Success Story: Google
What’s the real value of a Chromecast to a business?
The One Thing
Google’s small and inexpensive Chromecast device allows people to view content from their mobile device, onto their TVs. Google had partnered with an international sports streaming service, which allowed customers to use a Chromecast to watch sporting events on their big screens.
Chromecasts retail for USD$35, but Google wanted to determine what the true value of the device was to the business itself. The partner was equally as interested, as they were seeing more and more people using the device, but were unsure of whether that translated into revenue.
18.5% content watched.
The one thing they both wanted to discover; would customer's engagement behaviour change with the introduction of the device, and would that mean they valued the sports service more?
The Delft team helped Google and their partner understand the full engagement picture by collecting and collating all the customer and device data from one another.
The Delft team also set up a test; half of the test-group customers were sent a device, and half were not. Both groups had patterns in viewership, spending, behaviour and engagement, measured over a series of weeks.
27.5% monthly customer revenue.
Delft was able to prove to Google that their USD$35 device amplified the customer’s overall experience, which lead to 18.5% more content being watched, when through their device.
It was the first time Google was able to prove the value so definitely, and gave them an ability to add unique messaging to their device marketing; it’s a proven thing.
304% Lifetime Value of a customer.
Not only that, Delft showed the sporting partner that customers who used a Chromecast device, were 304% more valuable than customers who didn’t. This reshaped the partner's device strategy, and they now incentivise customers to buy a Chromecast with their first subscription, as well as retail the devices directly on their site.