Vodafone —
Bundle & Save
UX Research
2021
The Bundle & Save campaign is designed to increase customer retention by promoting an additional service that can be added to an existing account. The customer receives a 5% discount on the monthly fee of each of the services up to 20%.
However, a funnel analysis has been conducted and it has been observed that the conversion rate of the campaign is low.
To investigate the phenomenon, a heuristic UX review has been conducted followed by a qualitative study to generate insight and validate assumptions.
As the outcome of this qualitative study, it has been recognised that a possible link between the customers' confidence in understanding the offer and their trust in receiving the best deal leads them to look for alternatives.
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The project has been segmented into three parts. After each part, the insights were shared and workshopped with the team and the stakeholders.
The objective of Data analysis and heuristic review is to individuate friction points, drop points and areas of improvement.
The customer interviews have been designed to deep dive into the insights collected in the previous part. This added an extra layer to the data and help to validate assumptions.
Learning gathered in the first and second parts was used to formulate hypotheses. These hypotheses were then tested to ensure the generation of real benefits for the business and the customers.
However, a funnel analysis has been conducted and it has been observed that the conversion rate of the campaign is low.
To investigate the phenomenon, a heuristic UX review has been conducted followed by a qualitative study to generate insight and validate assumptions.
As the outcome of this qualitative study, it has been recognised that a possible link between the customers' confidence in understanding the offer and their trust in receiving the best deal leads them to look for alternatives.
Process overview
The project has been segmented into three parts. After each part, the insights were shared and workshopped with the team and the stakeholders.
- Data analysis and heuristic review
- Survey and customer interviews
- Experimentation and validation
The objective of Data analysis and heuristic review is to individuate friction points, drop points and areas of improvement.
The customer interviews have been designed to deep dive into the insights collected in the previous part. This added an extra layer to the data and help to validate assumptions.
Learning gathered in the first and second parts was used to formulate hypotheses. These hypotheses were then tested to ensure the generation of real benefits for the business and the customers.
Data analysis and heuristic review
Call-to-actions
It has been observed that the click-through rate on the secondary link "view all plan" is higher than the click-through rate of the primary call-to-action for both the device variations (Apple and Samsung devices).
This links move users out of the conversion funnel and have a negative impact in the performance of the campaign.
- "Shop now" - iPhone pages: 10.3%
- "Shop now" - Samsung pages: 5.7%
- "View all plans": 20%
Discounts
In the EDM and landing page, the discounts are expressed inconsistently.
Some discounts are expressed as percent while others as a dollar value, per month or over the life of the contract. It can be unclear or confusing for some users.
Highlights
The survey showed a positive correlation between the participant spend in telco services and brand fidelity. Age and location didn’t influence the income-loyalty correlation.
The survey showed a positive correlation between the participant spend in telco services and brand fidelity. Age and location didn’t influence the income-loyalty correlation.
Survey
A survey targeted customers who have received and opened an EDM from Vodafone within fifteen days.
The sample was based on the marketing target segment of the Bundle & Save campaigns and included customers aged 24 to 55, in a households of two or more with a combined income of $100,000 or more per year.
304 records have been collected and compared to the Email Marketing database to ensure to be representative the total population.
To ensure unbiased replies, the participants have not given indication that the survey was related to the Bundle and Save program.
Survey design and analysis
The questionnaire has been structured into five sections including the screener and explored:
The survey was designed to be completed in approximately twenty minutes and it was based on single and multiple-choice, demographic, likert scale and score rating questions.
Brand fidelity and loyalty have been measured using likert scale and score rating question. Two reverse questions have been included to correct agreement bias.
The values have been collapsed into single values for brand fidelity and loyalty.
Reliability analysis has been conducted to verify the correlation between the single questions.
The sample was based on the marketing target segment of the Bundle & Save campaigns and included customers aged 24 to 55, in a households of two or more with a combined income of $100,000 or more per year.
304 records have been collected and compared to the Email Marketing database to ensure to be representative the total population.
To ensure unbiased replies, the participants have not given indication that the survey was related to the Bundle and Save program.
Survey design and analysis
The questionnaire has been structured into five sections including the screener and explored:
- Brand familiarity
- Brand fidelity and loyalty (NPS and follow up questions)
- Preferred shopping and servicing channels
- Devices used, spend, data and inclusions
- Demographics such as hobbies, loyalty program membership, education and employment, household income and structure.
The survey was designed to be completed in approximately twenty minutes and it was based on single and multiple-choice, demographic, likert scale and score rating questions.
Brand fidelity and loyalty have been measured using likert scale and score rating question. Two reverse questions have been included to correct agreement bias.
The values have been collapsed into single values for brand fidelity and loyalty.
Reliability analysis has been conducted to verify the correlation between the single questions.
Results
The survey showed a correlation between the participant spend in telco services and brand fidelity. Age and location didn’t influence the spend-fidelity correlation.
Low spent/brand fidelity
Customers in this segment seek competitive prices that are clear and transparent. These customers want to stay up-to-date with tech trends but are constrained by budget.
Their interest in offers such as Bundle & Save can be very high. However, these customers are particularly concerned about hidden fees and are likely to shop around looking online and in-store for the best deal.
High spent/brand fidelity
This segment represents high-income professionals who are looking for innovative services and products.
These customers are interested in highly rewarding loyalty programs.
They have low trust in the ability of Telco providers to meet their needs but they also believe that it is a general issue of the sector.
Customer interviews
Following the survey, twelve participants have been recruited for a one-hour remote interview to deep-dive the subjects of trust in Telco companies and the attitude toward the Bundle & Save offer but also collect feedbacks in regard to the campaign EDMs and LP.
The sample was based on six individuals from the two segments of interest discovered in the survey (Low and High spent/brand fidelity).
It has been ensured a mix of genders, devices of use, house-hold composition and locations (metro areas in NSW and Victoria).
They are also been selected to be the key decision-makers regarding the telco provider.
Methodology
The interviews has been conducted remotely for 45 minutes. The moderator was required to follow a script.
The script has been used only as a general guide supporting the collection of comparable data.
It also allowed for the flexibility needed to create the correct environment for participants to openly express their opinion.
Assuming the device is an important element for the customers, two EDMs presented to the participants featuring iPhone 12 (EDM#1) and Samsung Galaxy 21s (EDM#2). The landing page is based on iPhone 13 (LP).
Participants understanding of the offer
The first few seconds of interaction with the EDM are crucial to conveying the information that drives the customer's decision to visit the LP.
Brand recognisability is fundamental to conveying a sense of trust. This is specially relevant for the “high spend/brand fidelity” segment.
The participants can describe the offer in EDMs with different levels of confidence.
However, the process requested a significant cognitive effort and took over one minute for all the participants.
The effects of lack of clarity in the offer details
The inability of the participants to confidently understand the promotional offers impacts their trust toward the provider and the feeling of not receiving the best available offer.
Low spend/brand fidelity: seeking clarifications
When the “low spend/brand fidelity” segment participants described their experience of proceeding with a promotional offer, they mentioned that they rely on inspecting the term and conditions or talking with a representative seeking clarifications before proceeding.
High spend/brand fidelity: seeking better deals
Several participants in the “high spend/brand fidelity” segment believe that the research for an alternative led to a more beneficial outcome.
A participant mentioned two situtations where she has been able to receive a "better" deal after she called the customer care service.
Conclusions
A poor understanding of the offer induces customers of seeking clarifications through other channels such as retails or customer care.
By exploring alternative offers, the customers may perceive other offers as better than the one received via EDM.
Once this belief is established, the customers will continue to look for alternatives when they receive a commercial offer.
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The first few seconds of interaction with the EDM are crucial to conveying the information that drives the customer's decision to visit the LP.
Brand recognisability is fundamental to conveying a sense of trust. This is specially relevant for the “high spend/brand fidelity” segment.
The participants can describe the offer in EDMs with different levels of confidence.
However, the process requested a significant cognitive effort and took over one minute for all the participants.
The effects of lack of clarity in the offer details
The inability of the participants to confidently understand the promotional offers impacts their trust toward the provider and the feeling of not receiving the best available offer.
A participant said "So that is kind of the problem that a lot of people have with phone companies. [...] there's probably something in the Fine detail, [...]. So then it would be more trustworthy.
Low spend/brand fidelity: seeking clarifications
When the “low spend/brand fidelity” segment participants described their experience of proceeding with a promotional offer, they mentioned that they rely on inspecting the term and conditions or talking with a representative seeking clarifications before proceeding.
A participant mentioned that if an offer is only available online, she would visit the store and then go online to redeem the offer.
A participant said "There was a part where it was like all the terms and conditions of the promotion will read that first.”
High spend/brand fidelity: seeking better deals
Several participants in the “high spend/brand fidelity” segment believe that the research for an alternative led to a more beneficial outcome.
A participant mentioned two situtations where she has been able to receive a "better" deal after she called the customer care service.
A participant said “I just had a question, and then I asked them if if they had any other like deals or like values or and like discounts, and then they said, well, actually you're paying a little bit more than you should be paying.”
Conclusions
A poor understanding of the offer induces customers of seeking clarifications through other channels such as retails or customer care.
By exploring alternative offers, the customers may perceive other offers as better than the one received via EDM.
Once this belief is established, the customers will continue to look for alternatives when they receive a commercial offer.
HighlightsBrand recognisability is fundamental to conveying a sense of trust. This has been achieved by creating a curated template that aligns to the brand guidelines and ensures visual consistency.
Value
Proposition Canvas
The insights collected have been collided and structured in the Value Proposition Canvas.
The Value Proposition Canvas is a detailed look at the relationship between two parts of the Osterwalder's broader Business Model Canvas: customer segments and value propositions.
This tool helps ensure that a product or service is positioned around what the customer values and needs.
When used in conjunction with other artifacts such as competitors landscape analysis, the Value Proposition Canvas can be used to identify areas of improvement which can be further broken down into testable hypotheses and actionable items.
Roadmap and success criterias
Problem statements have been associated with actionable items and then presented to the relevant stakeholders.
The list included:
- Brand recognizability. Redesign the EDM and Landing page template to visual consistency and align with the brand guidelines.
- Consist offers communication. Ensure consistency in the offers introduced to the customers in every channel the customer interacts with the brand (ie. Customer care service agent to ensure share B&S offer to customers previously exposed to it).
- Improve clarity of the offer. Simplified the Bundle and Save discount model and ensure it is clearly communicated.
- Reward customer’s loyalty. Increase the discount offer to long term customers and customers with more than two services.
User stories and acceptance criteria have been created while testable hypotheses and success metrics have been associated with each of the items to measure the real business impact of the initiative.
A clear and defined road map with testing and implementation rounds has been detailed and agreed with the stakeholders to ensure to meet the project deadline and align the team on the different steps of the project.
MaxDiff
A survey featuring Maxdiff question type has been designed to opmised the headline of the EDM and landing pages.
A series of questions related democraphic, telco products usage and NPS has been used to indentify and later segment the partecipants.
Statistical models has been used to compute the share of preference, probability, and lantent class analysis.
