White PapersThe mobile voice market has come of age. Competition is intensifying among network operators to attract, retain and maximize revenues from a finite number of users. Increasingly, telcos are recognizing that the way to do this is through innovative, highly targeted content and data services that reflect the interests of a diverse user base.
Growth from traditional access services such as person-to-person SMS has slowed down, due to market saturation. Voice services have become commoditized, available at low prices from a large number of suppliers. While these services remain important revenue streams, the race for market share now depends on the operator’s ability to diversify—to provide a rich portfolio of product offerings based on customer choice.
Ringtones, video clips, real-time newsand gossip can be bundled creativelyinto promotional offerings, providingopportunities for cross- and up-sellingthrough effective retail techniquessuch as buy one, get one free, andhappy hour or multi-packagepurchase discounts. These are tried and tested ways of maximizingretail revenue that, for the mobilemarket, represent significantlyincreased ARPU.The Capgemini and Pontis Solution This shift towards retail marketingstrategies presents significantchallenges. Defining market segments,identifying subscriber actions andresponding with real-timepromotions, often within a limited time-frame, all requirerobust business andtechnical support.The mobile voice market has come ofage. Competition is intensifyingamong network operators to attract,retain and maximize revenues from afinite number of users. Increasingly,telcos are recognizing that the way todo this is through innovative, highlytargeted content and data services that reflect the interests of a diverseuser base.Growth from traditional accessservices such as person-to-person SMShas slowed down, due to marketsaturation. Voice services have becomecommoditized, available at low pricesfrom a large number of suppliers.While these services remain importantrevenue streams, the race for marketshare now depends on the operator sability to diversify to provide a richportfolio of product offerings basedon customer choice. Using Retail Best Practice to Unlock the Mobile MarketTelecom, Media & Entertainmentthe way we do itIn collaboration withUntitled DocumentNow, through a joint initiativebetween Capgemini and Pontis,mobile operators have the opportunityto access the two areas of expertiseneeded to compete in this changinglandscape: The platform needed to deliver productivity and theimplementation support to ensure a reliable outcome. It is thiscombination that will enable them to get up and running fast. The Promotional Offering Solutionbased on the Pontis IntegratedMarketing System defines, executes and manages targetedPromotional Offerings based on real-time individual customerbehaviour. It enables operators to: Develop and customize mobileofferings using a Web-based Business Desktop. Use a library of pre-defined BusinessTemplates" for quick and easyimplementation. Implement new offerings gradually,testing results in pilot campaignsbefore full rollout. Combine business offerings withoperator services to create a uniqueexperience for each customer. Send messages and grant discountsand benefits to individualsubscribers in real time. Define target customer segmentsbased on real-time usage data. Monitor and analyze the success ofeach promotional campaign andmake real-time adjustments.All of these elements are combined in a single platform withfull implementation support, making it simple for operators tocreate compelling marketingprogrammes to meet a wide variety of business objectives.Intuitive desktop environment tosupport business decisions andbest practiceThe Integrated Marketing Systemprovides a GUI-based definitionenvironment, the Business Desktop,which helps marketing and technical managers to define businessrequirements such as subscriptionchannels, target segments, messagecontent, and handset capabilities in an intuitive, high-level language.Embedded within the BusinessDesktop are easy-to-use BusinessTemplates" based on the retailindustry s best practices: Dynamic Up-Sell, Buy One Get One, SubscriptionBundle, Tell a Friend, Top-up Benefits,and many more. This makesintroducing new promotions quickand easy.Easy implementation andreduced time to marketOnce the Integrated Marketing Systemis installed and integrated withselected services and businesstemplates, new product offerings canbe launched instantly. Capgeminiensures smooth, simple executionwithout modifying other systemswithin the organization. The solutioncopes with business requirements and all interconnecting business logic automatically. This ultimately reduces time-to-market andmaximizes the earning potential fromeach promotion.Here s one example of a promotionaloffering that can be instantly definedand introduced with the PontisIntegrated Marketing SystemContent Up-Sell: A customer enteringthe hip hop music category in themobile portal receives an in-sessionmessage about a special promotion forSnoop Dogg download items. Themessage includes a link to thepromoted services section. When thecustomer clicks on one of the SnoopDogg downloads (e.g. a Snoop Doggringtone), he is offered the chance to buy the ringtone and get a 25%discount on a Snoop Dogg icon (to be actioned within a week). Once thecustomer purchases the ringtone, theyget a confirmation message remindingthem of the offer available through theSnoop Dogg icon (with direct link to theservice). Untitled DocumentTelecom, Media & Entertainmentthe way we do itComprehensive portfoliomanagementThe system offers a consolidated viewof the operator s entire portfolio ofpromotions. This allows marketers tozoom in from a high-level, top-downperspective to a detailed analysis ofindividual offerings. The IntegratedMarketing System enables: The fastest, most economical way to increase ARPU. Immediate growth potential 25 50% for content and 15 25% for person-to-person messagingcampaigns. Highly targeted propositions,stimulating impulse purchases: when the mindset is there and the wallet is open. All of the support needed forsuccessful implementation andongoing maintenance.Powerful business monitoringand analysisThe Integrated Marketing Systemprovides real-time data about take-upof promotions, as well as individualusage (for example, when a userdownloads a content item as part of apromotion). This enables quick,accurate assessment of theeffectiveness of each promotion andfurther refines market segmentation(the user who reduces his or her SMSusage could receive a special offer, forexample). Thus managers can use real-timemarket intelligence based on keyperformance indicators and successcriteria to make rapid modifications totheir campaigns, ensuring the bestpossible results from every promotion.Only deep integration can deliver therequired speed, flexibility and results.Capgemini manages all integrationrequirements, in particular with CRM and billing such as contentand price list synchronization, orteasers and discounts implementation.The outcome is dependablesynchronization with the existingservices platform, the rating engineand the mediation layer. Capgeminiwill also ensure tight integration withapplication services and servicedelivery platforms to guaranteeseamless integration of promotional offerings within the flowof customer interactions.Capgemini also supplies theorganization with the necessarysupport helping and training themarketing team to introduce new business templates withconfiguration of the Access Controlprocess also included.The net result is that each newpromotional offering can beimplemented gradually, based onbusiness needs. An operator can startwith a small-scale launch to a sub-section of the target group, toinformed decisions on a wider rollout of the campaign.Build customer loyalty based on real-time dataThe Integrated Marketing System,which is entirely modular, isintegrated into the operator s servicenetwork and fed with real-timeinformation on subscriber actions such as portal browsing, contentdownload, messaging activities andstatus of pre-paid accounts.This information is used to triggerpersonalized offers to customersthrough the mobile portal, stimulatingcross- and up-selling, the purchase ofsubscription discounts and otherbenefits. These offers, woven intoportal browsing, create a uniqueexperience for each user, based ontheir tracked preferences. Using the Integrated Marketing System, one operator offered subscribers a Buy One Get One Free offer every Thursday where customers had the chance to get one free video clip download for every video clip download purchased. As a result, traffic tripled and revenue grew by more than 50 per cent.1,0002,0003,0004,0005,0006,0007,00006/0709/0712/0715/0718/0721/0724/0727/0730/0702/08Video Clip DownloadsOver 300% TrafficUsage Increase DateVideo Clip DownloadsPromotionPromotionPromotion20% higher on non-promotion days Source: Capgemini 1/2006Using Retail Best Practice to Unlock the Mobile MarketUntitled DocumentCapgemini TME GSATour Europlaza20 ave. Andre Prothin92927 La Defense cedexFRANCE+33 1 49 00 44 30TME-info@capgemini.frImproved customer experience Unique, relevant offers maintainedthrough analysis of real-time data. Application of sophisticated eligibilitycriteria and time-sensitive offers. Personalized communication withcustomers integrated into thepurchase experience.A system for marketing thatimproves the bottom line Quick definition and implementationof bundles and packages, reducingcost and time to market. Embedded marketing best practices.Strong management tools tocontrol business results Flexible definition and launch ofpromotional offerings, enablingbusiness decisions based on specificcriteria. A rich, easily managed portfolio oftargeted dynamic offerings. Monitoring and analysis ofperformance in near real-time,allowing rapid modifications.Capgemini and Pontis:Partnering for successCapgemini and Pontis make an idealteam for mobile network operatorswho want to offer targeted productofferings to well-defined user groups.As a leading systems integratorCapgemini brings resources andexperience, whilst Pontis offersunparalled knowledge and expertisein the mobile market. Together, theyprovide the systems and service thatsupports the entire offering lifecycle,from design through to deployment.It s a flagship system designed toincrease APRU, accelerate serviceadoption and enhance bonding withcustomers. Demand for the systemhas exceeded all expectations andcontinues to grow.Capgemini, one of the world s foremost providers of Consulting, Technology and Outsourcing services, has a uniqueway of working with its clients, called the Collaborative Business Experience. Backed by over three decades of industryand service experience, the CollaborativeBusiness Experience is designed to help our clients achieve better, faster,more sustainable results through seamless access to our network of world-leading technology partners and collaboration-focused methods and tools.Through commitment to mutual successand the achievement of tangible value,we help businesses implement growthstrategies, leverage technology, and thrivethrough the power of collaboration.Capgemini employs approximately60,000 people worldwide and reported2004 global revenues of 6.3 billion euros.More information about our services, offices and research is available atwww.capgemini.com.About Capgemini and the Collaborative Business Experiencewww.capgemini.com/tmeCopyright 2006 Capgemini. All rights reserved. About PontisPontis is a leading provider of softwaremarketing systems for CommunicationService Providers worldwide. Thecompany s mission is to empowerCommunication Service Providersmarketers to provide customers with the optimal product offering andpurchasing experience. For more information about Pontis,please visit us at www.pontis.com.
