Digitata — MTN Ghana Case Study

Overview

MTN Ghana had 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 were using MTN Zone, generating approximately 29% of Voice PayGo Revenue.

Business challenge

MTN wanted 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

Determine business objectives

Prove the concept of Dynamically Priced Bundles — promoting Snapi bundle sales, increasing data revenue, and enabling very low value subscribers to access data.

Formulate the strategy

Multi-step strategy aimed at creating excitement through aggressive pricing, establishing a viral marketing effect to boost purchases beyond the initial target group.

Subscriber profiling through segmentation

A whitelist of 150,000 subscribers was segmented: 5,675 high value, 29,842 medium value, and 114,483 low value data subscribers.

Intelligent pricing offers

Very aggressive pricing created excitement and a viral marketing effect. One day of unsolicited viral marketing immediately increased bundle sales by 400% with a lasting increase of 300%.