Subscribing to broadcasting success
A Sky case study

Below is a list of Business Case Studies case studies organised alphabetically by company. To view more companies, please choose a letter from the list below.

Page 5: Measuring success

Every company needs to operate in a strategic way. It begins by developing the strategy, supported by market research and then developing the implementation plans. The success of BSkyB’s Subscriber Management and Marketing Strategy can be quantified by the following highlights achieved between 1994 and 1996.

  1. Sky 2 Image 4The annualised “churn rate” was reduced to 12.9% in 1994, from 35% in 1992.
  2. The Turnaround Telemarketing team made over half a million outbound telephone calls, which resulted in over 200,000 subscribers being retained in 1994.
  3. The launch of Sky Multi Channels led to 250,000 new subscriptions and 500,000 upgrades.
  4. The promotion of Sports and Movies helped to create 200,000 upgrades from existing subscribers.
  5. 80% of subscribers pay by Direct Debit, which is a factor in maintaining customer loyalty coupled with the minimisation of administration costs and “bad debts”.
  6. The ongoing customer focus and developing marketing communications strategy over the past four years has resulted in the cancellation rate dropping further in 1996 to 11%

Continuous improvement

BSkyB is the leader in a dynamic, expanding industry and constantly strives to achieve innovation and improvement. New initiatives in recent times include:

  • The creation of new customer benefits such as a credit card and financial services.
  • The development of a new sophisticated marketing database of customers.
  • The creation of a customer profile database. This involved distributing a customer questionnaire to all subscribers, in order to create the most sophisticated profile possible, which enabled the company to target customers on an individual basis - thus creating a strong bond of relationship marketing.

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