Recommender programmes with a high potential for new customers
"In our sales-driven market, innovative approaches such as word-of-mouth programmes make all the difference. With its precise understanding of the market and a strong conceptual approach SMP has helped to discover and increase a significant new customer potential."
Sales Director, Telecom Group
"No marketing channel is as effective as a satisfied customer's recommendation. Especially in saturated markets, companies need to make use of every single customer contact - on the one hand to satisfy their needs and on the other hand to convert those into influencing brand ambassadors."
Holger Neinhaus, Partner at SMP AG
In the Telecommunications market, competition is cut-throat. Today, statistically speaking, every German has 1.4 mobile phone contracts. This makes it difficult and expensive for companies to attract new customers. The acquisition cost for a single end customer contract can be anything up to € 300.
In recent years, recommender programmes have grown into an important and attractive distribution channel for telecoms companies. Some of these programmes already contribute more than 20 % of new customer sales.
SMP devised a "word of mouth" strategy for a large telecommunications company. This has succeeded in realising the new customer potential of all relevant recommender groups in individually tailored programmes. Relevant programme components are:
- Recommender programmes for customers
- Recommender programmes for prospective customers
- Recommender programmes for employees
- Programmes for affiliates
- Programmes for power sellers
For these components, an integrative structure was developed in the form of a best practice "word of mouth" programme. This also meant, firstly, establishing a broad set of mechanisms for acquisition; secondly, aligning products, rates and commissions with each other; thirdly, defining points and frequencies of address for each target group and fourthly, ensuring service processes and an IT management platform.
For the telecommunications group, successful implementation of the project brought in 80,000 additional customers a year. In total, the word of mouth programmes contributed 21 % of all acquired new customers each year.
