ed perez, u.s. cellular - "customer focused loyalty: the belief project"
TRANSCRIPT
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Corporate Overview: A Brief Profile of US Cellular
• Founded: 1983• Headquarters: Chicago• 6th largest wireless carrier:
• 6.1 million customers• #3 market share in our footprint
• Customer Satisfaction at All Time High:• Consumer Reports magazine, Jan 2011 —U.S. Cellular
highest-ranked wireless carrier• Consumer Reports magazine, June 2010—U.S. Cellular
highest-ranked wireless in-store experience• 10 consecutive J.D Power. and Associates awards
for call quality• PC Magazine Readers’ Choice Award
• Five State-of-the-Art Customer Care Centers: • Bolingbrook, IL; Cedar Rapids, IA; Knoxville, TN;
Tulsa, OK; Waukesha, WI
• Ownership: • U.S. Cellular is publically traded and a majority-owned
business unit of Telephone and Data Systems, Inc.
Revenue (2009):
$3.9 billion
Associates: 9,000
Quality, High-Speed Award-Winning Network
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Corporate Overview: The Dynamic Organization Operating Principle
At U.S. Cellular, our “Dynamic Organization” is a customer-centric business model that is driven by four pillars – Leadership Excellence, Associate Passion, Customer Advocacy and Superior Results.
Our company achieves business results through a focus on these four core pillars and a growth strategy that elevates our customers as an extension of our sales force. Our 9,000 associates embrace these values and work everyday to provide a truly better wireless experience.
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Economic Realities• Cloudy employment picture
• High consumer debt
• Reduced disposable income
Industry Realities• High penetration
• Consolidation
• Commoditization
• Declining switcher pool due to apathy and inertia (vs. loyalty)
Consumer Realities• Low consumer confidence (feeling under siege)
• Cell phone dependent
• Functionally satisfied switchers
• Lack of differentiation between carriers
Multiple Factors Have Created Significant Market PressuresMarketing Positioning: Multiple Factors Have Created Market Pressures
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Understand our target customer
Leverage our understanding to create
a differentiated strategy
Unique value proposition:• Leverage our core strengths – ten years building
customer focused culture
• Show our customers “what’s in it for them” through our touch points, offers and experience
• Focus on building loyal advocates
Multiple Factors Have Created Significant Market PressuresMarketing Positioning: Utilizing Brand Loyalty
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Multiple Factors Have Created Significant Market PressuresMarketing Positioning: A Phased Process
• Quantitative research and in-depth psycho-cultural interviews• New segmentation, targeting, and brand positioning
• Re-launch the brand• Lay foundation for future enterprise strategy• Develop new proof points for future launch
• Launch Battery Swap and Overage Protection• Complete proprietary research to facilitate new benefits• Develop business case to support new strategy
• Complete requirements, development, testing & training• Launch
PHASE 1
PHASE 2
PHASE 3
PHASE 4
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Multiple Factors Have Created Significant Market PressuresMarketing Positioning: A New Model to Build Loyalty
Replace the traditional model of contracts and the penalty of early termination fees with the incentive of rewards
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Multiple Factors Have Created Significant Market PressuresThe Belief Project: Research Validates Our Approach
90% said wireless providers should earn my loyalty, not require it
by having me sign a contract.
87% said they shouldn’t have to sign a service contract just to stay
with my current wireless carrier.
84% said 24 months is too long to wait to get a good deal on a new
cell phone
80% said wireless providers should do something about overages
and the big bills that come from them.
BELIEF REWARDS
NO CONTRACT AFTER THE FIRST
FASTER PHONE UPGRADES
OVERAGE PROTECTION/CAPFORGIVENESS
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• FREE Immediate replacement for a non-working phone (Premium Plans)
PHONE REPLACEMENT
• Simplified, bundled pricing with text & data: 6 rate plans each for single & family plans
SIMPLIFIED PRICING
• Immediate replacement for lost and stolen phones ($100 replacement fee)
• 5% discount for automatic payment and paperless billing
• Customers will earn reward points for spending more and staying longer. Trade points for:
LOYALTY REWARDS PROGRAM
• Overage forgiveness• Free ringtones and ringback tones• Free companion lines
• No contract after the first: customers will not have to sign a contract to earn upgrades & stay
ELIMINATE CONTRACTS
• As a heavy user, I spend a lot of money each month on my wireless service – why can’t they cut me a break?
• Your phone is your lifeline – of course you didn’t lose it on purpose
• Wireless companies make you “work for it,” designing offers to be as confusing as possible
• Taking advantage of simple mistakes has become the name of the game
• How does a $500 phone bill ever make sense?
• New customers get treated better than existing customers: why am I never recognized for my loyalty?
• Technology is moving faster than ever – why should I have to wait two years to upgrade my phone?
• Why do I have to sign a contract to stay with my wireless company?
• I feel powerless, helpless, & anxious - trapped by the rules of the wireless game
• Overage Protection, Overage Cap & Overage Forgiveness
• National Footprint – all plans (postpaid)
• Free phones, free accessories
• Faster phone upgrades - (as little as 10 months)
The Belief Project: Consumer Insights
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The Belief Project: Launch Plan
Launched The Belief Project October 1, 2010, with integrated marketing communications program to generate excitement and buzz
Public Relations – Business, Consumer and Blogger Outreach
Advertising (TV, Print, Outdoor, Mobile, Online)
Online
Events& POS
Customers
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A Winning Strategy for Growth: More Customers, for Longer
Other Subscribers
Customers Staying Longer…Contributes to an improvement in already low
postpaid churn
• Creating a “bank” of value for the customer which reaches highest point at greatest risk of churn
• Walking away means signing up elsewhere with a new two year contract as well as the absence of other benefits
More Customers in Our Stores…Incremental gross postpaid additions
• Value proposition provides remedies for industry’s most consumer dissatisfying pain points
• The customer experience to back up the new value proposition
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• Spent 10 years building a customer focused culture
• Builds on our strengths and extensive research
• Exemplifies smart business by means of cutting edge customer research to deliver programs that solve customer needs and create advocacy
• U.S. Cellular continues to strengthen its reputation not by building walls to keep customers in, but by bringing innovative solutions to consumers that elevate the customer experience and create a human relationship, not a contractual one
• Drive long term profitable growth
A Winning Strategy: Believe in Something Better