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

Blog Posts

Putting the ‘human element’ back in marketing

During the recent CMO Momentum conference, Paul Mitchell shared how marketing leaders can create cultures that deliver

Paul Mitchell

Managing director, The Human Enterprise

The rise and rise of voice search

In 1982, an AT&T employee by the name of Plotzke predicted the rise of voice: “In fact, it has been predicted that, by 1990, well over half the communications dollars spent by businesses will be for products and services that include voice technologies.

Michael Jenkins

Founder and director, Shout agency

Is design thinking the answer for the next generation of marketing?

The speed and pace of change will never be slower than we’re experiencing today. So in this era of unprecedented change, how can brands meet soaring consumer expectations, stay relevant and deliver differentiated and connected experiences?

Merryn Olifent

Senior consultant, G2 Innovation

https://uploads.disquscdn.c... [magic school bus] KID: where are we going today MS. FRIZZLE: the zoo KID: but last week we went to SPACE ...

Germain3161

Sephora Asia details its journey to data-driven decision making

Read more

DP Apparel bietet große Auswahl Audi Rennbekleidung in Deutschland zu den besten Angeboten. Das Geschäft bietet auch qualitativ hochwerti...

DP apparel

Audi Australia gets a new CMO

Read more

this is a really great news

Vincent Mouton

Mobile-first banking startup showcases fresh brand identity

Read more

Prozac is the brand name of fluoxetine, a prescription drug used to treat depression obsessive-compulsive disorder, and panic disorder. B...

jenson smith

CMO's top 8 martech stories for the week - 19 July 2018

Read more

I have been suffering from (HERPES) disease for the last two years and had constant pain, especially in my knees. During the first year, ...

Steven Kizzy

KPMG Australia appoints ex-Publicis leader as head of brand strategy

Read more

Latest Podcast

More podcasts

Sign in