New contract with gives retailer a new source of insight to drive reach and effectiveness through its television advertising campaigns
Home enhancement retailer Homebase has announced a new three-year partnership with customer intelligence specialist Sky IQ, to help the retailer improve its TV advertising and drive sales by gaining a better understanding of the purchasing and TV viewing behaviours of its customers.
The deal is part of a wider strategic effort by the retailer to optimise its TV advertising campaigns with a view to more accurately targeting its customers via the advertising platform for the first time and accelerate its understanding of its customer path to purchase; from TV to store.
In an initial pilot prior to the contract being signed, the BSkyB
subsidiary, Sky IQ discovered that 39% of Homebase customers are also Sky subscribers, and of the 500,000 subscribers on Sky IQ’s viewing panel, 189,556 were mutual Homebase customers.
Key findings from the pilot found that people were more likely to shop with Homebase if they had seen a Homebase advert. This was significant in three key customer groups, who were 26% more likely to shop with Homebase than other target segments if they had seen the advertising.
Aggregating performance data
A merged panel of Homebase data, including purchase information via the Nectar
programme, and Sky IQ anonymised viewing insight will be the basis for analysing campaign performance.
The companies said that not only will this reveal information about the reach of Homebase TV campaigns, but also which customers purchased after seeing an advert, the top performing programmes for the retailer’s target audience segments, and how many times an audience views an advert before responding.
Going forward, the analysis will also improve Homebase’s overall direct marketing performance by better integrating it with TV advertising campaigns. This includes understanding which audiences are most responsive to TV and ensuring those that are less receptive are better communicated with through other channels.
Sky IQ will work with MindShare
, Homebase’s media agency, which will use this insight to optimise the retailer’s media plan. MindShare and Homebase are already implementing changes in advertising strategy following the successful pilot last year with Sky IQ.
Jo Kenrick, Homebase marketing director, said: “Our new advertising campaign has been well received by customers, but it is vital to ensure the media budget behind it is effectively deployed. We want to reach those customers who are most responsive and likely to shop.
"Sky IQ enables us to do just that and we are very excited to combine what we know from Nectar data with new information that will help us be more relevant to home enhancers.”
Insight into customer behaviour
Stuart Johnston, Sky IQ deputy managing director, added: “This is a significant step forward not only for us, but for the industry as a whole. Homebase and MindShare will be leading the field in using our viewing panel and insight at such a large scale giving them unprecedented insight into the purchase behaviours of customers.
“Closing the loop between marketing and advertising spends and sales performance is the Holy Grail for retailers. This partnership will allow Homebase and MindShare to do this and more. Together we will be able to prove the value of TV advertising and increase its impact on the consumer.”
Jim Vander Meersch, Mindshare client director, commented: “The insight being provided by Sky IQ is a really exciting prospect for our work with Homebase. The ability to identify the demographics and viewing patterns that result directly in a purchase will transform the way we plan and optimise our campaigns. With Sky IQ’s tools, we are at the forefront of the next generation of advertising and marketing strategy.”