Evaluating Free and Discounted Customer Products Service Providers Use as Value Added Offerings
By Donald A. Kent, e-Cablevison

"Free" and "savings" are arguably two of the strongest and most compelling words in the marketing dictionary. And by including a section offering suggestions and links to free and discounted products on the BSP's proprietary website, customers will view their provider as an authoritive source of valuable information, more regularly use their BSP's start page (which is significant and will be discussed in a subsequent column), and feel an enhanced sense of loyalty towards their provider. "Free" and can also be useful as a customer acquisition tool-sales associates armed with the latest products and services available at no cost and available as an added service of the product can be a strong closer, especially when overcoming an objection relating to the cost of the BSP's service.

What are some of the most compelling free and discounted products and services that a BSP should include? They should reflect the diversity and interest of the customer base, and where possible, reinforce the customer's decision to subscribe to broadband. For purposes of this article, I chose several representative sites to provide examples of the type of content that could be efficiently aggregated and would be deemed as valuable to many broadband consumers.

Free services that reinforce the value of broadband: free streaming stock quotes provide users real-time stock quote pricing, and its possible only with broadband service. I tested www.QuoteTracker.com, and found their service to be functional and efficient (registration at Datek.com was also required). It also provided real time news updates about the companies in the customized portfolio that I created. CNet's www.Download.com is one of the most popular websites for shareware and free software, and broadband access permits users to enjoy efficient downloads. Other sites, including www.DailyeDeal.com offers links and recommendations for free Internet phones, free Net fax services, free voice mail, and twenty-one alternative free disk space services. Free disk space service enable Net users extra disk drive space, a file backup service and a way to share files with others.

Discounted products with a local flavor: localism is a driver because of its relevance to consumers, and a site that features local discounts on products and services can be especially effective. Websites including www.supermarkets.com allow users to input their zip code and print coupons that save them money when shopping for groceries. While testing this service, I found over $50 of coupons at each of the three supermarkets that my wife frequents-Krogers, Meijers, and Cub Food. Significantly, many of the products on sale were not listed in the newspaper flyers. Other sites aggregate products and services other than groceries on a by-market basis-I found www.Valpak.com to be useful for some large metropolitan areas.

Free merchandise targeted to the customer base: at the popular www.refundsweepers.com/freeafterrebates.shtml, I had my choice of "free" software, binoculars, cameras, desktop calendars, jewelry, AM/FM cassette player/recorders, radios, speakers, and an IBM keyboard, after rebate. At the apparel portion of the site (www.refundsweepers.com/freeclothing.shtml), there were free sweaters, dresses, t-shirts, gloves, and sunglasses, after rebate. For men, the selection ranged from raincoats to sweaters to jackets. Other sections offered greeting cards, magazines, CD-ROMs, sample merchandise, and newsletters. At category leader www.coolsavings.com, there were free merchandise that ranged from clock radios, pocket note recorders, cameras, spotlights, micro-cams, solar battery charges, and even a black white television. Coolsavings.com also offers an extensive number of links to other similar free and discount-oriented websites.

Other sites to consider: some websites allow users to earn points (usually redeemable for merchandise) as they surf the Net or shop online. Some of the most popular sites include www.MyPoints.com, www.CyberGold.com, and www.ClickRewards.com. Do your customers enjoy playing games online at no cost? Then don't forget to include sites such as www.iWon.com, www.PrizeGames, and www.gamesville.com. Sites that discount name brand products are especially appreciated by some customers, and www.DailyeDeal.com guides users to significant savings, including 50% discounts at www.Norstroms.com, 25% discounts at www.Barnes&Noble.com, 80% discounts at www.Lands'End.com, and 20% savings at www.Walmart.com.

Affiliate programs: better yet, many of the above mentioned sites offer affiliate programs - and will rebate to BSPs up to 8% of any merchandise ordered. This revenue stream can be used to offset website development costs, or a portion can be shared with customers in the form of a loyalty program.

Due diligence is required: if there's no such thing as a free lunch, then what's the catch? As in the offline world, some free and discounted offerings are created to obtain names and addresses for mailing lists. Other websites hope that consumers enjoy the free merchandise and that they will be able to up-sell consumers to an enhanced version of the product. Still others seek to entice consumers to try products or use their website, in the hopes of generating repeat sales in the future. A BSP should carefully conduct due diligence to ascertain the economic model and privacy policy of the website, prior to recommending the site to customers. Further, BSPs should investigate the site's uptime experience, redundancy, and service level agreements (SLA's); that the company is financially stable; that indemnification protection will be provided, the long term financial value any affiliate programs, and be certain to check copyright risk and the site's client references. For a small fee, some sites will customize their site to match the BSP's look and feel-or offer a co-branded site.

This is the first of a column that focuses on Monetizing Broadband. It is designed to help BSPs establish a brand identity as innovators, and avoid the characterization of becoming known as a service that can only compete by cutting its prices.