A new study by Bridge Ratings found that the renewal rate of XM/SIRIUS subscribers, when broken down by OEM channel and Retail channel acquisitions, differs significantly.
The report found that of those subscribers who purchased a satellite radio at the retail level plan on renewing at a 78% rate. Meanwhile, subscribers who acquired their satellite radios from the OEM channel (new car purchase) plan on renewing at only a 54% rate.
This shouldn't be of much of a surprise to anyone as it's also the difference between push and pull. In the retail situation, the consumer actively is seeking out the radio (or is sold on the idea by a crafty salesman), whereas in the OEM situation the radio falls on their lap with a free trial.
Actually, what is a surprise is the 78% retail renewal rate. That means that, based on this report's findings, nearly 1/4 of retail purchasers are unhappy with something. Either they didn't get what they expected, the unit was too difficult to setup, or the customer service was poor. Improving in all areas would be great - but better customer service would help in both the retail and OEM side. Something to think about.
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Christ, how is churn not higher if 22% of people at retail don't plan on renewing?
-Westfall
i know some people have complained about tree interference in the subs---Signal cuts out alot here on LI unless your on a main street/highway
I believe over 40% of XM's retail additions dropped in Q2 which was around 232,000 subscribers.
Churn at 2.8% on a 6.5million subscribers is 546,000. Remember that they lose 2.8 subs per month making churn for the quarter 8.4%.
Bride Ratings has been wrong about pretty much everything they've done thus far.
They appear to be in the mode of adjusting their "research" to coincide with results known after-the-fact.
After projecting XM to be outselling Sirius at retail, when the subscriber numbers came out they quickly "repaired" their research. Of course, even the "repaired" result failed to take into account churn, so their repaired result overestimated SIRI's actual share.
They're just all over the place.
"...the unit was too difficult to setup"
That would be my guess. People expect these things to work like every other radio they've been used to for their entire lives: Plug it in, Turn it on, tune to your favorite station. Done. The current setup, UI, reception, etc... is too difficult for most people to be bothered with. This needs to change much sooner rather than later.
KISS: Keep It Simple, Stupid!!
Both SatRads would do well to follow that mantra more closely. Or just copy Apple - There's a reason the iPod is so much more popular than every other MP3 Player out there...
I wonder if the 78% number takes into account units not renewed because the sub bought a new reciever?
> Or just copy Apple - There's a reason the iPod is so much more popular than every other MP3 Player out there...
Yea, because the average consumer is an IDIOT that deserves to be stuck with a non-USB standard unit with minimal features.
Two main issues work against satellite when it comes to setup:
1. Excessive wires. One wire is enough. Now I need to deal with 25-feet of satellite antenna cable?
2. Directional placement of the antenna. Many people don't read the manual - so they just point the antenna out to nearest window. OR they do read the directions, and don't have the luxury of being able to setup at the correct angle.
I won't even get into indoor reception when it comes to the wearables.
Either way - as the retail sector grows more, we're going to see more and more expectations for the unit to "just work" out of the box.
HEY...Bullshite....
You will notice that these numbers are COMBINED. IF you break out Sirius, you will find SUBSTANCIALLY higher renewals on both the OEM and Retail side than what XMSR enjoys. This is why XM lost 550K subs in the last quarter while Sirius unly lost 200K .......Typical Bridge Report, fuck it up with only 1/2 the story being told.
XM/Sirius should offer a coupon at places like best buy to get money off for professional installations. Would that help?
"Yea, because the average consumer is an IDIOT that deserves to be stuck with a non-USB standard unit with minimal features."
Clearly, you're too fucking stupid to get the point.
Oh well.