telefonica: creating a competitive edge with predictive analytics for telecommunications

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Creating a competitive edge with predictive analytics in Telecommunications Telefonica case study

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Creating a competitive edge with predictive analytics in Telecommunications

Telefonica case study

Telefonica wanted to improve its marketing processes, reduce time spent developing and implementing campaigns and optimize its customer interactions.

The company enacted a closed-loop process that would use customer behavior to generate targeted marketing campaigns that really worked.

Telefonica used call data, demographics and predictive modeling to reach out to customers and offer them products and services that match their needs and lifestyles.

Demographics

Call data

Predictive modeling

Call data

Customer fatigue caused by blanket marketing and no personalization.

Jenny receives a text giving her a discount for upgrading her plan before she goes over her minutes again.

Before After

Hi Jenny- Upgrade now!

Telemarketing Email

TextDirect mail

Before AfterDemographics

Telemarketing

Customer fatigue caused by blanket marketing and no personalization.

Anthony receives a call with an incentive to add a smart tablet to his line.

Hi Anthony,We have a great deal on a new smart tablet and data package for you!

TextDirect mail

Email

Myra receives an email announcing a sale on the new phone that she’s been researching online.

Before AfterPredictive modeling

Telemarketing

TextDirect mail

Customer fatigue caused by blanket marketing and no personalization.

Email

What did these changes mean for Telefonica?

increased revenue generated from direct marketing efforts

Real business results from Telefonica/Vivo

30%

Increased sales by

on days that campaigns are launched

Real business results from Telefonica/Vivo

5x

Real business results from Telefonica/Vivo

Increased the opt-in rate by

for customers who receive marketing messages through improved targeting and segmentation

70%

Real business results from Telefonica/Vivo

Reduced marketing campaign operating costs by

80%