When radio stations switch formats, do all of the sales people let their clients know? Can and does this have an impact on sales?
Thank you for your input!
Austin G.
Yes, typically they do. You want your clients to get no surprises. I was told to talk of format changes as fine tuning the product you offer to be more popular among listeners and provide customers with a better return.
It is about like the fast food restaurant Wendy's a few years back. Sales were slumping and customer count down, so they switched format from a cheap menu to a more upper scale burger with trendy options. Menu prices mostly doubled. They became the highest growth fast food chain at that point. It was a 'format change' for fast food. This is just what a station changing a format is doing, adjusting to be more in demand and better liked.
Definitely must let the clients know. In advance if possible. But do it positively and share with them the added benefits of reaching this new format listener.
Very important to let clients know as far in advance as reasonably possible. If you don't take control and spin it to your advantage, your competitors will and it won't reflect the situation in a positive light for you.
I will say, having learned the hard way, that you want to be as proactive as possible with every client who has a contract with the station. Implicit in their contract is their understanding of what they're buying (the current station format/audience). Don't assume they're going to want to maintain their current contract with a new format, no matter how much confidence you have in it. Your station will experience possibly significant audience dislocation (former listeners leaving, new listeners coming aboard). You'll want to have a strong marketing plan in place, that you can share with your clients, showing what you're going to do to attract listeners to the new format. You may also find it in your best interest to offer them an additional no-charge schedule for a period of 30-90 days, depending on your market and competitive situation (if you're the only game in town, it's not so much of an issue; if you have many competitors, don't assume anything). The time to get clients to buy-in is ahead of time. A good plan trumps damage control every time.
One challenge for an Account Executive is that there are times that the programming folks -- because they don't want the competition to be able to counter-program -- don't let the salespeople know about format changes until right before they happen. In that case the best thing to do is drop everything and get on the phone FAST, as soon as you find out. Make sure you fully understand the reasons for the switch, and be prepared to deal respectfully and flexibly with any clients who want to bail out.
