Case study

How a telco generated $21M by optimizing its promotional strategy

4.7%

lift in activations per week.

$21M

in incremental profit generated by targeting the promotion's rollout to the markets predicted to be most profitable.

Introduction

A telco struggled to understand the impact of its $100 promotion

A North American wireless carrier had offered a $100 gift card promotion to better compete against other carriers. The carrier found high utilization of the offer but was unable to measure its impact on profitability and determine a clear path forward.

 

Approach

The telco used Test & Learn® to measure the promotion’s impact

The platform helped the telco answer three key questions:

  1. What is the true incremental impact of the offer?
  2. With what stores does the offer work best?
  3. How can we target the rollout to maximize ROI?

Results

Test & Learn® helped the telco drive $21MM in incremental profit

The promotion resulted in two incremental activations per week in test stores during a nine-week period, or a 4.7% lift. Test & Learn® automatically scanned hundreds of attributes to identify the strongest drivers of performance. By targeting the promotion to the stores predicted to respond best, the telco generated $21MM in incremental profit.