Industry

Telecommunications

Company Profile

  • Mobile and fixed telecommunication services
  • Reseller
  • Strong focus on digital sales

Situation and Objectives

  • Client uses multiple sales channels
  • Significant spread in cost of acquiring channels
  • Client lacks full picture on quality of customers from different channels

Approach

  • Transparency: Mapped cost per channel with customer life time per channel
  • Involvement: Made every channel head assess the potential impact of doubling and halving the budget
  • Simulation: Optimized the channel mix with an easy-to-use and highly focused tool based on the elasticity assessments of the client’s sales management team

Results

  • Provided the client with a full picture of life-time margin including acquisition cost for the first time
  • Based on these insights, the client changed its channel-mix significantly
  • Client has a new strategy toward setting up its own digital captive channels

Impact

  • High acceptance for change within the organization thanks to high involvement in project from the beginning
  • 6% more sales with same budget thanks to more efficient channel mix

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