Case Study

Telefónica Increases New App User Retention by 50%

Telefónica is one of the biggest players in the global telecom industry. With over 300 million customers across 17 countries, the brand is all about delivering world-class connectivity through cutting-edge fixed, mobile, and broadband networks. As a fast-growing company, Telefónica faced a new challenge: how to provide dynamic, individualized experiences to its mobile app users and lift their app store ratings in the process. The catch? It only makes sense to engage customers on the Smart Wifi app while they are at home and close to their router.

Read on to learn how Telefónica uses MessageGears to advance its app user experience and retention through AI-powered messaging and a targeted 1:1 approach to connecting with customers.

Key Outcomes

53%lift in app store ratings

giving brand reputation and online reviews a positive boost

50%increase in new user retention

significantly lowering cost-per-install (CPI) and acquisition costs.

40%increase in user engagement

as more users respond to perfect-time, perfect-place notifications

10% rise in at-risk user activity

as relevant messaging communicates the value of the app

The Challenge

Providing 1:1 value in real time and at scale

The Telefónica marketing team faced a distinctive challenge. They wanted to deliver push notifications to their customers that felt perfectly timed and relevant. But because customers can only engage with their Smart Wifi account while they are at home and connected to their router, they needed to time notifications for when users could actually take action in those moments—not the easiest task when dealing with over 300 million customers in 17 countries!

Adding to the challenge, they aimed to educate and provide guidance to users who had yet to explore specific features like connecting a device to their router, managing their network name, and blocking unknown devices.

The overarching objectives of this personalized messaging to users were to reduce churn, enhance engagement, and increase customer satisfaction with their Smart Wifi app.  To achieve all of this, Telefónica needed a solution capable of processing and segmenting billions of customer actions in real time to deliver meaningful 1:1 messages at scale.

This approach would allow Telefónica to optimize its engagement strategy by providing customers with guidance and support when they would benefit from it the most.

The Solution

Real-time data access

To reach users while they are at home and most likely to be interested in their home Wi-Fi features and performance, Telefónica found the perfect solution in MessageGears. The integration opened up opportunities for Telefónica to be more relevant in the moments when users are most likely to engage.

MessageGears’ deep analytics feed directly into the Smart Wi-Fi app, allowing Telefónica to trigger the push notifications and in-app messages that will hit the mark for each customer at various points in the user lifecycle.

AI-powered push notifications

Telefónica also leverages MessageGears’ enterprise-level AI to optimize the unique send-time of every customer interaction and maximize app engagement. The team has sent over one million AI-powered push notifications to its users, bringing them back to the app precisely when they are most likely to engage.

For new first-time users, Telefónica leverages push and in-app notifications to help customers onboard, set up, and manage their Smart Wi-Fi routers, inform them about core app features, and keep them engaged in the app during those crucial first sessions.

The Outcome

Using MessageGears, Telefónica confidently scales contextual communications that deliver real-time value and individualized support to its customers when they need it most. This strategic approach successfully moves the needle on KPIs like engagement, app store ratings, and new user retention.

Here are the key results and successes from the campaign:

  • A 53% lift in app store ratings. Telefónica saw a dramatic increase in its app store ratings from 2.8 to 4.3 stars, giving brand reputation and online reviews a positive boost.
  • A 50% boost in new app user retention. Personalized and precisely targeted engagement encouraged users to stick around and significantly lowered cost-per-install (CPI) and acquisition costs.
  • A 40% increase in user engagement. With more users responding to perfect-time, perfect-place notifications, Telefónica saw a significant boost in app engagement and fewer calls to its customer support center.
  • A 25% rise in engagement among Day 30 app users. Accurate targeting and AI-driven message delivery successfully retained and engaged users long after their first experiences in the app.
  • A 10% increase in activity among at-risk users. More relevant messaging to users with a propensity to churn successfully communicated the value of the app.
"Your best telecom experience is going to be a triple threat of speed, convenience, and value. MessageGears helps us make that a reality with real-time relevance. We’re amazed by the difference it makes in the timeliness, value, and personalization of our messaging. We could not have hit our engagement goals without the sophistication and depth of MessageGears’s AI, targeting, and live data streaming across SDKs and customer channels."

~ Malik Samjee, Head of Analytics and Business Intelligence at Telefónica

Driving high-value interactions

MessageGears is proud to partner with Telefónica to send relevant, real-time messages that advance customer experience, optimize engagement, and drive high-value interactions across channels.

Read more of our client success stories.