May 11, 2016
45 million people move to a new home in the United States every year. This represents 45,000,000 annual opportunities for home service providers (like DIRECTV) to gain new customers and potentially lose existing ones. It makes sense: Moving is a natural time to re-consider one’s attachments to home service providers, many of which are listed among America’s most-hated companies.
This isn’t just a hypothetical business concern:
Satellite media provider DIRECTV uses a data-driven personalization strategy to target movers.
The goals of their approach:
Using data obtained from the USPS’s list of recent movers, they created a custom version of the DIRECTV website for movers, and displayed it to those potential customers. Then they tested their idea.
Version B looked like this:
Here’s where their campaign for movers gets really cool. In addition to the $10 off/month discount offer shown above, DIRECTV would normally also promote a second offer, like a cash gift card. Counterintuitively, they found that when they tested a $300 gift card offer versus the more relevant, mover-centric homepage, the personalized version outperformed the offer.
Matt Donovan, DIRECTV’s manager of digital marketing, explains:
“Any time we can use content in a smart way to drive conversion lifts, and we don’t have to dig into our pockets to sweeten the offer, it’s great. It was one of the first times we really saw the power of the tools working together. It’s been exciting to see how we can use the tools to be smart about content and not have to continually add to the offer to drive conversion.”
The personalized ecommerce campaign also yielded a double-digit increase in conversion rate over the control version.
First, DIRECTV created a special “movers experience” version of their homepage which included topic-appropriate copy and photography. They took a soft approach, with messaging that focused on reducing the anxieties of an individual in the midst one of the most stressful parts of their lives. The version of the homepage matched the information needs and eased the fears of those currently in the process of moving into a new home. The copy and design instilled confidence and emphasized how satellite television can be easier to setup and install in a new home.
In this test version, there was no $300 gift card. The only thing that changed was the content.
Next, they obtained information about movers from the USPS’s database, and fed it into Turn’s Data Management Platform. Then they used the Monetate data import tool to take action on that data. They created a consistent cross-channel experience that was delivered to the target audience, no matter how they arrived on the DIRECTV homepage (via PPC, email, or direct visitors to the site).
Here’s what the experience looked like in the Monetate interface:
We DIRECTV’s approach was successful for many reasons, and not all of them are obvious. When brainstorming future ecommerce personalization campaigns, consider the following points.
Watch the video interview with Matt Donovan himself below.