Winning customer confidence
In the study, How Vodafone Australia is earning back trust one conversation at a time, Barbara Messer outlines the serious network problems faced by Vodafone Australia between 2010 -2012.₁₀
The result of these outages had dire consequences for the brand. Net Promoter Scores over the period fell considerably and the business haemorrhaged 1 million customers in 12 months. Kim Clarke, then Vodafone CMO, said in July 2014: “In essence, we went from being the most to the least trusted telecommunications brand in Australia.”
The trust factor
Vodafone launched a three-step brand program designed to rebuild trust.
- Address the root cause
- Know your strengths and leverage them
- Create an inside-out change program
The first step meant extensive improvements had to be made to the network and to the way the company interacted with customers.
Once these improvements were made, Vodafone identified five geographic areas in which service improvements led to significant increases in customer sentiment scores.
Vodafone wanted to build on positive customer sentiment in these areas by promoting its newly improved service to win back market share. It invested in a highly-targeted, hyper-local media mix campaign incorporating local newspapers and outdoor advertising in specific localities
The campaigns announced Vodafone’s new 4G service and its additional coverage with clever, localised messaging.
The service improvements and subsequent local marketing activities provided strong results.
- 20 percentage point increase in network sentiment
- 10 point increase in trust
- 20 point increase in Net Promoter Scores
- 20 point increase in positive word of mouth
Brand consideration grew 27 per cent over the course of the transformation campaign.
Local newspapers played their role by providing Vodafone with a trusted platform that encouraged readers to reappraise the brand after a difficult period.
Source: How Vodafone Australia is earning back trust one conversation at a time. Barbara Messer, ADMA Global Forum, July 2014