"Best of Class" Broadband Service Providers' (BSPs) use a variety of tactics to maximize their subscriber counts while minimizing their customer acquisition costs. These programs range from creative customer retention to excellent multi-channel sales programs; and from novel web-based marketing campaigns to street fighting that entails slugging it out with competitors via guerrilla marketing. This is the fourth in a series of four articles regarding the "Best of Class" market penetration strategies. These strategies have been field tested and proven successful. This month's topic focuses on a guerilla marketing strategy to generate sales. Seven specific guerilla marketing sales acquisition tactics are discussed in this month's column.
Partner with Home Owner Associations (HOAs) and developers
A BSP can become an HOA's or developer's "broadband provider of choice" when a partnership is created. HOAs and developers can partner to ensure that their neighborhoods have broadband service available. Depending upon the terms and the depth of the relationship, the HOAs or developers may receive "free" broadband service in a clubhouse or the opportunity to a share a percentage of the BSP's reoccurring revenue stream. In a new construction environment, BSPs can pre-wire homes or dwelling units and offer programs such as "service to new residents at no cost for 30 days," thus becoming the incumbent BSP. The developer benefits by being able to tout that the dwelling units are "broadband-ready," an important amenity in today's competitive marketplace. Most relationships contemplate the developer or management company becoming a sales channel for the BSP, and BSPs benefit by being able to leave collateral materials at the sales offices and sometimes directly compensate the HOA or developer's employees for closed sales.
Utilize a hat, golf shirt, or a T-shirt to create a marketing "echo" effect
Most local BSPs do have the brand awareness that their incumbent telephone
operator enjoys. Especially when a BSP enters a new market, tactics that provide
a marketing "echo" effect-or a tactic that continues to influence
other prospects even after its primary objective (e.g., that of a "call
to action") has been accomplished-both help close sales and generate brand
awareness to other prospects. To be most successful, echo effect marketing is
deployed early in the product launch phase and is targeted to those earlier
adopters that often influence their friends and neighbors.
Direct selling in selected neighborhoods
Direct selling is a proven tactic used when marketing video services, but is an unconventional and a guerilla-marketing tactic when selling broadband service. The key to the successful execution of direct selling is to carefully qualify the sales area. When determining where to sell, BSPs should conduct demographic analysis to ensure that the neighborhoods contain sufficient potential so as to generate an acceptable cost per sale. Also, choosing an area where it is difficult to receive broadband service from a competitor (e.g., DSL is unavailable in a higher demographic area of town) also helps maximize the number of sales generated.
BSP sweepstakes guerilla marketing campaign
Create incremental lower-cost sales and a low-cost method of increasing brand awareness by implementing a monthly sweepstake program to be used in generating qualified leads. By offering a monthly drawing for "free installation" and free service of the broadband product, consumers will be enticed to complete a coupon with their contact information. Typically, the leads are tracked and a commission is paid to the retailer based upon leads, sales, or a combination thereof.
Partner with companies that the BSP's prospects frequent for guerilla marketing sales promotions
Partnering with retailers can provide an opportunity for both parties to generate incremental sales. Retailers can reward loyal customers that frequent their establishment with a special offer, such as a "wine and cheese" party with a drawing for free broadband as a call to action to drive foot traffic. Customers that participate in the events often purchase additional merchandise from the retailer. The BSP can contribute a free installation or free service as a call to action to drive qualified foot traffic to the event, using the event to close sales, generate leads, and establish a relationship with retailers that could be extended into a strategic relationship (see the February issue of Broadband Properties, "How Best of Class Broadband ISPs Increase Sales Through the Use of a Retail Distribution Channel").
Partner with a dial-up ISP and sell each other's services
Broadband customers often require a dial-up service when they are out of town. If a BSP does not offer a dial-up service itself, partnering with a dial-up ISP can be an efficient method to add a product extension to the BSP's product array. While there are many issues to consider prior to making such a partnering decision that are beyond the scope of this article, a situation where both companies do not cannibalize each other's sales can be a winning opportunity for both.
Sell in locations that permits a consultative sales environment
Some prospects will require a consultative sale prior to purchasing broadband. These are prospects that may not be comfortable asking questions in a retail store or making a purchasing decision over the telephone. Trade shows are non-traditional sales environments that create a less formal situation where some prospects feel more comfortable asking questions. An upcoming trade show can also be sited by telemarketers as an opportunity for a telephone prospect to see the product prior to making a purchase decision. Further, if the trade show is properly targeted, conducting a raffle or sweepstake can net the BSP leads that can be followed up after the show. Trade shows that focus on technology, home and garden, homeowners, and the families are often the most successful in generating leads and sales.
"Best of Class" BSPs use creative tactics to achieve their budgeted customer numbers. This is the fourth and final article that discusses field-tested and low cost ways to maximize customer counts. Reprints of earlier articles can be ordered by contacting the publisher.
About the Author
Don Kent is CEO of eCablevision, a broadband consulting company. He has spent
over 26 years working with early stage companies specializing in the delivery
of broadband and digital content services. Please address questions or topics
that you'd like to see discussed in subsequent columns to Dkent@eCablevsion.com.