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IN-BROWSER MESSAGING

ENGAGEMENT:

THE ANTIDOTE TO CHURN

September 2017Sixteen Years. Billions of bulletins delivered.

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THE MISSION:

ENGAGE

SUBSCRIBERS

Communication is the

heart of successful

churn reduction.

Arthur Middleton HughesDatabase Marketing Inst.

“

”

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• Resolve issues quickly

• Get regular feedback

• Convey useful information and assistance

• Enable subscriber self service

• Raise brand awareness

• Increase loyalty

WHY ENGAGE?

Interact across all subscriber touch points

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FAILURE TO ENGAGE LEADS TO…

Churn for Internet Providers tends to hover around 2% to 2.5% per month

For a wireline company with 5 million customers, that means an estimated 1.32 million people and $2 billion in revenue walk out the door each year.“

”

CHURN

Source: Baine & Company

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THE COSTS OF

CHURNIt costs 5x as much to acquire a new customer than to keep an

existing one

Decreasing churn by 1% increases profits by 5+%

Source: Invesp, Khalid Saleh

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It’s rarely just one big misstep, but instead a series of smaller problems

WHY SUBSCRIBERS

LEAVE

Source: Baine & Company

Root cause and tipping point issues for one wireline provider

Performance (43%) Inconsistent speed, channels not working, slower than promised speeds, frequent or long outages

Offerings (22%) Unwanted services in bundle, channels removed, contract requirement, Internet equipment not advanced

Onboarding (13%) Failed install, negative interaction, bad timing

Billing (9%) Amount disputes, poor interaction, charges not explained

Customer service (8%) Took too long, issue not resolved, inconsistent information

Price (5%) Expired promo, not competitive, price increase

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DOMINICK’S

STORY

Source: Baine & Company

Pre-churnCircumstances that open the funnel

Root causesInteractions that build frustration

Tipping point1+ events that predisposes

a subscriber to churn

Final triggerEvent that leads to

defection

Event 1: Onboarding

Event 2:Interaction

Event 3:Performance

Event 4:Customer service

Event 5:Interaction

Event 6:External factor

A series of avoidable missteps across 5 years leads to this subscriber’s cancellation

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EVENT 1:

ONBOARDING

Source: Baine & Company

“The rep spelled my last name wrong, which led to a lot of hassle when I needed support online or on the phone.”

Antidote

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EVENT 2:

INTERACTION

Source: Baine & Company

“They would be short and on occasion would say, ‘You should have upgraded your modem.’ Really? And why didn’t you tell me?”

Antidote

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EVENT 3:

PERFORMANCE

Source: Baine & Company

“Outages: Many occasions where the cable is out altogether with no warning.”

Antidote

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EVENT 4:

TIME

Source: Baine & Company

“I couldn’t find my favorite channel. I called and had to wait a while to reach someone – the automated technical support was useless.”

Antidote

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EVENT 5:

INTERACTION

Source: Baine & Company

“Rude, unhelpful call center. My service has been sluggish. They told me it was a problem on my end.”

Antidote

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EVENT 5:

PAYMENT

Source: Baine & Company

“They added a late fee due – my credit card had expired. They could have told me!”

Antidote

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EVENT 6:

EXTERNAL FACTOR

Source: Baine & Company

“I finally switched to a competitor with a special offer. But the heart-ache that the company brought me is ever-present.”

Antidote

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LOWER CHURN =

LOWER COSTS

(And so) by increasing the life of the consumer on average and by reducing the amount of physical transactions you need to have with a consumer during their average lifetime, you can actually reduce costs dramatically in the business, and that's what we're seeing.

Tom Rutledge, CEOCharter Communications

“

”Source: UBS Global Media and Communications Conference, Dec. 7, 2015

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• Vis-à-vis email & apps

• Scope of engagement

• PerfTech solution

• Who uses PerfTech

• PerfTech advantages

ENGAGEMENT:

A CLOSER LOOK

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HOW ARE YOU

ENGAGING NOW?

• <40% of active email addresses are known• Email subjects must compete with many others in

overloaded inboxes• Email open rates top out at dismal 27-28%; most closer to

20%*• Email click-through rates are typically under 4%

* Source: Smart Insights, “Email marketing statistics 2016” by Dave Chaffey

Email…the most popular current method yields disappointing results

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HOW ARE YOU

ENGAGING NOW?

• App usage is largely confined to social apps like Facebook, Snapchat, YouTube, Instagram, etc. Less than 8% of app usage is devoted to “Other” (Flurry 2017); “everyone else gets almost no play” (Digiday 2017)

• Mobile app fatigue: half of all U.S. smartphone users downloaded zero apps per month (Digiday 2017)

• 26% of apps are used only once; 69% used <10 times (Localytics, 2017)

• Mobile browsing experiences vastly improved due to: updated browser/site design, faster speeds and wi-fi everywhere (Intercom 2016)

• 66.4% prefer to use the mobile web, citing access to all content in a single place, no need to install anything new, and dislike of flipping between apps (Quixey Consumer Mobile Survey, 2016)

• Conclusion: message reach during mobile browsing far greater than getting users to discover, install, and actually use an app

The big Mobile debate:

Apps vs. Browsers

Why Browsers are winning the “reach” race

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WHAT IF YOU

COULD REACH 97%

OF YOUR BASE…

Planned maintenance outages

• CPE swaps

• Billing and collections

• DMCA compliance

• New products and features

• Migration of newly acquired subscribers

• Usage-based billing

• Security issues

…within 24 hours and engage them about

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YOU CAN!

• Message your entire base, for unlimited use cases, for less than the cost of postage for two direct mailers

• Reach approximately 100% of your base in less than 24 hours

• Achieve response rates in excess of 90%• Drive click-through rates 10-20 times greater• See results: Responses are logged & tracked for

reporting and legal compliance

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Providers can deliver communications to subscribers’ device screens as they browse

WITH PERFTECH’S

IN-BROWSER

MESSAGING

Provider message

Destination site

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Our customers include top Providers worldwide

PERFTECH:

THE LEADING

SUPPLIER

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Results from 2 top-tier North American ISPs for periods ending Dec 31, 2016

• Within 24-hours, messages delivered to 95-97% of targeted subscribers

PERFTECH REACH:

FASTEST WAY TO

ENGAGE ISP 11,403,417 deliveries

during 12 months

Time Deliveries Percent Cumulative

1 min 35,402 2.52% 2.52%

10 min 60,471 4.31% 11.93%

30 min 69,452 4.95% 23.28%

1 hr 149,337 10.64% 33.92%

4 hr 211,241 15.05% 62.22%

6 hr 125,543 8.95% 71.16%

8 hr 101,893 7.26% 78.42%

10 hr 86,681 6.18% 84.60%

20 hr 74,130 5.28% 94.38%

24 hr 18,210 1.30% 95.67%

48 hr 43,167 3.08% 98.75%

72 hr 9,959 0.71% 99.46%

ISP 24,654,363 deliveries

during 8 months

Time Deliveries Percent Cumulative

1 min 93,263 2.00% 2.00%

10 min 151,858 3.26% 9.13%

30 min 188,808 4.06% 18.20%

1 hr 440,868 9.47% 27.67%

4 hr 839,288 18.03% 59.26%

6 hr 590,956 12.70% 71.95%

8 hr 489,033 10.51% 82.46%

10 hr 377,364 8.11% 90.57%

20 hr 95,053 2.04% 96.29%

24 hr 28,846 0.62% 96.91%

48 hr 47,902 1.03% 97.94%

72 hr 10,993 0.24% 98.17%

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• Flexible layouts avoid website overlay

• Enables non-confrontational interaction; no need for direct contact

• Sensitive topics can require authentication

• Opt-out/opt-in

• Verified delivery per per subscriber means no annoyingrepeats

PERFTECH

LIKEABILITY:

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• PerfTech API enables automated, real-time inclusion of personalized data

• Gives the subscriber info specific to their account

• Keeps messages relevant

• Helps ensure that the message is from the Provider

RELEVANCE:

PERSONALIZED

DATA

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Additional use cases

• Effectiveness results shown where data is available

• Categorized by churn-related category

WHAT ELSE COULD WE TELL OUR SUBSCRIBERS?

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• Include options for delivery and activation

• Increase frequency as end-of-life nears

• Align notices to available CPE inventory

• Notify for data and video CPE

CPE SWAP

87%SWAPPED MODEMFOR CPE UPGRADE

CAMPAIGN

PERFORMANCE

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Promote referral program

REFERRALS

[

OFFERINGS

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Convert virus alert to security sale

SECURITY ISSUES

33.2%LINKED TO OR PERFORMED SCAN

UPON RECEIVING VIRUS ALERT

OFFERINGS

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Promote Provider brand

• Watermark

• Promote app downloads

BRANDING

[

Semi-transparentWatermark™ with timeout

OFFERINGS

App download

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Enact win-back campaign

SUBSCRIBER

RETENTION

[

OFFERINGS / CUSTOMER SERVICE

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Transition newly acquired subscriber

MIGRATION OF

ACQUIRED

SUBSCRIBERS

58.8%CLICKED “GET STARTED NOW”

TO TRANSITION EMAIL ADDRESS

ONBOARDING

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Reduce receivables, get paid faster, reduce billing related churn

BILLING &

COLLECTIONS

51.5%PAID ONLINE IMMEDIATELY UPON SECOND

NOTICE

15%REDUCTION IN BILLING-RELATED CHURN

97.2%OF SUBSCRIBERS RESOLVED BILLING ISSUE

WITHIN 3 NOTICES

BILLING

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USAGE BASED

BILLING

Convert usage alert to tier upgrade

37%LINKED TO CHECK USAGE/DATA PLANS

95%ACKNOWLEDGED INFO

RE: USAGE BILLING

3%SELF-UPGRADE RATE TO HIGHER TIER

< 3 month paybackcited for PerfTech deployment

BILLING

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USAGE BASED

BILLING

Responsive bulletin design adapts to screen

• Subscribers notified before overages started

• 13% reduction in churn related to billing

BILLING

$2/SUB/MOINCREASE IN REVENUE DUE TO TIER UPGRADES AND OVERAGE

FEESISP SIZE: 2M SUBS

18%INCREASE IN REVENUE DUE TO TIER UPGRADES AND OVERAGE

FEESISP SIZE: 2M SUBS

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• Comply with regulations

• Attain legal acknowledgment

• Avoid disconnect

• Educate subscribers

DMCA

COMPLIANCE

87.5%ACKNOWLEDGED FOR DMCA

VIOLATIONS

CUSTOMER SERVICE

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Give heads-up on service notices

TOS & AUP

ACCEPTANCE

[

CUSTOMER SERVICE

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Confirm truck-roll appointments

CONFIRM

APPOINTMENTS

[

Sunrise bulletin disappears after a specified time…or never

CUSTOMER SERVICE

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ROI IMPACT

Real Results

• Across 4 separate Use Case campaigns

• For 12 months Oct 2015 – Oct 2016

• From Provider with 1.1M subscribers

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Reason for churn:

9% cite billing issues, often due to expired credit card

ROI IMPACT:

LATE BILL PAY

• 121,858 unique subs received 238,423 late-bill-pay reminders

• Subscriber churn at Provider due to billing issues

– Before Bulletin System: 0.2%

– After Bulletin System: 0.009%

• Collected $1.9 million from 13,856 payments

within 1 day of receiving a bulletin ($137 RPU)

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Reason for churn:

43% cite poor performance, slower than promised speed, or speed that is variable and inconsistent

ROI IMPACT:

MODEM SWAP

• 43,327 unique subs received modem upgrade bulletin

• Reduced the number of outdated modems in use

by 80%

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Reason for churn:

43% cite poor performance, frequent or long unexpected outages

ROI IMPACT:

OUTAGES

• 514,813 unique subs received 2,870,644 maintenance outage alerts during year

• Cites 93.9% call center deflection rate (did not

engage IVR/call center within 4 days after alert)

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Reason for churn:

9% cite usage-based billing issues, bill shock

ROI IMPACT:

USAGE ALERTS

• 457,299 unique subs received 3,238,626 usage alerts

• 6,893 subs increased their data plan allowance

• 98,514 subs upgraded speed tier within 3 days

• 190,930 unique subs linked to the data usage tool at provider’s site

• 100% ROI in less than 1 month from usage alerts

alone

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Bulletin System comprised of 1 Manager and multiple Directors

Based on 64-bit operating system means high capacity, performance, and stability

PERFTECH DEVICES

Core Aggregation

Edge

Manager at NOC

Directors

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Flexible Subscriber Resolution Options

Network Connectivity Options

• Not in line

• No impact to network

• Simply need a copy of the traffic to operate

NETWORK

CONNECTION

OVERVIEW

DHCP LEASEQUERY

DHCP Dynamic Lease NotificationRADIUS accounting feed

Static maps

IP address as ID

Custom interfaces (SOAP/XML/JSON/DNS, etc.)

Capture/SPAN/Mirror

Network Tap orNetwork Tap Manager

DPI Platform

WCCP or WCCP + GRE Strip

MPLS + WCCP

]

]

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PERFTECH BY THE

NUMBERS

0ZERO LATENCY PERFORMANCE

12INTERFACES SUPPORTED PER

DIRECTOR

13NUMBER OF PATENTS THAT

PROTECT THE PRODUCT

35+YEARS OUR CORE ENGINEERING

GROUP HAS WORKED TOGETHER

97+%PERCENT OF SUBSCRIBERS

REACHED WITHIN 20 HOURS

150KTRANSACTIONS PER SECOND

PER DIRECTOR

50MSIMULTANEOUS PENDING

BULLETINS SUPPORTED

30+MSUBSCRIBERS REACHED BY OUR

ISP CUSTOMERS

BILLIONSNUMBER OF BULLETINS

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• Core engineering team together 35+ years

• Highly awarded, experienced group in all aspects of networking

• History of innovation in both hardware and software

• Excels in high performance, carrier-grade products

• Support is legendary

• Product protected by 13 patents; many more patents granted to team prior to PerfTech

ABOUT THE

PERFTECH TEAM

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The PerfTech platform has become our go-to communications engine.

“”

THIS SAYS IT ALL

Senior Project Manager, ISP with over 5M Subscribers

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