Our musings on making video personal
The true measurement of success for a SmartVideo program boils down to the value of a SmartVideo view. A view is the most basic indicator of how engaging and effective the SmartVideo is. For how long did the viewer watch the video? Did the viewer take an action? Did the viewer take the desired inaction? Fundamental to all SmartVideo solutions is tracking and measuring the results of views with an eye on delivering incremental business impact.
So how do we determine the value of a SmartVideo view? Our account managers work with customers to define a set of key performance indicators at the outset of each SmartVideo program. Once the KPIs are established and the program launches, SundaySky data analysts begin to track and measure program results using a control group methodology. The initial success of a SmartVideo program is determined by measuring the impact of a video group (those with access to SmartVideo) over that of a control group (those with no access to SmartVideo).
Our team takes the results of the control group analysis to assess the incremental impact on each key performance indicator. We do this by setting a value metric for each KPI, for example, a call saved is worth $8, and then calculating the total financial benefit of a SmartVideo program. The total financial benefit divided by the number of video views gives the individual value of a SmartVideo view, or the average incremental financial impact of each SmartVideo view.
Not only does the value of a SmartVideo view provide a real sense of return on investment, but it also helps guide the application of various optimization techniques. Optimization might include modifying email subject lines or email design, adding additional delivery channels, scaling for greater video volume, or something else – it all depends on the specific program.
I’ll apply this methodology to an example. Let’s say our customer, Skyline, deployed a SmartVideo for Delivering Bills program with four primary business objectives: call-in rate reduction, average handle time reduction, lift in paperless billing, and 90-day churn rate reduction.
The graphic below shows each of the key performance indicators, the associated value metric (the dollar amount associated with achieving each KPI), the actual improvement (or number of KPIs achieved), and ultimately, the financial incremental impact.
As you can see, Skyline realized a total incremental impact of $100,000 through 20,000 SmartVideo views. We can easily calculate the value of each Skyline SmartVideo view by dividing $100,000 by 20,000, arriving at $5.00 (of financial impact) per view.
Whether a SmartVideo program is focused on customer acquisition or customer engagement, establishing success criteria through view value is fundamental. It ensures that measurable financial impact is delivered to your business, justifying the initial investment and validating the expansion of SmartVideo to support your full customer lifecycle. Not only that, it’s bound to put smiles on faces in the C-suite!