Case Study: Reducing Customer Acquisition Cost by 61%

The Goal & The Obstacle

A national telecom company resold land line services for major telecommunication businesses. They wanted to improve the results for their new customer acquisition efforts and reduce the cost per acquisition, but they continued to experience declining results. Even their strong marketplaces and extremely successful data sources began to decline. Ready to turn things around and achieve their goals, the company turned to AMP.

The Plan

AMP was charged with developing prospect lists within the company’s footprint. The client wanted to see higher response rates, stronger conversion rates, and lower the cost per acquisition. Knowing that not all markets are the same, AMP utilized MicroModeling® to create a custom model for each market. These MicroModels captured the unique characteristics of each market with the 15-state region. The models also revealed information about the most successful neighborhoods and even targeted households most likely to respond based on localized demographics.

The Results

After two iterations of back-end analysis and model refinement, the client saw double and even triple response rates in their targeted markets. Cost per acquisition went from $163 to $64 per each new line established. This reduced their acquisition cost by 61%! The client was able to achieve all of their defined goals. They also saw better results on this campaign than they had on any of their other campaigns in 8 years.


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