57% 2.1% 10-15% to 60%
churn reduction reduction in total operational costs monthly active users

OVO is a media and telecommunications service provider, offering prepaid phone, data, mobile broadband plans and over-the-top entertainment services.

Since 2017, OVO has used Pendula to communicate with customers for both operational and marketing activities, resulting in:

  • Operational costs reduced by 2.1% through consolidating three payment gateways to one
  • Churn reduced by 57%;
  • 60% of customers engaging with the mobile app on a monthly basis.

OVO had a need for more effective customer call-to-actions ranging from operational to customer engagement.

The challenge

Without an SMS channel, the team was unable to meet “a whole range of business metrics around engagement and driving customer app installs, which ultimately lowers cost-to-serve,” says Matt Jones, CEO.


“When you’re trying to get a customer to take action, SMS is far more effective. Customers only open 15-25% of emails but 90-95% of texts are read. Text may appear more expensive–but the ROI in terms of action taken relative to the cost of delivery is clear. The equation should be what’s my cost of delivery relative to the value of the action taken by channel.”

Matt Jones, CEO


How Pendula helped

OVO leveraged SMS as a channel to introduce personalised conversations into the subscriber’s lifecycle.

Pendula assisted in automating the processing of financial transactions by using triggered call-to-action SMS communications such as:

  • Monthly recharge event (when service automatically recharges, customer receives an SMS from OVO)
  • Credit card expiry and renewal
  • Recharge/top-up reminder triggered by expired balance

This communication strategy covered both operational and promotional (marketing). “The principle was to not only inform the customer of the transaction or action they needed to take (e.g. update credit card/top-up/recharge) but also drive them to our self-service app,” Matt explains.


“Customers can get whatever they want done … We’re happier because
we reduce the cost-to-serve; everyone is winning.”

Matt Jones, CEO


Having subscribers actively interact with this self-servicing channel is important as it “drives down operational costs because once they’ve got the app, 99% of all the things that they would normally have to do by calling or email chatting live, can be 100% self-service. They’re more satisfied because they can get whatever activity they want done, whenever and wherever they are. We’re happier because we reduce the cost-to-serve; everyone is winning.”

“What we were able to do is not only to personalise the message with the Pendula workflow … we were also able to put in dynamic links back into the OVO experience, that automatically linked the customer into driving an app install”. With Pendula, OVO was able to integrate with their systems and use Pendula workflows to provide customers with an alternative to logging into OVO’s app, catering to different customer engagement preferences.

In another initiative, OVO underwent a 6-month campaign of consolidating customer credit card details into one single, lower-cost payment gateway. The nature of this campaign was complex–OVO had to ensure compliance with the Payment Card Industry Data Security Standard.

To ensure customers were comfortable in updating this information, SMS was chosen — a channel which is personal, secure and has high-engagement.“ You need to ensure customers feel it’s safe, secure and legitimate. SMS goes a long way to doing that,” says Matt.


“We configured all the workflow, personalisation and messaging using Pendula. Because we already had the integration of Pendula, [the campaign] was something we set up within 48 hours. The only task was for our business to know when to trigger the messaging, but all delivery and personalisation was all able to be done with Pendula’s workflow and configuration.”

Matt Jones, on migrating payment gateways


 

Overall results

 

The benefits of having a personalised workflow for each subscriber was evident:

  • Reduced operational costs
  • Efficiencies
  • Churn reduction has led to retaining revenue

Through CTAs proactively included in operational communications with the subscriber, the OVO app “was installed 80% of our base and … we lifted our monthly active telco users from 10-15% to north of 60%.”


“OVO experienced a triple hit: increased incremental revenue, self-service and
lowered cost-to-serve.”

Matt Jones, CEO


With the configuration ability in Pendula, strategic operational and marketing activities became more achievable, as “most of the time was spent on the words that would go into the message and not how to get the message to the customer.”

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