Optus, Medibank sharpen marketing efforts with predictive analytics

Relevant marketing can overcome customer privacy concerns

 Alex Burrows, Optus director of scientific marketing and analytics
Alex Burrows, Optus director of scientific marketing and analytics

Customers are happy for businesses to use their data for marketing so long as it’s relevant, according to data scientists at Optus and Medibank.

Optus has worked to build trust with its telecom customers, said Alex Burrows, director of scientific marketing and analytics during the ADMA Global Forum in Sydney (pictured). “If customers trust us, I think they’re a lot more open to relevant offers.”

Optus targets customers who use their phones abroad with offers for roaming packages. Also, the telco targets customers who exceed their plan’s caps by $100 with information about plans that can reduce bill shock.

Customers are open to these kinds of offers because they are specific to their needs, said Burrows.

Relevance is the key, agreed Athi Singh, head of customer analytics for health insurance provider, Medibank.

“It has to be relevant. It has to be timely,” he said. The message should also be sent over the channel preferred by the customer.

Like Optus, Medibank uses analytics to predict customer attrition as well as to sell additional products. The company has deployed SAS to automate targeting of offers to customers.

Sometimes, the best way to keep a customer is to recommend a downgrade to a less expensive plan, Singh said.

“That’s a great experience to have,” he said. It tells the customer that “we’re not worried about the immediate impact on our profitability because we’re selling you a cheaper product. It’s more about [saying] you’re not getting value from your product, so we should downgrade you to keep you longer.”

Use of customer analytics by Optus has improved its Net Promoter Score and the telco is seeing improved results to churn, a measurement of customer turnover, said Burrows.

“Our churn rates are the lowest they’ve been in seven years,” he claimed.

Over the last 12 months, the Optus data analytics team has focused on retention of its existing customer base, but in the coming year will turn to acquiring new customers and grow market share, Burrows continued.

“We have a lot of data on our customers and we can extrapolate that to prospects.”

Each company official made clear they’re very aware of customer and regulator concerns about privacy. Optus only collects data with the customer’s consent and does not sell it onto third parties, Burrows said.

“There are a lot of vendors that come and talk to you and say you should be selling data,” he said. “But I think customers are a lot more wary of how you use their information.”

Adam Bender covers digital marketing and emerging technology for CMO and is the author of dystopian sci-fi novels We, The Watched and Divided We Fall. Follow him on Twitter: @WatchAdam

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Signup to CMO’s email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

The best part: optimizing your site for SEO enables you to generate high traffic, and hence free B2B lead generation. This is done throug...

Sergiu Alexei

The top 6 content challenges facing B2B firms

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Check out tiny twig for comfy and soft organic baby clothes.

Morgan mendoza

Binge and The Iconic launch Inactivewear clothing line

Read more

NetSuite started out as a cloud-based provider of Enterprise Resource Planning software or as NetSuite solution provider, which companies...

talalyousaf

NetSuite to acquire Bronto's digital marketing platform for US$200m

Read more

Thanks for sharing this post, its really good information I get through this blog.CDPO Online Exam Training

Infosectrain01

3 ways Booking.com is improving its B2B marketing game

Read more

Blog Posts

Getting privacy right in a first-party data world

With continued advances in marketing technology, data privacy continues to play catchup in terms of regulation, safety and use. The laws that do exist are open to interpretation and potential misuse and that has led to consumer mistrust and increasing calls for a stronger regulatory framework to protect personal information.

Furqan Wasif

Head of biddable media, Tug

​Beyond greenwashing: Why brands need to get their house in order first

Environmental, Social and (Corporate) Governance is a hot topic for brands right now. But before you start thinking about doing good, Craig Flanders says you best sort out the basics.

Craig Flanders

CEO, Spinach

​The value of collaboration: how to keep it together

Through the ages, from the fields to the factories to the office towers and now to our kitchen tables, collaboration has played a pivotal role in how we live and work. Together. We find partners, live as families, socialise in groups and work as teams. Ultimately, we rely on these collaborative structures to survive and thrive.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in