Subscribing to broadcasting success
A Sky case study

Page 1: Introduction

BSkyB will primarily be remembered as the company which changed the face of UK broadcasting, through reflecting our changing lifestyles as we move towards the 21st century. BSkyB also created a new Multi Channel television industry through new technology and innovative marketing. In under seven years, BSkyB has become a great British success story and has entered the FT100 Index as one of the...
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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...
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Page 3: Strategy

BSkyB identified three core areas for management focus. These were: Maximising customer loyalty by increasing the viewing of channels (i.e. programming and educational strategy). Maximising customer turnaround via the prevention of cancellation, termination and downgrade (i.e. marketing strategy). Maximising subscription renewals and upgrades (marketing strategy). These were enormous...
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Page 4: Maximising customer loyalty

It was clear from market research that the key to stemming subscription cancellation and downgrading lay not only in the provision of additional channels, thereby giving more choice, but also through direct marketing, on air promotions and educating viewers how to make the best use of the quality and wider coverage of sports, films and children’s programming. It was essential to maximise...
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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. The annualised “churn rate” was reduced to 12.9% in 1994, from 35% in...
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Page 6: Conclusion

This study shows how an innovative company, which has been instrumental in changing the lifestyles of many people, has engaged in a sophisticated marketing strategy, in order to maximise benefits to its customers. BSkyB has gone much further than simply providing the service customers want. It has gone out of its way to create a personalised relationship with its customers, to encourage them to...
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