Virgin Mobile targets marketing activities

Network operator aims to reduce customer churn

Virgin Mobile hopes to improve marketing activity

Virgin Mobile is installing predictive analytics software to improve its marketing capabilities.

The network operator will use software from vendor SPSS to drive marketing campaigns and reduce customer churn by identifying appropriate segments for new marketing initiatives.

The software will give Virgin Mobile a clearer understanding of its customers by combining information on previous circumstances, past events and projected future actions.

The company undertakes more than 100 marketing campaigns each year and more accurate targeting as opposed to ad hoc campaigns, will enable Virgin to lower costs as well as retain customers by predicting the likelihood of someone leaving.

Caroline Schmidt, customer value management controller at Virgin Mobile, says driving customer loyalty is key to success and the predictive analytics software will ensure customers only receive communications they are likely to respond to.

‘We have focused our attention from acquisition to retention. We do not want to bombard customers with campaigns and with the new software we will be able to reduce churn,’ she said.

‘We do not have a huge marketing spend in terms of direct mail and we need the best return on our campaigns,’ she said.

Schmidt says the company is focusing on its information management system (IMS) strategy incorporating a data mart and the SPSS software.

‘Our business case is to reduce churn across the year by one and a half per cent. It doesn’t sound a lot, but in a saturated market where all you get is people switching, it could save us millions,’ said Schmidt.