Competing In Today's Broadband MarketCompeting In Today's Broadband Market

New Market Opportunities forNew Market Opportunities forWISPsWISPs

by Jeremy Anthony Kinsey

a bella mia company

Jeremy Kinsey or“Jer” to his friends.CEO and Co-Founder of Bella Mia, Inc.Been an ISP for 8 yearsBeen a WISP for 5 yearsPart-15 WISP of the Year WISPCON IIIPart-15 MemberRegular Speaker at WISPCON, WCA, P-15.Located in South East Wisconsin

BackgroundBackground

OverviewOverview• Who is the competition?• Comparative Analysis • Education• Reach from within• Advertising • Direct Mail• Branding• Other Sources of Revenue?• Overview

Who is the Who is the CompetitionCompetition??• Cable Ops - Time Warner/RR, Charter

• Telco/DSL - SBC, Verizon, AT&T,

• Satellite - Direct Way, InterStat

• CLEC/DSL - Covad

• Other WISPs - Everyone’s doing it now!

Competition - OverviewCompetition - Overview

• Organize providers by technology, ie., cable, dsl, wireless, etc.

• Define target customer of each provider based on their reach

• Identify future providers? Other WISP’s new technologies

• Identify all the providers in your service area

Comparative AnalysisComparative Analysis

• Service plans/pricing

• Value added services

• Customer service/support

• Target market/customer

• Other services

Identify the following for each competitor:

Case Study: Case Study: Comparing CompetitionComparing Competition

• Step by Step gathering of information

• Analysis of information and pricing

• Form a Side by Side Comparison

vsvs

Comparative AnalysisComparative AnalysisACME Business Starts at $89 - ours Starts at $99

ACME Charges extra for IP’s - We charge $0

ACME Charges extra for DNS - We charge $0

ACME Charges extra for Hosting - We charge $0

ACME uses DHCP - We give you STATIC IPs

Cost ComparisonCost ComparisonBasic Business Package with 16IP’s

256k or better

50MB Web Hosting

50 Email addresses

Unlimited Forwards

Domain Registration and DNS

MX/Backup Mail Services

Side By Side CostsSide By Side CostsBasic Business Package with 16IP’s - 50MB Web Hosting - 50 Email addresses - Unlimited

Forwards - Domain Registration and DNS - MX/Backup Mail Services

512k x 128k $89.95

Static IP Block of 5 $75.00

Static IP Block of 13 $100.00

Hosting-Unix Select $24.95

Domain Registration $25.00

DNS hosting $10.00

Set Up Fee $295.00

Rent Equipment

Total Recurring $299.90/mo.

Total Non-Recurring $320.00

384k/40GB $99.95

Static IP Block of 16 $0

Additional IPs $10/IP

Web Hosting FREE 50MB

Domain Registration FREE

DNS hosting FREE

Set Up Fee $399.00

Own Equipment

Total Recurring $99.95/mo.

Total Non-Recurring $399.00

Winning on PriceIP addresses! /20 of IP’s or 4000 IPs cost you .62 per year! That’s .0017 cents per day! That is 82 cents per month for 16IP’s.

Web Hosting!Again, pennies a day. Besides, it is going to cost less to have your customer host in your NOC than on their Link!

Email addresses!Costs virtually nothing

Unlimited Forwards!Ditto

Winning on Price - (Cont.)Winning on Price - (Cont.)Domain Registration and DNS

Become an Domain reseller, buy domains at wholesale and pass these savings to your customer.

MX/Backup Mail ServicesAgain, costs little to nothing for you to provide, and gives the customer MORE!

Backup Dialup AccountsIf you were already an ISP and offer dialup, throw in a back up dialup account for redundancy.

The goal here is to show the customer where the value is!

Comparative Analysis - Comparative Analysis - OverviewOverview

Learn about your competitor

Know what they charge

Know what they offer

Know where they offer it

Develop a side by side comparison and define strengths and weaknesses. Create a plan of action based on this information.

Education is the Key!

• Educate your customers and potential customers

• Teach them about your service• Teach them about the Technology!

If you build it, they will come!

If you build it, you have to tell them about it

If you build it, you have to tell them to come

If you build it, you have to tell them why they should come to you

If you build it, you have to tell them why your service is worth coming to

If you build it, you have to Teach them!

It’s about “UnLearning” stupid

• You are going to have to “Unlearn” or “Un-Teach” your customers and potential customers

• They have been taught that your service is insecure

• They have been taught that your service is unreliable

• They have been taught that your service is bad

Who’s Teaching Them This?

What They KnowWhat They KnowYour competitor knows about you!

They know what you charge

They know what you offer

They know where you offer it

Most of all, they know who your customers are!

So what are they saying?

Reach from Within!Reach from Within!• Are you just a WISP, or were you an ISP?

• Up sell your other services

• Sell add-ons, value added services with your wireless

• Sell “Share your cable kits”

• Sell backup dialup lines to cable/dsl customers

Reach from Within! (Cont.)Reach from Within! (Cont.)

• $50 Backup Dialup

• Wireless as a “Secondary Provider”!

• Come on back! - keep in contact with past customers!

• Local, Long Distance, VoIP other add ons!

• CASH Referrals to existing Customers!

Reach from Within - TuneUpReach from Within - TuneUp• Other Ideas

Introducing the PC Tune Up!

Fix existing customers PC’sGet rid of SpywareClean up drivesUpgrade SystemsClean components and more!

Reach from Within - TuneUpReach from Within - TuneUp• An Idea Is Born

Email and sent flyers to existing Customers

Got dozens of responses

Reduced support calls

Made unhappy customers happy!

Generating new revenue stream!!!

Reach from Within - TuneUpReach from Within - TuneUp• Let’s take this a step further

Advertise PC Tune Up to general public!

Got tons and tons of responses

Made unhappy competitors customers our customers!

Generating more of a new revenue stream!!!

More response than we can handle!

Reach from Within - TuneUpReach from Within - TuneUp• Support Dept goes Bonkers!

Direct MailDirect Mail

Direct Mail - OverviewDirect Mail - Overview

• Send mail in phases

• Printer letters on nice paper

• Use color in your letter

• Include special offers or coupons

• Target former customers first

• Use colorful bright envelopes

• Send follow ups

Direct Mail - PointersDirect Mail - Pointers

• Add a Johnson box

• Have letter come from the President

• Put your offer higher up in the letter

• Mention customer by name

• Write your letter in first person

• Treat reader as valued customer

• SIGN IT!!!

Direct Mail - DefinitionsDirect Mail - Definitions• Write your letter in first person

AT&T used and uses this effectively for winning back customers. Some popular AT&T “come back” letters have included things like:

‘Dear Name, I love a challenge. As the president of AT&T Consumer Long Distance Services, I face them every day. And that’s why I’m writing you.’

AT&T won back over 2 million customers this way!You can too!

Direct Mail - DefinitionsDirect Mail - Definitions• Add a Johnson Box

A Johnson Box is a headline located at the top of a letter typically. It can include the main message/benefit, or stress your offer.

Examples:

Research has shown that letters with a Johnson Box have out performed letters without them by as much as 40%!

Direct Mail - DefinitionsDirect Mail - Definitions• Treat Reader as Valued Customer

One of AT&T’s most successful campaigns for “AT&T Winback” placed the following inside a Johnson Box

“A very special offer for our most valuable former customers.”

This worked so well for AT&T’s higher end former customers that they tried it again, except this time on their lower value customers, and it worked even better!

Direct Mail - DefinitionsDirect Mail - Definitions• Have letter come from President

Nothing makes a letter from a “big corporation” more personal and meaningful than if the President of that company actually wrote the letter!

“I’m not only a client, I own the company.”

You may not be a big corporation, however you too can have a huge impact on a customer writing directly to them. It really shows you have the time to care!

Direct Mail - DefinitionsDirect Mail - Definitions• Put your offer higher up in the letter

As a new dad, I see my son looking directly at the most appealing aspect of an object first. The “attention grabber” if you will.

“Show me the money!”

Don’t put your offer at the end of your letter, stick it out there in front! Put it in the “Johnson Box”. Or at the very least, get your message/offer across in the first three sentences of your letter!

Direct Mail - DefinitionsDirect Mail - Definitions• Mention customer by name

Nothing is more personal than having the respect to call a person by their name. Mention your customer by name several times when explaining your offers to them.

“Darlene, I want you to come back knowing how much we truly missed you!”

Make them feel like they are talking to an old friend, and don’t forget to thank them for their time!

Direct Mail - DefinitionsDirect Mail - Definitions• SIGN IT!

That’s right, sign the letter.. I don’t just mean stick your name on it, and no, not a scan of your signature.

“Sign your name!”

I personally sign every piece of direct mail that leaves our office bound for a former customer. People will appreciate the personal detail, and time spent on them!

It works!

Direct Mail - ExampleDirect Mail - Example

Direct Mail - ExampleDirect Mail - Example

AdvertisingAdvertising

AdvertisingAdvertising• Newspapers - Advertisers

• Flyers - Brochures - Hand outs

• Get your materials in local stores

• Phone Book

• Radio - TV

• Chamber of Commerce

Advertising - NewspapersAdvertising - Newspapers• Front page - Back page - Inserts

• Use your local “advertiser” type paper

• Frequency - Consistency

• Advertise your other services as well

• Run Specials - One Week Only Sales - Last Chance Sales

Advertising - PrimerAdvertising - Primer• Consistent and constant presence

• Consistent theme

• Use color

• Have a clear message

• Have a professional create your ads!

Advertising - ExamplesAdvertising - Examples

Advertising - ExamplesAdvertising - Examples

Advertising - ExamplesAdvertising - Examples

Advertising - ExamplesAdvertising - Examples

Holidays - Coloring Holidays - Coloring ContestsContests

Holidays - Coloring Holidays - Coloring ContestsContests

Holidays - Give AwaysHolidays - Give Aways

Holidays - Give AwaysHolidays - Give AwaysPacked with your offers!Packed with your offers!

Advertising - FlyersAdvertising - Flyers• Flyers - Brochures - Coupons - Inserts

Use your current ads in the form of brochures, or use them as inserts in news papers. Produce coupon sheets which can be handed out and sent out with every invoice!

Advertising - RadioAdvertising - Radio• Radio - TV - Public Access

Radio ads can be effective during high traffic hours, or during popular talk host shows.. TV can be effective on a local level by using local cable channels, if available, and if they will let you.

Both Radio and TV can gather a large audience, but are extremely expensive

Advertising - StoresAdvertising - Stores• Place your materials in local stores

Place business cards, brochures and other promotional items at computer stores, video rental stores, etc.

Partnering with a computer store to push your service and their machines can give you an effective edge!

Advertising - ChamberAdvertising - Chamber• Your Local or US Chamber of Commerce

The Chamber of Commerce is a great place to get your name out. Joining is easy, and usually requires a nominal yearly fee.

You get access to every other Chamber Business, mailing lists and labels, mentions in the Chamber newsletters, and tons of advertising possibilities!

Advertising - Phone BookAdvertising - Phone Book• The Yellow Pages - Very effective!!!

We have found that better than 50% of our customers saw us in the phone book.

Make sure to emphasize your services, name, PHONE NUMBER and of course, pricing!!!

Advertising RecapAdvertising Recap• Have a consistent theme

• Have a professional create your ads• Mix advertising of Wireless with your other services

• Have fun - Be Playful and Creative! Give your ads some punch!

• Don’t Stop!

BrandingBranding

Push Your Brand!Push Your Brand!

• Have some of those Pens made up!

• Get your Logo on everything!

• Car magnets - Put them on your install vehicles

• Stickers - Brand your Wireless Gear!

• Make sure your name is everywhere

Branding - ExamplesBranding - Examples

Branding - ExamplesBranding - Examples

Branding - ExamplesBranding - Examples

Branding - OverviewBranding - Overview

Pens, pencils, other give aways with your logo

Get your logo on everything!

Vehicle Magnets

Show displays and give aways

Stickers for branding products

Other Income SourcesOther Income Sources

Create a Search Portal

AdSense

Become an eBay Affiliate

Sell/resell Satellite TV

Google AdSenseGoogle AdSense

http://google.com/adsense

Satellite TVSatellite TV

Direct TV - Dish TV Affiliate Programs

eBay AffiliateeBay Affiliate

Make as much as $45/user

Create a Search PortalCreate a Search Portal

Make money with search results

Affiliate MarketingAffiliate Marketing

Make money reselling services on a commission basis!

QUESTIONS?QUESTIONS?

www.wisconsinwireless.net

Copyright 2005 bella mia, inc.

Presentation presented and created byJeremy Anthony Kinsey

a bella mia company

Thank you for your attention!A PPT copy of the presentation can also be found online at:http://wispconVIII.mia.net/ppt/competition.ppt

You can contact me via email with further questions at:jer@mia.net