Vodafone — Bundle & Save
Leveraging Likert Scale and Correlation Analysis to Enhance the Vodafone Bundle & Save Campaign
This case study explores the transformative journey of the Vodafone Bundle & Save campaign, with a specific focus on improving customer retention. By leveraging Likert scale measurements and conducting correlation analysis, Vodafone undertook a data-driven approach to enhance the campaign's effectiveness.
Introduction
The goal of the Bundle & Save campaign was to boost customer retention by promoting an additional service that could be added to existing accounts, offering a 5% discount on the monthly fee of each service, up to 20%. However, the campaign's conversion rate was low.
Research Approach
To tackle this issue, I conducted a heuristic UX review followed by a mixed-methods study to gain insights and validate my assumptions.
Process Overview
I divided the project into three parts and shared my insights with the team and stakeholders after each part.
Data Analysis and Heuristic Review
During this phase, I focused on identifying friction points, drop-offs, and areas for improvement. I discovered that the click-through rate on the secondary link "view all plans" was higher than my primary call-to-action, which negatively impacted the campaign's performance. Moreover, I found inconsistencies in how the discount was expressed, with some being shown as percentages and others as dollar values, leading to confusion among users. This might have created confusion in the users.
Survey and Customer Interviews
I conducted a survey targeting customers who had received and opened an EDM from Vodafone within fifteen days. The sample consisted of customers aged 24 to 55, with a combined annual income of $100,000 or more. I collected 304 records and ensured representativeness by comparing them to my Email Marketing database.
A survey explored various aspects, including brand familiarity, fidelity and loyalty, preferred shopping and servicing channels, device usage, spending patterns, demographics, and more.
Brand fidelity and familiarity were assessed using Likert scale questions. Each parameter had five questions, and the results were consolidated into single values for both brand fidelity and familiarity. To verify correlations, a reliability analysis was conducted, revealing a positive correlation between spending and brand fidelity. Customers with higher brand fidelity tended to have higher spending habits.
- Visualisation of the thematic analysis based on the customer interviews Following the survey, I conducted one-hour remote interviews with twelve participants to further explore their trust in Telco companies and their attitude toward the Bundle & Save offer. Additionally, we collected feedback regarding the campaign's EDMs and landing pages.
The sample consisted of six individuals from the two segments of interest identified in the survey: the Low spent/brand fidelity segment and the High spent/brand fidelity segment. To ensure a diverse representation, participants were selected to have a mix of genders, devices used, household compositions, and locations (metro areas in NSW and Victoria). Importantly, these participants were also the key decision-makers when it came to selecting a telco provider.
Key Findings
Through my research, I uncovered the following key findings:
Customers with low spend and brand fidelity are price-sensitive and seek clarity in offers. They often look for alternative deals, fearing hidden fees, and aim to find the best offer available.
Customers with high spend and brand fidelity value innovation and rewarding loyalty programs. However, they have low trust in the telco sector as a whole.
Experimentation and Validation
The insights gathered have been organised and consolidated using the Value Proposition Canvas.
The Value Proposition Canvas is a powerful tool that examines the connection between customer segments and value propositions within Osterwalder's broader Business Model Canvas. By utilising this tool, we can ensure that our product or service is aligned with what the customer truly values and requires.
When combined with other artefacts like competitor landscape analysis, the Value Proposition Canvas enables us to identify specific areas for improvement. These areas can then be further broken down into testable hypotheses and actionable tasks, allowing us to take concrete steps towards enhancing our offering.
Recommendations
Based on the findings, I made several recommendations to enhance the effectiveness of my campaign and improve customer satisfaction:
Redesign my EDM and Landing page templates to ensure visual consistency and alignment with my brand guidelines, thus improving brand recognisability.
Consistent communication of offers across all customer touchpoints is crucial for ensuring clarity and eliminating confusion.
Simplify my Bundle and Save discount model and clearly communicate it to my customers.
Reward customer loyalty, I recommend increasing the discount offer for long-term customers and those with multiple services.
Roadmap and Success Criteria
I created a detailed roadmap, associating problem statements with actionable items. I developed user stories, acceptance criteria, and testable hypotheses with success metrics to measure the business impact of my initiative. The roadmap includes testing and implementation rounds, ensuring alignment with the team and stakeholders and meeting project deadlines.
Conclusion
By implementing these recommendations, the overall customer understanding, trust, and engagement with the Bundle & Save campaign is significantly improved, resulting in a decisive increase in conversion rates and fostering long-term customer retention.
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