ACT Fibernet Referral Program Optimization
Nov 20, 2023
Problem Statement
Despite 67% of new customers citing word-of-mouth recommendations from friends, neighbors, or family, only 1% of existing customers currently participate in the Customer Referral Program (CRP).
Objective
The goal is to increase the usage of the CRP from 1% to 4-5% of the subbase within the next 3 months, thereby accelerating ACT Fibernet's growth.
Pain Points
Low awareness about the referral program.
Customer retention challenges.
Generic online reviews.
Inertia towards changing broadband providers.
Cumbersome referral process.
Inner inertia: concern about friends or family members' opinions.
Difficulty in service provider entry in gated communities.
Customer Discovery:
In the process of actively seeking, identifying, and understanding the needs, preferences, and challenges of potential customers we came to know about the diverse needs and pain points of customers.
We conducted a Survey in which we asked participants different questions related to their Broadband, Link- survey
Through surveys and customer interactions, we got the following insights
90% of users find a new service provider through verbal recommendation.
75% of users are either not aware or not provided any incentive for referral.
Also, One of our team members attempted to refer her ACT Broadband Connection to one of us. Here are some observations she made:
The referral process required an excessive amount of information.
During the referral, errors occurred, such as "Oops! We encountered some problems, please try again later."
After entering all the information for the referral multiple times, an error was encountered.
Notifications, emails, and SMS confirming the referral were received after a delay of 3 hours
Business Model
Earn a 5% credit (commission) of the referred plan, added as credits to the person's account. These credits, granted to the referee, are subsequently adjusted in their next bill. Accumulated credits can be redeemed for free WiFi services. Upon the referee subscribing to broadband, the referrer enjoys a 5% discount for two years from the referee's joining. Additionally, the referee receives an exclusive 25% discount (up to Rs 150/-) on their first bill.
Retention and Motivation:
Drastically improves loyalty, dissuading customers with referrals from changing their Internet Service Provider, even if they relocate.
Motivates users to encourage their referees to opt for larger plans to maximize program benefits.
Users reaching the maximum tier are offered the opportunity to become ACT Ninjas, recognizing their promotional skills and providing monetary benefits.
Exclusive benefits are available only through referrals, emphasizing their high value in users' minds.
Location-Based Recognition:
Establishes a location-based referral leaderboard to sustain user motivation.
Introduces individual progress bars reflecting the user's referral achievements.
Referral Structure
For a Plan of Rs 1000:
1 referral yields a 5% discount (Rs 50).
2 referrals result in a cumulative 5% + 5% discount (Rs 100).
20 referrals lead to a 5% + 5% + 5%... cumulative discount amounting to Rs 1000, resulting in free broadband services.
Improved UI and Streamlined Referral Process
Enhances the user interface for a more intuitive and seamless referral process.
Reduces the number of steps involved and minimizes the required information for smoother referrals.
Gamifies the experience by displaying users' levels based on the number of successful referrals.
Assumption: The assumption is that the proposed business models are financially feasible for ACT, ensuring sustainability and effectiveness in achieving the desired objectives.
User Journey
Business Model Expansion
Building Maintenance Collaboration:
Facilitating internet connectivity for entire buildings or societies through collaborative efforts:
Partnering with prominent commercial real estate services companies such as CBRE to deliver comprehensive broadband solutions from initiation to completion.
Engaging in collaborations with building developers and contractors to ensure seamless integration of high-quality internet services throughout the building or society.
Aligning Business Operations with Sustainable Development Goals
ACT, as a company, has the potential to contribute to carbon footprint reduction by serving as the primary network provider connecting building resources through IoT.
For instance, coordinating the activation of apartment streetlights and scheduled watering for plants, etc. in a building are routine tasks that can be efficiently managed by ACT's IoT network.
By facilitating connectivity throughout entire apartments, ACT not only offers innovative solutions but also yields cost savings and environmental benefits, establishing a sustainable business model for the company in the long run.
Seasonal Promotions
Implementing seasonal referral promotions linked to specific events or holidays presents an opportunity to significantly boost referral engagement.
For instance, during festive seasons or anniversaries, ACT Fibernet can roll out special incentives or discounts, fostering an environment conducive to a substantial increase in referral participation.
For example, aligning with major cultural festivals such as Diwali or Christmas, ACT Fibernet could introduce limited-time promotions. During these periods, referrers and referees might enjoy exclusive benefits, such as enhanced credit percentages, bonus rewards, or even accelerated tier progress. These seasonal promotions not only tap into the celebratory spirit but also capitalize on the heightened social interactions during these occasions.
By strategically aligning referral incentives with real-life events, ACT Fibernet can leverage the existing enthusiasm around festivities to create a sense of urgency and excitement. This approach not only motivates existing customers to actively participate in the referral program but also attracts new customers looking to capitalize on the special seasonal offerings.
In this way, seasonal referral promotions become a dynamic and responsive strategy, adapting to the ebbs and flows of the calendar year. This not only ensures sustained customer engagement but also positions ACT Fibernet as a brand that actively appreciates and celebrates the diverse occasions that matter most to its customers.
UI/UX Prototype - Click here 👈
Timeline
Success Metrics
Success will be measured by the increase in CRP participation from 1% to 4-5% within the next 3 months, improved customer satisfaction, and positive feedback from participants in the referral program.
Risks and Mitigation
Low Awareness: Implement targeted marketing campaigns.
Referral Process Issues: Conduct thorough testing before implementing changes.
Financial Feasibility: Regularly monitor and adjust the program to ensure cost-effectiveness.
Timeline
The project is expected to be completed within a 3-month timeframe, with regular assessments and adjustments as needed.
Conclusion
The ACT Fibernet Referral Program Optimization aims to capitalize on word-of-mouth recommendations, improve customer engagement, and drive the company's growth through innovative business models, improved UI, collaborations, and sustainability initiatives.
