Homebase agrees insight deal with Sky IQ
April 15, 2014
Home enhancement retailer Homebase has agreed a 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 targeting more accurately its customers on TV for the first time and accelerate its understanding of the customer path to purchase; from TV to in store.
In an initial pilot prior to the contract being signed, BSkyB subsidiary Sky IQ discovered that 39 per cent 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 are more likely to shop with Homebase if they have seen a Homebase advert. This was significant in three key customer groups, who were 26 per cent more likely to shop with Homebase than other target segments if they had seen the advertising.
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. Not only will this reveal information about the reach of its 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 who will use this insight to optimise its media plan. MindShare and Homebase are already implementing changes in their advertising strategy following the successful pilot last year with Sky IQ.