A restaurant chain asked this Tier 1 mobile service provider to help launch a campaign sending messages to consumers’ mobile phones, encouraging people to download the restaurant’s free app.
Initially, the messages were sent to large audience segments, created on the basis of standard demographic information, such as device type and age group of opt-in subscribers. However, the ad campaign was costly, as it was being sent to millions of mobile users, and was yielding poor results – about .6 app downloads per every 100 messages sent.
The restaurant chain challenged the mobile operator to improve the conversion rate, agreeing to pay more for each download if the operator could better target their customers.
Using Guavus software, the mobile operator was able to separate the target audience into sub-segments, using both demographics and content interest. Based on their interests, such as travel or specialty food, subscribers now received personalized messages with links included. Foodies no longer received the same message as travellers.
This small change produced staggering results. First, the percentage of consumers who actually clicked on the link in the message went from 2% to 8%. Second, of the people who clicked on the message, 53% downloaded the app vs. 27% previously. This resulted in a 7x increase in conversion rate!
The operator now received more revenue per message sent. The restaurant was willing to pay a higher amount per message because the personalization drove higher adoption rates. Conversely, the cost to run the campaign decreased due to the smaller, more-focused audience segments. Better adoption rates at a lower cost. A win-win!
Tier 1 Mobile Operator
Guavus Marketing Insight
Standard messaging advertising campaign for restaurant was yielding below average results.
Messages were sent to large audience segments based on demographics only. Click-through rates and app download rates were poor.
7X Increase in Conversion Rates: By creating sub-segments of subscribers based on interests, click through rates and downloads of apps increased 7X!
Personalized Messaging: Real-time measurement of subscriber’s behaviors enabled the service provider to offer targeted messaging based on consumers’ interests
Increased Value to Consumers: Tailored content was more readily accepted by consumers
Time to Market: Service provider used Guavus’ off-the-shelf URL and mobile app categorizations to offer subscriber-based analytics quickly
Higher Revenue Per Download: Personalized messaging in targeted segments dramatically increased adoption rates and value to customer
Real-time Processing at Scale: Data from millions of subscribers processed in real-time and combined with demographic information from CRM