)
What has been the most interesting sales promotion you have engineered so far?
While we have launched a host of successful sales promotions at trade, something we had not really tried was a referral programme for our subscribers. In all our subscriber visits and research, one thing that came back very strongly was the fact that our subscribers were very satisfied with the quality of service they were being provided. On being asked if they would recommend Tata Sky to their friends and family, the response we always got was a resounding 'yes'. That is when we realised we had built a satisfied and loyal subscriber base who could in turn help us grow the Tata Sky family further. These were subscribers who were ready to put their own credibility behind their recommendation and hence came the idea of a referral programme to reward them for their efforts.
We launched the Friend-Get-Friend (FGF) programme where every subscriber could refer a maximum of two friends. Post successful activation, both the referrer and referee got a credit of Rs 200 in their respective Tata Sky accounts. By doing so Tata Sky launched yet another industry first in the DTH category.
Who the primary target for the promotion?
The idea was to involve our loyal subscriber base in a referral programme. Hence, it was launched only for our existing subscribers where they could refer Tata Sky to two friends. As soon as the new subscriber came on board, she could then go ahead and refer her friends.
Can you explain the media plan?
When we came up with the idea of launching a referral programme, the brief to the team was to keep it simple. The idea was to involve the subscribers. However, we realised if the redemption process was complicated it would not result in mass participation and the purpose would be defeated. To make the process simpler, the subscriber only had to refer a friend, who in turn could buy a Tata Sky connection from the trade channel, through the helpline or by logging on the website. As mentioned earlier, on successful installation, we offered both the parties value by adding more credit in their respective Tata Sky DTH accounts.
To ensure the communication reached all the subscribers we used our home channel (number 100). We even signed up with Kay Kay Menon to do a film for us to create a bigger impact. It was supplemented by adequate support from other subscriber communication mediums such as SMS alerts, e-mail etc.
Why was it designed in such a manner?
The idea of the programme was to reach out to the friends and family of our existing subscribers and grow the consumer base.
What were the challenges, especially given that the trade needed to be convinced?
The trade channel has been a very critical part of the Tata Sky eco-system. It has always supported us in every initiative and it did so this time as well. The trade (mainly, dealers who sell our DTH connections, shopkeepers who keep Tata Sky recharge coupons) was more than happy because the person being referred had the option of purchasing a Tata Sky connection from the dealers, the customer helpline or our official website. Walk-ins at the retail outlets increased and these led to additional sales for dealers.
| How TataSky did it |
|
Aim To use a referral programme to build a satisfied and loyal subscriber base |
|
Target The idea behind the programme was to reach out to the friends and families of our existing subscribers |
|
Promotion Existing subscribers can can refer Tata Sky to two friends. Referrer & referee get Rs 200 credit in their respective Tata Sky accounts post installation |
|
Outcome Large number of responses received from subscribers which resulted in a quick boost to sales |
What has been the direct and measurable impact on sales and the brand?
The response to the promotion has been positive. This is evident from the feedback that we have received from our subscribers and the additional sales. While initially the campaign was designed to accommodate only two referrals per subscribers, we have been receiving requests to increase the cap from subscribers who wish to refer more friends to Tata Sky.
Will it be relevant today?
The promotion is very relevant in the current scenario where digitisation has become mandatory across the country. Most of us are faced with the situation where our friends and neighbours are confused with digitisation and come to us for advice and queries regarding set top boxes, DTH connections, etc. Existing Tata Sky subscribers who are already using a set top box and are satisfied with the service can be great influencers in the purchase decision of their friends. We are trying to capitalise on this need that exists in the market currently.
Don't sales promotions incur high long-term costs for the company?
Usually sales promotions do incur costs, which can be long-term and have to be amortised over a period of time. But that is possible only if the subscribers - both old and new - stay on the platform long enough and pay subscription month-on-month. In this case, subscribers referring their friends are those who are already satisfied with the service and are ready to put their credibility behind the recommendation. While still in its nascent stage, it is safe to assume that the new subscriber base will also grow the promotional campaign further and bring more new consumers on the Tata Sky DTH platform.
Vikram Mehra
chief commercial officer, Tata Sky
