Vodaphone Vodafone Uses Business Intelligence to improve Customer Growth and Retention Plans

What were the challenges for Vodafone New Zealand?

Vodafone New Zealand initially experienced very rapid growth, attaining 50% market share, yet began to see their sales and new customer growth stagnate at 56%. They were also facing higher costs of compliance and the need for controlling customer churn while increasing profitability. Vodafone New Zealand also needed to understand how best to increase their profit margins, increase revenue with new and existing customers while also monitoring how competitors and market conditions impacted their business. Vodafone New Zealand was also challenged with knowing how best to manage their marketing strategies for greatest return, incouding understanding how and when to initiative marketing and selling strategies by market segment.

How did it address these issues?

Vodafone chose to implement an Enterprise Data Warehouse (EDW) that aggregated legacy, CRM, support, pricing and marketing databases into a single view of all information in the organization. The...

This department had responsibility for supporting the entire organization with intelligence on customers and markets. The customer knowledge and analysis department also worked with the sales and marketing departments of Vodafone to make applications and tools based on the EDW available to them, so they could more effectively plan, execute and measure their marketing strategies. The result was a greater accuracy and precision in marketing strategy, which is leading to the development of an application to optimize both revenue and prioritization of customer offers.
3. List the tools used by Vodafone's applications.

Vodafone went with Teradata for their EDW platform. Teradata's EDW platform is specifically designed to ensure a high degree of integration to legacy analytics, CRM, service and pricing data (Solomon, 2005). It is also one of the most effective for cross-channel and multi-channel marketing analysis (Nayak, 2006). With Teradata EDW as the platform, Vodafone implemented KXEN, SAS and SPSS as their analytics tools. This provided Vodafone to quickly assess, analyze and develop marketing plans based on the insights gained from analyzing their legacy and current customer data. Vodafone was able to successfully create a highly integrated EDW through the use of these tools and their aligning them to the most critical strategic information and customer needs they had (Kimball,…