Page 139 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Customer Relationship Management

Notes not be tempted by a marketing offer. For example, with pre-paid mobile customers, operators
should automatically offer a silent customer, with a low balance, a special top-up benefit. Through
this the operator can improve response rates and drive ARPU from cross-sell and up-sell offers
whilst user satisfaction increases.
One of the key advantages with cross-selling is the ability to promote products that are not
necessarily one of the big sellers but something consumers would be interested in if marketed
correctly. Initially when a new product is launched it can be a bestseller, but over time interest
wanes and items can seem like one-hit wonders; this immediate surge of revenue is known as
the Short Head. Mobile service providers play to this model by refreshing on-deck content to
keep people engaged and encouraging them to make fresh purchases. Yet it is the less popular
products that can deliver consistent revenue when offered alongside the latest content; this is
known as the Long Tail and gives operators the unprecedented opportunity to cross-sell by
promoting products being left behind. To do it effectively, service providers need a flexible
platform to launch a diverse range of products in real-time, whilst exploiting the limited window
of opportunity for content-related offerings. So when a customer is purchasing the latest remix
of a particular song that is topping the charts, it is also the perfect opportunity to cross-sell the
original version of the song. By doing this, the operator is selling an item which is not particularly
popular but is still available to purchase; increasing the ARPU. The Long Tail theory is that the
Long Tail, over a period of time, will equal the Short Head in size; that collectively many
products account for as many sales as the few bestsellers. With cross-platform selling exploiting
the Long Tail and Short Head simultaneously, operators need to be able to capture and analyse
customer preferences and lifestyle characteristics to support this one-to-one marketing. By using
these factors to create packages and bundles – operators can turn on-the-fly promotions into
optimal marketing offers.
Figure 5.7: Various Fears of Cross-selling and Up Selling

Source: http://www.pontisblog.com/2009/04/25/cross-selling-and-up-selling-a-lasting-relationship/
So the bottom line is that to be able to run effective marketing offers you need to have current
statistics of what is going on with all your products – what’s popular, what’s not. Through
implementing effective marketing tactics, operators will be able to analyse in real-time the
results they are achieving and measure any level of reduction in consumption; giving them
ample time to rectify problems and turn them into a positive outcome.
Central to the effectiveness of these methods is having a full view of a customer’s profile; that is,
having full visibility of their preferences, behaviour and buying patterns in real time so offers
can be personalised to suit individual needs and delivered when, and in a manner, that is most
appropriate for the customer. This is the key to ensuring that cross-sell and up-sell – the ‘what’s
next?’ part of the CRM mix – delivers optimum results: driving revenue, improving customer
loyalty and reducing churn.

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