Making some noise: SiriusXM uses direct mail to turn up the volume on customer acquisition

SiriusXM Canada hits all the right notes for millions when it comes to audio entertainment.

Debuting in 2011, the Toronto-based satellite and online radio broadcaster quickly became one of the country’s leading entertainment companies by offering commercial-free music, sports, entertainment, news and talk. With 2.6 million subscribers in Canada, SiriusXM is available in vehicles from every major company, as well as on smartphones and other connected devices via the app.

But while SiriusXM is the dominant player in the streaming audio industry, that doesn’t mean it’s free from the challenges of growing a subscriber model in a crowded audio marketplace.

Challenge

There’s a lot of competition for your ears.

Traditional over-the-air radio is still a billion dollar industry in Canada. Now, many of those same companies are entering an already crowded podcast market that’s expected to grow to more than CAN$200 billion in revenues by 2030.

Then there is streaming audio. With a projected worldwide revenue of $39.5 billion in 2024, experts see the music market topping $45.3 billion and 1.1 billion users by 2027. Canada plays a similar tune, where streaming audio is expected to grow to CAN$711 million and 9.9 million users by 2027.

Those numbers mean plenty of players, including some of the biggest names like Spotify, Apple and Amazon.

For SiriusXM, the objective is clear: Find new subscribers. And to do  that, this digital powerhouse has always relied on direct mail.

Relevance

Direct mail has helped SiriusXM stand out from competitors using longer message dwell time and less ad clutter to its advantage. Direct mail’s geolocation addressability also helps the brand expand reach and retarget audiences across Canada to complement digital activities.

Building on previous successful direct mail campaigns, SiriusXM partnered with Canada Post to test a new audience targeting approach leveraging first-party and Canada Post data. Targeting 500,000 English-speaking Canadian households, they focused on audience segments who have SiriusXM-equipped vehicles, those considering it for a second vehicle and those interested in streaming services.

Canada Post’s geotargeting, demographic and lifestyle data provided the right data overlays for SiriusXM to expand its reach to high-value audiences by targeting postal codes populated with look-alike audiences to its existing customer base. More brands are starting to look at data integration between first-, second- and third-party data in order to create stronger targeting strategies that can expand reach to new audiences or retarget them from digital activities. It’s this mix of tangible media and agile data targeting that makes it a great addressable channel that works in the full-funnel strategies needed today.

Inciting action

Two postcard designs were tested: one featuring traditional lifestyle imagery and a clear “Listen the way you want” message and another with a playful music festival theme. Both postcards underwent pre-market creative optimization using predictive eye tracking analysis to maximize communication impact.

Both creative executions offered the same free trial, promoted through a custom URL and QR code for easy tracking and channel attribution.

“We like to frequently run tests to see what resonates with customers and catches their attention,” said Alisa Kaufman, Senior Manager, Customer Acquisition at SiriusXM. “We know people receive a lot of communications, whether it’s via direct mail, email or other channels. So, we’re always trying to see what cuts through the clutter.”

Results

SiriusXM’s direct mail campaign hit a high note, exceeding its acquisition goals and proving the channel’s continued value. The campaign achieved 0.95% conversion rate, surpassing their target by 27%. With both creative options performing equally well, SiriusXM now has 2 effective communication approaches for future campaigns.

“Direct mail is highly targeted and trackable. That makes it the tangible solution our brand needs when it comes to acquisition,” Kaufman said.