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MNO Increases Ad Campaign Conversion Rate for Restaurant’s App by 7X using Guavus-IQ Analytics
Technology Category
- Analytics & Modeling - Real Time Analytics
Applicable Industries
- Food & Beverage
- Telecommunications
Applicable Functions
- Sales & Marketing
Use Cases
- Demand Planning & Forecasting
Services
- Data Science Services
The Challenge
A restaurant chain approached a Tier 1 mobile service provider to help launch a campaign sending messages to consumers’ mobile phones, encouraging people to download the restaurant’s free app. The messages were sent to large audience segments, created on the basis of standard demographic information, such as device type and age group of opt-in subscribers. However, the ad campaign was costly, as it was being sent to millions of mobile users, and was yielding poor results – about .6 app downloads per every 100 messages sent. The restaurant chain challenged the mobile operator to improve the conversion rate, agreeing to pay more for each download if the operator could better target their customers.
About The Customer
The customer in this case study is a Tier 1 Mobile Network Operator (MNO). The MNO was approached by a restaurant chain to help launch a campaign to encourage people to download the restaurant's free app. The campaign involved sending messages to consumers' mobile phones. The MNO was challenged to improve the conversion rate of the campaign, with the restaurant chain agreeing to pay more for each download if the MNO could better target their customers.
The Solution
The MNO used Service-IQ Marketing Analytics to separate the target audience into sub-segments, using both demographics and content interest. Based on their interests, such as travel or specialty food, subscribers now received personalized messages with links included. This small change produced staggering results. First, the percentage of consumers who actually clicked on the link in the message went from 2% to 8%. Second, of the people who clicked on the message, 53% downloaded the app vs. 27% previously. This resulted in a 7x increase in conversion rate! The operator now received more revenue per message sent. The restaurant was willing to pay a higher amount per message because the personalization drove higher adoption rates. Conversely, the cost to run the campaign decreased due to the smaller, more-focused audience segments.
Operational Impact
Quantitative Benefit
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