Pricing and communication test for the "World" option of a mobile operator in Europe.
Main test characteristics
A leading mobile operator offering the whole range of mobile services to his customers in a large European country.
Increase the penetration of the “World” option (international calls included in the price plan) on its customers, by identifying the right pricing and communication for each of the 5 existing customer segments.
Three dimensions (pricing, message, and level of detail) and 3 to 7 values for each dimension, corresponding to a total of 105 combinations (7x5x3).
13 test cells launched on the market to simulate the results of these 105 combinations.
300.000 customers selected thanks to an existing scoring model, and split in 5 different clusters. Each of the 13 test cells has been populated with 23.000 customers, presenting the same characteristics than the total population of the test.
Final test results
After 4 weeks, the extrapolation of the results observed on the 13 test cells led to the identification of 3 optimal combinations: a single one for 3 different clusters, and 2 different ones for the remaining clusters.
The overall increase in redemption reached +35% at a global level (+56% for a specific cluster), and the revenues increased by +19%.
This is important to note that some combinations offered an even higher increase in redemption, but not in terms of revenues (eg. combinations with an aggressive pricing). These combinations have not been selected by the company for strategic reasons.
Redemption and revenues upside per cluster(in % between best offer and standard offer)