U.S. Cellular

Deep insights into customer behavior lead to highly granular campaigns that improve customer retention

Published on 08-Oct-2013

"We know that IBM has the vision and expertise to help us — no matter which direction we choose or what challenges we face. That gives us a lot of confidence." - John Tompson, Senior Manager, Campaign Analytics, U.S. Cellular

Customer:
U.S. Cellular

Industry:
Telecommunications

Deployment country:
United States

Solution:
Cloud Computing, Customer Relationship Management, EMM - Cross-channel Marketing Optimization, Smarter Commerce, Smarter Marketing, Smarter Planet

Overview

A subsidiary of Telephone and Data Systems, Inc., United States Cellular Corporation (U.S. Cellular) is the fifth-largest provider of wireless service in the United States, providing wireless voice and data services to more than six million customers.

Business need:
With more than six million customers subscribing to its wireless voice and data services, U.S. Cellular could not effectively identify and target customers who may be considering a switch to another service provider.

Solution:
Many customers have a difficult time staying loyal to mobile communi- cations service providers, but some don’t. To target those who may defect, U.S. Cellular uses a powerful analytics-based campaign management solution to target at-risk customers with highly personalized campaigns.

Benefits:
The IBM solution helped increased campaign volume, improved customer retention and reduced campaign cycle time.

Case Study

A subsidiary of Telephone and Data Systems, Inc., United States Cellular Corporation (U.S. Cellular) is the fifth-largest provider of wireless service in the United States, providing wireless voice and data services to more than six million customers. With revenue of USD4 billion in 2011, the company offers a range of wireless devices such as handsets, modems and tablets for use by its customers. For its services, U.S. Cellular offers bundled plans with voice, messaging and data pricing that are designed for different usage patterns and customer needs. Many of its plans allow small work groups or families to share the plan minutes. Its high-speed nationwide third-generation Evolution-Data Optimized network enables smartphone messaging, data and Internet services.

The Opportunity
With more than six million customers subscribing to its wireless voice and data services, U.S. Cellular could not effectively identify and target customers who may be considering a switch to another service provider. Additionally, it could not track, measure and control the conflicting marketing campaign messages that were being communicated to its customers by the corporate and subsidiary offices. The company needed to focus its marketing budget at specific at-risk customers with a unified yet custom campaign.

What Makes It Smarter
Many customers have a difficult time staying loyal to mobile communications service providers, but some don’t. To target those who may defect, U.S. Cellular uses a powerful analytics-based campaign management solution to target at-risk customers with highly personalized campaigns. The solution integrates customer information from multiple data sources and allows the company to impose exclusion rules to define its target audience at various levels, incorporating profiles, behavior and preferences. It also analyzes customer behavior in response to marketing campaigns and provides deep insight into which messages and channels work for different types of customers. These insights are then integrated into the marketing campaigns to assign customers to specific offers and channels. For example, the company can target unmarried customers residing in a certain geography and are four months away from their contract expirations. To encourage them to renew their contracts, it can design and execute a multiwave campaign based on individual needs and through preferred marketing channels such as email or SMS message.

Real Business Results
• Increased campaign volume by 250 percent per month, from two to seven campaigns, through reuse of campaign building blocks and templates
• Improved customer retention and conversion rates by targeting customers more precisely through advanced modeling and profiling capabilities
• Reduced campaign cycle time by 97 percent, from five days to four hours

For More Information
Please contact your IBM representative or IBM Business Partner. Visit us at ibm.com.

To learn more about U.S. Cellular, visit www.uscellular.com.

Products and services used

IBM products and services that were used in this case study.

Software:
IBM Campaign

Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America September 2013 IBM, the IBM logo and ibm.com are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml. This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data discussed herein is presented as derived under specific operating conditions. Actual results may vary. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.