Telecom - Nielsen Buyer Insights

What is Nielsen Buyer Insights (NBI)?

What is Nielsen Buyer Insights (NBI)?

Learning Objectives


This training will provide an understanding of Nielsen Buyer Insights. Following this training you will be able to:

  • Confidently explain the value proposition of Nielsen Buyer Insights to clients
  • Match client needs with Nielsen Buyer Insights' capabilities

Market Intelligence

Market Intelligence measures wireless consumer spending with all wireless carriers by market on a monthly basis.

Key Questions

  • How much do consumers spend for Sprint service in Kansas City?
  • What is the demographic breakdown of Cricket subscribers in San Antonio?
  • Which segments/demographics are increasingly paying for T-Mobile on the West Coast?
  • Do my consumers spend more or less than AT&T subscribers in New York City?
  • Did AT&T’s marketing campaign in San Francisco drive consumers to spend more with them?

 






Metrics

Nielsen Buyer Insights (NBI) analyzes 100 million consumers’ monthly credit card & debit card transactions in all channels and markets across the US. 

Penetration ARPA: Average Revenue per Account

The percentage of users in a specific location.

For example, the penetration of Verizon wireless consumers in Tulsa Oklahoma is 20%, whereas Cricket has 5%.

We use average revenue per account (ARPA) as opposed to average revenue per user (ARPU) because families are increasingly using shared plans making overall account a more accurate representation.

If your family has four lines on your account and your bill is $200, then the ARPA is $200 and the ARPU is $50.

Delivery: Monthly 

Cadence: a PowerPoint deck with the option to purchase the raw excel data

Credit Card & Debit Card Transactions:

NBI captures approximately 90% of credit card transactions and 30-40% of debit card transactions.

The dataset is made up of billions of transactions worth billions of dollars per month. 

We don’t capture private label cards (e.g., Macy’s, HomeDepot) or American Express transactions.


Client Use Case


Market Intelligence tracks consumer penetration and spending over time.
 

This example shows in 2012 T-Mobile (purple) had 12% penetration and their subscribers were spending $137 on average per account. 

In 2013 T-Mobile lowered prices. This increased their market penetration from 12% to 15%. Unfortunately, doing so lowered their ARPA from $137 to $127 - losing on average $10 per account. 

At the same time, AT&T (blue) increased their ARPA by $8 and their market penetration by 1%.

Verizon (red) decreased penetration by 3% and ARPA by $2.

We analyze monthly or annual penetration and spending changes at market level. 

Switcher Profiles

Switcher Profiles track the movement of subscribers (by demographics and segment) between carriers and reports how much more or less subscribers pay for their new service.

Key Questions

  • How many and which Demographics of consumers are switching from AT&T to T-Mobile?
  • How much do Verizon subscribers save after they switch?
  • How much does AT&T to T-Mobile switchers save after switching?
  • Does Sprint attract more Hispanic switchers in Chicago or Kansas City?
  • Did AT&T’s marketing campaign in San Francisco drive Asian consumers to switch to them?

 




Metrics

How much are subscribers spending before they switch? Following a switch? How many people switched?
Which carriers did they have previously? After? 

Delivery: Quarterly 

Cadence: 
 PowerPoint with the option to purchase the raw excel data

Carriers can identify how much "switchers" spent after moving to a new carrier to determine whether they need to adjust pricing in certain markets.

They can also identify segments their competitors are losing, to determine segments they can target for recruitment.

Nielsen helps clients track movement and spending of switchers. 

 



Client Use Case




Using Buyer Insights, T-Mobile identified switchers and created a marketing campaign to retain potential switchers and attract switchers from other carriers. Resulting in a net gain of inbound over outbound switchers for Jan!

Campaign Profiling

Campaign Profiling enables clients to focus campaigns by city, zip code or designated market area based on consumer spending data, enabling clients to target specific customers in marketing campaigns (e.g., direct mail or outdoor advertising).

Designated Market Area level provides insight into the lowest demographic level possible.
It may also be referred to as DMA.


Key Questions

  • In which markets do Sprint subscribers spend the most on wireless and retail?
  • Which zip codes in San Francisco have the highest amount of T-Mobile subscribers and highest wireless spend?
  • Which DMAs should we target to reach heavy mobile media spenders?
  • Which zips should we target to reach Sprint switchers in Houston?
  • How do we reach lower-income consumers with spending on prepaid brands?

 





Metrics



Nielsen can measure the following at both the store and DMA level:

  • Average category spending
  • Average chain spending
  • Subscriber penetration
  • Switcher penetration

Delivery: Per campaign /ad-hoc

Cadence: Excel

Price based upon the number of metrics (categories/stores), geographies, and geographic level.


Client Use Case



In this example, Verizon could identify areas in Chicago with high penetration of heavy AT&T spending and heavy AT&T switching. This allows Verizon to utilize billboards and outdoor advertising in those areas or target potential customers with direct mail. 

Additionally, they could engage in sponsorships within particular zip codes identified to target the heavy spenders and heavy switchers from AT&T.

They could use the data to create partnerships with retailers in the identified areas or isolate retailers to partner with using the Partnerships solution.

Partnerships

Partnerships consulting enables clients to make insightful decisions on retailing and cross-selling partners -- based on measured consumer spend data. Partnerships solution is similar to the Campaign Profiling but the use case and audience is different, focusing more on our client's retail partnerships or mobile media.

Key Questions

  • Which retailer should I partner with to reach my target consumer?
  • Do we need regional retail partners or are national retailers enough?
  • Which retail partner would best reach Hispanics in Miami and Houston?
  • With whom I should partner to cross-sell my product?
  • What products could we cross-sell?

 

 







Metrics

Measure retail affinity of your consumers and of competitors for all categories of spending: total, retail, entertainment, telecom, travel, etc. across all retailers.

Key Metrics:  Penetration, Average monthly spend, Average monthly transactions

Granularity:  DMA & City, census block/zip possible 

Delivery: Delivered monthly or quarterly

Cadence:  A PowerPoint deck with the option to purchase the raw excel data set


Client Use Case


Where do Hispanic Verizon subscribers shop in different cities? 


The data suggests Walmart may be a suitable partnership option with good penetration levels in a number of cities; Jacksonville, Tampa and St Petersburg. 

But in Miami, where there is a different client-base (i.e., more upscale with different ethnicities), they might consider a different retail partnership (e.g., Target or Publix).

Partnership analysis allows clients to make partnership decisions on a city-by-city basis. 

Furthermore, in addition to choosing whom to partner, clients can adjust the particular range of phones with retailers in different cities based on the different demographics in those areas.

Walmart is a great partner overall, but Verizon needs additional visibility in the Miami area. Target or Publix could resonate better with Miami Hispanics. 

Share of Wallet

Share of Wallet enables clients to compare the share of the consumers’ wallet based on their spending nationally and by market. We can track and trend overall spend, share by carrier (e.g., AT&T) or share of wireless products in general.


Key Questions

  • What’s my share of my consumers’ wallet in New York vs. my competitors?
  • Do we capture more total dollar value in Seattle than my competitors?
  • What other products or services do my customers hold?
  • Are my consumers’ shopping habits and loyalties changing over time?
  • How do I better target my consumers through their current shopping and buying preferences?
  • Are my competitors capturing more value from Hispanics in Miami?






Metrics

Identify opportunity areas to grow your share of consumer spending!

Tracks consumer spending overall, by category, and by store to understand their share of wallet

  • Cut data by markets, wireless carrier, demographics, and segments
  • Aggregate all consumers’ spending to understand the share of total dollars captured by a company
  • Breakout out a company spending by channel (retail, online, etc.)
  • Benchmark against competitors in your industry by total dollars captured

Delivery:  Delivered on ongoing or ad-hoc 

Cadence: A PowerPoint or excel data set at the national and market level


Client Use Case


Based on spend data we calculate share of wallet by carrier, ethnicity, location etc., and track and trend over time to identify consumer spending changes on wireless services. 

If they are spending less, where is the additional money going? Is it going to insurance, retail, travel, entertainment or luxury goods? 

In the first example, using total spend of Asian consumers in San Francisco, AT&T’s share of wallet is 4% overall, and 54% of their total wireless & Multiple System Operator (a broad term for cable or broadcast companies. This can also be referred to as MSO) spend.

Thus, AT&T is never going to capture the whole $3,914 but could potentially increase their share – currently $161 – of the $300 that Asian consumers in San Francisco are spending on wireless & MSO services.


Alternatively, in the second example amongst Hispanic wireless consumers in San Francisco, we can calculate how much AT&T captured from Hispanic customers overall (i.e., 2.5%) and AT&T’s share of Hispanic spend in San Francisco compared to all carriers (i.e., 31%).

The results indicate that AT&T is capturing 31% of the spend, while Verizon is capturing 27%. How is that changing over time? Is AT&T capturing more of those dollars? Does AT&T’s marketing appear to be resonating with Hispanic customers in San Francisco? Do they have plans that work for them? Etc.?

Knowledge Check

Scenario 1

Verizon needs to make local market partnerships in strategic areas to better reach key target consumers, enhance their loyalty, and drive greater sales. To aid their analysis, the Verizon team would like Nielsen to help answer the following questions.

Which Nielsen Buyer Insights solutions best match their questions?

  • Which key demographics / segments should Verizon focus? And in which markets are they found?
    While this is correct, Mobile Business Insights would be a better option.
  • Which devices and device manufacturers does this segment own? For example: Does this segment own Samsung or LG tablets?
    This question is better answered by Mobile Insights or Connected Solutions.
  • How do consumers spend their dollars across all categories (retail, entertainment, telecom, etc)?
    This would be a perfect use case for NBI.
  • With which retailers should Verizon partner in each key market?
    NBI tells you the percentage a consumer spends with Walmart, average spend and number of transactions per month.
  • With which services should Verizon partner in each key market?
    NBI shows to which services consumers subscribe: Netflix, Hulu, Spotify, or iTunes.
  • Is Verizon capturing more retail dollars in this market than competitors?
    NBI can track dollars to Verizon versus AT&T versus T-Mobile. We can also answer Is this changing over time and is it changing over time among specific consumer groups?

Scenario 2

  • PARTNERSHIPS: Analyze subscriber's spending habits to identify retail partnerships to increase your reach of specific demographics.
  • CAMPAIGN PROFILING: Analyze your subscriber's spending on other digital services in order to identify where and how to reach specific demographics/segments.
  • MARKET INTELLIGENCE: Understand subscriber spending.
  • CAMPAIGN PROFILING: Analyze consumer spending at the zip code level in order to create more targeted campaigns.

How might clients use the following Buyer Insights report? 

Scenario 3

  • PARTNERSHIPS: Analyze subscriber's spending habits to identify retail partnerships to increase your reach of specific demographics.
  • CAMPAIGN PROFILING: Analyze your subscriber's spending on other digital services in order to identify where and how to reach specific demographics/segments.
  • MARKET INTELLIGENCE: Understand subscriber spending.
  • CAMPAIGN PROFILING: Analyze consumer spending at the zip code level in order to create more targeted campaigns.
Review the chart below and select the best NBI solution. 

 

How would client's use the following Buyer Insights report?

Scenario 4

  • PARTNERSHIPS: Analyze subscriber's spending habits to identify retail partnerships to increase your reach of specific demographics.
  • CAMPAIGN PROFILING: Analyze your subscriber's spending on other digital services in order to identify where and how to reach specific demographics/segments.
  • MARKET INTELLIGENCE: Understand subscriber spending.
  • CAMPAIGN PROFILING: Analyze consumer spending at the zip code level in order to create more targeted campaigns.
Review the chart below and select the best NBI solution.

How might client's use the following Buyer Insights report?

Scenario 5

  • PARTNERSHIPS: Analyze subscriber's spending habits to identify retail partnerships to increase your reach of specific demographics.
  • CAMPAIGN PROFILING: Analyze your subscriber's spending on other digital services in order to identify where and how to reach specific demographics/segments.
  • MARKET INTELLIGENCE: Understand subscriber spending.
  • CAMPAIGN PROFILING: Analyze consumer spending at the zip code level in order to create more targeted campaigns.
Review the chart below and select the best NBI solution. 

How might client's use the following Buyer Insights report?

Summary

Summary

Congratulations

Congratulations! You have successfully completed the Tutorial. 

Your completion will be recorded in your learning plan and your manager will be notified.



Visit My Learning Network to explore more Nielsen training opportunities and learning resources.