How to triple the revenue from an operator's upsell campaign using a CVM solution

When selling products and services, it is essential to determine the perfect moment when the customer needs them most. For example, a hungry person impulsively buys more food than a full one, even under the same economic conditions (according to a study by Maastricht University). Digital services and products that telecom operators provide to their subscribers work on the same principle. But how do you identify the moment of urgent need and determine the most relevant product to the audience? 

We analyzed real-time events and historical subscriber data to promote extended Internet packages in the network of one of the leading CIS operators. Eastwind specialists and the client updated the logic and timing of upsell communications, integrated the "Buy now, Pay later" service into it, and tripled the effectiveness of the campaign.
 

Key results

Initial task

The operator actively offered subscribers the "Buy now, Pay later" service to promote additional traffic packages. This approach allows service sales to continue even when subscribers have a low or negative balance. People need to stay connected, and the provider offers this opportunity.

Despite the operator's understanding of the audience's needs, the subscriber response to the upsell campaign was low. Eastwind specialists were invited to find out why. The project team was tasked with increasing sales of additional Internet packages and profits from the "Buy now, Pay later" service.
 

Step 1. Analysis of the current upsell campaign

Studying the logic of communication

Before the launch of the project, the promotion of the operator's Internet packages worked according to the following scenario:
 

1. When the subscriber had 10% of the paid Internet package left, the operator sent them an SMS notification with an offer to buy an additional traffic package.
   
   According to statistics, most of the subscriber base did not have enough funds in their account at that moment. After receiving the notification, some users topped up their balance and subscribed to the packages that were offered. The operator sent the offer again if there was a sufficient amount on the balance.
    
2. If the subscriber had no money in the balance and did not respond to the first message, the next one was sent after 24 hours with an offer to buy an additional traffic package using the "Buy now, Pay later" service.
   
   The package size was selected according to the current balance and the individually approved credit amount. Based on this scoring, the operator offered the maximum package to the subscriber. To make a purchase, it was necessary to dial a USSD command, after which the credit was activated, and additional traffic was connected.

The initial scenario of the operator's upsell campaign

Analyzing possible failure reasons

A preliminary analysis of customer behavior showed that after learning that 90% of their traffic had been spent, most subscribers began to save the remaining limit on Internet access, i.e., they sought to stretch the remainder until the end of the period rather than buy an additional package.

Eastwind specialists also hypothesized that offering the maximum available package without the option to choose could discourage subscribers from purchasing.

Step 2: Campaign update

Here’s what we decided to change based on the results of the analysis.
 

• Transfer communication with the subscriber to the end of the traffic package.
• Offer a choice of several additional package options.
• Simplify the subscriber's product connection procedure.

The tasks were implemented with the modules of the Eastwind CVM solution: the EW Event Processing System (EPS) platform created new triggers, and the EW AdTarget campaign manager delivered the flexible logic of interaction with subscribers, the Buy now, Pay later system, and billing.

Read below how the new scenario was implemented.

Learn more about EW Mobile Marketing Platform
 

Determining the moment of complete exhaustion of the package   

Based on DPI data, the EPS trigger platform detected when the subscriber switched to the “pay as you go” mode and transmitted the trigger to AdTarget.
 

Generating a personalized offer with options

If there were insufficient funds in the account, AdTarget would contact the operator's scoring to determine the credit available to the subscriber. Based on this, a tailored offer was created with multiple package options.

For example, if the operator's scoring approved funds for the purchase of 200 MB, then the subscriber was offered to connect a 100 or 200 MB package. In total, subscribers had four options: 100, 200, 500, and 1,000 MB.
 

Setting up two-stage communication with the subscriber

1. The subscriber was offered to buy the maximum available package via the DSTK channel. The emphasis was on ease of connection: just click "OK."

2. If subscribers did not respond to DSTK, they were sent an SMS with all available package options.

Processing responses and activating packages

Depending on which USSD commands the subscriber dials in response to the offer, AdTarget requests that the corresponding package be activated in the billing.


A new scenario for operator’s upsell campaign

Testing the change in the sending time

The updated campaign logic was launched parallel to the operator's initial scenario. After recording the first results, we tried sending the new type of campaign 48 hours after the package was exhausted — to avoid over-communicating with subscribers.

This change led to a 15-fold drop in the new campaign's revenue. The results of the previous scenario remained the same. As a result, the operator decided to switch to the new mechanics completely.
 

Selling a service at a time of urgent need increases the effectiveness of the operator’s marketing campaigns.

 

The results

Immediately after the activation of the new scenario, sales of additional packages on credit increased threefold. Profit from connecting the "Buy now, Pay later" service showed a 17% increase.

In this case, three main factors influenced the result: the moment of the offer, a convenient communication channel, and the ability to choose a package. The experiment with postponing the time of sending messages by 48 hours showed that the most important condition for the campaign's success is the offer in real-time.

The transfer of the campaign from separate service platforms to a single CVM solution also improved the results — due to ready-made integrations with the operator's network elements, new flexible scenarios, and expansion of available communication channels.

As the project's next phase, the operator planned to expand the range of products available to subscribers on credit. For example, it would offer a "Buy now, Pay later" for a tariff plan if there were insufficient funds on the balance at the end of the period.
 

About the CVM solution modules used in this case study

The Eastwind CVM solution, Mobile Marketing Platform (MMP), consists of several components, each of which can be implemented separately. In the project, we used two modules to improve the efficiency of the operator's upsell campaigns.
 

• Trigger platform EW Event Processing System.
  Processes up to 100,000 incoming events per second and creates various triggers of different types for setting up real-time communications.
   
• Campaign manager EW AdTarget
  Integrates different sources of subscriber data into one profile, based on which you can build and automate precise personalized marketing campaigns. It works with all communication channels available to the operator.