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Customer Snapshot: Overview

3rd largest cable television provider in the United States

As the third-largest cable and broadband provider in the United States, Cox Communications pioneered the bundling of television, Web, and telephone services, allowing consumers to consolidate services with one provider. To improve service and bring more people's digital experience to life, Cox needed to personalize offers for more than 6 million subscribers across 28 regions.

Company
Cox Communications Inc.

Revenue
US$15 billion

Number of Employees
50,000

Industry
Telecommunications

Headquarters
Atlanta, Georgia, USA

Customer Website
www.cox.com

Line of Business
Marketing, Sales

SAP Solutions
SAP InfiniteInsight

Customer Snapshot: History

A History of Award Winning Service

As a pioneer in the telecommunications and home entertainment industries, Cox Communications has a long history of providing great products and outstanding customer service.

Customer Snapshot: Business Model

Meeting the Telecommunications Needs of Homes and Businesses

A powerhouse of broadband communications and entertainment in the United States, Cox Communications provides advanced digital video, Internet, telephone, and wireless services to more than 6 million households and businesses over its own nationwide IP network. For voice, video, and data solutions, commercial customers rely on Cox Business to meet their telecommunications needs. The company’s media group, Cox Media, offers spot and new media advertising at the national and local cable level.

Connecting 6 million households and businesses across the U.S.

Customer Snapshot: Success Strategy

Serving Customers with Speed and Convenience

Cox has been providing high speed Internet, as opposed to DSL, for a long time, and was a pioneer in offering customers the speed, convenience, and savings of bundled television, Web, and telephone services from one provider. With Cox, customers can say goodbye to the hassle of multiple bills, while getting online, keeping in touch with loved ones, and staying entertained is easier than ever.

The Challenge

What Do Customers Want to Watch? And How Do They Want to Watch It?

Dedicated to continually improving the customer experience, Cox Communications needed a way to get to know their customers better. With more than 6 million customers across 28 regions, there is no such thing as a one-size-fits-all offer. To take the model of bundled services to the next level, Cox needed to better understand what was motivating customers to buy a particular product or package.

For example, some customers are interested in exclusive commercial-free channels like HBO and Showtime, while others are focused on sports or family entertainment. Cox needed to understand what its customers want to watch – and how they want to watch it, whether in the living room, the bedroom, or on a mobile device.

To help improve their offerings services, Cox needed the technology to personalize offers to customers in a way that would make marketing campaigns more effective and bring more people's digital lives to life.

Enter SAP

Organizing and Analyzing Mountains of Customer Data

To get to know their customers better and fine-tune marketing campaigns and offers, Cox Communications needed a way to analyze mountains of customer data. They needed a tool with which analysts could quickly build complex statistical models that would allow them to group customers across all 28 regions.

Cox chose the SAP InfiniteInsight solution for its second-to-none model creation capabilities, including customer segmentation, classification, regression, and data aggregation.

Better Business

Faster, More Effective Marketing Analysis

With SAP InfiniteInsight, analysts at Cox Communications have a single tool with which to quickly build predictive models. Before data had to be collected and prepared, and models needed to be validated before they could be used – an extremely time-consuming process. Now a model can be built and is ready to use in just a couple of hours – an 80% improvement. That means more models can be built to improve more campaigns and meet the needs of more customers. Plus the solution is scalable, so it can support the company’s short- and long-term marketing strategy, including predictive modeling for customer acquisitions, retention, lifetime valuation, and event-based marketing.

Streamlining market analysis through a central analytics team that covers all 28 regions.

Better Business: Benefits

Keeping New Customers Coming and Retaining Current Ones

The benefits of SAP InfiniteInsight for Cox Communications are clear. With the ability to quickly and accurately poll 10 million observations and 800 variables, analysts can now identify customer-related trends like who is most likely to buy a given product or package, who might pose a credit risk, and who might be likely to move to a competitor. This allows Cox to take the necessary action to make sure that new customers keep coming, and current customers keep coming back.

28%

Reduction in customer churn rate

80%

Reduction in model creation time

42x

Greater throughput for central analysts (from 40 to 1,680 predictive models annually)

14%

Increase in products sold per household

Better Business: Run Simple

Selling More Products to More Customers

Without a doubt, automated modeling has enhanced the effectiveness of the Cox Communications marketing activities. With SAP InfiniteInsight, the company can now build predictive models across the enterprise through a central analytics team. That means they can reach significantly more customers with the right offers, boosting sales and customer loyalty – and resulting in an impressive 14% increase in products sold per household.

With SAP InfiniteInsight, we've increased the products sold per household by 14%. – Parimala Narasimha, Director of Marketing Science, Cox Communications Inc.

Journey Ahead

A Trusted Telecommunications and Entertainment Provider

Cox Communications will continue to develop new business strategies and innovative products aimed at creating new and improved customer experiences. As they expand their reach, they will use world-class technology, including predictive analytics, to keep the focus on giving customers the products and services they want, when and where they want them. And with every step they will further fulfill their mission of becoming the most trusted provider of communication and entertainment services in America.

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