SKY TV Cross-sell - Reaching for the SKY

The challenge

We all know it’s easier and cheaper to keep and grow your existing customers than it is to find new ones, but how do you know you’re sending the right offer to the right person at the right time?

SKY TV wanted to increase their long-term profits by retaining and growing their 540,000 regular subscribers.  To enable them to do this, Datamine was asked to identify suitable subscribers from the SKY TV database to target for specific cross-sell offers.

The first cross-sell offer was Multi-Movies.

The solution

Not all customers are interested in the same products and services. A predictive model was built based on the characteristics of SKY TV’s existing customers and recent Census data.  By applying this to the rest of the SKY TV database, a ranked list of customers, in order of their propensity to take up offers, was created.

The results

By applying this model to non Multi-Movies subscribers in the SKY TV database, good prospects were identified  - good prospects being those in the top quartile of model scores.

Campaign results showed that non Multi-Movies subscribers, who fell in the top quartile, responded at a rate of 4.57% compared to those in the lower quartile, who responded at a rate of 1.61%.

By targeting initiatives selectively towards the customers most likely to accept an offer, marketing costs can be significantly decreased, while response rates increase, giving a higher return on investment for each campaign.