Reference case: Nuon
Nuon is part of Vattenfall and is one of the leading utility companies in the Netherlands, serving 2 million customers. Nuon approached Objective Partners because they wanted more control over their media investments. They were looking for a partner that could solve the question of conversion attribution and could provide automated budget allocation advice for all touchpoints and channels – both online and offline. Their main goal was to decrease the total cost per conversion.
Nuon was also interested in understanding their effectiveness on price comparison websites. Since the energy market liberalized in 2004, price comparison websites have been an increasingly important sales channel for utility companies. Nuon wanted to reduce the amount of time their team was spending on manually comparing pricing websites and get more insight into the pricing strategy they needed to meet their sales targets while maintaining profit margins.
For this project, Objective Partners collaborated with Nuon and Nuon’s search partner. The open exchange of knowledge and ideas made it possible to efficiently and innovatively tackle Nuon’s challenges in media budget allocation, and enabled the right parties to take decisive action.
Engagement and conversion data was collected from different sources. Price comparison data from the competition was collected using automated API’s. This data is refreshed daily and integrated in our Media Budget Optimization (MBO) solution for up-to-date calculations.
With online engagement and conversion data, we are able to use MBO for multi-touch attribution. This allows us to analyze different customer paths and determine the effect of online campaigns and channels on online sales. Subsequently, our Offline Attribution Model was deployed to determine the effect of offline media channels on online sales.
External factors (for example: the day of the week, the weather, months, or special business-related events) are accounted for to improve the accuracy of predictions. Their impact on sales can be clearly observed.
Finally, our Online Foresights Model was configured and implemented, making it possible to create different scenarios for Nuon’s media budget allocation. These scenarios are optimized with an important KPI in mind: minimizing the cost per conversion.
Nuon now plans its media budget over different media channels on a weekly basis using MBO. This has allowed them to maximize the amount of conversions and minimize the cost. In addition, Nuon can now measure the accuracy of previous predictions. The average prediction accuracy was found to be around 91%.
Using available price ranking information, Nuon is able to understand the influence of their pricing on sales. Our smart dashboard enables them to visualize their price position, investment (provided discount) and their competitors’ pricing strategy. This information is updated daily and stored for long-term analyses. Results are then used to develop an improved, dynamic pricing strategy that is in line with sales targets.
Our collaboration with Nuon proved to be effective and innovative.
More conversions less media spend:
Optimized media investments led to a 3.4% improvement on conversions. For Nuon, this was a great result. The total budget for media decreased, so they are able to accomplish more with a lower budget.
Nuon is a trustworthy brand, but the market is becoming increasingly competitive. With our smart pricing dashboard, Nuon can develop a pricing strategy that will enable them to fully understand pricing dynamics in their market and secure future growth.
“O/P’s special skill set combining econometrics, online marketing, data and technology knowledge was essential. They are a great sparring partner for Nuon, enabling us to take better decisions tomorrow” Rob van den Berg, Senior Online Marketeer at Nuon