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

Cannes 2018: The Big Not Easy

This year’s Cannes Lions program is packed full of data, robots, algorithms, voice technology, blockchain, virtual reality, artificial intelligence and machine creativity. But I’m just as interested in more subtle trends and insights.

Richard Brett

CEO, opr

CMOs are talking the CX talk, but not yet walking the walk

Customer experience is eclipsing product as a competitive differentiator. CMOs are recognising this shift and talking the talk. But are they also walking the walk?

Will our manners go the same way as texting when robotic servants take over?

Much of the talk in the industry is focused on the limited amount of time that screens have left in our lives.

Katja Forbes

Founder and chief, sfyte

You're suggesting that Taylor Swift is a non-brand because we don't know who she votes for, and then you suggest developing brand stories...

Brian 't Hart

Why Gartner thinks brands are too uptight about strategy

Read more

Indeed this is the great article but i will love to recommend you to read the case study of Walamrt for get the more and more customers. ...

Eva Buttler

5 steps to customer intelligence success

Read more

here is the good news now you can find the all adobe products at walmart .. read this news here at https://creditcardsfair.com/

Yasir Abbas

Adobe: Tech architecture, talent stopping companies making the experience shift

Read more

Google is more like a utility. Does a road have a brand? No. Do we use it daily? Of course! And the idea of Taylor Swift as an unbrand be...

Davy Adams

Why Gartner thinks brands are too uptight about strategy

Read more

My father had ALS (amyotrophic lateral sclerosis) for 3 years His first symptoms were weakness in his hands and losing his balance which ...

Janice Tollis

Why Gartner thinks brands are too uptight about strategy

Read more

Latest Podcast

More podcasts

Sign in