Subscribing to broadcasting success
A Sky case study

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Page 2: Marketing review

The review, undertaken in 1992, was designed to ensure that one of the business’s key performance indicators, namely reduction in churn rate, was achieved. This study focuses on this critical area. The principal objectives of the strategic marketing review were to minimise:

  • Subscription cancellation.
  • Accounts System termination (i.e. direct debit payment termination).
  • Downgrades (i.e. subscription to fewer channels).

and maximise:

  • Upgrades.
  • Subscription renewals.

Strategic implications

Sky 2 Image 6A strategy outlines the direction an organisation has elected to follow. It must be communicated and understood throughout the entire business, in order to ensure effective implementation. This was a major consideration for BSkyB and incorporated:

  • Exhaustive customer market research, in order to clearly understand customer behaviour and requirements.
  • Examination of the reasons customers cancelled/terminated or downgraded subscriptions.
  • Understanding acceptable and unacceptable reasons for cancellation/termination.
  • Development of a new communications strategy to manage and prevent cancellations/terminations due to unacceptable reasons.

An example of an unacceptable reason for cancellation would be a customer declining to continue subscriptions, as a result of not watching enough satellite television. In other words, problems created by the subscribers lack of awareness of BSkyB’s full proposition.

Sky | Subscribing to broadcasting success