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VimpelCom Uses IBM Analytics to Triple Revenue from Marketing Campaigns and Improve Conversion Rates by 400 Percent

IBM’s New Telecom Solutions Lab Fosters Smarter Communications in Russia

Moscow, Russia - 29 Jun 2011: IBM (NYSE:IBM) today announced that mobile phone service provider VimpelCom CIS is using IBM predictive analytics software to optimize the effectiveness of its direct marketing campaigns. Using IBM analytics, VimpelCom improved the conversion rate of campaigns from 3 to 12 percent and tripled campaign revenue.

Moscow, 29 June 2011 – IBM (NYSE:IBM) today announced that mobile phone service provider VimpelCom CIS is using IBM predictive analytics software to optimize the effectiveness of its direct marketing campaigns. Using IBM analytics, VimpelCom improved the conversion rate of campaigns from 3 to 12 percent and tripled campaign revenue.

IBM recently opened a new Telecommunications Solutions Lab in Russia to expand its client engagements with leading communications providers in the region such as VimpelCom. The new center is the tenth in the world aimed to meet the growing demands of the telecommunications industry created by rapid adoption of smart phones, tablets, and the mobile Web.

VimpelCom CIS is part of VimpelCom Ltd., the world’s sixth largest mobile telecommunications provider by number of subscribers, with operations in 20 countries. It has a strong presence across Europe, Asia and Africa, and its total mobile subscriber base counts 181 million people.

Within the first six months of using IBM analytics software, VimpelCom increased the effectiveness of approximately 200 direct marketing campaigns around its ‘Beeline’ product offering. The software allows the communications service provider to analyze its subscriber data in order to predict their behavior, needs and preferences. This customer insight allows VimpelCom to optimize its direct marketing campaigns by defining the best offer for each subscriber, targeted to that individual at the right time.

“As we are operating in a highly competitive and dynamic growth market, we needed to do smarter and more effective marketing,” said Vladimir Maslyak, senior marketing manager at VimpelCom CIS. “IBM SPSS predictive analytics enables us to have a 1-to-1 relationship with many of our subscribers and better target their individual needs. This allows us to optimize the return on our campaigns, grow and retain subscribers, and significantly increase our bottom line results.

“The constantly changing market conditions urge companies such as VimpelCom to look at ways to keep improving their business,” said Alexander Tikhonov, business analytics leader at IBM Russia / CIS. “VimpelCom demonstrates that the ability to transform information into insight, predict business outcomes and take appropriate action, provides organizations with a strong competitive edge.”

IBM has invested more than $14 billion in acquisitions to build an analytics portfolio which includes more than 24 acquisitions. In addition, IBM has assembled 8,000 analytics consultants with industry expertise, and opened a global network of analytics centres of excellence.  IBM works with the top 1,000 communications service providers worldwide, including all 20 of the largest global providers. This is the tenth Telecom Solutions Lab that IBM has opened in key growth markets since 2000. According to its 2015 Roadmap, IBM projects that revenue coming from emerging markets will increase from 19 percent in 2009 to more than 25 percent by 2015.

For more information on VimpelCom, please visit: www.vimpelcom.com For more information on IBM business analytics, please visit: www.ibm.com/analytics

Contact(s) information

Tom Suiter
IBM Media Relations
+1-415-545-6829
thsuiter@us.ibm.com

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