July 13, 2007

Word of mouth pushes IPTV to new customers

by David Masters

As with many other products, demand is driven by desire, but today’s buying public are a lot savvier than in the past. They understand technology and its value, and if they don’t then they find someone who is. This can be a major problem for service providers who are trying to entice householder in the States to sign up for IPTV services.

But not being beaten by that, service providers have begun to us the tried and tested marketing plan of using “Word of Mouth” this has to be the best marketing tool ever, for customers sell products for the providers without even knowing about it.

We have seen this in the past with VCR’s and more recently SKY, satellite dishes appear on one house and soon everyone wants one. This is what services providers like AT&T are using in the States, in fact they have been using ice cream vans fitted with flat screen panel displays to show off the services available on IPTV. The van has also been involved at sports grounds, running cheese and wine parties and not forgetting the movie night. Verizon have used a similar way of spreading the word, but instead of a van, they used the classic mini cooper, fitted with plasma screens. There is no data on how successful these campaigns have been.

The problem for IPTV service providers is the fact that some of the are limited to certain areas or territories so running national campaigns is pointless, all that they would be dong is encouraging interested customers in signing up with the competition.

This is great news for consumers, because as they all compete for their share of the market, the service providers will need to offer some really great deals to get customers to sign up, in some cases there have been deals which mean the service is free for year. This creates a desire, so that at the end of the year it is harder for the customers to say “No thanks“.

 

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