Sprint, struggling with a customer exodus and confusing marketing, is tapping its new chief executive to star in its latest TV spot.
CEO Dan Hesse, who joined the No. 3 wireless company in December, appears in a 30-second spot touting the carrier’s new low-cost calling plan.
The $99.99 unlimited calling and data-services plan is Hesse’s bid to stem subscribers losses after a disastrous fourth quarter and to differentiate the company from bigger and better-funded rivals like AT&T and Verizon.
Last month, Sprint lost 683,000 wireless subscribers with contracts and said it expected to lose another 1.2 million in the first quarter. The company also reported a $30 billion loss after writing off much of its $35 billion purchase of Nextel.
Hesse, who is following in the footsteps of CEO pitchmen such as Dave Thomas, Lee Iacocca and Orville Redenbacher, is known in the telecom business but is far from a household name.
In the black-and-white ad, Hesse says, “Here’s our idea: You get to use your phone for all the great things it can do without worrying about the meter running. How’s that for a revolution in wireless?”
“Pretty awesome, huh?”
The ad ends by flashing an e-mail, dan@sprint.com, although the company acknowledged the address was set up specifically for the TV campaign and is not his regular internal e-mail.
Sprint spokesman Aaron Radelet said Hesse’s appearance in the ad “reflects that Sprint is focused on customer satisfaction and that begins at the top of the company.”
Analysts said that is easier said than done. Sprint has struggled with a reputation for customer service and routinely ranks near the bottom of customer satisfaction studies.
“Are they going to fix anything with an ad campaign? I don’t think so,” said David Chamberlain, a wireless analysts for In-Stat.
A recent survey conducted by In-Stat found that 17 percent of Sprint customers and nearly 39 percent of Nextel’s said they “definitely” or “probably would” switch their service. That compares with 14 percent of AT&T customers.