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Vertical Market Penetration Demands Targeted Public Relations: Make the Right VIPs Hometown Heroes and Everyone WinsBy Scott Sobel“Let us now praise famous men …” Matthew 44:1. The top Telcos and MSOs are figuring out different ways to support their growing focus on developing business through vertical market penetration into different industries that can use their services. The communications industry as a whole is putting even more emphasis on learning more about business clients then customizing services for those customers to grow revenues. As a public relations consultant in Washington, DC, where I work on telecom and cable issue management, and as a former MSO regional communications director I’ve noticed related PR efforts are also increasing to grow the success of commercial services divisions. There is an opportunity now to take the next step and really bond with customers by reaching out to those vertical markets VIPs … the regulators, the elected officials and others who make a difference. In the US, current trending shows that telecom and broadband profitability can be hurt as competition reinforces marketplace perception that communications services are just merchandise, commodities customers can shop for like groceries. A way to restore some customer loyalty and stability, and to buttress those profit margins, is to mine the vertical markets with customized services. Public relations and government relations strategies should dovetail with that strategy. But how often do your grassroots efforts result in reaching out to, or partnering with, the key-influencers who impact your customers’ businesses? In many cases, not often enough, although there are exceptions. Here are some examples from the trenches. Nextel, for instance, is one of the carriers that recognized the vertical market opportunity two to three years ago and acted. The company actually hired various industry experts without telecom experience to advise on vertical market accounts. The advice worked. As a result, Nextel has experienced measurable ROI and been able to grow those accounts further by continuing to customize business solutions for different industry segments. Nextel Senior Director of Communications Audrey Schaefer says that that strategy fosters more loyal customers, more valuable customers, and that it has yielded industry-leading revenue-per-customer. She points to the success Nextel has had with PR strategies that focus on industry trade publications, trade show participation, and community outreach. Supporting vertical market VIPs through PR is part of a logical strategic progression. Consider, no one likes to sing their own praises when they can have someone else sing them. Common sense tells us that all audiences tend to put more store behind someone else saying you are a hero rather than banging your own drum. Those VIPs certainly will appreciate and remember the efforts you make to raise their profile. Joan Wilson, Vice President for Industry Initiatives at the Cable and Telecommunications Association for Marketing (CTAM), reports that the top ten MSOs have each reached different stages of focusing on their commercial services business. But all have at least recognized the need to establish stronger relationships with their business targets and VIPs, especially in verticals like education, finance, healthcare, and municipalities. According to Wilson, smart MSOs are willing to take on certain risks with their customers and become much more than service providers. Again, partnering with and publicizing the strengths of VIPs has proven to be one potent arrow in their competitive quivers. Wilson points to Cox Business Service’s recent success, for instance, in Rhode Island. There, the MSO has been banging the drum for the local Chamber of Commerce and the Chamber has been supportive of Cox’s business initiatives. In fact, the head of the Chamber was a co-presenter with Cox at a recent CTAM seminar, reinforcing one of the association’s general goals to catalyze discussion of new business ideas for its members. A specific current goal is to help MSOs develop vertical business across other MSOs geographic footprints. Toward that end, strengthening relationships with industry or governmental VIPs who represent an entire region becomes even more valuable. A few years ago, when I was a regional communications director for Tele-communications, Inc. (TCI) and then AT&T Broadband, I was tasked with cementing stronger relationships with congressional representatives who were on key telecom and commerce-related committees. They could also help us develop business with local, regional or even national vertical industries. There would be specific benefits for both the cable and telephony sides. Some of those elected officials lived in rural areas where their constituency, including various businesses, was at that time relishing the idea of high-speed broadband services. Very public events were devised where the officials were praised for supporting their home town voter needs and local business needs. Everyone won. The VIPs got their publicity and helped their constituencies. The citizens and vertical businesses had access to services they desired. The former MSO and the related Telco parent – with an eye toward convergence but also a focus on customized business solutions – got a warm response from the VIPs and new customers. We executed the same strategy in other cities and had strong quantifiable results. All it takes to implement this strategy is a willingness to broaden your vision to include areas in which your current and potential customers have a real interest. Then, you connect the dots with the VIPs or services that can help your customers the most. Everyone knows that selling is most effective when you and your customers develop mutually beneficial bonds. A big step in that direction is recognizing your customers’ needs and helping them cement the relationships that are most important to them. It is a rifle rather than a shotgun approach to public and government relations. Making your vertical market VIPs look good through imaginative PR will put you right on target. ###
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