According to Forrester Research, 8.6 million online shoppers access the Internet
via a high-speed connection, compared to 12 million using dial-up. Taken alone,
those findings are hardly groundbreaking. What’s noteworthy is the rest of the
picture that emerges from that study: Those broadband users are younger, richer
, and better informed than their narrowband counterparts. They spend more time a
nd money online and are more likely to buy customized products and services.
So why hasn’t the Internet become the focus for broadband companies seeking to
establish relationships with a demographic that has demonstrated a preference for their product? Simply put, until recently, their attempts fell flat.
Just over a year ago, our agency launched an online performance-based e-marketing campaign to promote a broadband service. Despite engaging creative and a compelling offer, it met with resounding silence. Six months later, the response was only marginally better.
So we were only cautiously optimistic two months later when we launched another
campaign for the same advertiser, using the same offer. This time, it was a success. Response rates tripled and the customer acquisition cost dropped from $300 to under $100.
Clearly, the floodgates have opened and the most sought-after consumers are rushing through to broadband. And while the surge in response wasn’t a complete surprise given the emphasis placed on marketing broadband services, it was enough to make us curious about what other factors were at play.
What we discovered was a scenario where so many people have experienced broadband’s superiority at work, school, and even in friends’ homes that they know what they’re missing.
According to U.S. News & World Report, some 20 million households nationwide now
have broadband, with another 100,000 signing up each week. That saturation has
created a market of increasingly discontent dial-up subscribers for broadband companies to reach.
Imagine the impact when -- as dial-up users impatiently wait for Web pages to load -- an ad pops up promising lightning-fast access. Their response starts an on
going relationship managed through newsletters and other e-mail communications designed to keep them informed about value-added services, special promotions, etc. Not only is it a demographic pre-disposed to online CRM, it is also one that is
far from oversold. In fact, less than one-third of U.S. households will subscribe to a broadband service by 2006. And as services designed specifically for broadband increase and support for dial-up declines, the 42 percent of Internet users who said they didn’t need broadband will become receptive to a well-focused CRM program. But it won’t last forever. While the window of opportunity to reach broadband buyers online is open, it’s not likely to stay that way. Broadband may be the current heir apparent for connectivity, but wireless has given every indication it will be a sleeper hit, emerging from nowhere to take the top spot.
In short, the time for broadband companies to establish online customer relation
ships is now -- before the window slams shut.
