Polaris’ Pam Kermisch on marketing past assumptions in the powersports space

07/03/24 • 22 min

Polaris’ Chief Customer Growth Officer talks with The Current Podcast about how many of the company’s customers are multicultural and have preferred style over performance.

Episode Transcript

Please note, this transcript may contain minor inconsistencies compared to the episode audio.

[00:00:59] Damian: I'm [00:01:00] Damian Fowler.

[00:01:05] Ilyse: And I'm Ilyse Liffreing. And

[00:01:07] Damian: welcome to this edition of The Current Podcast.

[00:01:09] Ilyse: This week, we're delighted to talk with Pam Kermisch, the Chief Customer Growth Officer at Polaris.

[00:01:15] Damian: Polaris was founded 70 years ago with the invention of the early snowmobile in 1954. Polaris takes its name after the North Star, and it's meant to reflect the location of the company's first headquarters in northern Minnesota.

[00:01:34] Ilyse: These days, Polaris is the global industry leader in power sports. Offering everything from Indian motorcycles to its off road racers. And all the accessories that go with them.

[00:01:44] Damian: During the pandemic, the brands saw a surge of interest in its vehicles as people embraced outdoor activity. Although it started out as a specialized brand, it continues to build on its popularity through its marketing campaign. Think outside.

[00:02:03] Pam: Back in 1954, two brothers and a best friend decided they way, faster to get to their location. And they literally strapped a motor to the back of a sled and created the first snowmobile. It was ingenuity at its best.

[00:02:20] And when I think about Polaris today, We have recreational vehicles. We have motorcycles. We have off road vehicles. We have boats. We also have utility vehicles that help people do work smarter. And at the end of the day, it's really about getting people outside and helping to have a better way to do things, whether it's working smarter or on the recreational side, having the most epic experiences with your friends and family.

[00:02:47] Ilyse: Very nice. Now in 2019, the brand actually underwent a new rebranding with a new Think Outside campaign.

[00:02:56] Ilyse: I read that there is a goal to basically grow the base [00:03:00] by 50 percent by tapping into your existing base and finding new customers as well. What was your strategy around that and how has it played out to this point?

[00:03:11] Pam: Yes. So in 2019, We really took a look at talking to our existing customers, talking to potential intenders of our brands and talking to people we thought might be interested in what we offer. And we did some great consumer research. And what we learned is at the heart of it, we tapped into what they really care about.

[00:03:35] And what we found is what our current existing owners care about. More people could care about. We just had to find the right people. We had to reach out to them. We had to show them how this could fit into their lives and introduce them to our brand. And it's really been a huge effort the past few years. To find the right people and show them how this could fit in with what they already do and make it better. And on top of bringing in more new customers, it's also bringing in new people that look a little different than our core customers.

[00:04:11] Damian: Very interesting, because when you think what sell in a way, kind of very specialized, I don't know whether I'd it niche.

[00:04:22] Pam: you know, I think when you look at household penetration off road vehicles, for example, household - So you're right. It's not something where it's 70, 80, 90 percent of the market has one of these. But what I will say is if you think about some of the audiences. We do attract people love outdoor recreation. love being outside. They love adventure. They might do camping, they might do hiking, they might do fishing. We also think about the people who do property maintenance They're farmers, they're ranchers, They're hunters. So, when you think about those populations, they are much more likely to buy our products. But if you look at the penetration even within those, We don't have 80 90 percent of hunters, so there's still so much penetration opportunity within people who do the activities where it seems like they would really benefit from something that we could offer them.

[00:05:26] Damian: Was there a moment when you realized there was the potential to expand the audience? That's so interesting to me and I wonder how you found that opportunity.

[00:05:40] Pam: So I'm kind of a nerd, self admittedly kind of a nerd. And I really think that CRM and data and analytics played a huge role in this journe...

Polaris’ Chief Customer Growth Officer talks with The Current Podcast about how many of the company’s customers are multicultural and have preferred style over performance.

Episode Transcript

Please note, this transcript may contain minor inconsistencies compared to the episode audio.

[00:00:59] Damian: I'm [00:01:00] Damian Fowler.

[00:01:05] Ilyse: And I'm Ilyse Liffreing. And

[00:01:07] Damian: welcome to this edition of The Current Podcast.

[00:01:09] Ilyse: This week, we're delighted to talk with Pam Kermisch, the Chief Customer Growth Officer at Polaris.

[00:01:34] Ilyse: These days, Polaris is the global industry leader in power sports. Offering everything from Indian motorcycles to its off road racers. And all the accessories that go with them.

[00:02:47] Ilyse: Very nice. Now in 2019, the brand actually underwent a new rebranding with a new Think Outside campaign.

[00:04:11] Damian: Very interesting, because when you think what sell in a way, kind of very specialized, I don't know whether I'd it niche.

[00:05:26] Damian: Was there a moment when you realized there was the potential to expand the audience? That's so interesting to me and I wonder how you found that opportunity.

[00:05:40] Pam: So I'm kind of a nerd, self admittedly kind of a nerd. And I really think that CRM and data and analytics played a huge role in this journe...

Previous Episode

Foxtel Media’s Mark Frain on why improving the customer experience is top of mind for the streaming age

Foxtel Media CEO Mark Frain dishes on how the customer and advertising experience are shifting amid the proliferation of streaming.

Episode Transcript

Please note, this transcript may contain minor inconsistencies compared to the episode audio.

[00:00:00] Damian: I'm Damien Fowler.

[00:00:01] Ilyse: And I'm Ilyse Liffreing.

[00:00:02] Damian: And welcome to this edition of The Current Podcast.

[00:00:05] Ilyse: This week we're delighted to speak with Mark Fra, the CEO of Foxtail Media.

[00:00:10] Damian: Foxtel Media is the advertising arm of the Foxtel Group, one of Australia's leading media companies, with more than 4. 7 million subscribers.

[00:00:19] Ilyse: Like many legacy broadcasters, over the last decade, Foxtel has reinvented itself for the Netflix era, building on its pay TV subscription model by adding in streaming platforms such as Binge and Kayo. It supports streaming services.

[00:00:35] Damian: And last year, Foxtel introduced an ad tier on the service, following in the footsteps of Netflix and Disney We started by asking Mark about the state of the television advertising model in Australia this year.

[00:00:46] Mark: Yeah, I mean, I think like the rest of the world, the TV market here in Australia is, going through significant change with the growth of, all of the streaming platforms with many of the, add tiers and add capabilities starting [00:01:00] to, launch in the Australian marketplace. Probably what is pretty unique, in terms of the Australian marketplace is that there's currently three major freeware broadcasters that all have their own, digital, platforms as well.

[00:01:14] so they're managing transition from linear to digital themselves, but at the same time you've just got this enormous groundswell of video inventory coming from the streaming player. So we're, certainly getting towards a tipping point in the trends in the Australian TV marketplace at the moment.

[00:01:31] Damian: Mark, could you just, put into perspective the growth of streaming that you've seen at Foxtel?

[00:01:41] Mark: Foxtel has been on an enormous transformation for last four or five years. And if I look, probably four or five years ago, just under 10 percent of our subscribers were streaming customers. And if I look at where we are today, that number is just under [00:02:00] 70%. So a quantum growth in the type of customer we've got.

[00:02:04] And critically, what that has also meant is that in the last four or five years, the Foxtel customer base Has grown pretty much close to 100 percent from where it was previously, and that's all been down to, the growth of streaming. And secondly, if I look at it from a Foxtel Media, advertising perspective.

[00:02:27] And probably only three years ago that seven or eight percent of our advertising revenue came from digital. As we go into the next financial year, that number will be just under 60%. So we're the beneficiary of that change in customer base from Foxtel, from traditional broadcast TV business to one now that is, is leading and driving streaming the Australian marketplace.

[00:02:51] Damian: Yeah, in terms of Foxtel, could you talk us through your relationship between, your existing linear model and [00:03:00] your launching of an ad tier on Binge?

[00:03:03] Mark: Yeah. So traditionally, Foxtel has been the, major pay TV provider. In the Australian marketplace, with numerous, linear channels from sport, entertainment, news, all the typical, pay TV channels you would have, coupled with, two digital platforms, Foxtel Now, that have really been the IP services of Foxtel.

[00:03:26] And then over the last four to five years, the Foxtel Group. Has launched heavily into streaming. Firstly, it launched KO, a dedicated sports streaming platform with over 40 premium sports, including both the major codes locally in Australia and a lot of the global content like Formula One, as an example.

[00:03:50] About 18 months, two years after launch of KO, we then launched Binge. which is K. O. 's sister if you like, entertainment [00:04:00] platform backed by a lot of HBO, NBCU, content. So, made a significant jump, into streaming in the last three to four years. And that has allowed the Foxtel group to pretty much double its subscriber count, from being a traditional pay TV company to now one that plays heavily in streaming.

[00:04:19] Damian: You know, in the streaming ecosystem, which we all know is highly competitive, right now, everyone's looking for subscribers and numbers, what's the competitive advantage that Binge brings to the table?

[00:04:32] Mark: Yeah. Yeah, you're right. I mean, number one, it's enormously competitive. I think table stakes now are a premium level of content. unfortunately from the global content producers that we work with, coupled with our local content, I think we've got a signifi...

Next Episode

Stagwell’s Mark Penn on polling, politics and media

Mark Penn, the chairman and CEO of Stagwell Inc., reflects on his extraordinary career, driven by his passion for politics and marketing, and offers insights on why this is a good year for marketers.

Episode Transcript

Please note, this transcript may contain minor inconsistencies compared to the episode audio.

[00:00:00] Damian: I'm Damian Fowler.

[00:00:01] Ilyse: And I'm Ilyse Liffreing.

[00:00:02] Damian: And welcome to this edition of The Current Podcast.

[00:00:05] Ilyse: This week we're delighted to talk with Mark Penn, the Chairman and CEO of Stagwell.

[00:00:10] Damian: Well, first, as a political pollster, who's advised names like Bill and Hillary Clinton and Tony Blair.

[00:00:20] Later, he became Chief Strategist for Microsoft, before founding Stagwell, a digital first marketing and communications group.

[00:00:28] Ilyse: Mark's political background no doubt brings a much needed perspective to marketing. He argues that in today's real time, data driven world, brands must have a constant finger on the pulse of the American consumer.

[00:00:42] Damian: We start by asking him how these two worlds, politics and marketing, have always been bound together

[00:00:48] mark, it's no secret that you've covered the waterfront from being a political strategist to a poster to businessman and author. You know, can you walk us through a little bit about how you went from polling to politics to media? [00:01:00] That's a big question, right?

[00:01:01] Yes, I'm still trying to answer that question

[00:01:03] Mark: myself. How did I get here? Uh, you know, I kind of re strategize myself like every decade or so. And I said, well, okay, what is it that I really want to do? And, and so I, I kind of started actually out as I was going to be a lawyer. Uh, and then I detoured from law, law to polling.

[00:01:22] And then I was going to be a pollster working for the president. And I got to do that. So then I kind of detoured from there. And then at a certain point, and I love technology. So I was then kind of went to Microsoft and became chief strategy officer. And then I, I had this idea to say, why can't I take all my experiences in polling and campaigns and running bursts in Marsteller.

[00:01:45] And I ran Microsoft's advertising too. And I said, you know what? I could form a better holding company because it could be more digital first. It could be more freed from the legacy assets. It could be more innovative. And so I did exactly that. [00:02:00]

[00:02:00] Damian: Yeah, doing a little research on your background, it seems like your curiosity seems to have served you very well throughout life.

[00:02:06] Is that part of the DNA of, of what drives you or what, what keeps, what motivates you to keep going?

[00:02:12] Mark: Well, you have to do what you're interested in. You know, I always think, it's so funny. You know, my partner and I were going to be corporate lawyers. And, and then we decided, you know what? We like this polling thing.

[00:02:22] We have impact on campaigns and society. And we thought, oh, we're giving up this cushy life as corporate lawyers. And we, we did a lot better doing polling than we ever would have done as corporate lawyers. So, what I always tell people is, follow your passion. Don't worry so much. If you do something, do it.

[00:02:38] Really interesting. Really? Well, you'll, you'll figure out how to, you know, how to manage the, the reward side of things, and that's much better than doing something you don't really like that you somehow think is going to be rewarding.

[00:02:51] Damian: Now, Stagwell, as you mentioned, offices, big marketing network, let's tech driven, you know, as a leader in digital, you know, uh, how have you seen the [00:03:00] two areas move together, you know, the idea of digital marketing performance and creative, how do those two things.

[00:03:07] Mark: Well, I think they have to work together. I think that to the extent that you're creating a digital experience, that is a creative activity. That, that everyone remember, those of us who were not born digital, think of how we create a TV spot first. Those who were born digital don't think in that way. They think in how they're going to create a digital experience first.

[00:03:35] Right? And, and that takes the same kind of creativity, if not more so. Right? Because TV spots eventually had like a, they had like a, they had rules. Right? And they had a boundary and they were 30 seconds. And, you know, and you can be like, it's actually more of an interesting open canvas when it comes to digital creation.

[00:03:54] Ilyse: What would you say is one thing every brand or media buyer should be [00:04:00] thinking about today?

[00:04:01] Mark: Uh, every media buyer, I think, today is just thinking about...