Q&A with CEO Dan Plashkes
July 2008 Profile on Dish Network
Over the last two decades, SP Data founder, Dan Plashkes and his team have delivered award winning response management results to the satellite/cable/telco/wireless sector. These results are achieved via high impact acquisition, retention, stimulation, and verification services derived from fresh ideas, best practices, and a hands-on management team. SP Data is truly a different kind of outsourcer ready to respond on Dish Network’s behalf. During this past year, SP Data significantly expanded its services to the satellite/wireless/cable sector utilizing best agent talent to overachieve on KPIs. SP Data has sufficient capacity to launch and scale new campaigns for Dish Network to effectively compete with cable operators and telecos at their world-class multi-lingual contact centers in Ohio, Costa Rica and Canada.
Dan, the weak economy has cost Dish Network subscribers. What specifically will SP Data due to minimize further churn plus add new Dish Network subscribers irrespective of a worsening in the economy and tough competition?
I’m going to add new net subscribers from the moment Dish Network’s management team says “go”. Plus, I am going to ensure each one of our agents has a razor sharp focus on Dish Network retention. The senior team at Dish Network would agree that there is simply not enough focus put on retention. Marketing departments are geared to acquisition oriented programs with high costs that simply do not translate to long term customer stability.
Dish has many options to pursue to grow the business. Sure, a merger with DirecTV may be a viable option, but not necessarily a best solution. The question of how DirecTV can best compete with the telcos and cable companies is one that I am prepared to answer with a whole new SLA which will raise the standard for all outsourcers and internal service organizations.
So, how is Dish Network going to grow?
SP Data will add new net subscribers as Dish Network’s premier outsourcers. We will be quite effective by positioning entry level pricing, more channel selection. We are also going to sell against the bundles. A lot has been made in the press about bundles. The truth of the matter is that improper sale of bundles can add to churn. It’s not conclusive that customers want one bill and the sticker shock that goes with it.
Dish Network is ideal for people who love choice in providers. Remember the early telecom wars? Forty percent of Americans didn’t switch. It’s all about knowing who your market it. Dish Network is known for its international programming. We’ll be very aggressive in pursuing new subscribers in under penetrated communities. We are going to focus on great Dish Network video value. We know how to sell this. SP Data is also going to pursue long-term commitment. We are going to push to reduce churn and bring Dish Network into the most favorable light with Wall Street.
Dan, you mentioned that you can effectively bring on new Dish Network subscribers without the bundle. How are you and your agents going to do so?
We are going to bring on new subscribers at a specific entry point, and then upsell against the new subscribers needs with specific Dish channels that are of extreme value to the respective subscriber.
Dish Network is feeling the effects of increased promotional efforts by competitors. What can the Dish Network senior team expect SP Data will do during the next 60 to 90 days to address competitive pressures Dish Network is facing?
Right now is the best time for Dish and SP Data to collaborate on a proactive campaign against the Telco’ and against the cable guys. Their plant is antiquated. We are going to be drive home all the benefits subscribers derive from Dish Network satellite service.
We want to get them into a good entry level position with the right programming and help them to realize all the benefits they derive from satellite.
Is SP Data in a position to minimize Dish Network spend on customer retention incentives?
At the end of the day, Wall Street looks at “Net Ads”, new customers and customers that have churned. Customer incentives is a zero sum game. This so reminds me of the auto industry, bringing customers on line for the wrong reasons. The better way that we will undertake for Dish Network, is through the telephone. The best way is to avoid blind promotions and focus on a more specific promotion. Maybe subsidize a DVR, a new box. I will lead with something to get a long term Dish Network subscriber commitment. I would rather focus on a customer’s needs.
I want to be highly creative and effective. I’d like to do promotions which offer a plasma TV at a reduced cost to get subscribers into the next generation platform at a reduced price. I’m not big on blind promotions. More work needs to be done here. I want to partner with Dish management on promotions with incentives.
Can you bring one or two great ideas to Dish Network which will bring about revolutionary change in the way SP Data will sell and support Dish Network subscribers?
I would like to implement a special program for the Asian community. I have great multi-lingual agent talent to do so, especially from our Toronto centers. I have terrific ideas around pursuing new Hispanic subscribers from our advanced Costa Rica center. I will work out cooperative marketing programs with TV manufacturers to drive new sources of revenue for Dish Network.
Dish Network is no stranger to the use of outsourcers. What conclusion might Dish’s Supplier Management Group reach in performing “due diligence” around SP Data?
They will discover that we are innovative, that we have good processes, and that we are good partners. They might initially be cautious around our ability to scale, but come to learn that we can scale real fast with the utmost flexibility.
We continually perform in the top quartile of outsourcers purely leading or exceeding on KPIs and meeting or exceeding Qsat or customer satisfaction surveys. In addition, because we build a lot of customer client intimacy and tend to get much more involved in the day to day operations of our clients than our competitors. We have a real focus on the KPIs, but also bring some pretty interesting ideas around understanding the lifetime value of a customer and the retention attributes of the services Dish Network provides.
What does SP Data mean by “flexibility”? How does “flexibility” translate to something tangible to the Dish Network Vendor Management Group?
We are the outsourcer of outsourcers. Outsourcing was invented to provide more flexibility than what could be obtained by internal service organizations. I n truth, as outsourcers have scaled, outsourcers have become as inflexible or just as captive as in house service organizations. Every business faces these realities. Furthermore, Dish Network has their seasonalities. People are more apt to buy additional third party products at Christmas time. Dish Network needs an outsourcer that can turn on a dime, scaling up to add quality trained people in the most efficient manner. And when scaling down, rather than lose these people already trained, these people are retained by the company, and potentially available for future Dish Network campaigns. SP Data invests alot in our employees. The very reason someone would want to work for us is the ability to work on acquisition, retention, services across similar clients. SP Data considers itself the most flexible, highest performing organization in the industry.
What is the current state of outsourced sales and service in the satellite/cable/wireless/telco sector? What has been SP Data’s response to fully address the pressing needs within this sector?
The current state is that these outsourcers are fairly rigid, inflexible, and lack in creativity. We capitalize on this. SP Data believes in the premise that a happy customer wants to buy more/additional products and services. When there is a service opportunity…we focus on satisfying that customer…and it is an outsourcer’s obligation to offer a customer a product or service that is appropriate to the customers needs. Our competition operations in a silo…one function…large scale…minimal thought leadership…very vanilla, with consistently average service. With the pace of our clients business changing so rapidly, SP fills a big outsourcing void, turning on a dime and constantly bringing innovation to its clients.
How might SP Data expect to retain Dish Network as a client over a multi-year relationship?
We expect to earn the right to continue to provide great results to Dish Network with great quality and superb account management. We intend to deliver above customer expectations and be recognized as a premier partner by the executive team without fail. We’re about top line gross acquisitions for Dish Network at the expense of the cable companies
Dish Network experiences agent turnover. How would SP Data minimize turnover?
We hire with the right profile and create the right operational environment where SP Data salespeople are stimulated. We have a terrific sales incentive program and create great career opportunities. We have a high quality trained and informed staff who can sell Dish Network!
How experienced might your team be, with respect to broadband and video services?
We’ve been selling broadband and video services for more than 20 years and right now with great results.
Dan, are you available to discuss with Dish Network management any of the points you raised during this Dish Network Q & A?
I would like to take whatever steps the senior team at Dish Network would like, with respect to engaging SP Data on their behalf. I hope that the points I’ve discussed in this Q & A resonate with Dish Network management and result in them contacting me. Dan Plashkes 619-318-7000 or dan.plashkes@spdatallc.com.