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Case study

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

Woman looking at phones at a telecommunications store

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?
Two women looking at a phone to buy

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.

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