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Prospect Segmentation Roadmap:: Current & Future Schemas
Prospect Segmentation Roadmap:: Current & Future Schemas
Roadmap:
Current & Future Schemas
Chudi Okoye
August 2017
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential
Agenda
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 2 2
Acquisition Team’s Mission
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 3 3
Expected Uses of Consumer Segmentation
Goal: Move beyond mass media targeting (i.e. 18-49 year olds) and one message to all
Hypothesis: Algorithm-based targeting and differentiated offers/messaging will improve efficiency and drive incrementality
Clustering/Targeting: Identify, profile and size market clusters, and develop data-driven targeting
strategy
Offers: Differentiate offers (rate plan/device/promos) for specific targets to drive response and
Primary incrementality
A Marketing
Messaging/Positioning: Differentiate TMO messaging by aligning product values & RTBs to target’s
Uses
needs
Funnel and Channel: Differentiate funnel and channel treatments to improve/expedite consumer
journey
Device: Align T-Mobile consumer profiling with OEM segmentation for consistent product
messaging
Other
B Marketing Prospect CLV: Align prospect segmentation to CLV model for consistent economic assessment with
base
Uses
Retail: Use segmentation to enhance local market insights to drive retail location strategy
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 4 4
Consumer Segmentation Roadmap: Where We’ve Been and Where We’re Going
Evolution to a holistic segmentation scheme combining a behavioral algorithm and a Magenta brand affinity
model Op
High tim
i ze
d
4. Finalize with a
Magenta brand
Ca
affinity model
m p
h t
aig
3. Build algorithm-
esig
or
Prospect Specificity
ns
based behavioral F
segmentation
2. Created basic
demographic
segmentation
1. Developed
“Magenta People”
segmentation
s ight
In
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 6 6
Magenta People Project
Introduction
The “Magenta People” was a project designed to classify US wireless consumers into broad
segments depicting their status either as current T-Mobile/Metro customers or targetable prospects,
differentiating them from TMUS non-targets
The segmentation was based on TMUS customer data in Nielsen Mobile Insights and Nielsen
ConneXions
Phase I:
Created “Magenta People” construct similar to Metro’s “Purple People”
Identified core ConneXions segments and overlap between Magenta and Purple
Phase II:
Worked with Metro to reduce overlap by applying additional analytics and business logic based on
demos and wireless behavior
Re-classified overlapping segments based on modeled affinity to Magenta or Purple
Profiled and sized new segment groupings and identified additional opportunity segments for
Magenta’s next phase of growth
Work through implications for media, messaging,
D2C| SEGMENTATION,
TARGETING
creative approach etc.
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 7 7
Model-Optimized Segments for Magenta and Purple People
Axes scores are indices of ConneXions segments derived in analysis of Magenta People and Purple People
Segment Key: Magenta Media Magenta Stretch Magenta Non-Media Purple Secondary Purple Primary Common Market Non-Target
Data Source: Nielsen SMS data, BCMI Analysis/Depiction Bubble area depicts segment market size, scaled to 10%
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 8 8
ConneXions Classifications for Magenta and Purple People
ConneXions
Tech Nests
New
Technorati
Text Legend: Original Purple People SMEs and SMMs
Note: A segment overlapping as Magenta and Purple is assigned as primary target to the cohort with >= 60% share of the segment based on a
logistic model
Consumer status (low- or mid-scale+) determined by: income, credit status, education, employment, number of lines and wireless spend
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 9 9
Where We Are
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 10 10
Business Context for the Current Ad Hoc Demographic Segmentation
Purpose
—Creation of a quick segmentation scheme to help drive targeting in 2H 2016
• Recognition that this isn’t long-term plan for segmentation
Approach
—Leverage sampling of recent activations (last 2 years) to form segments that
reflect the kinds of customers currently being acquired
—Utilize core demographic dimensions from prospect database to facilitate
relevance, speed, and coverage
Desired outcomes
—Segmentation definition, coloring, and profiling
• 3rd party data - Traditional demographics, summarized credit statistics, etc.
• 1st party data - # lines, MRC, device type, etc.
— Include Nielsen ConneXions codes and Magenta People groupings
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 11 11
Demographic Segmentation
Objective: Get to market as quickly as possible with a “quick and dirty” segmentation, with profiling to drive performance and
learning Final 10 segments
INCOME Groups FAMILY Groups
Segment AGE group I II III IV N Y INDEX TMO customers Penetration Description Count % of US Pop Pen % Shift
1 Millennials 157 53,593 30.8% Millennials < $75K 174,244 13.4% 22.7%
2 Millennials 120 17,067 23.6% Millennials > $75K 72,271 5.6% 12.3%
3 GenX 172 33,911 33.7% GenX < $75K no kids 100,488 7.7% 42.6%
4 GenX 154 43,597 30.2% GenX < $75K with kids 144,456 11.1% 1.5%
5 GenX 97 9,288 19.1% GenX > $75K no kids 48,607 3.7% -3.2%
6 GenX 117 24,037 22.9% GenX > $75K with kids 105,026 8.1% 0.2%
7 Bboom + 39 20,679 7.6% Boomers+ < $75K no kids 271,875 20.9% 2.4%
8 Bboom + 89 24,729 17.4% Boomers+ < $75K with kids 142,005 10.9% -6.4%
9 Bboom + 41 10,689 8.1% Boomers+ > $75K no kids 132,655 10.2% -1.1%
10 Bboom + 83 17,991 16.4% Boomers+ > $75K with kids 109,781 8.4% -9.9%
0 0 0 0 0 0 255,581 19.6% 1,301,408 100.0%
Impact of presence of children GenX versus Millennials Penetration shifts / presence of kids
• As expected, penetration in the younger segments significantly higher than BBoom+ group • Low income GenX is TMO penetrated at a rate equal to or greater than Millennials • Shift away from family plan focus in 2016 from 2015 is reflected in penetration shifts –
• However, within the older group, presence of children shows significantly increased TMO collectively (presence of children doesn’t have an impact) specifically for BBoom+ segments
penetration • Higher income GenX also shows positive impact of children in HH for TMO penetration • Biggest positive shift from 2015 2016 was for the low income GenX no kids segment
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 12 12
Demographic Segmentation: Opportunity Prioritization
TMO opportunity: over indexed, but not completely saturated; High
value
Typical TMO targets
Segment 1 Segment 2 Segment 3 Segment 4 Segment 5 Segment 6 Segment 7 Segment 8 Segment 9 Segment 10
GenX < GenX >
Millennials < Millennials > GenX < GenX > Boomers+ < Boomers+ < Boomers+ > Boomers+ >
Definition $75K with $75K with
$75K $75K $75K no kids $75K no kids $75K no kids $75K w/ kids $75K no kids $75K w/ kids
kids kids
Age
TMO 28.9 29.1 43.2 42.6 43.3 43.6 61.9 60.3 61.4 58.9
US Pop
Distribution
29.7 29.7 43.2 42.7 43.3 43.5 68.7 63.8 65.5 61.3
% of US 13% 6% 8% 11% 4% 8% 21% 11% 10% 8%
% TMO (15/16) 21% 7% 13% 17% 4% 9% 8% 10% 4% 7%
INDEX 157 120 172 154 97 117 39 89 41 83
FIC
O
US 657 731 671 664 741 741 696 682 750 750
TMO 619 695 638 636 720 716 661 648 731 725
Distribution (TMO)
Magenta Core 19% 30% 24% 20% 40% 46% 25% 20% 29% 22%
Magenta stretch 5% 21% 6% 9% 25% 30% 10% 17% 34% 46%
Common market 69% 46% 62% 66% 33% 21% 46% 52% 29% 28%
Purple SMMs 7% 3% 9% 6% 3% 3% 19% 11% 8% 4%
# Lines 2.7 2.9 2.9 3.1 3.0 3.4 2.7 2.9 2.8 3.1
iOS 41% 47% 41% 41% 49% 49% 36% 38% 44% 46%
OS
Android 37% 32% 37% 36% 29% 30% 37% 37% 32% 31%
Other 22% 21% 21% 23% 22% 21% 27% 25% 25% 24%
% > $150/month 20.9% 21.4% 21.1% 26.2% 20.0% 25.4% 16.9% 22.4% 15.6% 22.5%
Avg MRC $ $120 $120 $120 $127 $117 $126 $111 $120 $110 $121
CLV per account $966 $1,037 $965 $1,055 $1,106 $1,218 $925 $942 $997 $1,156
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 13 13
Usage Example: Linkage to ConneXions and Life-stage Segments
ConneXions By Consumer Segment
Segment 1: Segment 2: Segment 3: Segment 4: Segment 5: Segment 6: Segment 7: Segment 8: Segment 9: Segment 10:
Millennials < Millennials > GenX < $75K GenX < $75K GenX > $75K GenX > $75K Boomers+ < Boomers+ < Boomers+ > Boomers+ >
Code ConneXions Segment LG Lifestage Group Demographic Caption Techno Class Magenta People Classification $75K $75K no kids with kids no kids with kids $75K no kids $75K w/ kids $75K no kids $75K w/ kids Total
1 Technovators F1 Early-Adopting Elite Wealthy Younger w/ Kids High-Tech Magenta Stretch 10.1% 19.0% 2.4% 4.9% 9.2% 40.5% 2.9% 0.5% 8.5% 2.0% 100%
2 Plugged-In Families F1 Early-Adopting Elite Upscale Younger w/ Kids High-Tech Magenta Primary 12.4% 15.9% 3.8% 8.6% 9.0% 36.6% 3.9% 1.0% 7.4% 1.4% 100%
3 Tech Nests F1 Early-Adopting Elite Midscale Younger w/ Kids High-Tech Magenta Primary 31.0% 18.0% 4.2% 15.0% 4.2% 14.9% 5.5% 2.2% 3.8% 1.1% 100%
4 Connected Country F1 Early-Adopting Elite Upscale Middle Age w/ Kids High-Tech Non-Target 13.9% 13.1% 3.9% 7.6% 8.6% 27.5% 6.8% 1.3% 13.8% 3.5% 100%
5 You & I Tunes Y1 Young & Wireless Upper Mid Younger w/o Kids High-Tech Magenta Primary 30.9% 27.5% 5.3% 5.0% 5.2% 9.2% 7.4% 1.1% 7.3% 1.1% 100%
6 High-Tech Society F1 Early-Adopting Elite Wealthy Older w/ Kids High-Tech Magenta Stretch 8.3% 18.8% 2.0% 2.2% 11.3% 19.3% 4.0% 0.3% 27.8% 5.9% 100%
7 Generation WiFi Y1 Young & Wireless Midscale Younger w/o Kids High-Tech Magenta Primary 33.9% 27.0% 6.4% 6.9% 5.8% 8.4% 5.3% 0.9% 4.3% 1.1% 100%
8 Calling Circles F2 Suburban Spenders Midscale Younger w/ Kids High-Tech Secondary Magenta 32.9% 13.4% 8.3% 16.2% 4.1% 12.1% 6.9% 2.3% 2.6% 1.2% 100%
9 Dish Country F2 Suburban Spenders Midscale Younger w/ Kids High-Tech Non-Target 29.2% 8.6% 6.6% 24.5% 4.1% 14.1% 7.3% 1.7% 2.9% 1.1% 100%
10 Smart Gamers F2 Suburban Spenders Upscale Older w/ Kids High-Tech Magenta Stretch 11.1% 14.2% 3.0% 3.8% 13.1% 16.7% 5.2% 1.2% 25.0% 6.7% 100%
11 WiFi Warriors M1 Wireless White-Collars Wealthy Middle Age w/o Kids High-Tech Magenta Primary 13.0% 15.2% 5.3% 5.3% 15.5% 17.7% 7.0% 0.8% 18.7% 1.6% 100%
12 Satellites & Silos Y1 Young & Wireless Upper Mid Middle Age w/o Kids High-Tech Non-Target 21.5% 10.7% 7.9% 9.5% 9.5% 10.4% 10.0% 1.8% 17.2% 1.5% 100%
13 Cyber Sophisticates M1 Wireless White-Collars Wealthy Middle Age w/o Kids High-Tech Magenta Stretch 9.2% 15.5% 4.1% 3.0% 15.0% 18.1% 6.7% 0.7% 25.4% 2.3% 100%
14 The Pragmatics Y1 Young & Wireless Upscale Middle Age w/o Kids High-Tech Magenta Primary 17.7% 15.8% 7.6% 8.7% 13.1% 15.6% 7.7% 1.2% 11.0% 1.5% 100%
15 Bundled Burbs F2 Suburban Spenders Upscale Middle Age w/ Kids High-Tech Magenta Primary 12.6% 12.1% 4.5% 8.8% 11.8% 31.0% 5.1% 1.1% 9.9% 3.1% 100%
16 Kids & Keyboards F2 Suburban Spenders Upper Mid Middle Age w/ Kids High-Tech Magenta Primary 17.7% 10.0% 7.1% 20.2% 6.4% 25.1% 5.9% 2.0% 4.0% 1.6% 100%
17 Time Shifters Y1 Young & Wireless Upper Mid Younger w/o Kids High-Tech Magenta Primary 23.2% 14.3% 9.9% 12.4% 8.8% 12.9% 8.9% 1.2% 7.7% 0.9% 100%
18 New Technorati Y2 Emerging Techies Upper Mid Older w/o Kids Mid-Tech Magenta Primary 24.2% 13.4% 11.9% 12.4% 7.6% 10.5% 10.5% 1.8% 6.9% 0.9% 100%
19 Gadgets Galore F3 Frugal Folks Upper Mid Older w/ Kids Mid-Tech Magenta Stretch 13.3% 8.2% 5.6% 7.6% 6.1% 9.7% 17.0% 3.6% 23.9% 5.1% 100%
20 Cinemaniacs M2 Mature Mid-Techs Upscale Older w/o Kids Mid-Tech Magenta Primary 15.4% 10.1% 9.9% 6.9% 12.1% 8.8% 13.7% 1.4% 19.8% 2.0% 100%
21 Multimedia Families F3 Frugal Folks Upper Mid Older w/ Kids Mid-Tech Secondary Magenta 21.3% 7.6% 11.7% 19.5% 3.8% 9.8% 14.4% 5.5% 4.6% 1.7% 100%
22 Analoggers M2 Mature Mid-Techs Wealthy Older w/o Kids Mid-Tech Non-Target 5.9% 8.6% 2.3% 2.1% 5.7% 7.6% 8.5% 0.3% 57.0% 2.0% 100%
23 Cyber Strivers F3 Frugal Folks Lower Mid Middle Age w/ Kids Mid-Tech Secondary Magenta 35.2% 7.6% 11.5% 22.5% 2.2% 5.9% 9.0% 3.9% 1.8% 0.4% 100%
24 Internet Hinterlands M2 Mature Mid-Techs Upscale Older Mostly w/o Kids Mid-Tech Non-Target 9.4% 4.8% 5.1% 4.9% 5.1% 4.3% 22.4% 1.9% 39.9% 2.4% 100%
25 Low-Speed Boomers M2 Mature Mid-Techs Wealthy Older w/o Kids Mid-Tech Non-Target 7.4% 7.7% 3.2% 2.5% 5.9% 6.8% 13.5% 0.7% 49.9% 2.4% 100%
26 Rural Transmissions M2 Mature Mid-Techs Midscale Older Mostly w/o Kids Mid-Tech Non-Target 18.8% 4.4% 14.1% 11.4% 5.0% 5.7% 25.8% 4.2% 9.0% 1.6% 100%
27 Video Vistas F3 Frugal Folks Lower Mid Middle Age w/ Kids Mid-Tech Secondary Magenta 30.2% 7.4% 11.6% 23.6% 2.6% 8.7% 9.5% 3.6% 1.9% 1.0% 100%
28 Big City, Small Tech F3 Frugal Folks Low Income Younger w/ Kids Mid-Tech Secondary Magenta 41.2% 7.6% 9.7% 22.6% 1.3% 3.9% 8.6% 3.6% 1.0% 0.4% 100%
29 IM Nation Y2 Emerging Techies Lower Mid Younger w/o Kids Mid-Tech Secondary Magenta 41.6% 11.4% 9.5% 12.5% 2.4% 6.0% 10.9% 2.1% 2.8% 0.7% 100%
30 Techs and the City Y2 Emerging Techies Lower Mid Younger w/o Kids Mid-Tech Secondary Magenta 38.7% 14.2% 9.7% 11.6% 3.7% 6.1% 10.9% 2.0% 2.9% 0.3% 100%
31 Plug & Play Y2 Emerging Techies Upper Mid Older w/o Kids Mid-Tech Secondary Magenta 23.9% 11.4% 14.4% 13.0% 8.2% 9.7% 11.3% 1.9% 5.5% 0.8% 100%
32 Family Dishes F3 Frugal Folks Lower Mid Middle Age Family Mix Mid-Tech Non-Target 29.6% 5.3% 14.3% 22.8% 1.9% 4.8% 14.3% 3.9% 2.6% 0.6% 100%
33 Digital Dreamers Y2 Emerging Techies Lower Mid Older w/o Kids Mid-Tech Secondary Magenta 29.9% 8.4% 14.0% 17.1% 3.7% 7.2% 12.7% 2.7% 3.6% 0.8% 100%
34 Gearing Up Y2 Emerging Techies Low Income Middle Age w/o Kids Mid-Tech Secondary Magenta 45.8% 11.2% 11.9% 11.8% 1.6% 4.2% 9.6% 1.7% 2.0% 0.2% 100%
35 Broadband Boulevards M2 Mature Mid-Techs Upper Mid Older w/o Kids Mid-Tech Magenta Stretch 11.2% 9.0% 6.0% 4.9% 5.4% 6.8% 22.1% 1.9% 30.4% 2.2% 100%
36 Opting Out M2 Mature Mid-Techs Upper Mid Older w/o Kids Mid-Tech Secondary Magenta 17.8% 6.5% 12.6% 7.4% 6.0% 6.3% 23.0% 2.5% 16.3% 1.6% 100%
37 Techtown Lites Y3 Young Startups Lower Mid Older Mostly w/o Kids Low-Tech Secondary Magenta 28.3% 6.0% 17.0% 17.0% 2.8% 3.6% 16.9% 4.3% 3.0% 1.2% 100%
38 New Kids on the Grid Y3 Young Startups Downscale Older Mostly w/o Kids Low-Tech Secondary Magenta 31.7% 9.3% 15.1% 12.8% 3.6% 4.9% 16.1% 3.0% 3.0% 0.4% 100%
39 Video Homebodies F3 Frugal Folks Low Income Older Mostly w/o Kids Mid-Tech Secondary Magenta 33.9% 6.7% 14.9% 19.5% 1.8% 3.7% 12.4% 4.3% 1.8% 0.9% 100%
40 Low-Tech Country Y3 Young Startups Downscale Older Mostly w/o Kids Low-Tech Non-Target 23.9% 3.8% 16.5% 12.2% 2.0% 2.6% 29.0% 6.7% 2.9% 0.5% 100%
41 Antenna Land M3 Offline Seniors Midscale Older w/o Kids Low-Tech Secondary Magenta 18.4% 5.7% 9.7% 9.0% 3.6% 5.2% 34.4% 3.6% 9.1% 1.4% 100%
42 Tech Skeptics M3 Offline Seniors Upper Mid Mature w/o Kids Low-Tech Non-Target 7.8% 5.4% 4.6% 3.9% 3.9% 5.2% 31.2% 1.8% 34.6% 1.7% 100%
43 Bucolic Basics M3 Offline Seniors Midscale Mature w/o Kids Low-Tech Non-Target 11.1% 2.9% 7.2% 6.2% 3.3% 3.2% 44.2% 2.8% 17.4% 1.7% 100%
44 Leisurely Adopters M3 Offline Seniors Low Income Older w/o Kids Low-Tech Secondary Magenta 26.6% 7.2% 13.6% 12.8% 2.0% 4.8% 26.1% 4.2% 2.3% 0.5% 100%
45 Landline Living M3 Offline Seniors Downscale Older Mostly w/o Kids Low-Tech Non-Target 24.9% 3.8% 12.4% 12.9% 1.5% 3.8% 32.9% 4.7% 2.8% 0.5% 100%
46 Old-Time Media M3 Offline Seniors Upper Mid Mature w/o Kids Low-Tech Non-Target 8.2% 6.0% 5.9% 4.0% 5.2% 6.8% 28.1% 1.7% 32.5% 1.6% 100%
47 Discounts & Deals M3 Offline Seniors Downscale Older Mostly w/o Kids Low-Tech Non-Target 22.5% 6.1% 10.6% 10.3% 2.5% 4.2% 30.9% 4.4% 7.4% 1.1% 100%
48 Dial-Up Duos M3 Offline Seniors Midscale Mature Mostly w/o Kids Low-Tech Non-Target 11.6% 4.4% 7.8% 6.9% 3.3% 4.1% 44.8% 3.2% 12.6% 1.3% 100%
49 Satellite Seniors M3 Offline Seniors Downscale Older Mostly w/o Kids Low-Tech Non-Target 19.0% 2.6% 9.3% 12.4% 1.1% 3.7% 42.4% 4.7% 4.4% 0.3% 100%
50 Early-Bird TV M4 Elderly Traditionalists Midscale Mature w/o Kids No-Tech Non-Target 10.6% 5.7% 7.5% 5.7% 4.1% 5.1% 42.2% 1.3% 16.5% 1.4% 100%
51 Tech-Free Frontier M4 Elderly Traditionalists Downscale Mature w/o Kids No-Tech Non-Target 16.7% 3.6% 10.5% 9.9% 2.1% 3.0% 43.6% 2.6% 7.6% 0.4% 100%
52 The Unconnected M4 Elderly Traditionalists Downscale Mature w/o Kids No-Tech Non-Target 17.0% 5.9% 10.4% 9.9% 3.4% 5.4% 36.4% 3.2% 7.5% 0.9% 100%
53 Last to Adopt M4 Elderly Traditionalists Low Income Older w/o Kids No-Tech Non-Target 23.9% 6.1% 11.8% 11.9% 2.1% 4.8% 33.1% 3.4% 2.6% 0.4% 100%
99 Unclassified 99 Unassigned Unassigned Unassigned Non-Target 36.1% 18.3% 6.6% 13.3% 3.0% 10.6% 6.2% 0.8% 4.0% 1.1% 100%
Source: In-house T-Mobile Depiction
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 14 14
Usage Example: Segment Demographic and Lifestyle Profiling (Segment 2)
8.2% 12.3%
US HHs US GAs
50% 50%
UNDERSTAND ENGAGE
AGE OF HEAD OF HOUSEHOLD HH INCOME LIFESTYLE
5% <$75k
67% 14% Lead an active lifestyle – enjoy soccer, tennis, baseball, softball, basketball,
40% $75k-$100k football, jogging, golf, biking, and yoga
33%
$100k-$150k
0% 0% 0% 0% Prefer To Shop At Specialized Stores
$150k-$250k
40%
18-24 25-34 35-44 45-54 55-64 65+ $250k+ Rather Book a Trip over the Internet than Meet Travel Agent
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 15 15
Usage Example: Gross Adds Tracking Click icon to open
report Segment GAs
Overall Gross Adds (those who’ve switched somewhere within the past year) show shifts over time in the
Millennial segments
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 16 16
Usage Example: Segmentation and Promos (T-Mobile Subscribers)
T-Mobile participation is dominated by $0 down, followed by device trade-in and device discounts
Device trade-in special Switching credit Online specials Value added promos Gift card offering Additional airtime Other promotion
25%
20%
15%
10%
5%
0%
1 2 3 4 5 6 7 8 9 10
Segments
Source: Nielsen Mobile Insights, Q4 2015 to Q4 2016
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 17 17
Usage Example: Segmentation and Promos (Non-T-Mobile Subscribers)
Non-T-Mobile participation is led by device discounts and device trade-in, followed by $0 down
Device trade-in special Switching credit Online specials Value added promos Gift card offering Additional airtime Other promotion
25%
20%
15%
10%
5%
0%
1 2 3 4 5 6 7 8 9 10
Segments
Source: Nielsen Mobile Insights, Q4 2015 to Q4 2016
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 18 18
Usage Example: Products and Feature Adoption (TMO vs. Market)
TMO significantly outperforms market on the customer adoption of the following features: Unlimited data, Wi-Fi calling, Free video and music streaming and no contra
TMO also leads market roaming (more so in North America) but the competitive lead is lower
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 19 19
Usage Example: LA Local Market Analysis
Note: Segments 7 to 10 (Boomers) are suppressed in this map
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 20 20
Usage Example: NYC Local Market Analysis
Note: Segments 7 to 10 (Boomers) are suppressed in this map
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 21 21
Limitations of the Current Demographic Segmentation
Uses simple rule-defined syntax instead of a predictive or pattern-discerning algorithm.
Excludes key predictive variables such as wireless, lifestyle and media consumption behaviors, and
as such has limited predictive power.
Based on presumption that demographics alone (age, income and presence of kids) are the key
differentiators of consumer wireless behavior; it thus ignores other salient differentiating variables.
Assumes that members of each demographic cohort have similar preferences and same behavioral
orientation, ignoring the inherent differences within these cohorts.
Difficult to match to online behaviors (since demographics are not reliable delineators of web
behavior). As such, it is of limited use for digital targeting.
Whilst salient within T-Mobile’s customer base, it is not necessarily a “wireless” segmentation that
can be used in a non-wireless prospect file for campaign selection.
D2C| SEGMENTATION,
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T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 22 22
Where We Are Going
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 23 23
Summary of New Segmentation Objectives and Options
Modeling Use as Predictive Model Summary of Pros & Cons
Algorithm-based Offer Channel Message Media
Objectives Analysis Plan Mkt. Cov. Prediction Resource
Behavioral Model • Market segmentation
Leverages advanced algorithm
• Use core inputs and
• Target development
and wide range of others
•
demographic, behavioral and
psychographic variables to
•
Product differentiation
Positioning/Messaging •
•
Use clustering algorithm
Target variable not
● ◕ ◐
build market-level • Sizing/segment
required
segmentation economics
• Append base CLVs
Customer CLV Model • Target development • Predict prospect CLVs
Extends TMUS CLV model to • Product differentiation • Create new CLV cohorts
general market, using this as • Positioning/Messaging
• Use cohort as model
◐ ◔ ◔
Power
Predictive Power
Rule-based
New Demographic Model • Append additional demos
◔ ◔ ◔
•
Appends additional variables to
DTC’s existing demographic
segments, but retains the same
•
Target development
Messaging •
•
Use rule-based logic
No algorithm
rule-based logic
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 24 24
Analysis Plan Details
Modeling Sample Input Data Model Specifications
Source Size Coverage Category Level Source Availability Readiness Description Output Deployment
Prospect Clustering Once the
Individual/HH Merkle ◕ Among
demographics model specified, initial model
other
Prospect Merkle or as an is build, a
Individual/HH ◕ outputs,
• Total sample: 1m lifestyles Claritas unsupervised scoring
cluster
individuals Training sample will Prospect life grouping model syntax based
algorithms
• Prospect cover the entire US events
Individual/HH Merkle based on
produce
on
base • 80% prospect wireless market, drawn Euclidean commonly
Behavioral Credit card group
Model
in random proportions
purchases
Individual Merkle distance.
membershi
available
• Custome • 20% TMUS, of to reflect TMUS versus variables will
Customer data Individual EDW ◕ p and
r base which postpaid = competitor market K-Means is be built to
probability
90% and 10% = share Customer web Engineerin suggested but enable the
Individual ◕ scores
prepaid behavior g hierarchical and deployment
enabling
Algorithm-based
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 25 25
Final Thoughts on Model Selection
Model selection criteria:
— Actionability and alignment with current marketing strategy
— Relevance of the modeling sample and input variables to the general wireless market
— Predictive value to support offer, channel, messaging and media buying decisions
— Amount of resources needed to develop and implement model
Proposed approach:
— Combine the behavioral and brand affinity models
Justification
— A deductive algorithm based on wide range of relevant behaviors allows for holistic market and consumer
understanding, enabling more salient clustering and profiling of consumers
— Finalizing with a brand affinity model helps to narrow segmentation inputs to an actionable range
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 26 26
Development and Activation of Behavioral Segmentation
Goal: Move beyond mass media targeting (i.e. 18-49 year olds) and one message to all
Hypothesis: Algorithm-based targeting and differentiated offers/messaging will improve efficiency and drive incrementality
• T-Mobile Base Behaviors • Normalize all datasets into single in-house • Scored Base and prospect file and
data lab subsequent onboarding to digital ecosystem
• T-Mobile Web & Channel
Behaviors • Implement Cluster/Tree/Neural Network • Magenta People
method and create numerous scenarios
• Wireless Behaviors and • Distributions (Geographic counts) at BG,
with various # of segment outcomes (ex: 5,
Motivations Zip and DMA levels
10, 15)
• Scarborough Lifestyle and Media • Typing tool for Primary Research and
• Review select few top performing models
usage Behaviors anonymous website visitors where
with cross functional team to select best fit
cookies/Device Ids can’t be matched
• Demographics • Development of algorithm/process and
typing tool to implement new segments
onto marketing file and in web ecosystem
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 27 27
Behavioral Segmentation: Summary of Required Data Inputs
Prospect T-Mobile Base T-Mobile Web Mobile Insights Media Consumption
Demos/Behaviors Behaviors Behaviors Variables
• Person demographics • Current plan type: • Mobile/non-mobile website • Current carrier • Television
‒ Age category (18+ only) ‒ Individual postpaid visits • Current plan type: ‒ Viewing by genre
‒ Gender ‒ Family plan postpaid • Multi-page visits ‒ Individual postpaid ‒ Viewing past 7 days
‒ Race** ‒ Pre-paid • Page depth ‒ Family plan postpaid o Broadcast
‒ Ethnicity** • Plan type (e.g.)*: ‒ Prepaid: by minute o Cable networks
• Average clicks per visit o Specialty
‒ Position in HH ‒ # of lines per plan ‒ Prepaid: by month with
‒ Education level** • Average page views per visit programming
‒ Y/N kickback & value back unlimited minutes
‒ Occupation** ‒ T-Mobile One • Average time spent per page ‒ Prepaid: annual fee (awards)
• Person’s Household Characteristics • Average time spent per visit o Specialty sports
‒ T-Mobile One Plus
• Average clicks per page • Plan and device usage:
‒ Income ‒ T-Mobile One International ‒ Handset purchaser ‘loyal programming
‒ Presence/Age of Children ‒ # of Tablets on plan • Number of repeat visits upgrader’ ‒ Devices and attributes
‒ Urbanicity ‒ # of wearables on plan • Average time between visits ‒ Handset purchaser ‘recent o Cable type
‒ Other VARs to be considered: ‒ No credit check • Non-shopping page visits switcher’ o DVR
o Credit status ‒ Pay as you go plan types • Shopping page visits ‒ Handset purchaser: ‘New to o Pay per
o Net Worth • Offer accepted at sign up • User Journey wireless’ view/VOD
o Own/Rent (e.g.)*: ‒ Entry page ‒ High-end / ultra high-end • Internet
• Lifestyles ‒ Third line free ‒ Engaged page phone owner ‒ Top news, sports and
• Life events ‒ iPhone 7 free ‒ Exit page ‒ Likely to upgrade in 6 entertainment sites
• Purchase behaviors ‒ Free Samsung Galaxy • Campaign impressions months or less • Newspapers
‒ DUP/IEP ‒ Daily reader - print
• ConneXions • Individual device usage (e.g.)*: • Campaign click-throughs
edition – national papers
‒ % of 4G network • Ad impressions ‒ 4g network
‒ % using data apps ‒ Unlimited voice/text ‒ Newspaper sections read
• Click to chat ‒ Mobile device used to
‒ Video usage where ‒ Using data apps
• Info page read
possible • Cart starts • Behaviors
‒ Etc. ‒ Likely switcher, reason • Radio
• Cart removals considering switch ‒ By format
• CLV • Web order submit ‒ By station ownership
‒ Lifetime spend ‒ Considering T-Mobile
‒ Non-switcher reasons
‒ Reason left previous carrier
• Channels (web, phone, mobile)
• Psychographics
*All behaviors will be reviewed and jointly agreed by key stakeholders prior to modeling process **Usability will depend on fill rate available for all persons; may use HH variable where person is not present on file
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 28 28
Data Inputs: Sources, Status and Prioritization
Data Category Level Source Priority Availability Comment
In-house or Readiness for
Contracted Sample Use
Individual/H
Prospect demographics H Merkle ● ◕ Part of core prospect sample
Prospect File
Individual/H ◕
Prospect lifestyles H
Merkle or Claritas ● Claritas requires append
Individual/H
Prospect life events H Merkle ● Expected Merkle module
Individual/H
General purchase behavior H
Claritas ◐ ◔ Requires append
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 30 30
Brand Affinity Model: “Magenta People” Profile Development Process
Once behavioral segmentation is completed, we will develop a Magenta People construct using core, actionable
inputs
Magenta People
Magenta People
Profiles
Support of platform
Step 5 Magenta Affinity Model Devt TBD
owners and MET team
April/May 2018
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 32 32
Next Steps
Project socialization
Develop team-level usage scenarios
Socialize segmentation plan
Conduct technical consultations
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 33 33
Appendix
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 34 34
Merkle DataSourceSM for Consumer
Wealth
Transactional indicators Real
Real property
property
Transactional Syndicated
Mortgage
Mortgage cooperative data
data Social media
cooperative data
data Direct
Direct integration
integration with
with
handles/flags / research data
social influence Facebook, Twitter,
Facebook, Twitter, AOL,
AOL,
Summarized Google,
Google, Rentrak,
Rentrak, etc
etc
credit statistics
Lifestyle
Lifestyle // behavioral
behavioral
Life events & triggers Segmentation
Segmentation Cookie
New
New movers
movers Systems (examples)
Systems (examples) synchronized
New
New homeowners
homeowners Mosaic
Mosaic Merkle for display to standard & Syndicated to Oracle/Bluekai,
New
New parents
parents
Automotive
Automotive data
data PRIZM Merkle mega,
mega, derived
derived Syndicated to Oracle/Bluekai,
PRIZM
& custom
Tri-bureau
Tri-bureau credit
credit models
models &
& summarized
summarized CAMEO
CAMEO & propensity
propensity RocketFuel,
RocketFuel, Google,
Google, Adobe,
Adobe,
Demographics variables audiences AOL
auto
auto statistics
statistics variables AOL
30+ 2500+ Daily new Direct linkage keys with Monthly new 95%+ 90-95%
major data selectable data movers Audience Platforms & homeowners coverage of all U.S. match rates on data
sources elements Datalogix/Oracle households overlay applications
Data Enrichment | Phone Append | Reverse Phone Append | E-append | Reverse E-append | eCOA | Onboarding | Market Sizing | Lists / Audience
Applications Selection | Segmentation | Predictive Modeling | Syndication | Real-time Marketing
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 35 35
Summary of Mobile Insights Data
The Mobile Insights study provides in-depth understanding on mobile brands, usage, attitudes
Retail
Device
Brand Channel & Customer Churn &
Demos Level Usage Satisfaction
Performance Purchase Service Switching
Analysis
Drivers
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 36 36
Rule-based Demographic Segmentation: Detailed Profiles
Segment 1: Segment 2: Segment 3: Segment 4: Segment 5: Segment 6: Segment 7: Segment 8: Segment 9: Segment 10: Industry
Millennials < Millennials > GenX < $75K GenX < $75K GenX > $75K GenX > $75K Boomers+ < Boomers+ < Boomers+ > Boomers+ > Base
Source: Nielsen Mobile Insights. Q3 2015 to Q3 2016 $75K $75K no kids with kids no kids with kids $75K no kids $75K w/ kids $75K no kids $75K w/ kids
Gender Male 38% 50% 46% 36% 55% 57% 52% 41% 69% 66% 50%
Female 62% 50% 54% 64% 45% 43% 48% 59% 31% 34% 50%
18-24 43% 33% - - - - - - - - 12%
25-34 57% 67% - - - - - - - - 18%
Age 35-44 - - 33% 61% 31% 60% - - - - 17%
45-54 - - 67% 39% 69% 40% - - - - 18%
55+ - - - - - - 100% 100% 100% 100% 36%
White 51% 60% 65% 54% 72% 67% 77% 56% 85% 72% 66%
Ethnicity Hispanic 21% 17% 13% 24% 10% 16% 10% 27% 4% 11% 15%
Black/African American 17% 9% 15% 15% 8% 8% 9% 14% 4% 9% 11%
Asian/Pacific Islander 6% 11% 3% 3% 7% 7% 1% 1% 3% 5% 5%
< $50k 72% - 68% 63% - - 66% 70% - - 41%
Income 50k-75k 28% - 32% 37% - - 34% 30% - - 19%
75k-100k - 40% - - 34% 34% - - 33% 35% 14%
100k + - 60% - - 66% 66% - - 67% 65% 26%
Low 28% 16% 26% 22% 11% 10% 17% 18% 7% 10% 18%
Credit Status Medium 54% 49% 54% 61% 42% 49% 48% 63% 27% 47% 48%
High 17% 36% 20% 17% 47% 41% 35% 19% 66% 44% 34%
Employment Full-time 38% 61% 44% 49% 74% 76% 15% 23% 32% 53% 42%
Urban 20% 29% 19% 18% 22% 20% 15% 22% 16% 20% 19%
Location Suburban 50% 51% 48% 50% 53% 54% 48% 46% 56% 55% 51%
Small Town / Rural 29% 20% 33% 33% 25% 26% 36% 32% 28% 25% 30%
Education Ass/BA/BS degree or greater 36% 66% 42% 41% 72% 78% 45% 34% 78% 72% 54%
Phone Type Smartphone penetration 95% 95% 81% 90% 91% 95% 62% 73% 79% 85% 84%
Handset Brand Apple share of smartphone base 37% 51% 24% 29% 46% 49% 20% 20% 41% 41% 35%
Samsung share of smartphone base 31% 26% 33% 35% 29% 29% 31% 33% 29% 30% 31%
Mobile Substitution HH Percent using only wireless service 67% 58% 55% 57% 48% 47% 34% 40% 23% 28% 48%
Price/promotion/cost 30% 20% 34% 33% 26% 23% 33% 35% 22% 25% 28%
Reason for Current Carrier
Voice network quality 9% 12% 9% 9% 15% 15% 12% 8% 19% 12% 12%
Selection
Data network quality 10% 15% 6% 7% 10% 11% 3% 5% 5% 8% 8%
Family/shared Plan Percent on family/shared postpaid plan 71% 71% 58% 75% 70% 75% 60% 72% 76% 79% 70%
HH Postpaid Lines Mean number of postpaid lines Q316 2.94 3.29 2.31 2.94 2.68 3.14 2.19 2.75 2.56 3.18 2.76
HH Postpaid Spend Mean monthly postpaid spend Q316 $142 $149 $137 $162 $159 $172 $108 $147 $144 $171 $144
TMO Share of Base TMO share of segment base 15% 13% 11% 14% 8% 10% 7% 11% 5% 9% 11%
Share of T-Mobile Base Segment share of Magenta base 29% 12% 9% 13% 4% 10% 12% 2% 7% 1% 100%
Share of TMO GAs Segment share of Magenta GAs Q316 36% 20% 6% 13% 2% 10% 6% 3% 3% 1% 100%
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 37 37
Mapping Target Segments to Nielsen ConneXions Segments
Segments Magenta Primary (Media Target) Magenta Secondary/Metro Overlap Magenta Stretch Magenta Non-Target
Big City, Small Tech (28)
IM Nation (29)
Mapping based on highest occurring index of CX segment within target segment base vs total market base
Gearing Up (34)
Seg 6 w/kids Bundled Burbs (15) Technovators (1) Connected Country (4)
Internet Hinterlands
Analoggers (22) (24)
Seg 9 w/o kids Broadband Boulevards (35)
Low-Speed Boomers Old-Time Media (46)
(25)
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential Gadgets Galore (19) 38 38
TMO Demographic Segments By ConneXions
Consumer Segment by ConneXions
Segment 1: Segment 2: Segment 3: Segment 4: Segment 5: Segment 6: Segment 7: Segment 8: Segment 9: Segment 10:
Millennials < Millennials > GenX < $75K GenX < $75K GenX > $75K GenX > $75K Boomers+ < Boomers+ < Boomers+ > Boomers+ >
Code ConneXions Segment LG Lifestage Group Demographic Caption Techno Class Magenta People Classification $75K $75K no kids with kids no kids with kids $75K no kids $75K w/ kids $75K no kids $75K w/ kids
1 Technovators F1 Early-Adopting Elite Wealthy Younger w/ Kids High-Tech Magenta Stretch 0.8% 3.0% 0.4% 0.7% 2.6% 6.3% 0.3% 0.3% 1.0% 2.0%
2 Plugged-In Families F1 Early-Adopting Elite Upscale Younger w/ Kids High-Tech Magenta Primary 1.4% 3.7% 1.0% 1.9% 3.7% 8.4% 0.5% 0.9% 1.3% 2.0%
3 Tech Nests F1 Early-Adopting Elite Midscale Younger w/ Kids High-Tech Magenta Primary 2.9% 3.5% 0.9% 2.7% 1.4% 2.8% 0.6% 1.8% 0.5% 1.4%
4 Connected Country F1 Early-Adopting Elite Upscale Middle Age w/ Kids High-Tech Non-Target 1.0% 1.9% 0.6% 1.0% 2.1% 3.8% 0.5% 0.8% 1.4% 3.1%
5 You & I Tunes Y1 Young & Wireless Upper Mid Younger w/o Kids High-Tech Magenta Primary 2.9% 5.3% 1.2% 0.9% 1.8% 1.7% 0.8% 0.9% 1.0% 1.3%
6 High-Tech Society F1 Early-Adopting Elite Wealthy Older w/ Kids High-Tech Magenta Stretch 0.7% 3.1% 0.4% 0.3% 3.3% 3.1% 0.4% 0.2% 3.4% 6.1%
7 Generation WiFi Y1 Young & Wireless Midscale Younger w/o Kids High-Tech Magenta Primary 3.3% 5.4% 1.5% 1.3% 2.0% 1.6% 0.6% 0.8% 0.6% 1.3%
8 Calling Circles F2 Suburban Spenders Midscale Younger w/ Kids High-Tech Secondary Magenta 2.4% 2.0% 1.4% 2.3% 1.1% 1.8% 0.6% 1.4% 0.3% 1.1%
9 Dish Country F2 Suburban Spenders Midscale Younger w/ Kids High-Tech Non-Target 1.8% 1.1% 1.0% 2.9% 0.9% 1.7% 0.5% 0.9% 0.3% 0.8%
10 Smart Gamers F2 Suburban Spenders Upscale Older w/ Kids High-Tech Magenta Stretch 1.0% 2.7% 0.7% 0.7% 4.4% 3.1% 0.5% 1.0% 3.4% 7.9%
11 WiFi Warriors M1 Wireless White-Collars Wealthy Middle Age w/o Kids High-Tech Magenta Primary 1.0% 2.5% 1.0% 0.8% 4.5% 2.8% 0.6% 0.5% 2.2% 1.6%
12 Satellites & Silos Y1 Young & Wireless Upper Mid Middle Age w/o Kids High-Tech Non-Target 1.8% 1.8% 1.6% 1.5% 2.9% 1.7% 1.0% 1.3% 2.1% 1.6%
13 Cyber Sophisticates M1 Wireless White-Collars Wealthy Middle Age w/o Kids High-Tech Magenta Stretch 0.8% 2.7% 0.8% 0.5% 4.7% 3.1% 0.7% 0.5% 3.3% 2.5%
14 The Pragmatics Y1 Young & Wireless Upscale Middle Age w/o Kids High-Tech Magenta Primary 1.4% 2.6% 1.4% 1.4% 3.8% 2.5% 0.7% 0.8% 1.3% 1.6%
15 Bundled Burbs F2 Suburban Spenders Upscale Middle Age w/ Kids High-Tech Magenta Primary 1.0% 2.0% 0.9% 1.4% 3.5% 5.1% 0.5% 0.7% 1.2% 3.3%
16 Kids & Keyboards F2 Suburban Spenders Upper Mid Middle Age w/ Kids High-Tech Magenta Primary 2.3% 2.7% 2.2% 5.2% 3.1% 6.7% 0.9% 2.3% 0.8% 2.7%
17 Time Shifters Y1 Young & Wireless Upper Mid Younger w/o Kids High-Tech Magenta Primary 1.7% 2.1% 1.7% 1.7% 2.3% 1.9% 0.7% 0.8% 0.8% 0.8%
18 New Technorati Y2 Emerging Techies Upper Mid Older w/o Kids Mid-Tech Magenta Primary 2.3% 2.6% 2.7% 2.3% 2.6% 2.0% 1.1% 1.5% 1.0% 1.1%
19 Gadgets Galore F3 Frugal Folks Upper Mid Older w/ Kids Mid-Tech Magenta Stretch 1.5% 1.9% 1.5% 1.7% 2.5% 2.2% 2.2% 3.5% 4.1% 7.4%
20 Cinemaniacs M2 Mature Mid-Techs Upscale Older w/o Kids Mid-Tech Magenta Primary 1.7% 2.3% 2.6% 1.5% 4.9% 2.0% 1.7% 1.3% 3.3% 2.9%
21 Multimedia Families F3 Frugal Folks Upper Mid Older w/ Kids Mid-Tech Secondary Magenta 2.3% 1.7% 3.0% 4.1% 1.5% 2.1% 1.8% 5.0% 0.7% 2.4%
22 Analoggers M2 Mature Mid-Techs Wealthy Older w/o Kids Mid-Tech Non-Target 0.8% 2.3% 0.7% 0.5% 2.7% 1.9% 1.2% 0.3% 10.9% 3.2%
23 Cyber Strivers F3 Frugal Folks Lower Mid Middle Age w/ Kids Mid-Tech Secondary Magenta 2.1% 0.9% 1.6% 2.6% 0.5% 0.7% 0.6% 2.0% 0.2% 0.3%
24 Internet Hinterlands M2 Mature Mid-Techs Upscale Older Mostly w/o Kids Mid-Tech Non-Target 0.8% 0.8% 1.0% 0.8% 1.5% 0.7% 2.1% 1.3% 4.8% 2.4%
25 Low-Speed Boomers M2 Mature Mid-Techs Wealthy Older w/o Kids Mid-Tech Non-Target 1.0% 2.1% 1.0% 0.7% 2.9% 1.8% 2.1% 0.8% 10.1% 4.1%
26 Rural Transmissions M2 Mature Mid-Techs Midscale Older Mostly w/o Kids Mid-Tech Non-Target 1.6% 0.8% 2.8% 1.9% 1.5% 1.0% 2.5% 3.0% 1.1% 1.7%
27 Video Vistas F3 Frugal Folks Lower Mid Middle Age w/ Kids Mid-Tech Secondary Magenta 2.5% 1.2% 2.3% 3.8% 0.8% 1.4% 0.9% 2.5% 0.2% 1.0%
28 Big City, Small Tech F3 Frugal Folks Low Income Younger w/ Kids Mid-Tech Secondary Magenta 2.8% 1.1% 1.6% 3.0% 0.3% 0.5% 0.7% 2.1% 0.1% 0.4%
29 IM Nation Y2 Emerging Techies Lower Mid Younger w/o Kids Mid-Tech Secondary Magenta 3.4% 1.9% 1.8% 2.0% 0.7% 1.0% 1.0% 1.4% 0.3% 0.8%
30 Techs and the City Y2 Emerging Techies Lower Mid Younger w/o Kids Mid-Tech Secondary Magenta 4.3% 3.2% 2.6% 2.5% 1.5% 1.4% 1.4% 1.9% 0.5% 0.5%
31 Plug & Play Y2 Emerging Techies Upper Mid Older w/o Kids Mid-Tech Secondary Magenta 2.1% 2.1% 3.1% 2.3% 2.7% 1.7% 1.2% 1.5% 0.7% 1.0%
32 Family Dishes F3 Frugal Folks Lower Mid Middle Age Family Mix Mid-Tech Non-Target 3.3% 1.2% 3.8% 4.9% 0.8% 1.1% 1.8% 3.7% 0.4% 0.9%
33 Digital Dreamers Y2 Emerging Techies Lower Mid Older w/o Kids Mid-Tech Secondary Magenta 3.8% 2.2% 4.3% 4.3% 1.7% 1.9% 1.9% 2.9% 0.7% 1.4%
34 Gearing Up Y2 Emerging Techies Low Income Middle Age w/o Kids Mid-Tech Secondary Magenta 3.2% 1.6% 1.9% 1.6% 0.4% 0.6% 0.8% 1.0% 0.2% 0.2%
35 Broadband Boulevards M2 Mature Mid-Techs Upper Mid Older w/o Kids Mid-Tech Magenta Stretch 1.4% 2.4% 1.8% 1.2% 2.5% 1.8% 3.2% 2.0% 5.8% 3.7%
36 Opting Out M2 Mature Mid-Techs Upper Mid Older w/o Kids Mid-Tech Secondary Magenta 1.7% 1.3% 2.9% 1.4% 2.1% 1.2% 2.6% 2.1% 2.4% 2.0%
37 Techtown Lites Y3 Young Startups Lower Mid Older Mostly w/o Kids Low-Tech Secondary Magenta 2.3% 1.0% 3.3% 2.7% 0.8% 0.6% 1.6% 2.9% 0.4% 1.2%
38 New Kids on the Grid Y3 Young Startups Downscale Older Mostly w/o Kids Low-Tech Secondary Magenta 1.7% 1.0% 2.0% 1.4% 0.7% 0.5% 1.0% 1.4% 0.2% 0.3%
39 Video Homebodies F3 Frugal Folks Low Income Older Mostly w/o Kids Mid-Tech Secondary Magenta 2.1% 0.9% 2.2% 2.4% 0.4% 0.5% 0.9% 2.3% 0.2% 0.7%
40 Low-Tech Country Y3 Young Startups Downscale Older Mostly w/o Kids Low-Tech Non-Target 1.3% 0.4% 2.2% 1.3% 0.4% 0.3% 1.8% 3.1% 0.2% 0.3%
41 Antenna Land M3 Offline Seniors Midscale Older w/o Kids Low-Tech Secondary Magenta 3.6% 2.3% 4.5% 3.4% 2.6% 2.1% 7.7% 6.0% 2.7% 3.6%
42 Tech Skeptics M3 Offline Seniors Upper Mid Mature w/o Kids Low-Tech Non-Target 1.1% 1.5% 1.5% 1.0% 2.0% 1.4% 4.9% 2.2% 7.2% 3.0%
43 Bucolic Basics M3 Offline Seniors Midscale Mature w/o Kids Low-Tech Non-Target 1.0% 0.5% 1.5% 1.0% 1.0% 0.6% 4.3% 2.0% 2.2% 1.9%
44 Leisurely Adopters M3 Offline Seniors Low Income Older w/o Kids Low-Tech Secondary Magenta 2.4% 1.3% 2.9% 2.2% 0.6% 0.9% 2.7% 3.2% 0.3% 0.6%
45 Landline Living M3 Offline Seniors Downscale Older Mostly w/o Kids Low-Tech Non-Target 1.7% 0.5% 2.0% 1.7% 0.4% 0.5% 2.5% 2.7% 0.3% 0.4%
46 Old-Time Media M3 Offline Seniors Upper Mid Mature w/o Kids Low-Tech Non-Target 0.8% 1.3% 1.4% 0.8% 1.9% 1.4% 3.3% 1.5% 5.0% 2.1%
47 Discounts & Deals M3 Offline Seniors Downscale Older Mostly w/o Kids Low-Tech Non-Target 1.4% 0.8% 1.6% 1.3% 0.6% 0.5% 2.3% 2.4% 0.7% 0.9%
48 Dial-Up Duos M3 Offline Seniors Midscale Mature Mostly w/o Kids Low-Tech Non-Target 1.6% 1.3% 2.6% 1.9% 1.7% 1.2% 7.2% 3.8% 2.7% 2.4%
49 Satellite Seniors M3 Offline Seniors Downscale Older Mostly w/o Kids Low-Tech Non-Target 0.8% 0.2% 1.0% 1.0% 0.2% 0.3% 2.1% 1.8% 0.3% 0.2%
50 Early-Bird TV M4 Elderly Traditionalists Midscale Mature w/o Kids No-Tech Non-Target 0.9% 1.0% 1.4% 0.9% 1.2% 0.8% 3.9% 0.9% 2.0% 1.4%
51 Tech-Free Frontier M4 Elderly Traditionalists Downscale Mature w/o Kids No-Tech Non-Target 1.2% 0.5% 1.8% 1.4% 0.5% 0.4% 3.5% 1.6% 0.8% 0.3%
52 The Unconnected M4 Elderly Traditionalists Downscale Mature w/o Kids No-Tech Non-Target 2.3% 1.6% 3.3% 2.5% 1.6% 1.4% 5.5% 3.6% 1.5% 1.5%
53 Last to Adopt M4 Elderly Traditionalists Low Income Older w/o Kids No-Tech Non-Target 2.4% 1.3% 2.9% 2.3% 0.8% 1.0% 3.8% 2.9% 0.4% 0.6%
99 Unclassified 99 Unassigned Unassigned Unassigned Non-Target 0.6% 0.6% 0.3% 0.4% 0.2% 0.4% 0.1% 0.1% 0.1% 0.2%
100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 39 39
Rule-based Segmentation and Promos: Base Data
Segment 1: Segment 2: Segment 3: Segment 4: Segment 5: Segment 6: Segment 7: Segment 8: Segment 9: Segment 10:
T-Mobile
Millennials <
$75K
Millennials >
$75K
GenX < $75K
no kids
GenX < $75K
with kids
GenX > $75K
no kids
GenX > $75K
with kids
Boomers+ <
$75K no kids
Boomers+ <
$75K w/ kids
Boomers+ >
$75K no kids
Boomers+ >
$75K w/ kids Total
Instant POS rebate 5.7% 12.1% 5.2% 8.1% 6.4% 6.8% 3.5% 6.8% 4.1% 5.4% 6.8%
Service bundling 6.3% 11.0% 2.0% 4.7% 3.1% 6.7% 2.0% 1.8% 1.8% 0.8% 5.6%
Device discounts 8.7% 13.2% 6.7% 9.3% 7.9% 9.4% 5.2% 8.6% 5.6% 4.9% 8.8%
Free Device BOGO 5.6% 9.0% 2.6% 6.0% 3.0% 8.2% 1.8% 2.2% 1.5% 7.5% 5.5%
$0 down for new device 17.4% 17.2% 17.8% 21.0% 13.7% 16.9% 13.1% 17.6% 9.0% 11.3% 16.8%
Mail-in rebate 6.0% 8.3% 3.6% 4.2% 7.4% 7.3% 2.5% 0.2% 4.8% 1.7% 5.6%
Bundled accessories 8.0% 14.3% 5.6% 6.9% 8.1% 10.6% 3.1% 4.8% 4.4% 9.2% 8.2%
Device trade-in special 11.9% 15.2% 8.8% 10.9% 10.2% 13.3% 7.5% 9.9% 11.7% 16.1% 11.7%
Switching credit 4.2% 6.7% 2.4% 4.1% 4.2% 4.0% 1.1% 2.2% 2.0% 4.3% 4.0%
Online specials 5.8% 11.4% 2.6% 4.1% 3.3% 8.7% 1.1% 3.5% 0.7% 2.3% 5.6%
Value added promos 6.0% 10.3% 1.8% 3.8% 4.2% 8.2% 0.9% 2.3% 1.3% 1.5% 5.4%
Gift card offering 4.8% 8.0% 0.9% 2.6% 3.8% 6.9% 1.1% 0.4% 1.5% 3.5% 4.2%
Additional airtime 3.7% 9.3% 1.7% 2.4% 2.6% 6.2% 1.8% 1.8% 1.8% 3.3% 4.1%
Other promotion 3.0% 1.9% 3.8% 3.9% 3.4% 3.0% 8.1% 3.1% 6.8% 1.2% 3.7%
Participated in no promo 45.5% 33.5% 57.3% 46.2% 53.7% 42.6% 64.0% 49.3% 64.2% 52.2% 47.5%
Segment 1: Segment 2: Segment 3: Segment 4: Segment 5: Segment 6: Segment 7: Segment 8: Segment 9: Segment 10:
Non-T-Mobile
Millennials <
$75K
Millennials >
$75K
GenX < $75K
no kids
GenX < $75K
with kids
GenX > $75K
no kids
GenX > $75K
with kids
Boomers+ <
$75K no kids
Boomers+ <
$75K w/ kids
Boomers+ >
$75K no kids
Boomers+ >
$75K w/ kids Total
Instant POS rebate 8.5% 11.7% 9.3% 11.2% 8.5% 11.9% 7.5% 10.2% 10.3% 9.6% 9.7%
Service bundling 5.5% 9.9% 2.7% 4.2% 3.0% 7.6% 2.1% 3.1% 2.6% 6.6% 4.9%
Device discounts 13.5% 16.9% 11.1% 12.8% 15.7% 16.8% 10.3% 12.0% 14.2% 14.3% 13.7%
Free Device BOGO 5.9% 8.7% 3.1% 5.8% 3.5% 7.2% 2.3% 4.4% 2.3% 3.2% 5.0%
$0 down for new device 11.9% 12.9% 10.8% 12.0% 10.3% 13.0% 8.2% 12.3% 9.3% 12.7% 11.2%
Mail-in rebate 5.4% 8.6% 3.5% 5.2% 4.2% 7.0% 3.1% 4.5% 4.8% 4.3% 5.3%
Bundled accessories 7.6% 12.7% 4.3% 6.4% 5.9% 9.7% 3.6% 4.8% 6.3% 6.4% 7.1%
Device trade-in special 10.9% 16.1% 8.5% 9.8% 11.0% 14.1% 7.8% 9.2% 12.3% 11.0% 11.2%
Switching credit 3.7% 5.9% 1.6% 2.9% 1.4% 4.5% 1.0% 1.9% 0.9% 1.8% 2.9%
Online specials 4.9% 7.9% 2.6% 4.1% 3.2% 5.8% 1.8% 2.0% 1.1% 2.1% 4.0%
Value added promos 3.7% 7.5% 1.5% 3.2% 1.7% 5.2% 0.6% 1.2% 0.9% 1.5% 3.1%
Gift card offering 3.9% 8.6% 2.4% 4.0% 2.3% 6.8% 1.4% 2.3% 2.4% 2.4% 4.0%
Additional airtime 3.4% 7.6% 2.3% 3.4% 2.0% 6.0% 3.2% 2.5% 1.9% 3.7% 3.8%
Other promotion 3.5% 1.9% 6.7% 4.7% 4.8% 3.5% 8.1% 8.2% 6.0% 5.7% 4.8%
Participated in no promo 45.8% 37.0% 52.5% 44.5% 49.5% 38.7% 55.7% 50.8% 50.4% 47.7% 46.7%
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 40 40
Inadequacy of Existing Targeting Solutions
Goal: Move beyond mass media targeting (i.e. 18-49 year olds) and one message to all
Hypothesis: Algorithm-based targeting and differentiated offers/messaging will improve efficiency and drive incrementality
Build Magenta
Ends in poor
Is insufficiently Often yield
Is web-specific; People construct
predictive; highly unstable
target delineation, excludes vast
implicitly segments; lack
Complication thus will severely
assumes cohort cross-channel
array of
What are the key drawbacks? limit offer and behavioral and Map to machine
homogeneity; has validity; offer
message psychographic
low web match very thin target learning model
differentiation inputs
rate profiling
D2C| SEGMENTATION,
TARGETING
T-Mobile Confidential & Proprietary Information
T-Mobile Confidential 41 41