extra Programs for Low-Income Families Can Have public Relations and Brand Loyalty Benefits

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Serving low-income families can be a challenge for many companies because they do not achieve short-term financial results. But as I learned at a modern breakfast meeting featuring two Goliaths of the Philadelphia media scene, companies that pursue this avenue can reap short-term group relations benefits, as well as build brand loyalty with children who will come to be the customers of tomorrow.

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The November 10, 2011 Greater Philadelphia Senior Executives Group meeting featured a panel argument with David Cohen, administrative vice president of Comcast Corp, and Greg Osberg, publisher and chief administrative officer of Philadelphia Media Network, Inc., owner of the The Philadelphia Inquirer, Daily News and Philly.com. One part of the argument focused on serving low-income families in the area, especially the children in these families.

Osberg, described his company's initiative to use newspapers in teaching a range of subjects at local schools. The program, called Newspaper in Education, brings together the schools and newspapers to encourage children to read more, keep up with current events and use newspapers for more modern facts on science, math and economics. Osberg did not furnish many details about the schedule and my on-line hunt did not turn up much information, so it is difficult to judge the success. Clearly, if there are successes, Philadelphia Media is not receiving the group relations benefit it is due.

The much more keen schedule is Comcast's Internet Essentials schedule that is ready to any family that has a child who qualifies for free school lunches through the National School Lunch Program. The key benefits of the schedule are .95 per month broadband internet access, no price increases or equipment rental or activation fees, a computer can be purchased at initial enrollment for just 9.99, and free internet training (either on-line or in person).

"There is a digital divide in this country, which exacerbates other divisions in our communities," Cohen explained. According to the Federal Communications Commission 100 million Americans (roughly one-third of the country) do not have passage to high-speed internet in their homes, compared with 90% adoption rates in Korea and Singapore. In the U.S., the major obstacles to broadband passage are the cost and a lack of internet literacy. With the Internet Essentials program, children in low-income families have passage to a wide range of educational opportunities that will put in order them for more sufficient lives and careers. On November 10, the Fcc announced a national schedule based intimately on Comcast's model.

Comcast is generating critical favorable press from its Internet Essentials schedule at the same time it is building brand loyalty with the next generation of consumers. Cohen did not speak about the benefits of the schedule for employees, but I would be very proud to work at a company that took such a progressive approach.

Is such a schedule right for your company? Here are some questions to consider:

What are your motivations for taking on such an approach? You should do it because you want to meet a community need. If you are doing it because you want to score some quick group relations points, don't bother.
Are you in it for the long haul? Abandoning the schedule after a year or two will originate ill will and, possibly, bad press. If you cannot make the commitment, don't start.
Is your goods or service one that has a low incremental cost? In other words, can you offer your goods or service for very itsybitsy additional cost and charge a price that is breakeven or at a small loss to serve this market?
Do you have to go it alone? Can you partner with a local group serving low-income families to administer and/or promote your program?
What internal benefits will your company derive? Often these programs are a point of pride for employees, who volunteer on their own time to make the schedule a success.
What arrival will you take to group relations? Are you willing to let it happen organically as word of your schedule spreads?
What is the impact on your brand? There are some brands, such as high-end brands, where this arrival will be counter-productive. The key question: How does this fit with your long-term brand strategy.

Your answers to these questions will be an initial screen in determining how well this type of schedule fits with your long-term goals. The internal, group relations and long-term branding benefits might make this the right arrival for your company.

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