Green energy provider uses mover triggers to improve cost per order

Business Challenge

A Southwest-based residential energy company was looking for a different marketing tactic to effectively and efficiently gain new customers at a lower cost per account than they were achieving in their current marketing programs. Since consumers typically only start new energy contracts at two inflection points—upon a move and on the upcoming anniversary of a yearly service contract—timing would need to be a key consideration in finding new accounts for this company.

Deluxe Answers

Given the relatively well-defined timing component for a consumer to start a new service agreement, Deluxe recommended the client test its Mover Trigger program. Together, Deluxe and the client set up an 8-week pilot program beginning in the summer of 2022. The initial pilot was carefully structured to include both new mover and pre-mover populations and was deployed and tested across multiple channels (direct mail, digital and email) to get near real-time performance reads on the data and channel tactics to be used for future campaigns.

As industry experts in the mover trigger marketing space, Deluxe keenly understands the importance of testing different mover populations upfront to better optimize future campaign performance. While new-mover marketing used to be the premier and go-to marketing trigger, more and more consumers are moving up their buying decisions for certain purchases. Therefore, it is key for marketers to test both new movers and pre-movers to understand where their product or service falls in the buyer journey.

• Pre-mover (At Listing): Owners who just listed their home on the market
• Pre-mover (In Contract): Owners who have an active contract on their home and plan to move in the next 30–60 days
• New-mover: Renters and owners who have just moved into a new house or rental

Results

The initial pilot was successful out the gate. However, as with most initial pilots, what the client learned was just as valuable as the new business they brought in, and it set them up for even better marketing success.

Because of the structure of the pilot program, Deluxe was ready to recommend immediate campaign optimization strategies based on the initial results.

• Pre-movers outperformed new movers, so adjustments would be made to the campaign targeting to over select on pre-movers
• Marketing tactics would be better aligned with conversion rates; e.g., direct mail would be reserved for higher performing segments, and digital-only tactics would be reserved for segments with slightly lower response rates
• The internal data science and analytics team at Deluxe recommended improved conversion rates if movers were selected within a certain radius from the client’s current customer network

With the results of only a single, small pilot, Deluxe was able to almost halve the cost per account with just one additional touch point!

The client continued to partner with Deluxe on the program through 2023. With continued performance tweaks, the client was able to slowly realize even lower costs per additional account opened (over 5% on top of the already low cost).