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Telenor Mobil Opens The Lines of Communication With Its Customers
Telenor Mobil, the mobile phone division of Telenor Group, Norway's leading telecom operator, has approximately 1.5 million customers, 1,100 employees and an annual income in excess of £550 million. Norway's mobile phone market is becoming increasingly competitive, and the bargaining power is now shifting from the telecommunications companies to the customers. Telenor Mobil recognized that it needed to focus on customer loyalty to reduce churn, while increasing its market share.
"We have been preparing for a more competitive mobile communications market and higher rate of customer churn. Fickle customers and customers who feel they are not valued, are now more prone to switching networks in order to take advantage of the different deals being offered. We saw this trend developing and knew we had to implement an effective strategy to prevent our leading market share from declining", said Susan Hagerty, Dialog Marketing Manager, Telenor Mobile.
The company understood that it needed to get closer to its customers to enable a speedy response to market forces and so ensure that the company's competitive edge was maintained. The solution was identified—Telenor Mobil needed to communicate with specific market segments—groups of customers with similar profiles.
Hagerty continued: "We realized that to understand what our customers wanted, we had to get to know them and to offer products and services that suit their individual needs. With a customer base of 1.5 million, this was not an easy task and we recognized that a sophisticated technology solution was needed. We also knew that we needed involvement from the entire marketing department as well as from IT, sales, market research and top management.
Telenor Mobil understood that it needed to match its marketing dialog requirements with an appropriate IT system and that the process of implementing a relational marketing package to support the strategic developments was complex. The company appointed PA Consulting to help with the process of selecting the appropriate solution.
There were several options on the market from which they could choose, but after investigating these, Telenor Mobil decided that Chordiant Marketing Director marketing automation software, would be the most effective in allowing the company to achieve maximum marketing dialog with its customers.
"We identified the requirement for a marketing tool that could operate on several levels. Firstly, to be able to identify and group customers with similar needs that were suitable targets for specific product and service packages. Secondly, we needed to make provision to develop opportunities for long term schemes aimed at differentiating and discriminating customers. Lastly we wanted to implement a decision support system to work for campaigns, pricing structures and product development.
Telenor Mobil began pursuing a marketing strategy that would introduce new systems and processes to enable the company to identify target groups for marketing campaigns and to establish successful, ongoing relationships with existing customers.
The first stage was to test Chordiant Marketing Director with a pilot database in an intensive series of challenging business and technical scenarios. For example, test direct marketing campaigns were set up, which included automating and producing individualized letters to specific customer groups and responding to customer queries on these letters.
The second stage was to implement the system and develop the underlying database with IT specialists—this process took four months to set up.
The third stage was the integration of the system, with Chordiant Marketing Director integrating marketing activities on a company-wide basis and integrating with other customer-facing systems. This allowed information gathered by Chordiant Marketing Director to be used by departments across the company and made their input into the new system possible.
The final stage was to create a department responsible for designing compelling marketing communications, as well as processes and individual roles to support the effective implementation of the entire marketing program. To achieve this, Telenor Mobil employed and trained ten staff with the required specialist skill sets.
The implementation process, completed on time and under budget, provided Telenor Mobil with a fully operational marketing dialog system and a department skilled in its operation.
Hagerty says "Through implementing Chordiant Marketing Director, we have been able to draw on a combination of IT, marketing, HR and process skills and have harnessed all these areas to maintain a clear perspective at all times of what we need to achieve from a business point of view."
Since implementing programs using Chordiant Marketing Director, Telenor Mobil has achieved significant business benefits - such as double digit increases in revenue from key segments as well as reductions in churn. Customers have also been pleased with the one-to-one communication from Telenor.
Telenor Mobil is now well positioned to defend its leading position inthe market and to maintain customer satisfaction and loyalty.
Susan Hagerty concludes, "Telenor Mobil is now in touch with important market segments and has the ability to promote customer loyalty and generate increased revenue from existing customers through sophisticated
communications This has ultimately led to us improving customer relations, achieving customer loyalty, as well as realizing our business goals."
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