T-Mobile Netherlands and Velti
Boosting Revenues with AI Campaigns
T-Mobile Netherlands has been running CVM (Customer Value Management) campaigns on Daedalus, Velti’s Artificial Intelligence-based platform, since February 2019. The campaign plan has been designed to engage new customers, support new product and portfolio launches, boost top-up revenue, increase the penetration of bundles and packages, fight customer inactivity and maximize customer engagement and satisfaction.
In this holistic CVM program, Daedalus follows the journey a customer takes from the moment he or she joins T-Mobile, to the moment they become an active and loyal customer, and then until the moment they tend to stop using the service and become inactive.
The journey begins as customers join T-Mobile and get connected. At that stage, Daedalus targets new customers with the right campaigns to welcome them and get them engaged with the operator. The journey then continues as new customers learn about the T-Mobile’s products and decide which ones to buy. Daedalus machine learning algorithms are used at this stage to propose the right products/offers to the right customers. Once customers have bought the suggested products, Daedalus uses additional promotional and re-engagement campaigns to keep them coming back, while at the same time rewarding valuable and loyal customers when they reach specific milestones.
Finally, Daedalus is used to target customers who seem likely to churn. When customers tend to become inactive, they usually ignore the common promotional campaigns. With Daedalus machine learning algorithms, customers who tend to drop off and become inactive are identified throughout the lifecycle stages, and they are re-engaged and brought back to active status with the right offers.
The program involves the daily data collection and creation of 360-degree customer profiles. A scoring process then defines the Next Best Action for each customer. The campaigns with the highest probability scores are then sent to customers and the responses received are recorded by Daedalus and used to train its algorithms, creating a closed-loop, continuously optimized system.
The program has generated significant value for T-Mobile. The networks sends on average around 1m recommendations per month to its T- customers and has seen very high response rates across multiple campaign types.
To measure the success of the platform, T-Mobile and Velti established a control group which is targeted with the same campaigns, but without AI to inform the targeting. The response rates for the Daedalus Group are up to 236 per cent than the Control Group for top-up campaigns and up to 441 per cent better for cross-selling campaigns.
“Mobile operators have a wealth of data on their customers and rarely seem to use it to market to them effectively. In this respect, the winners have broken the mould with this campaign.”
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T-Mobile Netherlands and Velti – Boosting Revenues with AI Campaigns
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