front-to-end real-time marketing management platform, as well as subscribers’ loyalty and rewards program to yield increased customer retention and revenue within months from implementation.
In a country where 98% of mobile phone users fall back on prepaid subscriptions, telecommunications operators in Indonesia’s competitive mobile market face the gargantuan challenge of retaining customers. In a heterogeneous market already characterized by low loyalty and high churn rates, matters are made worst when high costs deter telecommunications operators from reaching out to and acquiring new subscribers in under-served populations in far-flung areas.
Indosat Ooredoo taps on Comviva’s expertise in innovation-driven growth marketing
It is costlier to replace churned customers than retaining them. Amid intense competition and dismal financials, Indosat Ooredoo recognized that the path to profitable growth is an improved customer value management (CVM) platform that manages customer lifecycle holistically to uncover customer insights and drive meaningful engagements.
Having collaborated on other deployments with much success, Indosat appointed Comviva, a global leader in mobile solutions for telecommunication operators, as a strategic partner to spearhead its Big Data CVM 2.0 program in April 2019.
Aimed at improving customer lifetime value to achieve incremental revenue, Comviva developed a three year digital roadmap with front-to-end digital strategies. The suite of solutions spans different stages from implementing, operating, optimizing and providing timely, in-depth post-implementation analysis to transforming customer experiences critical to the success of the program.
Overcoming key challenges with technology
Before partnering with Comviva, Indosat Ooredoo was missing out on opportunities to influence customers’ micro-moments at critical junctures in the customer journey. To maximize the value of individual customers and micro-moments of interactions, Comviva’s first step was adding real-time capabilities to the operator’s CVM platform.
A machine learning (ML), real-time interaction management platform, Comviva’s MobiLytixTM Real Time Marketing capitalizes on actionable analytics to steer CVM excellence. It integrates data across multiple sources to build intelligence and act on real-time events to orchestrate engagements with customers.
Adding complexity to critical decision-making was the lack of federated data across Indosat Ooredoo’s various departments. To get to the root of this problem, Comviva developed a big data Hadoop-based centralized management system that effectively captures over 800 attributes about Indosat Ooredoo’s prepaid and post-paid subscribers to create a single view of its subscribers. This system brings focus to descriptive, predictive and prescriptive attributes of subscribers to serve as a unified customer data system accessible to the operator’s campaign management, business and applications teams.
Comviva also identified the absence of a pervasive artificial intelligence (AI) technology to measure campaign effectiveness as another shortfall. To this end, Comviva developed models founded on AI and ML to accurately predict customers’ behaviors.
Finally, Indosat introduced imPoin, a loyalty and rewards program to extend instant gratification to loyal customers and reward loyal customers preferentially. Powered by Comiva’s MobiLytixTM Loyalty and Rewards Platform, this program allows Indosat Ooredoo to predict customer engagement activities and positively influence customer behavior through reward-based engagements. To yield the best outcomes, a framework was developed to measure, monitor, and optimize the program.
Comprising a 4-tier membership model – namely Red, Silver, Gold and Platinum, with Platinum being the highest tier – better benefits are rolled out for higher tiers. Members are motivated to earn benefits for all their engagements, which can be accumulated and redeemed via the myIM3 mobile app. Members can look forward to receiving a mix of lifestyle and experiential rewards such as fuel, shopping, dining as well as gaming vouchers.
Comviva led breakthrough for Indosat
Leveraging on AI, ML and customer analytics record (CAR) solutions, Comviva’s MobiLytixTM real time marketing platform reaped stellar improvements for Indosat Ooredoo’s numbers by the next quarter.
Comviva successfully delivered personalized customer contact to millions of customers, resulting in a 30-35% hike in offer conversion rate.
Within three months of migration to Comviva’s real-time CVM platform, Indosat has seen significant improvements in revenue and churn management, with a 3.5X increase in revenue from new intelligence driven digital engagements compared to the same period the prior year. And within 5 months, 5 million customers joined IMPoin – which worked out to a daily average of 30,000 customers.
Since the inception of the program, billions of loyalty points have been earned, with over 70 percent of those points linked directly to revenue generating campaigns by the operator. Revenue linked to real-time marketing campaigns using the new CVM platform has grown 10X versus that generated by the company’s prior campaign management program.
Indeed, the program has proven to be a huge stride in the right direction, as targeted offers that give a more personalized service experience have seen an average of 33% uptake rate.