Outcome

With very aggressive pricing during the initial launch and over the first phase of the project Digitata was able to increase the target group’s subscriber spend by 5,7% when compared to the control group’s spend. One day of viral marketing from an unsolicited article immediately increased bundle sales by 400% with a lasting increase of 300%.

5.7%

Data Revenue Increase for Target Group

24.9%

Data Volume Increase for Target Group

103%

Data Revenue for VLV Data Users

183%

Data Volume for VLV Data Users

⸺ Overview

MTN has been using Ericsson’s Yield Optimization (YO) system for 10 years.

MTN Zone is a service where subscribers enjoy intelligently priced voice calls and SMSs based on time and location.

About 21% of MTN’s active prepaid subscribers are using MTN Zone and they generate approximately 29% of Voice PayGo Revenue.

⸺ Business Challenge

MTN wants to introduce Dynamic Tariffing into other parts of the telecommunications business.

Digitata was tasked to propose a strategy to

  • increase data usage
  • expand the data market
  • encourage subscribers to migrate from 3G to 4G
  • expand coverage in rural areas

Digitata's Methodology At Work

Digitata implemented its tried & tested methodology forexecuting on the business challenge.

More details

Determine Business Objectives

The business objective was to prove the concept of Dynamically Priced Bundles and specifically to:

  • promote the sales of data bundles, in particular Snapi bundles.
  • increase data revenue.
  • enable very low value subscribers to use data.
  • encourage subscribers to sporadically purchase “Snapi Zone” bundles, over and above their normal day to day bundles.

Formulate The Strategy

The strategy was divided into steps aimed at achieving the business objectives.

Subscriber Profiling Through Segmentation

Subscribers were segmented based on a whitelist. The target group of 150 000 was split into

  • 5 675 high value data subscribers
  • 29 842 medium value data subscribers
  • 114 483 low value data subscribers

Intelligent Pricing Offers

Very aggressive pricing was used to create excitement amongst subscribers to create a viral marketing effect to boost purchases.