Vodafone Success Story: Achieving a 13% Sales Uplift through Cross-Channel Orchestration based on Advanced A/B Testing

A Brief Overview of Vodafone Italia:

Vodafone Italia is part of the Vodafone Group, one of the largest telecommunications conglomerates globally, with 362 million customers, including 115 million mobile network, 25 million fixed network customers. Operating in 22 countries in mobile networks and holding partnerships in 42 others, Vodafone also provides fixed network services in 17 markets.

Dual Quest for Digital Marketing Optimization and Revenue Growth

In the dynamic realm of the telecom industry, Vodafone Italia faced significant challenges:

• Evolving Sector Demands: The need to continuously adapt and optimize a broad spectrum of digital marketing channels.
• Integration for Growth: A crucial goal was to ensure these channels worked together seamlessly to maximize revenue growth.

Vodafone’s marketing team aimed to determine the most effective allocation of their marketing budget across various channels to enhance revenue and their overall sales.

Recognizing the complexity of optimizing such a diverse array of channels was beyond manual capabilities, the marketing team sought an AI-driven solution. This tool needed to not only manage but optimize large volumes of data across multiple channels with the main goal of reaching better return on ad spend.

The team was committed to exploring innovative solutions in the market to tackle these challenges effectively.

A/B Testing Setup: Nexoya’s Generic Solution vs. Expert-Designed  Custom Models

In an effort to optimize their digital marketing campaigns, Vodafone Italia conducted an A/B test comparing two different models. On one side, a custom model developed by a group of experts,  tailored specifically for Vodafone Italia’s needs, and, on the other, the generic model designed for budget optimization across various advertising platforms provided by Nexoya, an AI-driven budget optimization platform that has evolved over six years.

Key Aspects of the A/B Test Experiment:

• Objective: To compare the effectiveness of a customized model against Nexoya’s AI-driven approach in optimizing ad campaigns on Meta, Google Ads, and Display & Video 360.
• Geographical Coverage: The test was conducted across three different geographical regions, ensuring a broad and diverse data set.
• Metrics: Focused on evaluating Total Sales, Total Ad Spend, and Cost Per Sale (CPS) as primary indicators of success.
• Timeframe: This comprehensive experiment spanned over six weeks, allowing enough time to gather significant data and insights.

Efficient Onboarding and Seamless AI Integration

The partnership began with a sequence of strategic meetings aimed at establishing the parameters for the experiment, guaranteeing a fair testing environment and the reliability of the outcomes.

The campaign setup of Vodafone Italia was integrated into Nexoya’s platform, facilitated by a dedicated Customer Success Manager who ensured a smooth transition.

Throughout the project, regular weekly meetings were held. These sessions served as a vital touchpoint for discussing preliminary results, addressing any queries regarding the model, and refining the optimization process. This consistent communication ensured that the team remained aligned and informed.

The result: Nexoya had outperformed the Customized model with an uplift of 13%

After completing the 6-week AB test experiment the team was excited to see the result. 

The statistically significant results of this comparative A/B test showed a clear winner: Nexoya. The AI-driven cross-channel-portfolio optimized by the generally applicable platform of Nexoya witnessed a 13 percent higher uplift in sales than the uplift achieved in the portfolio optimized with the customized models.

“We were impressed by the results of this experiment. Nexoya’s general model surpassed the custom-built models by multiple machine learning experts, achieving a 13% sales uplift.”

Federico Panizzi, Head of Digital, Big Data and Growth at Vodafone

Beyond the notable performance gains, Nexoya’s automated capability for allocating cross-channel budgets streamlined Vodafone Italia’s complex workflows, freeing up valuable time for the team to focus on strategic tasks. Additionally, the data-driven insights provided by Nexoya empowered Vodafone Italia to make more informed and effective decisions.

Key Benefits:

• Sales uplift: The 13% higher uplift in sales underscored the effectiveness of leveraging Nexoya’s AI models for cross-channel budget optimization.
• Cross-Channel Orchestration: Nexoya’s platform facilitated a unified approach to managing multiple marketing channels, breaking down silos and enhancing overall campaign portfolio coherence.
• Data-Driven Insights: The advanced analytics and predictive capabilities of Nexoya empowered Vodafone Italia to refine their strategies.
• Efficiency through Automation: The Nexoya platform automated routine tasks, freeing up time for the Vodafone team to focus on strategic initiatives and further innovation.