Vodafone's use of digital incentives in UK broadband shifted from acquisition volume toward customer lifetime value, according to a case study dated January 14, 2021 on Runa's site. The account features Cai Mullins, then Vodafone's Head of Affiliates and Partnerships.
The case study identifies Mullins' remit as promoting Vodafone through affiliate and third-party websites, following three years at BT working on digital sales. It discusses how incentives fit customer acquisition in a market where providers often make similar claims about their services.
The account places the campaign approach in the context of Vodafone's expansion beyond its established mobile business into home broadband and other services. It presents customer segmentation and differentiation as important to that work.
Runa places the incentive strategy in the context of clearer broadband price advertising. The ASA announced its tougher approach on May 4, 2016, with effect from October 31, 2016, rather than introducing it that May. It called for all-inclusive upfront and monthly prices, including line rental, and clearer contract and post-discount costs. Runa argues that greater price transparency increased the importance of differentiating offers through incentives; the case study supplies no controlled evidence that the rule change or rewards caused higher conversion or lifetime value. [S02]
The research behind that pricing approach provides independent historical context. Futuresight interviewed 300 UK home-broadband decision-makers face to face in June 2015. Its four groups below reproduce the original respondent counts. The first viewing measured spontaneous recall; the second specifically prompted attention to the deal, so the difference is not a controlled effect of repeat exposure. The quota sample was indicative, not statistically representative of the public, and Vodafone advertisements were not tested. These findings concern price comprehension, not the performance of Vodafone's gift-card programme. [S03]
Monthly-price comprehension in the 2015 broadband study
Original Figure 5 respondent counts, June 2015 UK fieldwork, n=300. Each participant belongs to one group; the groups sum to 300.
Respondents
Tap or hover for details. All values are also available in the data table.
Source
Quota sample at five UK city locations, not a representative population estimate. The two viewings used different prompts. Counts are used because the report's 53% label for 161 of 300 does not match ordinary rounding. No Vodafone, gift-card, conversion or retention result is measured.
Show data tableHide data table
| Category | Respondents |
|---|---|
| Correct in first-view spontaneous recall | 68 Respondents |
| Correct only after second-view prompt | 161 Respondents |
| Incorrect after second view | 65 Respondents |
| Not focused on the deal | 6 Respondents |
The source describes Vodafone using cash discounts, bundles and physical gifts alongside digital incentives. It argues that a relevant reward brand can strengthen an offer and describes a shift toward using incentives throughout the customer journey, including retention and upselling.
The article provides five tips for incentive marketing in the telecoms industry, including differentiating offerings through product differentiation, segmenting the market into personas, and using seasonal offers. It also recommends incentivizing existing customers, as well as new customers, and having due diligence and processes in place to prevent fraud.
The practical examples include giving recipients a choice of reward brands and matching seasonal offers with the occasion. The account recommends collecting campaign data and maintaining processes for verifying claims as programmes scale.
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Oliver Reed
Oliver Reed covers industry acquisitions, investment and market research for Gift Card News.