While watching ESPN at 5:30 this morning while on the treadmill I couldn't help but think about the days when networks did not continually post game score and time remaining in the upper corner of the TV screen. I remember as a kid flipping between CBS and ABC on Sunday afternoons to check out the latest scores and having to wait up to 15 minutes before getting the score because the networks only posted them on-screen just prior to and after commercials.
Then Fox came on the scene and won the rights to NFL broadcasts starting in 1994, and in a bold and innovative move decided to display a "scoring bug" throughout their broadcasts. Fearing they would lose one of their hooks into the audience, the other networks were reluctant to follow suit, which says to me the other networks did not have faith in their value proposition to the market. That they needed to hold viewers hostage by withholding value until the networks were ready to provide it, which wasn't on viewers' terms.
Fox, though, had a compelling value proposition. They were hip, had attitude, had energetic pre-game and halftime shows, had great game analysis, etc. They dumped loads of value on viewers, including the scoring bug. They didn't hold back, and they didn't focus on switching costs. They had a unique value proposition and delivered it consistently. Eventually the other networks joined Fox in displaying a persistent scoring bug. They have also tried to match Fox's enthusiasm and energy.
The point is that in a world where consumers have unprecedented choice, and where competition pops up out of nowhere, companies need to focus on a) what consumers need, b) what consumers value and are willing to pay for, c) how to flawlessly and consistently deliver that value, and d) how to adapt to shifting definitions of value. Holding customers hostage creates negative goodwill, destroys loyalty, and accelerates defection. And after an experience like that, even the best winback programs are unlikely to work. Just deliver the goods. Be like Fox, not CBS.
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