Business Case - Telmore

Accrease for Telmore

THE POWER OF PERSONALIZATION: TELMORE’S APPROACH TO SUSTAINABLE BUSINESS GROWTH

1. BACKGROUND

Much has been said about the very competitive telco market in Denmark

Approximately 30% of customers switch telco providers every year. In many ways, ‘the customer game’ remains the same, just make sure you have the right products at the right price and remain top of mind. Easy, right? Not so much actually. The conditions under which the game is played is changing. Meaning that the consumer preference is not as easily obtained as previously, and our window of opportunity is closing faster than it used to when it comes to delivering increasingly relevant offers, solutions, and communication. Whenever Netflix, Tesla or even MobilePay creates new technological and user-centric solutions – the ripple effect of those demands eventually hits everybody else.

Telmore are known for their innovative approach to mobile and internet service, offering flexible subscription plans tailored to individual customer needs. But, they are more than just a telecommunication service provider. They are also the leaders in video, music, and entertainment sectors in Denmark. Established in 2000, they operate under the umbrella of TCD Group, Denmark´s largest telecom company. Telmores' innovative approaches and responses to the market have enabled them to stay ahead in the highly competitive market. However, to keep evolving, they recognized that their customer engagement strategy required significant improvements. So, they decided to replace their old, one-size-fits-all approach with real-time personalization.

Strategic ambition to better customer experiences

Telmore has a strategic ambition to deliver better customer experiences, improve digital presence, and profitable growth through an increased share of digital sales. Customers acquired via digital channels have a higher profitability and Customer Lifetime Value (CLV). This, combined with rising customer expectations, led Telmore to focus on delivering hyper-personalized experiences everywhere and anytime.

Telmore faced 3 primary business challenges

#1 Increase share of digital sales to increase profitability.

#2 Improve cross sales to existing customers (a key driver in customers retention).

#3 Improve customer experience.

To address the business challenges, marketing and communication did a thorough analysis and the conclusion was clear

One size doesn´t fit all. The predominance of generic digital communication and inconsistent messaging across various channels hindered their ability to provide a consistent personalized experience for prospects and existing customers.

No digital customer journeys. Inconsistent and siloed communication across channels such as the web, app, e-mail and paid created a fragmented customer experience due to manual and resource intensive processes.

No updated source of customer truth. No centralized view of customers and prospects resulted in lack of insights into individual customer’s changing needs and behavior. Audiences were not synced frequently with paid media channels (Facebook, Google and more), and customer match rates in paid channels could be improved, resulting in wasted media spend on already-known customers.

2. SOLUTION

Transform a scattered tech stack and centralize an all-in-one martech stack

During 2023 Telmore transformed their scattered tech stack and centralized an all-in-one co-herent martech stack from Adobe. Allowing for digital communication with highly targeted offers and content to 1.5 million unique profiles and more than 700.000 customers.

With that, the ability for creating unique experiences in endless combinations on web, app, in emails and paid media was created. Another step towards realizing commercial ambitions was to utilize the power of AI to serve the optimal offer in real time via a sophisticated audience strategy.

Main components in the strategy

#01

Foundation and Strategy

A solid data foundation and strategy, focusing on first-party data

#02

Centralized Profile

A centralized real-time customer profile (combining CRM and online behavior)

#03

Automation

An automated and AI powered segmentation and audience strategy

#04

Personal Communication

Personalized communication and journeys across channels

#05

AI models prediction

Use of AI models to predict churn risk, propensity scores and offer ranking

Improving customer experience in 3 key areas

The right offers, at the right time, at the right place. Using AI and machine learning, Telmore can personalize and prioritize offers based on individual customer preferences. For example: customers at high risk of churn or those who have recently visited specific product categories get different offers and content. These AI models allows Telmore to calculate a propensity score to predict specific visitor interests and needs. Hundreds of combinations of content and offers could now be used based on user behavior. For example, "next best offers" which are differentiated prices to existing customers, and tailored benefits to existing customers (discounts, events and more). "Abandoned flow offers" and email triggers for multiple product types. "Cross-sales offers" for example offering internet to mobile voice customers. Promoting specific self-service options, for example, payment options or new features and addons to subscriptions for example,.Telmore musik or streaming services.

One to one automated personal communication and offers. Telmore automated e-mail campaigns and real-time personalized content based on customers' behavior and history. They also serve tailored communication to the individual customer in direct channels: 1-1 e-mail communication. Customer Journeys were improved across e-mails, web, and app.

Centralized offers and consistent communication. Telmore centralized their offers and consistent communication across channels. They leveraged a centralized offer decisioning management system to ensure a cohesive customer experience across all digital channels. Including the website, mobile application, e-mails, and paid advertising. Customer segments are now also automatically shared with paid media platforms.

3. RESULTS

And it worked. Highest Digital Sales in 2023

Telmore acquired a digital sales growth rate of 21% in 2023 compared to 2022. A digital sales growth rate of 32% comparing H2 2022 to 2023 H2. Cross sales to existing customers were improved by 25% in H2 2023 vs H1 2022, leading to increased value and retention. Moreover, Telmore has experienced significant increases in conversion rates across digital channels, ultimately resulting in improved operational efficiencies, increased profitability, and enhanced customer experiences.

"Our personalized communication strategy has not only boosted digital sales to record levels but also strengthened customer loyalty, leading to a significant increase in sales and cross sales. By tailoring solutions to individual preferences, we've enhanced the overall customer experience, delivering tangible value and fostering long-term satisfaction."

Frederik Grønlund Scholten, CMO at Telmore.

Telmore has seen the following results on the main use-cases:

60%

11%

19.5%

7-11%

Profiles: 60% of the over 700.000 customers have a stitched profile with both CRM and behavioral data (with cookie consent), leading to better personalization.

Telmore.dk: Achieved an 11% increase in conversion rates to sales orders through personalizing banners and web elements based on visitor interest and behavior. Mit Telmore / Kundefordele – 20.000 customers choose to visit the Customer benefit section per month across on web or via the app, leading to thousands of cross-sales.

A 19.5% increase in match-rates led to savings on media spending due to better targeting capabilities for including and excluding visitors and customers. More efficient media consumption and higher customer matching rates have optimized marketing expenses.

E-mails: Emails are well received by customers with open rates of 80% and 40% clicks on emails links. Best of all, the e-mails convert to hundreds of additional sales. E-mails convert 7.8-11% to orders.

“The key to the great success of Telmore's personalization initiatives is their people. It is rare to witness so much energy and willingness to learn when working with new technology platforms.”

Maria Aagarad, Senior Director at Accrease.

4. SUMMARY

This transformation program has not only improved the customer experience but has also had a direct and significant impact on the bottom line. These results illustrate how in-depth insight into customer data and behavior can transform a company's marketing strategy and create substantial value for customers and the company itself.

“Telmores data was the foundation of everything we achieved. It allowed us to create a detailed picture of Telmore's customers and their behaviors, which was crucial in tailoring personalized offers. Working together from scratch, it is fascinating to see how the data-driven approach significantly boost engagement and sales.".

Sharath Kumar, Senior Consultant at Accrease