How we tested the impact of SMS on customer contact rates, replaced a costly SMS scenario, and scaled a more efficient approach across multiple markets.
The challenge
SMS costs had increased fourfold within a year, but the business had no clear view of which communication scenarios actually affected performance or justified the spend. The challenge was to identify what was driving most of the spend, evaluate communication effectiveness using data, and determine whether costs could be reduced without compromising results.
What was done
Analyzed the SMS cost structure and identified the main budget driver
Initiated A/B testing to measure the impact of SMS on contact rates
Compared results and assessed the economic value of the existing scenario
Designed a new first-contact scenario without unnecessary SMS communication
Scaled the solution across international markets
Prepared requirements for an end-to-end analytics system
How the problem was diagnosed and the scenario redesigned
At first, the only known issue was a sharp increase in SMS spending. Analysis revealed what was driving the cost, while subsequent testing showed why the scenario had been introduced in the first place and how the underlying problem could be solved more efficiently.
Analyzed the cost increase
Exported data for all SMS messages and compared May and July to understand what was driving the increase in spending.
1
Structured SMS data by template
The raw data did not contain a useful classification of messages. SMS templates were assigned consistent identifiers, making it possible to calculate the volume and cost of each communication type.
2
Identified the main cost driver
The analysis showed that around 95% of the SMS budget was being spent on a single template sent to customers before the first contact center call.
3
Tested the impact of SMS on contact rates
It became clear that the SMS was intended to increase the likelihood of reaching customers on the first call. An A/B test was run to measure whether the scenario actually improved contact rates enough to justify its cost.
4
Redesigned the outbound contact strategy
Instead of trying to solve the contact-rate problem with additional SMS messages, a new first-contact and call-sequencing approach was developed.
5
Scaled the more efficient solution
The new approach increased the contact rate by 6% while eliminating most of the unnecessary SMS spend. The solution was then scaled across Russia and international markets.
6
Results
An expensive communication scenario was replaced with a more efficient approach, reducing unnecessary spend and giving the business better control over communication costs.
$240K+
annual savings in Russia
$120K+
annual savings across international markets
+6%
increase in contact rate
Let’s discuss your project
Start with a short introductory call. The first 20–30 minute Zoom is free and focused on understanding the challenge, the context, and whether there’s a good fit to work together.
