Improving Subscriber Acquisition with Front-Door Marketing

Driven by Competition, Cable Marketers Get Creative with Precise Targeting Strategies

Subscriber-Watching-TelevisionAdvances in cable television, broadband speeds and communications options are fueling the growth of today’s cable services industry. At the same time, economic issues and an ever evolving landscape are causing consumers to take stock and make choices carefully, evaluating not only varied options for telecommunications service – such as MSOs (Multiple System Operators), digital satellite providers and telephone companies – but also their choices within the preferred company’s menu of services. In this highly competitive space, cable operators have seen their subscriber counts drop 3.8 percent to 23.2 million in the top 15 markets during the first quarter of 2011, according to SNL Kagan.

Furthermore, customer churn is an industry-wide problem, and new subscriber acquisition is a constant challenge for marketers. Advertising in traditional media like television, radio, and newspaper can be effective, but these methods are also overly broad and waste resources on audiences outside the subscriber footprint. Direct mail is inherently targeted, but can also be quite costly and not necessarily actionable. So what is the solution for marketers? 

Well, refining the direct option with response-driven front-door marketing is proving successful in meeting these challenges – leveraging improvements in data research, analysis and application for competitive advantage.  Today’s front-door marketing campaigns take a scientific approach that incorporates the same precise targeting methodologies as direct mail but remain focused on placing a relevant offer with only the most appropriate customers.

Tasked with growing their footprint while increasing their subscriber penetration, cable service providers are turning to this revitalized, grass roots medium. By leaving an ‘invitation’ at the front door, front-door marketing puts the message and corresponding offer directly in front of a captive audience – receptive and relaxed in their home environment where many purchasing decisions are being made. Additionally, the front door is distanced from the stacks of junk mail at the mailbox and the barrage of noise on the television and computer. With a targeted brand message and high-value offer in hand, subscribers are driven to give serious and immediate consideration to what has been presented.

Take the case of one of our telecommunications client whose regional team approached Power Direct to assist in promoting awareness of their branded fiber optics network among new and existing customers in two specific markets. Power Direct’s ability to quickly dispatch the campaign from start to finish within 14 business days was an important advantage for the cable service company. The recommended program delivered a printed 4-panel front-door media piece, which allowed the client to more fully convey the brand’s message and value proposition. Interested customers were then encouraged to call an 800 phone number printed on the inside. The client was also provided with a targeting recommendation that included targeting of zip codes with a high penetration of homes passed (homes within the cable provider’s footprint) to efficiently maximize the client’s reach.

What are your current media options for reaching new customers?

You may also be interested in reading more about our solutions for the Telecommunications industry here, or you can check out one of our case studies here.

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