The Power of Personalization: Telmore’s Approach to Sustainable Business Growth

Baggrund

Much has been said about the very competitive telco market in Denmark. Approximately 30% of customers switch providers every year. In many ways, ‘The Game’ remains the same; 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 usercentric solutions – the ripple effect of those demands eventually hits everybody else.

That places us as Telcos in a rare and often undesirable position – we have much at stake and we are playing a catch-up game of updating our technological foundation to enable us to deliver better across all our channels.

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:
Increase share of digital sales to increase profitability.
Improve cross sales to existing customers (a key driver in customers retention)
Improve customer experience.

To address the business challenges, marketing and communication did a thorough analysis and concluded the following:

‘One Size Fits all’. Generic digital communication failed to meet individual customer needs.
‘No Digital Customer Journeys’. Inconsistent and siloed communication across channels: web, app, email and paid) created a fragmented customer experience.
‘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.

The predominance of generic digital communication and inconsistent messaging across various channels hindered Telmore's ability to provide a consistent personalized experience for prospects and existing customers.

Moreover, this experience was further challenged by a siloed structure between email, the website, and Mit-Telmore due to manual and resource-intensive processes.

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.

Løsning

During 2023 Telmore transformed its scattered tech stack and centralized all in one coherent 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. Another step towards realizing commercial ambitions was to utilize the power of AI to serve the optimal offer in realtime via a sophisticated audience strategy.

The main components in the strategy are:
A solid data foundation and strategy, focusing on first-party data
A centralized real-time customer profile (combining CRM and online behavior)
An automated and AI powered segmentation and audience strategy

Personalized communication and Journeys across channels
Use of AI models to predict churn risk, propensity scores and offer ranking
New ways of working with audiences, content distribution and experimentation

The customer experience has improved within 3 key areas:

1. 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. AI models allow Telmore to calculate a propensity score to predict specific visitor interest and needs.

Many types of offers and content was used:
Hundreds of combinations of content and offers based on user behavior
Next Best Offers - Differentiated prices to existing customers
Tailored benefits to existing customers (discounts, events and more)
Abandoned flow offers and emails triggers for multiple product types
Cross sales offers – e.g. offering Internet to Mobile voice customers
Promoting specific self-service options, e.g. Payment options or new features
Addons to subscriptions e.g. Telmore Musik or Streaming services

2. 1-1 automated personal communication and offers
Telmore automated email campaigns and real-time personalized content based on customers behavior and history. Telmore serves tailored communication to the individual customer in direct channels:
1-1 Email communication
Customer Journeys across emails, web and app
Mit-Telmore, Customer benefit section on web and app

3. Centralized offers and consistent communication across channels
Telmore leverages a centralized offer decisioning management system to ensure a cohesive customer experience across all digital channels, including the website, mobile application, emails, and paid advertising. Customer segments are also automatically shared with paid media platforms.