AT&T Broadband

B2C l Skewering Competitors’ Claims Engages and Educates Consumers, YOY Subscriptions Increase ⇧ +11% YOY

Christopher Vickers Brand, Content & MarCom Team Player, Strategist, Writer, Mentor, Leader

Background

AT&T’s broadband (TV / Internet / Phone) business was facing a sharp, sustained threat from satellite providers. Thousands of residential customers were leaving AT&T each month, switching to satellite — driven by satellite advertising messages which touted better picture quality, a greater variety of programming and lower prices than broadband.

Even though satellite advertising messages were often incomplete or misleading, they influenced consumer perceptions, convincing AT&T customers to switch to satellite, growing satellite subscriptions and market share.

My Role: Player Coach I was strategic lead responsible for supervising and coaching direct reports and colleagues, supporting and leading a large cross-functional team, guiding and developing research, analysis, insight and campaign strategy, and nurturing and supervising campaign development, production, implementation, measurement, reporting and optimization across multiple channels.

Research, Analysis & Insight

To better understand AT&T' s situation we analyzed the category, competitors, customers and the Company, including its products, services, performance, key personnel and brands. 

Then we dug further, taking a classic Segmentation / Targeting / Positioning (STP) approach: Segmentation to divide the market into distinct customer groups based on demographics, psychographics and behaviors, allowing for a more accurate and thorough understanding of customer needs, perceptions and motivations; Targeting to select the most attractive segment(s) on which to focus; and Positioning to confirm the ideal product classification and craft a value proposition to maximize relevance, distinction and attraction.

AT&T TV

Segmentation  Our research revealed three key segments of AT&T broadband customers who had switched or were intending to switch based on behavioral and psychographic data, including: 

• Cost-sensitive deal seekers - for whom saving money was key

• Tech-savvy entertainment enthusiasts - who were most interested in vivid picture and sound and variety of programming including sports and movies

• Harried homeowners and families - who were seeking the convenience (one service, one bill) of bundling a combination of TV, internet and phone

Targeting  We targeted AT&T residential customers actively considering switching to satellite. Many were in suburban and rural markets — value-focused, picture and program enthusiasts, and juggling multiple services (TV, internet, phone). They weren’t brand-loyal — but they were misinformed.

Positioning  Our research revealed that the majority of customers who had switched to satellite, and were actively considering switching, were unaware of its disadvantages, including:

• Extra monthly charges for installation, additional set-top boxes and premium (e.g., sport, movie) programming

• Disruption of service due to inclement weather

• No bundled internet and phone 

• Higher price per month after the introductory offer ended.

Our insight: Customers weren’t switching because satellite was actually a better value — they were leaving because they didn’t know the full story.  Our positioning: 

AT&T Broadband is simply smarter.

Development, Production & Implementation

Based on our strategic work and insight, I lead development of a campaign built around educating consumers, delivered with lighthearted, self-aware humor.  I briefed our creative teams who developed a variety of campaign concepts. 

AT&T TV, Internet & Phone

We copy-tested four to help select one based on measures including message clarity, emotional impact, persuasion, recall and brand perception.

The concept which emerged was a light-hearted cheeky campaign centered around different pairs of people (e.g., a politician and his translator during a political summit, a reporter and a company CEO during an interview, etc.) who segue from discussing a relevant topic into the drawbacks of satellite and the benefits of AT&T Broadband. 

The concepts avoided negativity and direct attack, which most consumers find off-putting, and could alienate customers. Instead the winning concepts were about one character educating the other — with smart comparisons and real advantages in an empathetic tone — reinforcing that, in the long run, AT&T Broadband is simply smarter.

The campaign concepts:

• Corrected common misperceptions about satellite (e.g., price hikes after a three-month promotional period, the hassle of no phone or internet, etc.)

• Highlighted real AT&T Broadband benefits, including:

• Vivid, clear, high res picture and sound

• Huge variety of exciting programming, including a variety of sports and movie channels

• Continuous reliable service no matter the weather

• Bundled savings and simplicity (TV + internet + phone), including promotional pricing for 12 months

AT&T Internet

We executed the campaign across:

• Video, audio and display, featuring engaging, light-hearted education and corresponding landing pages, including interactive shopping and price comparisons 

• Direct response including side-by-side comparisons, benefit checklists and 12-month promotional offers

• AT&T retail, PR and site experience educating customers across key touchpoints

Measurement, Reporting and Optimization

The campaign enabled AT&T to take control of the narrative and grew the AT&T customer base in a competitive market. Results of our work included: 

• 1.2 million net new subscribers during the first year, an +11% increase in subscriptions YOY

• AT&T Broadband’s VP of Marketing said: “Customer acquisition and growth soared.” 

By giving customers the “whole story” of how satellite actually compared to AT&T Broadband, we helped stem defections, increase retention and achieve net new growth in a competitive category.

Agency Arnold Worldwide (Havas)