Cellnet has appointed its first dedicated UK direct marketing
specialist to help it boost customer loyalty.
Tullo Marshall Warren (TMW) will handle the account, which is believed
to be worth pounds 5m-pounds 7m, following a secret split in April with
OgilvyOne, which worked on an ad hoc basis. TMW pitched against
Barraclough Hall Woolston Gray and Carlson.
The win has prompted the agency to terminate its five-year relationship
with Cable & Wireless Communications, for which it handled the pounds 1m
customer retention account.
Cellnet plans to expand its direct marketing activity to maintain its
expanding customer base, which currently stands at 3.38 million users,
placing it second behind Vodafone.
The operator predicts that by next March 25% of the population will have
a mobile phone, and by 2003 half of the UK population will own one.
Despite these figures, Cellnet is concerned by the high level of churn
in the industry - customers deserting to join other networks - and hopes
to combat it with a new DM programme.
This will involve more relationship and product marketing as well as
lifecycle marketing. This aims to track more closely how customer phone
usage changes to develop more relevant products and services.
The agency will work alongside US agency Devon Direct, which handles
direct marketing for its Cellnet First package, and Clarke Hooper, which
CWC said that it may allocate the business to roster agencies Rapier,
Grey and Black Cat.