DirecTV is the world’s largest satellite broadcast provider with over 20 million subscribers, and when looking to increase revenue and strengthen their relationship with customers, DirecTV looks to the data. In an effort to further understand their customers’ knowledge and develop their retail prowess, DirecTV is constantly mining, reviewing and updating their client behavioral tendencies. Bolstered with a steady stream of highly qualified traffic from their retail partners, they are also extremely successful with respect to co-op marketing.
DirecTV wanted to increase revenue from their “High Profit” profile customers who consistently subscribed to premium services like pay-per-view movies, sports packages and one-time event viewers (boxing, concerts, etc.). With the help of Shutterfly data specialists, DirecTV mined their customer behavior and observed that some customers who fell into this segment had recently reduced or stopped this behavior. As a way of re-engaging these customers, Shutterfly and DirecTV developed a “win back” program to encourage these customers to revert back to their previous viewing habits.
Shutterfly Business Solutions was instrumental in building the program. Shutterfly reviewed the raw data feeds from 4-legacy platforms, helped define programming parameters and business rules, and helped with the creative design of the piece to maximize the variable content and production methods. Once tested, Shutterfly’s in-house production team met the scalability requirements for such a large quantity. In turn, DirecTV was able to reduce overall costs since most of the programming was completed during the testing phase and once proven, they were able to see an immediate rollout of the full program.
DirecTV saw a 280% ROI based on the test. Within 30 days, they expanded the program to 500,000+ monthly runs and then expanded to include premium movie channels, music-on-demand and other revenue-increasing activities. They also saw a 40% decrease in customer churn from these target segments as customers saw the relevancy of the targeted offers as a strong loyalty program. This reduced the marketing costs for new customer acquisition, which was hundreds more per customer than the cost of this program.