marketing evolution | cox communications: case study

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Cox Communications Case Study

First Year Results From Marketing Evolution’s ROI Brain Solution

Marketing Evolution 1

Case Study: Cox Communications

BACKGROUND:

SITUATION:

OUTCOME:

“Marketing Evolution analytics and software helped us increase

our marketing ROI by 31 percent the first year alone”

-- Cox Communications

Cox did not have a fully built-out ROI solution in place

They had primarily been considering Media Mixed Modeling, but were

skeptical of how granular and quick results would be

Selected Marketing Evolution for its holistic approach to ROI

management and individual-level analytics

Cox is a multi-billion dollar MSO, telephony and data provider and the

third largest cable provider in the United States. Their current CMO, Mark

Greatrex, is a firm believer in a strong analytical approach to marketing.

Named the #1 CMO in America for a private company by ExecRank,

Greatrex reached out to Marketing Evolution, having worked with them

previously when he was the SVP of Global Still Beverages at Coca-Cola.


UNCONTROLLABLE FACTORS

Competitive Advertising

Unemployment

Residency Type

Competitive Pricing

Household Formation

Competitive Offers

Uncontrollable factors account for 67% of business results.

CONTROLLABLE FACTORS

Marketing Budget

Marketing Effectiveness

Pricing

Controllable factors account for 33% of business results.

Cox Business Results are a Direct Result of Two Types of Factors


Mission Control Dashboard: Enables Fast, Informed and Strategic

Marketing Decisions by Integrating Data Streams

Real-time monitoring of business performance across objectives, regions and products today

Predictive KPIs to anticipate business performance tomorrow

Ability to diagnose and address drivers of potential sub-par performance immediately, avoiding future ‘surprises’


Marketing Evolution & Cox’s Three Steps to 31% ROI Improvement

Respondent-level data with multiple data appends that builds the database needed for advanced attribution modeling. Variables include everything from advertising exposure, pricing, offers, demographics, unemployment, etc.

Final models are developed, identifying controllable factors defined as all interaction with Cox advertising through all media vehicles

Using Cox actual results and model outcomes, identify controllable factors by month

DEVELOP DATASET 1 FINALIZE MODELS 2 DELIVER RESULTS IN SOFTWARE

3


Established a closed loop Marketing ROI system & trained team

Armed Regions with tools/insights to optimize total level of investment and resource allocation across products/tactics

Optimized short-term Media mixes across regions

Increased investment in growing Hispanic opportunity

Enhanced message rotation effectiveness

Focused efforts around Video product innovation

Identified ownable value props across products to inform communication strategies

Strategically invested to increase competiveness around SOV

COMMITMENT TO CLOSED-LOOP ROI

ENHANCED MEDIA MIX & TARGETING

FOCUSED STRATEGY

First Six Months Focused on Actionable Insights & Execution Strategies

$


Q3 2011 Current

Video 73%

27% 45% 55%

Considering Cox Considering Other / Don’t Know Disconnects Averted Due to Marketing

27k 35k

62k 65k

DP2 DP3 Q3 Q4

Reduced Churn Saved accounts

Increased Consideration Among active ‘switchers’

31% improvement within first year

50

100

150

DP1 DP2 DP3 Q3 Q4

*Starting ROI Indexed to 100 per client request

The Payoff: Improved Business Outcomes Driving 31% ROI Improvement

Within the First Year

Consistent Improvement in Marketing ROI in First Year

9.2% improvement in first six months