A New Marketing Strategy for Sirius XM
In this guest post, Scott Spiegel shares his feelings about a new direction for Sirius XM marketing.
In the current economic climate, Darwin’s rules apply. Only the strong will survive and only the companies that have developed the most of intimate of relationships with customers will stay in business. As much as the public thinks that they are immune to marketing messages, the fact is, a company’s success often depends on how well/poorly they communicate with consumers. It is with that said, that I propose a new marketing plan for Sirius XM.
First and foremost (and believe me, I will harp on this all day and night until the cows come home), SIRIUS XM MUST BE A PRESENCE ON THE LIVE MUSIC SCENE. I don’t know how I could possibly put it more bluntly. Sirius promotions people should be a force every Springsteen concert, every Metallica show, and EVERY SUMMER FESTIVAL, not to mention other live events. Ask anyone in the music business, and they will tell you that the money and the action is at live music venues all around this country, especially during the summer. If someone is willing to shell out 35 bucks or more to see a band live, wouldn’t it seem as though they might be willing to put ten bucks a month towards hearing that band on the radio? This may seem like a stretch, but many of the acts that sell the most seats don’t have commercial radio stations that play their music. For example, Phish rarely gets played on the radio, yet after not touring for five years, they have more than 20 dates in the next few months across the country that are sold out. Wouldn’t it be a good idea to let all those Phishheads know that Sirius XM subscribers get at least an hour of live Phish every weeknight on Jam_On?
In my summer as an intern at the headquarters in New York City, I was able to snag two short sleeve Sirius shirts for myself. Almost every time I wear one, I get at least one comment. This proves that the best marketing tool of all is word of mouth; so, the number one goal should be to just get people talking about satellite radio. I don’t know that people will go out and buy a lot of Sirius XM gear at retail prices, but I do know that people would wear a hooded sweatshirt given to them for upgrading their radio and committing to an additional year subscription. How many people have Sports Illustrated Pullovers? Getting something free makes a marginal deal seem like a great deal. The company could even give Sirius XM stickers with every new radio, and some might even put them on their laptops, windshields, and snowboards, among other places. There are countless ways to get exposure without having to spend on traditional advertising avenues.
Now that the company has partnered more heavily with Liberty Media (owners of Direct TV, among other entities), Sirius should take advantage of all the available synergies. And since Direct TV is exclusive with the NFL, Sirius XM should try to find a way to use the common relationship to it’s benefit. Offer packages that give subscribers both products for a decent price. I can see the commercial now: a guy gets a call while watching an out of market football game, when his wife calls. She needs him to pick up the kids, but he doesn’t want to miss the end of the game. What happens? He runs to his car and the game is right there on the radio with the hometown announcers. Other partnerships should be strengthened as well. Sirius carries CNN and Fox News; how about sponsoring segments of these channels? It would be nice to see Sean Hannity or Larry King mention that their channels are partnered with Sirius XM radio.
It’s important for Sirius XM to realize that they are fighting an uphill battle. Why would CBS, NBC, or Clear Channel/Live Nation want to help out a rival? The mainstream media has a major interest in Sirius XM’s failure, so it is critical for this company to get the message out by any and all means necessary. Once they get a taste of the product, new subscribers will be hooked. With growth, time will come for Sirius XM to be the dominant force in this new media culture. However, this cannot happen unless the more of the public sees the product for all it has to offer.
Scott Spiegel is an aspiring broadcast journalist. His online reel can be viewed at youtube.com/sspiegel024.
Also, they need to simplify their pricing structure. There should just be 3 options total. Not all these different packages with add-ons and this and that and the other and then “Best of XM” – just have 3 options. Basic – Good – Best
And online streaming should be included without extra charges. Really, I didn’t sign up for the longest time and still have friends that aren’t signing up because the pricing is too confusing. They just nickel and dime you to death.
Pete Rock guest DJ’d on one of the rap channels, that was awesome.
Jada Kiss did a backstage pass on the rap channel, that was awesome.
Every night from 10p-2am the live dj’s are industry professionals that work with all the major artists, and that is the regular programming!!
Definately what sets Sirius XM from the pack is the candid live major artists appearances.
Scott, Can you please send a resume to Sirius Xm. Something like How one or two people with fresh ideas can replace the existing promotions division
I just found the position for Scott , Job ID 4042 Sales and Marketing/Director of Marketing posted 3/05/09 from Sirius website . ( Its about time they get some new ideas in that division lets hope its some one who can give Sirius that buzz again )
Sorry; I don’t buy it. You don’t do live music; Sirius does recorded music. They need to be in high quantity, affluent areas. For example, they should be like flies on the poo that is The Masters this weekend. A perfect crowd.
Yes, they do recorded music and much of their recorded music was recorded live in their own studios. Check out Sirius’ Coffee House (channel 30) where they frequently air live shows and Sirius “Coffee House Blends,” recorded live in Sirius’ studios.
The Loft (channel 29) also plays a lot of exclusive interviews and music recorded live in their studios on “The Loft Sessions” and “From the Bedroom to The Loft.”
I’m sure there are others on channels that I don’t listen to. They have quite a bit of material that you can’t get anywhere else, and in the long run, it will pay off big time.
Agreed. Thanks for providing info for the other channels.
My favorite music channels have lots of material that can not be found elsewhere.
Hip Hop Nation and Shade 45, and they get better everyday with original exclusive material.
Co branded marketing material (like tee-shirts and bumper stickers), can work well. I remember when I was a kid, a local LA station called KMET (rock), used to prduct bumper stickers. All they had on it was a KMET frame with the bands name in the middle. Everyone is SO Cal, had one of these stickers on their car. EVERYONE. Everyone wanted to show off the band they liked the most. At the same time, everyone knew that these bands were playing on KMET. It was the coolest station around. Teenagers and young adults were always trying to find ways to get the sticker for their favorite band. They were mostly given away at concerts.
Sirius XM is a cool company in the eyes of most music listeners. More unique content (like concerts, and interviews) is what sets this apart from commodity services like Pandora, iTunes, Rapsody, etc. The best content is critical.
I’d love to see some cooler hardware to match the content. The iPod plays the same music as every other service, yet they are king because they have cool hardware. Sirius could shell out a few more bucks to produce some kickass hardware, or partner with someone like Apple to do so.
Subsidize the hardware (like cell phones). For $18.99 per month and a 2 yr contract throw in free radio and installation.
I think getting Oprah to pitch SiriusXM on her show would go far. At least a couple hundred thousand subs would come from it. Her fees may be too steep for Sirius XM right now, but I’m hoping they look at it.
Go Global. Stream music services to other countries.
Another Big Name (imagine Rush Limbaugh…although I don’t like him…millions of others do) signing could do wonders. structure the contract so that they get a portion of the profits that bring in…say $1.50 per sub. Rush would have easily brought in two million subs. that would translate into a 36 million a year for him…Not bad!
This company has soooo many places to go…I didn’t even mention ideas surrounding synergies with DirecTV. No where to go but up. I’m just hoping they have the cretive minds that are willing to step outside of the box, realize they are in a new market, and don’t get stuck doing the same old stale marketing tricks from the past.
Scott,
SIRI/XM are radio types. They know radio and to a degree, entertainment. They haven’t heard of advertising/customer relations/keep it simple/brand loyalty, etc., etc. Maybe trying to survive has taken too much out of them. And in their defense, it is still early after M.F.(merger, financing). But I have stuck around because I believe the content is king theory. I agree with your live music comment. Things like that give them something you cannot get most other places. Your comment about a lot of media wanting them to fail, trying to make them fail and providing the most negative aspect of any development, is right on. Most people are probably surprised that SIRI/XM is still around after all of the negative headlines. For example, most writers point out that car sales are down significantly, but few point out that the penetration rate has almost doubled since the merger. I hope Mel hires about 10 of you and gives you a huge budget. A good comparision would be GM. It seems they are advertising more.
You are completely right. The people that run this comapany are radio people. Radio people have a sales department that sell advertising to businesses to make money. Since Siri is a majority commercial free not only can they not push a sales department to sell commercials but they have to provide content for that 24 minutes per hour that were usually commercials. They seem to have conquered the filling of content. Now they need to focus on the marketing. Since it’s not selling commercials it needs to be selling subscriptions! If they have nothing but radio guys in their marketing department these guys are not a good fit for this dynamic.
Yep; so many other ways to do it.
*Subsidize radios
*Give 6-8 stations away all the time
*Same channel numbers
*Same content XM to Sirius
etc. etc.
Re: NFL radio — being able to get the hometown announcers *not* on a 3 second tape delay vs. TV feed would be a valuable product. Years ago the live radio feed would actually come in a half second before the TV video feed.
my family tivos the game and pauses it so the minor delay matches up.
how about ANY marketing
Tha only marketing that I remember at all is when Artie and GAry were on teh Man Caves show. I don’t know how much Sirius has to pay Man Caves to outfit the talent with new digs, but at least it made an okay impression.
I have been wearing Sirius shirts for a few years.
Without getting loquacious on the subject, I have had many people quiz me about Sirius radio and I know several subscribed after talking to me.
Every longterm shareholder should be wearing some kind of Sirius apparel everytime they know they are going to be mingling with many people.
By the way, I like the quality of the shirts I have bought.
DUH…..I posted that recommendation somewhere on this site months ago. However, the ignorant posters here ignored it. Now that it comes from a notable writer it becomes prevalent.
relax…relax… we just avoided banktruptcy 60 days ago… Not one of you nor myself has a “media mind” with 5% of the potential of Mel Karmazin…
For the 1st time in 2 years he can now focus on other strategies to grow shareholder equity rather than just surviving as an entity…
this recent rally and Wells Fargo posting a $3B profit in 1Q??!!! How? Should a firm even be able to say the posted a profit if they’ve received “bailout $$”…. Doesn’t make since to me… too many sectors still insecure and shaky (i.e., housing, automotive, credit cards, banking)… i don’t think USA has turned the corner yet…. at the bottom… yes… on the upswing… NO!! NO Way!!
until there is job creation visavis job loss.. there can be no sustainable NYSE rally ….
i keep repeating this is a 17 – 23 month play… you have to be able to chill and wait…
i’m open for feedback..
peaceout
What about a lyric???
SIRIUS/XM has 3.5 billion in debt but do the math on 20 million subscribers paying about $13/month 12 months per year and you’ll wonder how they got into trouble. I pay $20/month for the added weather/traffic for my car and many pilots pay up to $99/month for advanced weather data services.
At any rate, I heard SIRIUS XM will be covering the Grateful Dead this Summer. So maybe they are already starting to do the right thing.
Scott, good article! Before any sirius (sic) marketing effort begins, however, there must be a consolidation of the separate XM and Sirius brands and storefronts into a new and singular Sirius XM brand and storefront. I still don’t believe people understand this is now one company – especially when potential subs think it’s BK, and/or they must choose between one service or the other, not to mention the myriad subscription decisions they must make with Best-of and other add-ons that each currently offers.
Here are some steps that Sirius XM should take (I’m hoping they already are underway):
1)Develop a strategic marketing plan that clarifies the new branding and image-making goals and objectives for Sirius XM (this would include surveys and focus groups with current Sirius and XM subscribers for programming preferences and marketing ideas).
2) Design a new logo that captures the new merged identity (scrap the old separate XM and Sirius logos while retaining the most signifcant images/concepts of each).
3) Develop a single web site for Sirius XM (scrap or combine the separate XM and Sirius web sites into one – too confusing now).
4) Work with DirecTV and other partners (even Dish???) on co-marketing and bundled subscription projects.
5) Offer life-time or long-term subs free Sirius XM logo t-shirts/polo shirts/hoodies, etc; offer concert-goers and other interested parties SXM logo bumper stickers, post-it notepads, pens, calendars, stress balls, etc. SXM becomes ubiquitous!
6) Take advantage of current satrad monopoly! Possible new tagline – Sirius XM: Not Just the Best… THE ONLY!
To bring this concept to the masses: For a couple of weeks Sirius XM could run saturation 10 to 20-second TV ads (can be done in print media, too) with a completely black screen and only the following words on separate lines:
WHAT IS… (bold white lettering)
THE ONLY (Large bold lettering in new logo theme font/colors)
After this build-up run a series of bright, colorful, energetic, hip new commercials that educate folks about the merger and SXM’s viability, and tempt customers with killer programming, subscription offers and hardware. This campaign could be used to launch the IPhone/Touch app to be released by the end of June. Maybe even have a spot in next year’s Super Bowl.
FYI, Nike used this suspence/interest building approach when they launched the square driver a couple of years ago (they ran a series of commercials that highlighted squares without giving away thier product, and then ran the new ads with PGA golf pros using the new driver – very successful).
Of course, there are many other ideas that have been offered, and are probably under consideration to help make Sirius XM relevant to current and prospective customers. But SXM must go about this strategically and thoughtfully in order to promote and support the delivery of great service and value to customers, while advancing shareholder interests as well.
ML Sri, Great insights and ideas. I gotta believe they are working on some these types of marketing ideas. It’s a crime if they don’t. For what they offer in audio content is unmatched. I still feel most consumers are not sure what Sat Radio is or what it offers.
Neal, thanks for your reply and continued support of branding and marketing ideas needed to promote the new media world order that Sirius XM embodies.
Here’s a link to Tyler’s March 8 (SIRI closed at $.14 on Friday, March 6) article titled “Sirius XM Now Needs To Execute” that captures his thoughts as well as those of several folks including you, Relmor, SL62 (where are you, dude???), Cos1000, dread, me (maybe Olivia isn’t the best audio/content, but she’s always a pleasing video!), and others:
http://siriusbuzz.com/sirius-x.....xecute.php
Similar to a great vintner’s motto “We shall serve no wine before its time”, Sirius XM shall not initiate a marketing blitz until it’s good and ready (soon, we implore!).
There is no doubt we have to have patience. This company is going thru a metamorphose. They are still in the cacoon stage and we are expecting to see a butterfly emerge not a moth. When that butterfly emerges I believe they will have a marketing plan (I HOPE) that will bring into focus all the clethra of colors of this butterfly (content) along w/ a marketing package that coinsides w/ the emergence of this butterfly to not only clearify what Sirius Xm (or what ever the new name may be)can offer the consumer but a new exciting image that shows that this media is in an elite status of its own. The only other point I’d like to mention is to utilize ALL existing and future Sat Radios. They should impliment a price structure for all budgets (the more content the higher the sub price). Even include the non-subed radios by turning them on w/ a commercial based format to compete head to head w/ Am & Fm. The company would be the most powerful audio content provider bar none.
I agree with Zac D – the pricing structure is way more complicated and confusing than it needs to be. When will the people who make decisions realize that SIMPLER IS BETTER! You already have a product/service that is widely misunderstood by 95% of the American public, so why go and create price and package plans that add to the confusion. I swear, the management of this company is its own worst enemy.
The next thing I would suggest is to make everything available for $9.99. That is the magic number that would lure and capture the people who are on the fence about subscribing. Include internet streaming with the sub; charging extra only pissed subscribers off and led to more churn. The way you develope a loyal following is by making the customer think that you care about them, and that you have their best interest at heart. In this respect, Sirius/XM is a FAILURE OF EPIC PROPORTIONS !!!!!
Go to College campuses, shoping malls, fairs, music festivals, beer festvals, car shows, etc. and hand out brochures, bumper stickers, T-shirts, key chains, magnets, pens, mugs, calanders, HATS, head bands, TOTE BAGS, lighters, rulers, wallets, toothbrushes…. I don’t care what the hell it is – just get the name and the logo on all this crap and get it circulated out there in the jungle. It’s the next best thing to do if they continue to refuse to advertise any other way.
Neal Barkett is on to something; utilize all the radios. There are many thousands of radios out there that are turned off, and they will stay that way unless Sirius/XM provides some real incentive for the owner to re-subscribe. Or as NB proposed, just turn them on at no cost, but with commercials. The people who listen to terrestrial radio must not mind the commercials, so it shouldn’t be a problem for them. It’s a shame to have have all these dead radios in all these cars – get them turned on and it becomes instant advertising for any passanger who hears it playing!
It’s all about common sense and a little creativity – something this company seems to be lacking. They just need to get involved, and start acting like the survival of satellite radio depends on whether they do nothing, OR DO SOMETHING. You can’t just assume that the customer is going to gravitate to your product – you have to go out there and pursue them, convince them, and then treat them nice so that you KEEP THEM. It’s just the way it is, and if Sirius/XM thinks they can march to the beat of a different drummer, then they are sadly mistaken.