Free PC's or Free Online access with the purchase of a computer is the current trend in the ISP/Online industry. Develop a plan detailing how epix Internet Services can provide a free PC for new and existing users.
Background Information:
In recent years there have been many new and innovative ways at making
money on the Internet. Making money as an ISP can be difficult, and customer
churn (loss) is a big reason for lack of profitability.
One of the most recent avenues being pursued to minimize churn or sell
advertising is to offer customers a Free PC in exchange for advertisements
on screen or maintaining an account for a specific length of time.
*Research available avenues for customer retention and options to reduce churn of customers.
*Review websites outlining the current trend:
http://www.freepc.com
http://www.gateway.com
http://www.circuitcity.com/help/063099.htm
http://www.infobeat.com/stories/cgi/story.cgi?id=2560019194-3ad
*Outline the cost savings per customer retained versus churned.
*Take into consideration the benefits of an extended relationship and the price of getting a new one.
*Outline benefits to epix position in the regional market to be offering such a service.
*Research the value of the equipment being offered in the promotions as well as market predictions.
Research the current trend in customer promotions available. Provide a review and comparison of the services along with market predictions for success.
Provide a recommendation to epix for providing a similar service or a statement to consumers if we can't match the offers. How do you answer the following question: "Why doesn't epix offer me a free PC if I sign up with them?"
If it can be financially feasible for epix to provide such a service, provide a detailed project plan to do so. The plan should include:
1. Price of hardware offered List
2. Price of hardware offered (cost)
3. Cost of losing the customer
4. Value to epix in gaining the customer
If you are selected to give an oral presentation for this problem, the presentation will be held at CTE Headquarters, 100 CTE Drive, Rt. 309, Dallas, PA. You will be given directions and notified of the exact date and time later.