You are to assume the role of the director of sales at NowTV, a direct broadcast satellite television service provider. The senior vice president wants you to develop a special pricing promotion to offer current customers that request to cancel a popular premium cable network.
Customers at NowTV choose packages of bundled television networks that best fit their needs. NowTV also offers a variety of premium cable networks that can be added to the base package for an additional fee. The popular cable network, Picture View, is the most commonly added premium network added. The addition of Picture View costs $14.99/month.
Picture View shows popular movies, documentaries, and produces its own television series and movies. The most popular Picture View produced television series is “Castle Wars” which began eight years ago. In the past eight years, NOWTV has added Picture View to over 350,000 accounts, due to the popularity of “Castle Wars.” NowTV customers have requested the addition of Picture View and its $14.99/month premium simply to watch one popular show.
“Castle Wars” aired its final episode three months ago. Since the final show aired, 100,000 NowTV customers have called to cancel their subscription to the Picture View channel. The senior vice president is not happy about the loss of so many Picture View subscribers and wants you to determine how to keep current subscribers from canceling.
The senior vice president wants you to develop a special pricing promotion that the sales team can offer current NowTV customers that call in to cancel Picture View. The senior vice president wants you to explain how the sales team will handle the calls, explain the pricing promotion and terms, and how it will result in fewer cancellations.
