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IBM > Case Studies > Telefonica | Vivo: Increasing Sales and Lowering Costs with Customized Marketing

Telefonica | Vivo: Increasing Sales and Lowering Costs with Customized Marketing

Technology Category

Analytics & Modeling - Predictive Analytics

Applicable Industries

Telecommunications

Applicable Functions

Sales & Marketing

Use Cases

Predictive Replenishment
Demand Planning & Forecasting

Services

Data Science Services

The Challenge

Telefonica | Vivo, a leading Brazilian communications company, was facing a challenge with its marketing campaigns. The company, which offers voice, text, and web services to nearly 60 million customers, generates about 2 billion call records per day. However, the manual list-generating processes performed by over 30 marketing vendors were creating ineffective campaigns that didn't offer customers the services specific to their needs. This resulted in contact fatigue that devalued the brand. The company needed a closed-loop process that would use customer behavior to generate targeted marketing campaigns that really worked.

About The Customer

Telefonica | Vivo is the largest mobile telecommunications provider in Brazil. It is a subsidiary brand of Telefonica, which has more than 280 million customers in approximately 25 countries, with more than two-thirds of those customers are in Latin America. As demand for mobile services has surged worldwide, Telefonica | Vivo has tripled its customer base to roughly 60 million in just seven years, growing its annual revenue to more than USD15 billion in 2010.

The Solution

Telefonica | Vivo implemented a solution using IBM's Unica suite of products. The solution uses call data, demographics, and predictive modeling to reach out to customers and offer them only products and services that match their needs and lifestyles. Marketing teams and vendors use detailed segmentation and customized communications via text and email to anticipate what subscribers need and present it at just the right time. For example, the solution can preemptively contact customers who recently exceeded their allotted calling minutes and give them a discount for upgrading before going over again. Not only are marketing teams given virtually instant feedback on 200 campaigns per month and their impact on sales, they can even make mid-campaign adjustments, such as extending holiday offers or sending follow-up offers to a subscribers’ friends and family.

Operational Impact

Telefonica | Vivo was able to drastically increase the revenue generated from direct marketing efforts.
The company was able to increase sales by five times on days that campaigns are launched.
The opt-in rate for customers who receive marketing messages improved through better segmentation and targeting.

Quantitative Benefit

Increased the revenue generated from direct marketing efforts by 30 percent.
Increased sales by five times on days that campaigns are launched.
Increased the opt-in rate for customers who receive marketing messages by 70 percent.