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Published byDeborah Robertson Modified over 9 years ago
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Cable Academy, 2010
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2 Agenda Macro Trends & Performance, 2007 – 2009 Recent Initiatives Q & A
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3 Overall Growth, 2007 - 2009 Average Rate of Growth, 2007 - 2009
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4 Revenue Growth By Product Line Average Growth Rate By Product, 2007 - 2009 % of Total Revenue Growth, 2007 - 2009
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5 Gross Margin Trends, 2006 - 2009 Video Margin Phone Margin 2009 2006 Data Margin 60.7% 57.4% 89.9% 91.2% 61.0% 67.4% Overall Gross Margin flat at 65% despite Video Margin erosion
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6 Monthly Operating Costs Per RGU RGUs include EBU, Digital, HSD and Phone units. Avg. Reduction: (1.1%) (20%) (13%) (16%) Focus on cost effectiveness has enabled operational scale as we grow
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7 Our Formula Improve our value through new product launches and enhancements Focus on proven and practical value-adds Targeted acquisition and retention strategies Getting and keeping the ‘right’ customers Continual focus on operational performance improvements Customer centered approaches deliver ‘win win’ cost effectiveness
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8 Recent Initiatives New Product Launches: New Bundle Suite & Offers Targeted acquisition and retention: Credit Scoring Operational performance improvement Reducing Advanced Services Talk Time
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9 New Bundles: What We’ve Been Up To Created new Digital Value service Response to a key product gap vs. Satellite Key building block for new bundles Launched 3 Double Plays and 3 Triple Plays Good, Better, Best approach Created Loyalty Pricing for bundles Allows existing customers to upgrade into bundles
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10 Why We Made Changes 1.Competitive Response –Lacked sub $70 digital product –Pressure from Telco hybrid bundles 2.Consumer Requests –Desire to be “bundled” –Strong demand for Video & Net bundles 3.Financial Benefits –Bundled customers = lower churn –New bundles and promotions offer improved margins
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11 New Bundle Suite Summary Doubles Select $74.99 Ideal $94.99 Ultimate $109.99 Triples Select $99.99 Ideal $119.99 Ultimate $134.99 +$20 +$15 Phone +$25 Phone +$25 Phone +$25 Showtime DVR Digital Value Service Preferred Internet Digital Plus Service Max Internet Digital Plus Service Max Internet “Good”“Better”“Best”
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12 Loyalty Pricing Overview ■ Same bundle contents and names, different promotional discounts: –Triple Play are $15 more –Double Plays are $5 more ■ Loyalty prices represent a $20-$25/mo savings off of retail ■ Simple eligibility rules for standard vs. loyalty prices: ■ Adding 1 RGU = loyalty prices; Adding 2 RGUs = standard prices Select Triple Play $114.99 Ideal Triple Play $134.99 Ultimate Triple Play $149.99 Select Double Play $79.99 Ideal Double Play $99.99 Ultimate Double Play $114.99
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13 Nearly 2,000 bundle sales within first month Double Play and Triple Play sales evenly split Strong sell-in of higher-end bundles Approx $10 Triple Play ARPU lift on new connects More than 15% increase in call center RGU upgrades Beginning to see improvements in close rates Early Results Are Encouraging LevelMix Select41% Ideal32% Ultimate27% Blended ARPU $ 128.09 LevelMix Select33% Ideal38% Ultimate29% Blended ARPU $ 142.95 Standard Triple PlaysLoyalty Triple Plays
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14 Credit Scoring: What We’ve Been Up To Implemented Credit Scoring in July 2009 Use Equifax credit risk model integrated directly into CSG workflows Chose wireless credit model, not same as FICO All new connects and restarts across all sales channels are scored Current customers wishing to upgrade, transfers and seasonal restarts do not get scored Customers must score 600 or higher to pass Failing customers must pay $100 deposit if they wish to connect
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15 Why We Made Changes: 40% of our new connects will disconnect before their 1 year anniversary Half of those disconnects - 20% of the sample - were non- pays Half of non-pays – or 10% of all new connects - disconnect within 1 st 120 days 60% of Direct Sales new connects are gone within 12 months Each non pay disconnect costs us over $500 in capital and operating investment losses! Bad debt, equipment losses, cost to acquire, install & disconnect costs, etc.
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16 Results: Disconnect Profile By Score Level % Disconnected after 90 – 120 days in service % of Population 59% 15% 11%
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17 Results: Key Metrics Reduced monthly connect volume by 20 – 25% Non Pay Churn down 30% Year over Year Some systems have seen 50% reductions Bad debt declined from 1.2% of revenue in Q4 08 to.8% of revenue in Q4 09 Billing call volume dropped by over 40%
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18 Reducing Advanced Services Talk Time Reduced Average Handle Time by approx. 40 sec / call
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19 Q & A
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