TalkTalk used econometrics to set the correct mix of price and incentives in the price comparison website (PCW) aggregator marketplace.
TalkTalk is a major investor in the broadband PCW marketplace, a highly competitive one in which broadband providers “bid” for consumer sales by setting price offers or by adjusting their connection fees and contract lengths to be more attractive in PCW tables and thereby appeal to consumers.
Econometrics helped identify and quantify the variables which drive TalkTalk’s sales success in the broadband aggregator marketplace. Data was gathered on a weekly level, extending over more than two years. A multiple regression model using 30 independent variables was built, with aggregator sales as the dependent variable.
This project enabled TalkTalk to understand, quantify and predict the impact of a number of
‘driver’ variables on PCW aggregator sales, reduce the risk of bidding or over-bidding for sales that TalkTalk would be destined to win without incentives, and set prices knowing exactly what the impact on sales volumes will be, avoiding the risks and costs of testing.
By deconstructing how the aggregator marketplace works, TalkTalk was able to set pricing and incentive offers.
#TwitterLovesTelly - Twitter
Two-thirds of Twitter users are on the social media platform while watching TV and Twitter users are actively searching for, talking about and engaging with their favourite TV shows through Twitter. Studies showed that running Twitter alongside TV campaigns could significantly boost return on investment. Yet not enough brands were coordinating their paid media campaigns across Twitter and TV - to address this, Twitter turned to econometrics, producing a planning guide to help plan Twitter with TV. While the planning guide roll-out is in its infancy, it has resulted in subsantical, incremental revenues.
Breaking the supply chain - Gousto
Recipe box provider Gousto operates in a competitive market. It turned to econometrics to prove that a shift in media investment from activation to brand communications would better deliver against its customer acquisition targets. But with recipe boxes being a nascent category, initial models had virtually no base. The7stars built a system of hierarchical models covering the journey from initial search response to acquisition. The results of the first brand campaign in September 2018 drove an increase in prompted awareness.
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MediaCom: Econometrics: An Educated Approach - The Open University