CYBAEA, at the time trading as The PCA Group, the leading Marketing and Customer Relationship Management consultancy for the mobile telecoms industry, took on the role of turning Vodafone Romania’s fledgling marketing organisation into a fully formed Customer Value Management (CVM) practice while implementing new Inbound Marketing Capabilities.
Vodafone Romania, the premier Romanian mobile phone operator, had taken the decision to follow industry best practice and implement a robust Customer Value Management organization. A search was commissioned for an interim Director of CVM who could both shape the organisation and enhance the capabilities while a permanent selection was made.
The initial task was twofold
- Development of vision for Customer Value Management within Vodafone Romania, and a roadmap for the component projects that would deliver it.
- Managing Customer Value Management related activities within the organisation and instituting best practice processes and disciplines.
It emerged that Vodafone Romania would benefit from enhancement of its Outbound Marketing capabilities as well as implementation of Inbound Marketing, both based around the Chordiant product suite. Both projects were initiated and successfully completed. In addition, customer base reporting and segmentation was enhanced to a level which allowed CYBAEA’s “Insights Driven Campaign Creation” technique to be deployed. This method uses data mining and visualisation techniques to stimulate ideas for innovative revenue generating campaigns for the organisation. Campaigns for usage stimulation were rapidly identified and tested, and several of these are now in production generating significant profits.
“As well as shaping our Customer Value Management organisation, we were impressed by the way that the team instituted new revenue generating disciplines and individually developed the key skills of our staff.”
“As well as shaping our Customer Value Management organisation, we were impressed by the way that the team instituted new revenue generating disciplines and individually developed the key skills of our staff,” says Tony Nolan, Senior Director, Commercial Strategy & Development.
CYBAEA’s experience of Customer Value Management in previous organizations had indicated that significant opportunities for cost savings and incremental revenue generation lay in improving the efficiency of the retention processes. An assessment within Vodafone Romania revealed an innovative opportunity to enhance the contractual process for retention resulting in both increased customer satisfaction and rates of retention whilst reducing operational costs.
“In a single initiative designed to improve our retention processes, the team generated annual savings which were an order of magnitude greater than their fees for the whole assignment.”
“In a single initiative designed to improve our retention processes, the team generated annual savings which were an order of magnitude greater than their fees for the whole assignment,” stated Liliana Solomon, Chief Executive of Vodafone Romania.
Key business benefits from the new organization include:
- Insights Driven Campaign Creation (IDCC): allowing new revenue streams to be identified through mining of customer base data.
- Retention Process Improvement: leading to increased retention rates, improved customer satisfaction and cost reduction.
- Campaign Process Improvement: leading to improved campaign selection, performance assessment and profitability reporting.
The organization delivered multimillion euro new revenues in the first year and multimillion euro cost savings.