3. Continuous relationships

Vectia Case: TDC

 Finding solutions for a solutions provider

Starting point
Although TDC considered itself good at establishing and maintaining relationships with its customers, they wanted to validate and systemise their sales management process. With a segmentation project with Vectia successfully executed, TDC wanted to continue with managing sales and contacts, with the understanding that they needed to find a standardised solution platform that also allows for taking a customer perspective.

Objective of cooperation 
TDC continued working with Vectia thanks to Vectia’s ability to integrate solid theory with software. The answer to TDC:s needs was found in SalesDriver, which is a modular IT-based toolbox for systematising sales management. Because of its modular structure, new tools could quickly be added in order to meet up current requirements. SalesDriver also allowed for a fast deployment schedule with clearly defined implementation steps.

Results and business impact
After implementing SalesDriver TDC’s sales activities have doubled and hit rate has increased by 5 percentage points. The quality of customer data has improved as has the reporting of lead generation. As a whole, resources are used more effectively. The results have also been measured objectively as TDC took second place in a recent survey for “The best sales Organisation in Finland”.

Based on case article in Vectia Explore magazine Autumn 2010.

TDC provides communication solutions for businesses.

Vectia Case: Itella Information

Selling the value of value

Starting point
Being a forerunner in supplying solutions for financial information flows and electronics invoicing, Itella information identified the challenge of selling the value of the process transformation to its customers, with the aim of reaching higher margins. Hence, Itella needed new ideas to what could motivate people to change habits, as the features of a groundbreaking future solution were not enough.

Objective of cooperation
An integral aim of the process was to implement the idea of value selling among the personnel. After working out processes and tools for value selling, the idea was rolled out by means of training and coaching. Externally a model for global value selling was developed, according to which Itella is selling not the features of the new solution, but rather the value the solutions offer to the customers.

Results and business impact
When implementing value based selling, recent customer cases have gone well. It is, however, still unclear if this results directly from selling value instead of features. Nonetheless, the concept of selling value has a lot of additional potential in other Itella Information markets. Itella also accepts that the two ways of selling, traditional and value based, will coexist for some time.

Based on case article in Vectia Explore magazine Autumn 2010.

Itella Information is a pioneer in electronic invoicing and solutions for enhancing financial information.

Vectia Case: OP-Pohjola

Engaging youth on their own terms

Starting point
Young adults are as conservative as their parents when it comes to relationships with banks and insurance companies. As a group young adults are extremely heterogenic: demographic variables do not correlate with their banking and insurance needs, and cannot therefore act as a credible platform for creating lasting customer relationships.

Objective of cooperation
With support from Vectia’s tools and methods, a youth concept was created, based on the many first, life-changing situations common for all young adults. Each event is described in detail through the individual’s needs and worries in the light of OP-Pohjola’s offerings and services. Pricing, communications and channels, rewarding and partnership were defined for the concept. Methods, such as personal interviews, to identify the events and the individual’s background and future plans were defined.

Results and business impacts
Youth-specific rewards and flexible, situation-specific services all aim at established customer relationships for years to come. The concept will be piloted with event-based targeted campaigns and media marketing, after which the reaction of young adults will be closely monitored. OP Bank Group’s Senior Vice President Hanna Hartikainen describes the outcome of the project: “Our new concept has been received with interest by our regional cooperative banks. Branch offices have nominated trained personnel to deal exclusively with youth.

Based on case article in Vectia Explore magazine Autumn 2009.

OP-Pohjola isFinland’s largest financial services group.

Vectia Case: YLE

Getting intimate with the public

Starting point
YLE felt the competition of commercial televisions and radio channels and the diverse demand of the public. YLE wanted to serve its clients better and to do so it needed to have insight into the viewers and listeners.

Objective of cooperation
To support YLE, Vectia helped to find the most accurate and relevant segmentation model. The viewers’ relationship to YLE-produced content was found to be the most relevant segmentation criterion. The resulted eight segments were intimately described and to support the implementation, Vectia produced handbooks for YLE personnel.

Results and business impacts
YLE’s Managing Director Mikael Jungner was personally surprised by the wealth and value of information and the quality of the work done. The results will be relevant for several years to come, as views, opinions and attitudes take a long time to change. According to Jungner, Vectia segmentation also provides a systematic way of approaching viewers and listeners plus it provides resources for programme maps as well as for individual programmes.

Based on case article in Vectia Explore magazine Spring 2009

YLE is the Finnish Broadcasting Company

Vectia Case: TeliaSonera

Target: one-to-one relationships

Starting point
Teliasonera needed radical actions to cut the increasing costs related to fierce competition for new customers and to stop customer base corrupting churn. TeliaSonera’s offering was fragmented and difficult to understand which called for segmentation and customer insight to be able to create an offering based on segment or even on a customer.

Objective of cooperation
With the help of statistical modelling, TeliaSonera identified ten segments to gain insight into existing customers. This insight was deepened with qualitative research and strategies and targets were created for each segment. With the help of Vectia a segment toolbox was created to enable organisation-wide awareness and use of the segmentation model. Each segment was described and given a distinctive face and name and the new names such as Wannabees or Garden Ladies started to be present in all decision making.

Results and business impacts
The most visible result of the segmentation was the revolutionary My Sonera concept. It allows customers to create personal mobile solutions from different service modules and has already showed staggering results. After the segmentation sales to existing customers have multiplied, churn is at an all-time low and the company has been able to gain new customers without having to resort to selling mobile subscriptions at a loss. TeliaSonera is now able to be more proactive and already planning to continue its cooperation with Vectia. Next step is to look further ahead and renew TeliaSonera’s loyalty concept.

Based on case article in Vectia Explore magazine Autumn 2008.

TeliaSonera is the leading telecommunications provider in the Nordic and Baltic countries

Vectia Case: Elisa

Using everyday practices as sources for strategy

Starting point
The challenge for Elisa and other operators alike is to generate growth from the existing customer base. Realising that assumptions about customer needs do not necessarily correspond to reality Elisa decided to apply a method based on observation of and participation in customers’ everyday practices to yield new market insight and growth potential.

Objective of the co-operation
A project called “Everyday practices and Elisa” was applied to gain market rather than customer insight by focusing on everyday lives of Elisa’s customers. Over 430 Elisa employees participated – observing, interviewing, making notes and keeping diaries about customers’ everyday practices. The project yielded over 4000 customer observations that were analysed by Vectia for further use. In addition to consumers and small enterprises, also business consumers were a part of the project.
 
Results and business impacts
A large number of participating personnel had not previously been in continuous contact with the customers. The  educational and engaging project opened the eyes of participants to the everyday lives of Elisa’s customers. A large reserve of new customer-initiated offerings and service ideas resulted from the project, hence Elisa’s offerings roadmap has got a new life that now should be implemented. Among participating customers, and also via press coverage, the project has enhanced the Elisa brand.

Based on case article in Vectia Explore magazine Autumn 2007.

Elisa is a leading Finnish communications and ICT solutions company.

Vectia Case: Helsingin Sanomat

Long live the newspaper!

Starting point
Internet and new mobile solutions in addition to proliferation of free distribution news leaflets have made it challenging to retain the consumer’s share of media spending. Helsingin Sanomat had to ascertain how to better meet the different needs of diverse reader segments.

Objective of the co-operation
The solution was to blow apart a monolithic offering and re-construct the elements into a decision-making model. Product-related elements were combined in a new way and service elements were evaluated and de-constructed. Also pricing was taken under evaluation since the price of a subscription for a quality daily newspaper is somewhat high. Opening up the decision-making model with separate elements enabled the planning of offerings to the most promising target groups with a fit to their behaviour and media use.

Results and business impacts
Piloted differentiated offerings have showed promising results. New differentiated offerings are at the planning stage and as the organisation gains knowledge and expertise through results, current readers will also be able to benefit from differentiation. The project brought a better understanding of how to respond to the needs of readers with a relevant offering. It also helped to allocate the resources more accurately and efficiently.

Based on case article in Vectia Explore magazine Autumn 2006.

Helsingin Sanomat is the largest subscription based newspaper in the Nordic region.

Vectia Case: TeliaSonera

Tackling competition, winning loyalty

Starting point
Number portability was the starting point for the hyper-competition for new customers. From the operators’ point of view, the only good customer was a new one. Most of the resources were poured into introductory offers at the expense of profitability and service development. It was impossible to control churn.

Objectives of cooperation
The first steps into loyalty programmes were taken at the tail end of the 1990s. TeliaSonera established a silent programme for the best customers after they had carried out tentative segmentation and analysed customer encounters. Even these measures had a positive effect on customer churn.  

While hyper-competition ran rampant corrupting profitability, further development of the loyalty programme seemed a logical step. In the spring of 2004, TeliaSonera and Vectia entered into a comprehensive feasibility project in order to ascertain what the customers value, and how to reward them. 

Sonera Etu programme is based on a combination of the average volume of monthly mobile and broadband invoicing and the customer relationship age 

Customers are divided into four different levels: Basic, Bronze, Silver and Gold, with different levels of reward. Each customer knows his or her own level. To take advantage of the programme, customers must be active and register; the rewards do not come automatically. When membership and rewards depend on activity, the relationship becomes stronger.

Results and business impacts
On a customer loyalty level, TeliaSonera has achieved very significant improvements in churn in spite of the ongoing hyper-competition. Families have concentrated their mobile subscriptions to TeliaSonera, as the programme rewards customer concentration. Mobile customers use their mobile subscriptions in a more versatile way

TeliaSonera knows their customers better and is more prepared to exploit the knowledge.

The Sonera Etu programme has been able to attach new qualities to the TeliaSonera brand; the brand is now perceived as being more trustworthy, easier to approach and more customer oriented.  

The programme has also given TeliaSonera as an organisation a common language for communication. For the dealers, the programme is an effective incentive to actively contact customers.

Based on case article in Vectia Explore magazine Autumn 2006.

TeliaSonera is the leading telecommunications company in the Nordic and Baltic countries

Vectia Case: Okopankki

Valuing each and every customer

Starting point
The banking sector is one of the most competitive sectors in the world. Customer acquisition often requires customers  switching service provider, as almost everyone has an existing relationship with a bank. 

Okopankki has a sound standing as an “everyman’s” bank that welcomes and values all customers equally. Okopankki wanted to find other ways than concentrating to a specific segment in order to differentiate from it’s competitors during customer acquisition

Objective of cooperation
A number of triggers of switching bank service providers were identified: e.g. buying or remodelling a house, starting long term savings or beginning a new life period such as studies or pension. 

The main aspiration of Okopankki’s development work was twofold. First, to ensure existing  customers don’t see any reason to switch service provider when facing these situations. Second, to become a choice that potential customers would already have in mind when the time for change comes to hand.

Altering personnel’s working routines was proven to be a demanding task, even if Oko’s staff was highly enthusiastic about the change. Thus, a key part of the endeavour was the training of persons who were mostly accustomed to serving from behind the counter to go out to the customers and potential customers. The idea was to enhance encountering customers in their own environment. In addition, the personnel should increase its initiative even further, more directly suggesting solutions that benefit the customer most. The change in the mindset of Oko’s people has been extensive.

Results and business impacts
Okopankki is now truly able to meet and surpass its customers’ particular requirements. 

A significant source of success has been the increasing level of word of mouth advertising. It has become evident for Okopankki that the way they serve their customers is directly related to acquiring new customers. According to Okopankki’s customer survey over a third of the customers start their relationship as a result of a friend’s or a co-worker’s recommendation –and Okopankki’s customers strongly feel that Okopankki is worth of recommending.

Based on case article in Vectia Explore magazine Autumn 2003.

Okopankki is a bank serving both retail and corporate customers