4. RAZOR, A NEW KIND OF MARKETING PARTNER
•
We are bringing accountability back to marketing by simply focusing on what matters. That means if it doesn’t
generate a tangible result, we don’t do it.
•
Our simple approach uncovers smarter ways for clients to grow customers, build transactions, and drive results.
– We custom build each solution
– We are strategic partners
– We measure everything
•
Our name comes from a 14th century principle advocating simplicity developed by William of Occam.
Occam’s RAZOR: “All other things being equal,
the simplest solution is usually the best.”
February 24, 2009 | 3
5. CUSTOM BUILT SOLUTIONS: MARKETING MADE FROM SCRATCH
•
We immerse ourselves in your business model and obsess over details that other agencies
ignore. Since data and analytics are the foundation of what we do, we always employ:
– Customer, business, and secondary data
– Marketing/communications strategists
– Strategic blueprints based on your business
•
Our strategic blueprints determine:
– Marketing priorities
– Required resources
– Activation plans
– Learning calendars
February 24, 2009 | 4
6. RAZOR APPROACH
• Marketing Goals
– Customer Acquisition
– Customer Retention
– Build Average Purchase
• Strategy
– Mix of Brand/Activation
Consumer
Communication
Build Brand Awareness,
Consideration
February 24, 2009 | 5
Grow customers and build transactions:
• Understand motivations
• Select competitive alternatives
• Understand access/touch points –
corporate vs. dealers, online vs. offline
• Identify shopping behavior
• Select proper tools to reach them
7. METROPCS CONSUMER IS ONE WE UNDERSTAND
•
MetroPCS Tier I audience
– Financially constricted; may have cash but not credit; may have
some credit but limited cash; may be constricted on both
– Options limited
• Cannot qualify for traditional wireless contracts
• Buy prepaid phone and limited minutes
MetroPCS Tier II targets: psychographic or lifestyle more important as
demographics
– Value‐conscious consumers – avoid overrun minutes, set budget
amount
– Consumers who do not want any obligation → freedom
– Managing a family need, want child/family/spouse to have
phone, but don’t want to run risk of long‐term contacts and
overruns
– Can turn off and turn on as needed
February 24, 2009 | 6
Household Income Breakdown
By Mobile User Type
Percentage of Users
•
50% of no‐contract
mobile customers
have income under
$50K
Annual Household Income
Source: Simmons SMRB 2008 Full Year
8. WE SEE THE ECONOMY AS BOTH CHALLENGE AND OPPORTUNITY
•
Consumers’ challenges expand as economy declines
– Already constrained consumers are being squeezed even more
– Consumers making hard trade‐offs regarding needs vs. wants
– Consumers searching for lower cost options
The opportunities are accelerating
– More constrained consumers
• More people who were not constricted are becoming so,
→ losing jobs, earninglower salaries → but needs still exist
• They will likely maintain value options when economy improves
– More value‐conscious or budget‐conscious consumer
• Looking for cost savings
• Reducing obligations
• Costs rising faster than income
• Fear of losing jobs
– Many people consolidating
• Moving to wireless only
• Eliminating traditional home phone service
February 24, 2009 | 7
Quarter‐to‐Quarter Growth in Real GDP
Percent
•
?
2005
2006
2007
2008
2009
9. WE SEE METROPCS UNIQUELY POSITIONED TO TAKE
ADVANTAGE OF THESE FACTORS
Risk of Service
Interruption
Low
• Traditional Cellular
Sprint
Verizon Wireless
AT&T Wireless
T‐Mobile
• Cost controlled
• Low risk of shut off due
to unlimited minutes
• No contract obligation
Obligation
Low
Cost
High
Variability
• High cost variability
• Contractual obligation
• Low risk of shutoff in
case of minute overrun
Low
• Pre‐paid minutes
Virgin Mobile
Tracfone
AT&T Go Phone
High
High
February 24, 2009 | 8
•
•
•
•
Rechargeable minutes
Texting
International
Cost contained by amount
of minutes purchased
• High risk of shutoff when
minutes used up
• No obligation
10. SIMPLE METROPCS VALUE PROPOSITION MEETS NEEDS OF
CHALLENGED CUSTOMERS
•
•
•
•
•
•
Budget friendly
Freedom from surprises
– No unexpected charges
– Limited extra charges (except roaming)
No long‐term obligation
– Including additional phones for family without adding
obligation
Advanced services available including web and
mapping/directions
Keep current phone (Verizon and Sprint) with flash over
MetroPCS allows customers to make changes as their life,
lifestyle, and life situations change
February 24, 2009 | 9
11. WE SEE THREE CONSUMER ACTIVATION OPPORTUNITIES FOR METROPCS
1.
2.
3.
Acquisition
– Brand message is being delivered in broadcast and traditional broad‐reaching media
– Leverage local dealer spend
– Explore targeted media options to activate purchase such as:
• Digital – affiliate marketing, paid search, display with new strategic profiles
• Direct Mail modeled against targets with appropriate message and offer
– Partnerships leverage marketing dollars, expand distribution network ,and offer customers “surprise and delight”
– Non‐traditional approaches
• Viral marketing(ex. burning cellular contracts)
Retention
– Given the pressure on certain segments of current MetroPCS customers, how do we proactively retain them?
• Understand life cycle and attrition
– Reactivation of lapsed customers
• Message and program to reach them
Build (ongoing revenue stream) average revenue
– Upsell plans
– Add on other family members
February 24, 2009 | 10
12. ACTIVATING PROGRAMS AT MARKET LEVEL
Brand and message extended into field marketing
•
Continuity
•
Effective co‐op usage
•
Strong communication: print and digital
•
Potential corporate spend savings
RAZOR has experience building franchise/dealer organization support programs and tools
• Franchisee
• Co‐op
• Individual franchisee
tools (PMO)
• Franchisee
• Media planning
• Store level plans
Subscription base and membership business channels
• Partnerships
• Acquisition
February 24, 2009 | 11
• Acquisition/retention
• Store level
• Direct‐to‐consumer
• Agent network
13. METROPCS CUSTOMIZED OPPORTUNITIES SURFACED THROUGH
RAZOR’S NEEDS ASSESSMENT PROCESS
Corporate
Stores
and Dealers
Corporate Approach
Consumer Learning
February 24, 2009 | 12
•
•
•
•
Who uses activation materials?
What is being used?
Organization structures?
Budgets available for programs?
• Programs and materials
– What’s available?
– Access modes and learning?
• Consumer research?
• Segmentation/Value?
• Database data points available?
14. RAZOR’S NEXT STEPS AND BLUEPRINT DELIVERABLE
•
30‐60 day review will yield MetroPCS blueprint
– Acquisition
– Retention
– Build average purchase
•
Transaction building media
– Direct mail opportunities
– Digital strategy and creative
– Local store vs. DMA program
•
Insight and analytics
– Segmentation and modeling to drive even more business
– Learning needs to help focus on additional opportunities.
For example, potential barriers to trial/retention such as
in‐store vs. online payments
– Other programs
• Grand Openings
• Down Store
February 24, 2009 | 13
Domino’s Pizza
PMO site
RAC high impact
direct mail
Blockbuster Online
display ad
RAC Hispanic‐targeted
direct mail segmentation
Domino’s Pizza learning calendar
16. THE TOOLS WE USE
Strategy and Analysis
•
•
•
•
•
•
•
February 24, 2009 | 15
Strategic planning
Marketing plan
development
E‐business strategy
Response and
predictive modeling
Customer
segmentation
Business analysis
Consumer research
Marketing and
Communication
Program Execution and
ROI Analysis
•
•
•
•
•
•
•
•
•
•
•
Creative development
Website development
Search optimization
Paid search
E‐mail marketing
Database marketing
and direct mail
National and trade area
media
•
Learning calendar
Results/ROI reporting
Media mix modeling
Warehousing,
fulfillment, and
logistics management
Gift card management
17. BEING ACCOUNTABLE PAYS OFF FOR OUR CLIENTS. IT’S TREATED
US PRETTY WELL, TOO.
Ad Age
#1 Growth Marketing
Services Agency: 2006
Ernst & Young
Southwest Entrepreneur of
the Year Finalist : 2006 &
2007
Dallas Business Journal
#1 Fastest Growing
Private Company: 2006
Capitalized billings in millions
130% 159% 43% 31% 25% forecast
February 24, 2009 | 16
Entrepreneur Magazine
#9 HOT 100 Concepts: 2006