As evidenced by its television commercials featuring cannibalistic pigs and mucusy motorbike riders, Boost Mobile hasn’t stopped being edgy. But at first glance, being featured on the Home Shopping Network may give one the impression the company has mellowed. But HSN might provide Boost just the edge it needs to turn itself into a more nationally recognized brand.
Boost featured the first of its 15-minute presentations on HSN in the third quarter of 2009. While it is too early to give the initiative a firm thumbs up or down, both Boost and its master agent and coordinator of the HSN relationship, Mobile Now, say it is going well. The holiday season was strong and proved that Boost’s surprise-free, flat rate approach was tailor-made for this channel.
Steven Qureshi, president and founder of Mobile Now, says the HSN partnership is no more complex than any other resale relationship. The ordering and provisioning system is fully automated and integrated through Mobile Now to Boost. And HSN has access to a zip code and coverage database to make sure callers are in a Boost territory before initiating a sale. And as for divvying up the revenue, HSN simply marks up the Boost products and leaves the rest to Boost and Mobile Now.
Here’s how it works. When it comes to technology, HSN typically invites a company representative — in this case Boost’s own Melissa Dawson — to talk about the product. Besides displaying the product, the presenters see only a monitor listing the performance metrics from which a presenter can tell if what they just said inspired a spike in call volumes. If so, the speaker keeps going back to that point to re-emphasize it. “It’s a very scientific sell, if you will,” Qureshi said.
HSN requires two things from the companies it does business with: that the presentation and pricing be simple to explain and that the customer experience be positive. Boost has been leading the industry in its approach to simplified billing and has caused other mobile providers to follow suit on its flat-rate unlimited plans.
“HSN is very focused on a uniform customer experience. The Boost plan is standard across the board. If you try to take a traditional contracted wireless service to HSN, it wouldn’t work because HSN wants standardization and uniformity,” Qureshi said.
Jeff Auman, vice president of sales and distribution at Boost, said HSN provides the type of consumer the company is looking for: value conscious but not cash strapped. “HSN has a savvy and loyal audience. They know a good value. They are comparison shoppers. And they know they get quality products over HSN,” he said. “HSN protects its brand by not selling shoddy products. So having HSN associated with Boost is a good thing.”
He said time will tell how long shoppers from HSN stay with Boost and what kinds of product and service they use. But for now, the relationship is succeeding in its primary goal of national brand awareness. “Our brand awareness is at an all-time high and continues to get people exposed to the brand, and the value of our offer is still a work in progress for us,” Auman said.
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