Marketing Mix Optimization Helps a Telecom Services Provider to Refine their Marketing Campaigns

Jul 14, 2021

What You Can Expect from the Marketing Mix Optimization Case Study

  • Industry Overview
  • About the Client
  • Business Challenge
  • Marketing Mix Optimization Solution and Business Impact
  • Marketing Mix Optimization Predictive Insights

Highlights of the Marketing Mix Optimization Case Study

ClientA global telecommunication service provider
Business ChallengeTo measure the impact of marketing activities on sales revenues
Decrease in marketing spending
Increase in MROI
Increase in customer conversions17%

Industry Overview

The telecommunication services sector is essential for the economic growth of the world and is one of the key support services needed for the rapid modernization of various sectors of the economy. In regions such as the developing countries, the market for telecom services has recorded exponential growth over the past few years – facilitated by the implementation of favorable policies and regulatory reforms by regional governments. Though the market for telecom services is expected to witness incremental growth some factors may influence the growth of the telecom services sector over the next few years. They include:

  • Growth in IoT: As technology is a key enabler of competition, telecom services providers are facing pressures to stay relevant and offer VoIP and cloud-based communication services to stay relevant in the market. A recent study also highlights the fact that the number of connected devices is expected to manifold twice by the year 2020. This makes it mandatory for market players to implement systems that can leverage such technologies.
  • Diversification: In this competitive environment, the telecom services providers are growing at a rapid pace and are expanding their reach to new markets. Therefore, it becomes essential for the service providers to develop new service lines to increase profitability and optimize their ROI.
  • Regulatory reforms: The rising consumer demand and growing communication technology are forcing telecom services providers to reassess their business strategy and encourage investment in high-speed networks. Also, the development of 5G services is compelling telecom services providers to refine their existing digital infrastructure and meet the growing business and public demands.

To keep up with these rapid changes and develop effective marketing campaigns, leading telecom service providers are leveraging marketing mix optimization. Marketing mix optimization is a statistical model that helps companies optimize the budget allotment for different marketing campaigns. 

Implement our marketing mix optimization solutions to solve your complex business challenges at no cost with our 4-week complimentary pilot. This offer bears no hidden clauses and serves as a perfect opportunity to explore our comprehensive portfolio of advanced BI and business analytics solutions.

About the Client

The client is a renowned telecom services provider with branches spread across the Asia-pacific region.

The Business Challenge

The Asia-pacific region is anticipated to be one of the fastest-growing markets for telecom services across the globe. The client wanted to measure the impact of advertising, packaging, distribution channels, and media expenditure on the sales revenue. Their primary aim was to refine the existing marketing models to improve overall market share. To deal with the issue of increasing market competition and rising budget concerns, the telecom services provider wanted to understand the relationship between marketing spending and business performance, identify the potential sales drivers, and estimate the ROI on their marketing investments.

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The Marketing Mix Optimization Solution and the Business Impact

With the help of Quantzig’s marketing mix optimization solution, the client was able to gain accurate insights into their marketing investments. The solution also offered the client a more accurate picture of their ROIs and provided strategic insights on how to improve their customer retention capabilities. The marketing mix optimization solution also helped the telecom services provider assess the impact of their marketing activities on sales performance and offered real-time insights into the future spend to maximize returns.

The impact of marketing optimization solution:

  • 13% decrease in marketing spending
  • 15% increase in MROI
  • 17% increase in customer conversions

Market Mix Optimization Predictive Insights

The telecom services provider was able to streamline their marketing efforts and adequately allocate their marketing budget across various marketing channels. The solution offered also helped them identify the major reasons behind changes in the business performance and assess the impact of internal and external factors on the services rendered.

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