Get in Good with Subscribers – See Results
In this guest post, Scott Spiegel shares his feelings about a new direction for Sirius XM subscriber relations.
Almost immediately after beginning my internship at Sirius in the summer of 2006, I was asked to sign a confidentiality agreement. While I do not feel as though as I ever violated this agreement, a recent visit to my former bosses and colleagues made me feel as though while I hadn’t done anything illegal, I had, in fact, violated their trust.
I only started writing for this blog (for free, I might add) in the hope that someone might notice my writing and want to hire me for a ‘real’ job. I considered my unique perspective as a longtime subscriber (pre-Howard), former intern (in Industry and Talent Relations), and patient stockholder (the first shares I purchased were priced at around $6-a price not seen in over two years), would make my writings both interesting and informative. I think I have lived up to my own high expectations.
My writing was noticed… by SiriusXM executives. Word got back to my former internship supervisor, and his reaction to seeing me in the company lobby was not positive, to say the least. Now, after my recent experience at the worldwide headquarters of our favorite media company, I came to realize that I value the relationships I cultivated in my short time there more than making a buck. It is with that being said, that I now present my final (at least for the near future) Sirius XM themed blog entry.
I have been saving this article for such an occasion because it is about the subject I feel most passionate about when it comes to this company-SUBSCRIBER RELATIONS. There is not one aspect of the company that frustrates me more than the feeling of only being a notch on the belt. It seems as though once they get our money, the company is no longer concerned with keeping us happy. They rely solely on unique content to keep us around (which for some is more than enough), but I would argue that an invested subscriber (one who feels like they have at least a little say in what happens), is the best marketing tool a company can have.
We are passionate about this company. We want to see it succeed, yet we want to see it improve. You wouldn’t be reading this post on this website, if the passion weren’t there. Try a google search of the phrase “comcast blog”. Seriously, go ahead, take a look at the first listing. The title of the listing is “Comcast Sucks”. The point is: no other company, whose main source of income is subscription fees, inspires such heart-felt love and passion. We care deeply about this company. Let these two questions be asked… how much do you love and expect from companies like AT&T, Verizon, and Sprint? How much do you care for and expect from Sports Illustrated or Newsweek, or Your Local Newspaper, for that matter? Here’s what I’m trying to get across: as long as the aforementioned companies give you the minimum amount of reliability, you’re happy not to have to deal with them. With Sirius XM, we don’t just want our receivers to work. That’s always a nice aspect, but it’s not enough for us. It’s time subscribers exert their will and help change the company for the better.
There are plenty of opportunities right now to capitalize on the current media climate. Here are a bunch of ways for Sirius XM to improve it’s relationship with subscribers, while improving the company’s profitability and recognition as a dominant media force:
Subscriber + Stockholder = A Truly Vested Interest
Many of us became stockholders because of how great the Sirius XM product is. Satellite radio has been in my life for close to five years, and I’ve been financially invested for much of that time. This might sound crazy, but what if the company offered some type of subscriber-investment plan. Own X amount of shares, get a discount on your fees. Buy stock directly from the company at $Y per share, get a new receiver as a gift. Hell, PBS and NPR have been pulling that move for years. You get subscribers financially involved, I guarantee, they’ll talk up the company better than any paid advertisement. I did not invest in this company solely to make money; I did it because I believe in the idea of satellite radio. Those of us that believe in this company would do anything to see it succeed, even if it meant investing some cash.
Get Us Involved
Maybe I’m in the minority on this, however, I believe some (if not, many) subscribers would volunteer their time to talk up Sirius XM, for free gear. It doesn’t take many people to run a booth at a local concert. Some might do it for a couple of free t-shirts. Some would go for a free concert ticket (work half the show, watch half the show). Some might even do it for a sticker or two. Get subscribers out on the street and I guarantee you the numbers would improve.
Channel Identity
One thing I’ve harped on in the past, is my distaste for pre-recorded voice tracking. Non-active listeners may not notice a difference, but just for a minute, imagine the following scenario: two days after Michael Jackson’s death, a DJ says on the air that they are really looking forward to his upcoming concerts. While this did not actually happen (to my knowledge, at least) the risk of such an embarrassing moment alone should make the need for live broadcasters to be very apparent. Local R and B stations around the country immediately switched to all Jackson programming the day of his death with DJ’s and callers sharing memories. Having nothing but pre-recorded content limits SiriusXM’s ability to improvise.
In addition to having having DJ’s be live, there is more room for improvement with each individual channel. I knew many channel programmers (two of which I’ll speak about and who will remain anonymous) during my time at Sirius. The two that immediately come to mind were in charge of two stations at once (others had more, even up to four or five). They worked 60-70 work weeks at a minimum, and each was responsible for “non-mainstream” stations. The fans of these stations are some of the pickiest music snobs, so their programming of these channels comes with lots of criticism from listeners. What does all this have to do with anything? These two would gladly be more out in front of listeners to hear ideas if they weren’t so overworked. There’s only so much an individual can do, so my suggestion is to give each programmer one station and make it his/her baby. Treat each channel as its own radio station, give each its own personality, and the result is that listeners will be more attached to their favorite channel.
Make Subscribing Worth Something Special
SiriusXM needs to sponsor subscriber-only events. If Sirius put on a Bruce Springsteen, Jimmy Buffett, Willie Nelson, or Dead show for SiriusXM listeners only, many would get the service for the sheer ability to see these shows. The company needs to capitalize on the relationships it has developed with these artists. As a jam_on listener, I know for a fact that tens of thousands of Deadheads (or Phishheads, for that matter) would gladly subscribe for 3 months for a chance to see an exclusive show. And while we’re at it, how about more live broadcasts from all kinds of concerts? If Wilco, or Metallica, or Paul McCartney takes over a station for a week, why not have the week conclude with a live broadcast of the first show of the band’s tour? Even better, have the band take over a station, while on tour, and have them check in from a new city (where plenty of subscribers are) each night.
There are plenty of other ways SiriusXM can improve its relationship with its loyal customers. Happy customers will happily talk up the product the way that no commercial, special offer, or store salesman ever could. To ensure subscriber loyalty, they could possibly use the technology to offer optional local content on each channel, they could create channels dedicated to their top-20 markets, or they could use the partnership with Direct TV to offer TV/Radio packages to customers. The fact is, there are plenty of ways to improve customer relations. What needs to happen is SiriusXM needs to appreciate the people that keep this company afloat and give them the chance to give a hand.
Established media companies want to see satellite radio fail in the same way over-the-air television broadcasters wanted cable to fail. Satellite radio offers a truly unique product- free of decency restrictions, excessive advertising, or formulaic content. In order for this technology to succeed (with the odds so stacked against it), the company must exceed expectations and make news that can’t be negatively spun. With all the content that can’t be found anywhere else, it’s time SiriusXM became a PRESENCE that the mainstream public can’t ignore. Satisfying existing subscribers is best way to get started.
Scott Spiegel is an aspiring broadcast journalist. His online reel can be viewed at youtube.com/sspiegel024.
I agree with some of these ideas, but the following list makes more sense to me…
1. Put Bumper Stickers in the box of All New Receivers and all new Cars.. new Customer are the most excisted about the service and a significant number of then would put them on their car.
2. Add New Internet Channels (they don’t require bandwidth), that mirrir existing channels, but have deeper play lists. Example Have two Internet Channels…Classic Rewind, and Deep Classic Rewind. This would attract afficinados of music.
3. I have many friends that care most about the quality of the music. Have a few channels bumped up to lossless. (for Example, one of the classical channels, one of the Jazz Channels, one of the Mainstream Pop Channels). Some folks spend crap loads on money on their car systems and need a music source to compliment it.
4. I was at a small get together this weekend, and out of about 8 people at our table, only one of them had Sat radio. Most of them knew about it, but had no idea what it offered. I spend about 5 minutes talking about it, and two of them said they were going to give it a shot. They had it installed, but had no idea that it was any different from FM. Crazy…I’d love to see channel specific advertising on Radio, Billboards, or even TV to hype some of the specific channels.
5. My personal pet peeve is that there is no Pure SiriusXM boom box. I WANT WONT, put not the kind where you have to buy a receiver, then buy the speaker part. I want it all as one piece. I want to take it camping! I want to take it to Sporting Events (to listed to pre-game content), I want to take it on a picnic. But I don’t want to buy two pieces. I’m crossing my fingers that they will announce this on Wednesday.
The other part of the business that I don’t see yet is a strategy for Sirius / XM consolidation. When and how are they going to get down to one service? I want them to be able to consolidate so they can bump up the quality of every station, and also to be able to add additional digital content (like album covers, perhaps even some live concert footage, or music videos).
OK… I’m done. Lets see what happens.
The other part of the business that I don’t see yet is a strategy for Sirius / XM consolidation. When and how are they going to get down to one service?
Especially the billing departments. I refuse to pay $25.90 for a Sirius and an XM subscription. What happen to “the merger will benefit the consumer?” Oh, I’m sorry, did I say $25.90, I meant $29.86 a month with the new royalty fee added for two subscriptions. On top of that, you would have to add an additional $2.99 to get the internet streaming. Now we are up to $32.85 a month! Hmmm, I wonder why Sirius XM is having a difficult time keeping subscribers.
Hey Mel, here’s an idea. Why don’t you make satellite radio so appealing at such an insignificant price, that people feel that they can not afford to be with out it. It’s as if you are purposely running the company into the ground. Hey, maybe I am onto something. What would happen if Sirius XM is not able to repay the Liberty Media loan? Oh, I know. Mel’s friend, John Malone at Liberty Media will get all of Sirius XM for free and the stockholders will get nothing. Hmmm, I wonder, who they will hire to be the CEO of their new satellite radio company?
All Mel has to do is launch billion dollar satellites into space, over pay for talent (of course the loss of Howard Stern would probably really hurt subscriber numbers too) and play really horrible music that people are not willing to pay for. Oh, wait a minute, this is already happening. I guess we are on our way.
It sure sounds like didn’t appreciate the scrutiny.
I’m willing to bet that a legal threat was made.
Another one to add to the list. Get rid of the DJ banter. Get rid of the Sirius Hits 1 group and Madison on Alt-Nation to start.
It’s at the point where i’m about to unsubscribe. Tired of hearing Madison attempt to ‘sing’ while communicating. #$@%& enough!
FYI, no legal threat has ever been made.
If that is the case, why stop blogging about Sirius-XM?
You have done nothing wrong and have not violated an NDA.
You don’t owe them any consideration at all.
You can’t possibly be naive enough to believe that anyone at Sirius-XM actually gives a crap about a former intern, who worked for free, writes.
Write about Sirius-XM and cultivate your own future.
You’ll never go anywhere worrying about what other people think.
JamesPS:
The boomboxes they have offered are woefully inadequate – rather cheaply constructed also. They need to come out with something that sounds good AND is rugged enough to withstand the rigors of constant handling/travel etc. I would buy one in a heartbeat to use when not at home – instead of having to sit in my car at ungodly hours to listen to Sirius. I visit my cousin occasionally and since he is a moron who only listens to AM sports talk radio, I have to retreat to my car to escape his terrestrial radio bullshit.
This is just another case of Sirius/XM having their heads up their asses. A compact, RUGGED boombox that is compatible with all radios – both old and new – would be hot seller. If that means coming out with a couple of different versions… so be it. The boombox for my Sportster Replay was discontinued years ago; I never bought it because it looked like a piece of crap and I didn’t trust that it would be sturdy enough.
Why cant this company ever realize the OBVIOUS?
A lot of good ideas as far as spreading the word of sat radio, some good comments as far as getting the DJ banter down, the jazz station,and as well as the decline of the number of music channels.
I did not realize there are now less overall music channels, I knew some would be drop because of just being a duplicate.
Maybe some of these ideas will be implemented once the company finally gets its head above water and makes a profit.
vaporgold
Well,Well,Well,
I appreciate the blogger’s article. it’s basically what a bunch of CORE subscribers have been posting since the acquisition/merger.
Mel & company have their DNA coded for commercial/terra radio and won’t EVER change. As long as the stock goes up in dribbles and spurts a lot of investors don’t worry about programming or customer service. I have 4 automatic replies from SiriusFM stating that I would receive a call from the programming department due to my concerns. That was almost two months ago and still NO CALL.
Yes, word of mouth is the best advertising and word of mouth is that the bloom is off the rose for SiriusFM. It ain’t what it once was and that is what I tell everyone IF the subject of SatRad comes up(which is RARE these days). 5-7 years ago a bunch of guys I’m in the reserves with (who like myself had to drive a distance for monthly drills) were SatRad subscribers(some XM, others Sirius). We would talk about the programs and how much we enjoyed SatRad and the differences between XM & Sirius during break time or even when flying training missions when we had time. I was responsible for most of them subscribing because I let them know how great SatRad was for roadtrips. When I was deployed in the desert,we would talk about how much we missed SatRad. Now its a different story. Several have ended their subscription due to changes in programming or feel that its just not worth the money anymore.
You cheerleaders for Mel & his minions need to know that. There’s more talk about what a sorry job SiriusFM is doing than you think.
I like the DJ Banter. The DJs on Sirius give the Stations a little human quality to them, unlike Pandora which is strictly music. I am not a fan of morning zoo radio, but a little human interaction between songs is nice. Madison could tone it down a little, but the people on Real Jazz are nice to listen to; giving background info on songs and artists that I don’t know that much about.
I agree with the Bumper Sticker in the box. I would have used one. I bought the Sirius baseball hat several years ago and am surprised at the number of comments I get from it. I would gladly market this product if asked to do it.
This was a well written article, and Spieigel is correct; the subsrcibers are very impassioned about this product and want it to succeed. I was a listener first and then a shareholder (at $4.00 a share!).
disagree with most of this piece. S-XM is not a club, it’s a business. shareholders are investors taking risk, and since there’s no dividend, expect nothing but a rise in share price. Reducing prices on subscriptions or give aways to shareholders makes no sense. i agree that S-XM needs to improve its customer relations. I have been less than satisfied with how I was treated when trying to simply cancel one of a dozen radios. It was like trying to leave the mafia.
Good Luck Charles-I am as fed up with this company as you-and most of the comments.There is NOTHING new here at all As a shareholder I am all but out- Sirius is run EXACTLY like the government- They have a similar eigth grade mentality .You just have to deal with the ten dollar an hour putzes that work for the “company” to know that. Heavens, dont get too technical with them!
It is a boys club- plain and simple- get over your delusions-it is not a business- Just look at their address!-I think that there is real estate in Long Island and New Jersey that would be cheaper but, I bet you underways job that the entire floor of Sirius including artwork and sculptures is garishly dedicated to Mels ego. They aint never moving- business wise or office wise.
Hopefully although most on this site are too egocentric to congratulate you for your prior efforts – that you will be well in the future and that you keep writing here under a pseudo name.
The only hope for them is a takeover- And who would want them?- youre insane if you think Directv -and who would want to bet on that happening anyway- That is not a reason to buy a stock and be a grounded believer in the company-You might as well put it all on red-
Thank you Charles.
I say you summed it up well for a good number of us.
I’ve had it with SIRI and I have no faith that they will ever get it right.
Same old company. Have you been living under a rock. This company has totally reversed is forboding financial situation in the last 6 months alone. The stock price has risen 1400% since Feb. You statements are simply not credible. Sounds like you’re shilling for the NAB.
James, Boo Boo does not worry about things like credibility; he is just a moody little poodle, bitching his way thru life…….
The quality of the Sirius-XM service has DECLINED since the announcement of Mel Karmazin’s intent to pursue the merger.
I have explained fully my distaste for the piss poor management and customer service. I have also laid out what I perceived as bone-headed moves by Sirius-XM management on things that should be a no-brainer.
I have also pointed out the piss-poor hardware that poses as Satellite Radio receivers.
Please explain how my position on SIRI is not credible.
sphinter says what? noone even listens to you anymore boo boo….
Wrong. Bah Bah speaks for a majority of us who come here once or twice a week hoping in vain for news that this company has changed direction for the better.
patience,things are changing and i remember cramer saying that sirius radios should come with stock and thats a great idea.
Everybody wants too be a CEO…if we could just replace Mel with the intern or rondo or bah bah bash fest. Good thing the qualified become CEOs and not every guy with an opinion.
You are truly brain-damaged if you think Mel Karmazin is a qualified and competent CEO.
And what billion-dollar company have you run?
Mel Karmazin took a company from approximately $9.00 per share to 5 cents per share.
Yep, he’s a genius.
Sirius has NEVER been a billion dollar company and never will be.
Mel Karmazin took a company from approximately $9.00 per share to 5 cents per share.
Actually, that was TWO billion dollar companies…
spoken like a true mcdonalds employee boo boo. now where’s my damn fries boy!?!?
I don’t want to be a CEO. I’m just a lowly subscriber/stockholder who wants SatRad to be worth a DAMN AGAIN!!!!!!
Some of you people are so braindead. Go and buy some Sears/KMart stock. That bunch is about just as responsive as Mel’s SiriusFM
An iPhone with Sirius XM and a rechargable receiver with auxilliary in; good anywhere there is a phone connection or wireless internet; I am hoping the Skydock makes all of this simpler. Scott, I think your article has many good points. I really think they will try to do many of these things. The merger and survival fight have consumed a lot of resources that will now be freed for these improvements.
scott, you’d be a great asset to this company, i hope they get this article, read it, and hire you !!
as for the dj banter, i agree with jon in sd ,take for instance the sinatra channel , how much better could it get than having nancy sinatra at the mic. !…. or the underground garage with manatoba ,komalina,oldham(early stones proudcer) etc….
if you want generic music , stand in an elevator.
Scott, I think your article makes so much practical sense that it’s sad the company does not embrace your ideas. I get a feeling that Sirius Xm has a policy of erogance when it comes to their subs/shareholders. This is a unique comapny where the masses of subs are also shareholders. But instead of making their fan base that “puts their money where their mouth is” a positive it’s almost like Sirius Xm goes out of their way to ignore them. Instead of tapping these desciples to spread the word of Sat Radio they seem to slap them in the face. This base of loyalists could make a hugh impact on (free) marketing, but the brash attitudes in Manhatten seem to have a little too much “Let them eat cake attitude”. Speaking of Manhatten, does anyone from Sirius Xm realize that they have NYC blinders on and need to look at the country as a whole. Stay the course Scott because cream rises to the top!
Last I checked the share price was .72…
Does the stock manipulation have anything to do with it dropping to 5 cents?
Dont forget this stock was $.06 about 6 short months ago. Things are changing at corporate. New ideas. New Hardware. New programming. New marketing avenues. Consumer/investor confidence is the highest it’s been in this company in over a year regardless of what boo boo and other permanently negative mutts have to say.
They just got burned on this stock and want to piss on about it every day on this forum for the rest of their meaningless lives…
I previously added a comment about the DJ banter.
Well, my co-worker who has had Sirius for more than 4 years just cancelled this morning.
He talked to rep and complained about 4 things:
1) Octane channel content has changed. Too many repetitive plays.
2) Some country station DJ doesn’t shut the f-up. Content has changed here as well.
3) Wanted to listen to Stern this morning. But they’re playing a tape from 1999 or something. He’s constantly on vacation.
4) Being in CT satellite clips out a lot from the trees. Wasn’t the new satellite supposed to improve this a little? I’ve experienced no improvement from the ‘No signal’ (i have a S50 so i just go to playlists).
Mel Karmazin promised, “Importantly, significant portions of the savings achieved through the
merger will be shared with customers immediately and in the long-term through lower prices and improved service offerings.”
In reality subscription fees have increased, we have less channels, we have to pay more to get these channels and the once free internet stream has been discontinued.
Mel lied.
Another benefit of the merger is that I can no longer leave my radio on the 80’s or 90’s channel because the XM subscribers got their wish and now these channels have a much larger play list. After a few good songs these channels will play some horrendous pre-gangsta rap song and I have to change the channel. Dear Sirius XM, just because Milli Vanilli acted as if they were singing in the 80’s doesn’t make their songs 80’s music.
Scott . . I would like to ask you a question . . but if you do not feel comfortable answering this question honestly and sincerely then I hope you will pass . .
How would you describe “David Frear’s” management style and his relationship with Sirius XM employees?
Thanks
Sirius Roadkill:
To be honest, I did not have any interaction with Mr. Frear, nor do I really have any real knowledge of his management style. Sorry I couldn’t be of more help.
-Scott