9. Losing young people to emigration
Year Immigrants Emigrants Net Population
ending migration change
April (000)
2007 109.5 42.2 67.3 106.1
2010 30.8 65.3 - 34.5 11.4
28,200 aged 15-24, 29,900 aged 25-34
10. Ireland & Generation Y
- Demographics
- Recession mindset
- The big insight
PRESENTATION
NAME
11. Ireland’s lost generation?
Under-25s unemployment almost doubled since 2007
35,100 unemployed Q2 2007
68,100 unemployed in Q2 2010
12. Unemployment rate by age
group
%
Q2 2007 Q2 2010
15-19 17.0 40.6
20-24 7.8 25.8
25-34 4.4 14.6
35-54 7.2 11.2
55+ 4.2 8.25
Source: CSO Quarterly National Household Survey, Quarter 2 2009, 2010
13. Cautiously Optimistic
This group has certainly changed their behavior due to the economic
conditions but only to the extent that their optimism is slightly
curtailed. They tend to think a little more before they act, but are still
acting. Source: Carat Young Irish Adults, Rejecting the recession, June 2009
14. New Serious
They have realised that the future may be a somewhat less stable
and secure than they thought and while they are still remarkably
confident about their personal ability to succeed, they are
thinking about the future in a more serious way.
Source: Carat Young Irish Adults, Rejecting the recession, June 2009
15. Smarter Choices
As with their more “cautious optimism” they are approaching their purchases
differently than before. They are a very savvy and informed group and understand
that the market conditions bring value and they are making sure that they get the
best value out there.
Source: Carat Young Irish Adults, Rejecting the recession, June 2009
16. Ireland & Generation Y
- Demographics
- Recession mindset
- The big insight
PRESENTATION
NAME
18. The Youth Market – 15-20 year olds
15-20 year olds 15-25 year olds
164 161 159 162 173
139 153
119 116 123 110
106 104 93 102 95 99 97 94
Like to I am very I have more I like to follow I usually keep Important to Other people I am often Other people I never seem I consider I don't feel I am always I look to my I want to be I ask others I try to fit as Managing my Other people
challenge & happy with ability than a well my feelings to be an view me as a bored view me as a to have myself to be a comfortable concerned friends for popular for opinions much into my time is one of view me as a
push myself my life as it is most people organised myself individual, not positive worrier enough free creative having to about what inspiration more than day as my biggest risk taker
to be the best routine just part of the person time person meet new others think of they ask me possible challenges
I can in life crowd people me
Source: Carat CCS 2009
19. The Youth Market – 21-25 year olds
.
21-25 year olds 15-25 year olds
157 146 151
131 135 123 133
103 117 113 108 111
90 91 100 98 100 99 96
Like to I am very I have more I like to follow I usually keep Important to Other people I am often Other people I never seem I consider I don't feel I am always I look to my I want to be I ask others I try to fit as Managing my Other people
challenge & happy with ability than a well my feelings to be an view me as a bored view me as a to have myself to be a comfortable concerned friends for popular for opinions much into my time is one of view me as a
push myself my life as it is most people organised myself individual, not positive worrier enough free creative having to about what inspiration more than day as my biggest risk taker
to be the best routine just part of the person time person meet new others think of they ask me possible challenges
I can in life crowd people me
Source: Carat CCS 2009
20. Key findings
Times are harder but Gen Y is
cautiously optimistic
Loyal to the group … choice is social
not personal & made in the context
of social reaction and implication
PRESENTATION
NAME
22. Gen Y love to connect
• Nearing 1b users • 100+ million users
• Avg user has 130 friends • 50 million tweets per day
• 6.1 million members
• 2.2 million RSVPs
• 180,000 meetups in
45,000 cities a month
• 65+ million members
• New member joins
every second
23. Explosion in social networking & digital
• 1 billion facebook users
– phenomenal growth in v short period of time.. where to next?
– 800 million on various social networking sites at any one time
– Social networks are becoming referential sites
• By 2013 more internet users on their mobile than via pc
– By 2015 more online sales via mobile phone than pc
31. Gen Y insight #2
personal choice is
made in the context
of the group
PRESENTATION
NAME
32. Gen Y
Ireland
Connecting
with Gen Y
What we
learned in
Acquisition
33. Meteors brand positioning
Deep psychological Brand Idea
Insight: + Rational Benefit
Price Advantage
= Meteors better value
Irish people want to be keeps Irish people more
popular & fear being in the loop
out of the loop
+ =
34. Communications Strategy
Brand Idea Famous Advertising
Meteors better value + Social Identity
Real, warm, human,
= Irish Social Truisms
keeps Irish people more in
everyday Ireland
the loop
+ =
35. How Meteor Became a 1,000,000 Customer Brand
2005 2009
• 200,000 customers • 1,000,000 customers
• 9% share • 20% share
• Prepay only • Full service
• Cheap • Value
• Rational benefit • Rational & Emotional benefit
• For Students, Immigrants • For everyone
• Bad coverage • Improving image
36. Gen Y Insight #3
Switching is a social event
PRESENTATION
NAME
38. Gen Y
Ireland
Connecting
with Gen Y
What we
learned in
Acquisition
Mobile
Youth
Switching
39. Pen Portrait -price, ‘free’ and offer conscious
15-17 18-24 25-35
Least likely to top up by €20 Almost 3 in 5 always try and Almost 3 in 5 always try and
in one go (due to expense). top up by €20 to get top up by €20 to get
Most likely to perceive promotion. promotion.
themselves to be on free More likely to perceive Most likely to perceive
any network texts. themselves to be on some themselves to be on free
3 in 5 visiting own operator form of text promotion. call/texts on net.(Thus V2V
store in past 3 months. 3 in 5 visiting own operator works)
(Opportunity to promote the store in past 3 months. Half visiting operator’s
brand). Half visiting operator’s website.
Half visiting operator’s website. One third visiting competitor
website. One quarter visiting stores.
One third visiting competitor competitor stores. Higher usage (relative to other
store. ages).
40. Share of Wallet Pyramid
15-35’s AGE
ALL PREPAY
AVERAGE MONTHLY SPEND 15-17 18-24 25-35
(€1,031) (€410) (€834) (€1,311)
Mobile Average
Monthly Spend: €22 €14 €21 €25
41. Heavily influenced by discounts and rewards
I normally buy/use brands that reward me for being loyal
Strongly agree that ads with Discount coupons influence me
Strongly agree that I notice ads with Discount coupons
115
110
105
100
95
90
85
80
Under 25 25-34 35-44 45-54 55-64
Source: Carat CCS 2009
42. ..but also spontaneous for ‘cool’ things
Shop around to make sure I'm getting best
value for money
91
I have more ability than most people
118
I don't mind paying for quality
93
55-64
I love to buy new gadgets and appliances 45-54
116 35-44
25-34
I buy the newest fashion brands & styles
Under 25
available
195
I tend to spend money without thinking
129
International brands have status
145
0 100 200 300
Source: Carat CCS 2009
43. Extent of Switching Providers – Primary
Yes All 15-74 Switched in last
12 months
Mobile telephone provider 36
27 60%
Car Insurance provider 12 56%
26
Broadband/internet
access provider 8 15 63%
Top-up Grocery Shop 7 12 53%
Main grocery shop 6
16 46%
Bank/financial institution
who offers Current A/C 6 62%
13
service
5 17 36%
Fixed/landline telephone
provider
(Base: All aged 15-24 – 202)
44. Leverage the community nature of
switching
Network & Coverage
Customer
Free credit to join Carel
Offer (Free
THE CORE
Website Handsets
texts etc) Network my -Price
Online store friends are - Range/style
Free webtexts Offer on (Smartphone)
mechanics Store
Perceived cost of
calls/texts (perceived as – Staff
individual costs unknown)
Products & Services – Ambiance
Rewards
–Mobile internet
(treats, freebies)
–Roaming availability &
cost
Source : B&A 2010
45. Recall of Promotions
June Oct Age
2010 2009
% 15-24 Those aged 15-24 are
% %
more aware of
18 27
promotions generally &
22
in particular of Meteor
promotions
18 17 34
11 17
11
At an overall level
within mobile,
8 4 11 promotions now play a
bigger role v 2 years
None 67 74 58 ago.
Source : Millward Brown Lansdowne, Tracking Survey monthly
data
46. Is Generation Y more likely to switch?
12
10 10
8 7 8
7 6 6
6
6 6 5 6
5
6 6 6 Very /fairly all adults
4
5 5 5 Under 25s
4
4 4 4
2 3 3 3
0
N=925 each month
PRESENTATION
Source : Millward Brown Lansdowne, Tracking Survey monthly NAME
data
47. Gen Y insight #4
They are more price
conscious
But also more attracted to
brands that offer social
inclusion & are socially
current
PRESENTATION
NAME
48. Gen Y
Ireland
Connecting
with Gen Y
What we
learned in
Acquisition
Mobile
Youth
Switching
Loyalty
Examples
49. How to drive loyalty
• Freebies
• Discounts on clothes, flights, music, concert tickets,
cinema
• Rewards for staying with a brand
• Exclusive events
• VIP status, log in only, member’s access
• The chance to be the first and to bring mates along
• Relevant and interesting content
PRESENTATION NAME
52. Milestone Rewards
Background:
• Meteor was witnessing an increase in prepay churn numbers but
more specifically an increase amongst certain customers who
were now being attracted by the tactical acquisition offers other
operators were putting into the marketplace.
• The value profile of those churning shifted dramatically in Nov to
March ’09.
• As acquisition opportunities slowed down and the market became
more saturated and as a result more competitive it was important
for operators to begin to place more focus on retention initiatives.
54
54. The Milestone Rewards Program…
• Aspirational rewards
• High perceived value
• Achievable spend targets
• Regular updates on their spend progress
56
55. The Milestone Rewards Program…
• The campaign was communicated by direct mail and text
• A micro site showcased the rewards
• Rewards were clearly linked to the value of each customers
monthly top up
• Customers had to stay on the network 3 months to redeem
rewards
• Each month their balance was communicated via text and updated
on the rewards micro site
• Customers were offered a reward with a much higher perceived
value than was actually the case
57
56. Relevance of Communications - Why
Beginning to feel the recession pinch
80% used social networking sites
47% went to cinema 3+ times every month
51% loved having the latest phone
41% loved gadgets.
54% on Face book daily
65% take at least 2 holidays per year
58
57. Target Profiling & Opt In
Target Group
Those on the network 6 months +
Platinum & Gold value customers
Topping up at least €20 every 30 days.
No gender or age restrictions
88,538
Opt In 28,350
Actually Fulfilled 24,150
102,966
58. Effectiveness of Execution - 3 Channel Mechanic
DIRECT MAIL
Main Objective:
Drive Program Opt in & Understanding
The DM clearly set out the mechanism behind the offer
showing in three clear steps how to get the most out of
the offer
60
59. Effectiveness of Execution - 3 Channel Mechanic
SMS
Main Objective:
Drive Awareness & Retain Engagement
The SMS was used as a low cost way to tell customers of their
balance and ensure they remained constantly engaged and
reminded in the program throughout the entire three month period.
61
60. Effectiveness of Execution -3 Channel Mechanic
Online Site
Main Objective:
Offer full transparency on the offer. Be used as point of
engagement, and facilitating reward redemption & data capture.
Also clearly highlighted to customers what offers they could be
availing of should they increase their top up amounts over the
period.
Facebook used to amplify the offer
62
63. Non-quantifiable benefits...
Data Capture & Validation – All customers needed to provide
updated details
Marketing Opt In - Default opting in to receive all types of
marketing communications
Customer Engagement - Remained engaged with the offer over a
three month period
Word of Mouth Communications - Anecdotally there was very
positive customer feedback, through the comment cards, research
and from general customer feedback.
65
64. Quantified Results..
Top Up Effect: - 24,150 customers fulfilled – 23%
Redemption Required Average Top Average Incremental
Breakdown% Top Up up in period Top Up top up
Before
Group 1 46% €101+ €184.70 €151.17 €33.50
Group 2 33% €71-100 €86.90 €81.54 €5.36
Group 3 21% € 50-70 €62.70 €57.95 €4.70
66
65. Goodie Bag
Background:
• Meteor Milestones was successful in retaining high value
customers over time with measurable, profitable pay back.
• The underlying conditions that prompted the creation of Meteor
Milestones continued:
– Acquisition opportunities continued to slow
– Meteor experienced continuing competitor competition in it’s
traditional market of 15 – 24 year olds
• Thorough analysis of customers at several periods post campaign
showed that Meteor Milestones was meeting it’s objectives of
customer retention and continued value.
67
66. Goodie Bag
What changes were made?
• Building on the previous campaign, Goodie Bag offered a wider selection
of gifts to more of the customer base – 210,000
• The gift options were extended and amended from customer feedback
and focus groups
68
67. Goodie Bag…
• The Goodie bags campaign reflected the key success of the
Milestone Reward programme
– It was communicated by direct mail and text
– A newly constructed micro site showcased the rewards
– Rewards were clearly linked to the value of each customers
monthly top
– Customers had to stay on the network 3 months to redeem
rewards
– Each month their balance was communicated via text and
updated on the rewards micro site
– Customers were offered a reward with a much higher
perceived value than was actually the case
69
68. Gen Y insight #5?
• Loyal to their tribes more than their brands
– Savvy & offer astute
• Times are hard, they still spend albeit cautiously
• Offer is critical in order to elicit a response
• Critical to harness different media in order to
communicate the message
• Challenge for brands is to remain socially current and
connected to their tribes
PRESENTATION NAME
