AI Case Study
US cellular increases customer lifetime value by 61% by analysing website visitor behavior against online and offline sales, subscriptions and renewals using machine learning
US Cellular uses AI to quantify and improve the role of their website in driving in-store sales. They use Cardinalpath's plaform to analyse website visitor behavior against online and offline sales, new service subscriptions, and service renewals using machine learning to map purchase intent. Using this data they were able to equate website actions to dollar value and optimise website.
Mobile Telecommunications Services
"The team had already tried matching online and in-store data, as well as assigning values to website actions that they thought were important, such as add-to-cart activity that didn’t result in a sale, and how many people visited the store locator page. Unfortunately, it was nearly impossible to calculate just how much each of these actions was actually worth to the business, and these metrics didn’t carry a lot of weight across the business when demonstrating the contribution of digital channels to sales. With a backlog of tests proffered by internal stakeholders and agencies, U.S. Cellular needed a way to prioritize testing.
Using purchase intent analysis – a statistical analysis in which information is extracted from data and then analyzed to identify patterns and make predictions about future outcomes/events –
Cardinal Path set about identifying the site actions that lead to sales across any transaction channel – offline and online.
Purchase intent research helped the move forward in two ways:
showing the site actions that did lead to offline sales, and which of those actions were most important, in order to drive testing efforts.
After learning this key insight, the digital team at U.S. Cellular was able to prioritize its long list of testing items, and started by working with messaging on the “Offers” section of the website. This way, the digital team knew how many new lines of service and how many current customer renewals were generated by their digital marketing efforts. These findings empower the digital team to speak in terms of dollars and enable U.S. Cellular to put
hard numbers against their return on marketing investment.
The results of initial tests have already driven a 23 percent increase in visitors to the “Offers” section of the website and a 61 percent boost in customer lifetime value by improving the blend of higher-value customers in the mix and increasing response rates."
According to the company:
* 23% increase in visitors to ‘’Offers’’
* 61% boost in customer lifetime value
* Foundation for a media optimization framework
* Identified certain website actions, like chat now and offers, that were more predictive of future purchases than other long-held indicators
U.S. Cellular is the fifth-largest wireless network operator in the United States with retail stores across the country in 23 states. They wanted to discover the role of the website in driving in-store sales with two key questions: What are the most important, revenue driving actions on the website? How can this information be used to test factors for site optimization?