Do You Want Fries With That?

By Bryan Rader, MediaWorks

I’ve always wondered why so many private broadband operators lose sleep over critical issues like raising capital, business development and choosing the right technologies, but rarely seem to be worried about how good their marketing efforts are on their existing communities. Conversations about getting the next deal, or signing up the next property are always more prevalent than getting the next subscriber.

It is quite common to hear people say “I serve over 15,000 units.” Or boast that they have “around 10,000 cable passings.” But potential units, and non-subscriber passings don’t earn revenue or enhance cash flow. The only thing that does earn income is good, solid “subscribership.” That’s the measurement that matters. And it is our marketing performance that drives subscribership. So, subscriber marketing should be tremendously important in our business, right?

Yet, it is common to hear operators say “why focus so much time, energy and resources on marketing efforts when my typical customer almost always moves out within six to twelve months?”

Well, take a look at the economics for a second. If you serve twenty properties with an average of 300 units each, and only earn a 60% penetration rate, you have 180 customers. But if your marketing efforts are successful in increasing your sub count by 10%, you will see 30 additional customers per system. With an average bill of $40 a month, this will increase your top-line revenue by $14,400 a year per system. That’s a bigger impact on your bottom line than signing the next few deals!

The other key variable is not just getting a prospect to subscribe, but getting him to sign up for the maximum service offering you have. During our average twelve-month “customer life” expectancy, do you want your subscriber to be a $10 a month customer buying a limited Basic package of several off-air channels? Or a customer purchasing over $75 of video services, a $40 high-speed connection and a $15 digital enhanced tier? Obviously, your bottom line looks a lot better when you own more $130 a month subs than $10 a month subs. And only a very effective consumer marketing strategy can assist in that result.

Subscribership levels and average gross revenues per customer make a huge difference to the bottom line. Why then are private broadband marketing efforts not frequently emphasized or focused on by operators in our industry?

Maybe it is because of our past experiences. For years, we have had exclusive long-term arrangements with property owners. There was no threat from DBS providers. If apartment residents wanted cable TV service, they only had one source. This created an “order-taking” mentality, as opposed to a true marketing mentality. “Do you want it or not?” “Take us, or take nobody.” “Don’t like my install fee and deposit policy? Sorry. Enjoy your rabbit ear reception.”

But now things are dramatically different. We have to earn our customer’s business. We do run the risk of losing them to DirecTV or Dish Network. And as we expand into other services, we are competing against dial-up Internet access, DSL, wireless Internet, local exchange service, etc.

Marketing is one of the most critical elements of our operation, and the appropriate resources should be dedicated to this function. A strategy should be set in place for each system to maximize penetration rates and emphasize the larger bundles of services we offer. We can’t take the customer for granted. He does have choices. And our marketing efforts should communicate that feeling.

Our marketing messages regarding our product line must be concise, motivating and enticing. Excellent marketing should permeate throughout the entire organization. Leasing consultants must be trained and have creative materials to utilize. Service techs should understand your package and promote them to new hook-ups. CSRs must be motivated to up-sell and upgrade new and existing subscribers to more enhanced packages.

Your billing messages and bill-stuffers should drive awareness of your promotions, too. And as if that’s not enough, you should be sending notices of your packages and your services regularly to customers to maintain brand awareness. We must emphasize our benefits and advantages. We must create the need and convince prospects of the value of our services.

Developing your company’s “brand” must be a key element of your marketing strategy. Your brand’s image must stand for more than simply cable TV, and it should be a name that can be effectively used on product extensions such as high-speed Internet or telephone service. It must be highly visible, recognizable and memorable. After all, our coveted customer is just with us a short time and we only have a small “window of opportunity” to present who we are, what we offer, and why we’re special. Branding can help in this arena.

MediaWorks has utilized branding from the beginning. Our largest premium movie package has always been called “The Works!” and we promote “Get the Works!” on every brochure, or marketing piece we do. Our high-speed product is called “Speedworks by MediaWorks,” and our home office package is called “WORKS-at-Home.” These brands are promoted and marketed intensely to our current and prospective subscribers.

And they have to be. A 10% increase in penetration rates is at stake.

This is no longer an order-taking business. Our marketing should be stronger than “do you want fries with that?” or in our business, “do you want HBO with that?” And it must be more effective. Our bottom line today is counting on a solid marketing performance.

Best wishes for a safe, healthy and happy new year!