Elion cuts churn, increases ARPU and ROI with SAS® Marketing Automation
When deregulation led to increased competition in the Estonian telecommunications market, Elion, the country's largest communications provider, witnessed a decline in its customer base. With help from SAS® Marketing Automation, Elion reversed that trend. By strengthening cross-sell and up-sell capabilities and refining and automating campaign management processes, Elion regained its edge over competing providers.
"Providing the right information to customer service agents has contributed to our success in recent years. We are moving towards having up-to-date information on every customer and being able to know what offers are best for each of them. The system is continually updating itself to provide more value to customers."
2-1 ratio for campaign ROI
According to Janek Leis, Analytical CRM Manager, Elion's data quality and modeling capabilities have improved dramatically since his team began using SAS. He points to a recent video-on-demand campaign that increased uptake for a campaign offer.
Leis says the SAS customer segmentation capabilities have allowed his team to experiment with offers and delivery channels. In one campaign, the team sent an e-mail offer to customers segmented by gender, using a different creative treatment for each gender segment. It performed five times better than the same campaign that was sent to a control group, in which the males received the female creative and vice versa. Leis says the experiment emphasized his group's approach to segment marketing. The team is employing similar tests with other market demographic segments.
"We understand that it's important to sell products in a way that is relevant to customers and not treat them all the same way. If a customer contacts our call center, the salespeople can see what the next-best offer would be for that person. And, thanks to SAS Marketing Automation, we can easily do customer lifecycle campaigns" explains Leis. "SAS has also given us the means to know what customers have a high probability to churn. We now understand them better, how best to provide service to them and what kind of retention programs will or will not work."
Leemet adds that "the company reduced churn by 10 percent, through improved customer service and targeted retention offers, compared to control groups that did not receive retention offers."
"Due to the efficiencies enabled by SAS, we have also reduced our marketing budget by 30 to 40 percent and achieved twice the result of previous marketing efforts," adds Ots. "Justifying marketing campaign costs is easier now that the company can accurately track data on prior campaign costs and profits. Results from SAS make decisions rational and rational decisions make money."
"The biggest difference between SAS and other vendors is that SAS is always focused on a customer's business results," continues Ots. "SAS provides solutions, not just software. That is the innovative thing to do; to really understand a customer's business, deliver real business results and provide value-added support rather than just selling software."
The results illustrated in this article are specific to the particular situations, business models, data input, and computing environments described herein. Each SAS customer’s experience is unique based on business and technical variables and all statements must be considered non-typical. Actual savings, results, and performance characteristics will vary depending on individual customer configurations and conditions. SAS does not guarantee or represent that every customer will achieve similar results. The only warranties for SAS products and services are those that are set forth in the express warranty statements in the written agreement for such products and services. Nothing herein should be construed as constituting an additional warranty. Customers have shared their successes with SAS as part of an agreed-upon contractual exchange or project success summarization following a successful implementation of SAS software. Brand and product names are trademarks of their respective companies.
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Arti Ots, Chief Marketing Officer
Elion experienced higher churn rates after deregulation of the telecommunications market increased competitive pressures
“Justifying marketing campaign costs is easier now that the company can accurately track data on prior campaign costs and profits. Results from SAS make decisions rational and rational decisions make money.”
Chief Marketing Officer