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
cmo-xs-promo

Latest Videos

More Videos

Anyone can become a victim of the sophisticated schemes set up by these scam websites. It's not about being smart; I don't consider mysel...

Mathieu Lecompte

ACCC takes Meta to court over scam cryptocurrency advertising

Read more

Nice blog!Blog is really informative , valuable.keep updating us with such amazing blogs.influencer agency in Melbourne

Rajat Kumar

Why flipping Status Quo Bias is the key to B2B marketing success

Read more

good this information are very helpful for millions of peoples customer loyalty Consultant is an important part of every business.

Tom Devid

Report: 4 ways to generate customer loyalty

Read more

Great post, thanks for sharing such a informative content.

CodeWare Limited

APAC software company brings on first VP of growth

Read more

This article highlights Gartner’s latest digital experience platforms report and how they are influencing content operations ecosystems. ...

vikram Roy

Gartner 2022 Digital Experience Platforms reveals leading vendor players

Read more

Blog Posts

​Why we need to look at the whole brand puzzle, not just play with the pieces

Creating meaningful brands should be a holistic and considered process. However, all too frequently it’s one that is disparate and reactive, where one objective is prioritized at the expense of all others. So, what are the key pieces to the ‘good’ brand puzzle?

Marketing overseas? 4 ways to make your message stick

Companies encounter a variety of challenges when it comes to marketing overseas. Marketing departments often don’t know much about the business and cultural context of the international audiences they are trying to reach. Sometimes they are also unsure about what kind of marketing they should be doing.

Cynthia Dearin

Author, business strategist, advisor

From unconscious to reflective: What level of data user are you?

Using data is a hot topic right now. Leaders are realising data can no longer just be the responsibility of dedicated analysts or staff with ‘data’ in their title or role description.

Dr Selena Fisk

Data expert, author

Sign in