BBC switches on to customers

The BBC wants to use CRM software to track viewer preferences

The BBC is building a customer information database to help it compete with commercial rivals should the licence fee be scrapped.

Because of its public funding model, the corporation has traditionally lagged behind rivals such as Sky and ITV in compiling customer data.

But the growth of interactive platforms such as video-on-demand, mobile TV and digital stations is generating more viewer data than ever before.

And in the next two years the BBC wants to deploy customer relationship management (CRM) software to enable it to deliver targeted content across its different platforms.

Managing the information could help the corporation improve its understanding of consumer needs, says BBC chief information officer Keith Little.

‘Systems to understand viewers have not been seen as a priority because we do not rely on commercial revenue,’ he said.

‘It has also been difficult to identify our audience, but the launch of online media means we can gather more information.’

The latest BBC charter, which started in January, guarantees the corporation will be publicly funded for 10 years. But competition from satellite channels and the threat to broadcasting from on-demand internet content is forcing the BBC to prepare for changes that may also spell the demise of the licence fee.

The BBC must prepare for a commercial future, says Gartner media analyst Adam Daums.

‘The official BBC line may be that, to justify the licence fee, CRM systems will help deliver more relevant content to viewers,’ said Daums. ‘But there are important discussions taking place about what happens if the licence fee is scrapped, and effective CRM is essential if it is to succeed commercially.’

The BBC’s new media services – such as provision of content to social networking site YouTube – are intended to drive customers to online and on-demand services.

But issues are already arising around the corporation’s exploitation of its unique position shored up by a public funding model.

This week, for example, sector watchdog Ofcom launched a market assessment of the broadcaster’s proposed free-of-charge high-definition digital TV channel. The investigation will consider any impact on relevant commercial products and services.