In the rapidly evolving broadband industry, Homeowners Associations (HOAs) often remain an underserved market segment. In a special series on LinkedIn for Broadband Planning, Christian Diener, Multifamily Real Estate Technology Advisor, Sales Strategist, Investor sheds light on this oversight in his article, Are Service Providers missing a HUGE Opportunity with HOA's? emphasizing the unique opportunities HOAs present for broadband service providers.
Understanding the HOA Landscape
HOAs differ significantly from apartments and typically apartments get the majority of focus and funding within the broadband service provider’s Multi-Dwelling Units (MDUs) department. While apartments often involve transient residents, HOAs consist of long-term homeowners invested in their communities. This distinction necessitates a tailored approach when considering the best way to serve those communities and maintain and grow market share.
The Limitations of Bulk Agreements
Bulk service agreements have been a common strategy for providers targeting HOAs. However, Diener points out in his article that these agreements only cater to about 10–20% of the HOA market. This leaves a substantial portion—80–90%—without a coordinated broadband provider strategy, representing a significant missed opportunity.
Shifting Dynamics and Increased Competition
The post-pandemic era has seen homeowners more willing to switch providers in search of better services and pricing. The emergence of fixed wireless access and new fiber-optic providers has intensified competition, leading to a decline in market shares for traditional providers within HOA communities.
Strategic Engagement with HOA Boards
To effectively tap into the HOA market, service providers should consider forming mutually beneficial marketing agreements and revenue-sharing arrangements with HOA boards. Such partnerships can offer providers preferred access to residents while assisting HOAs in generating additional revenue—a win-win in today's economic climate. The key is having the right representation. For over a decade, Broadband Planning's broadband contract negotiation expertise has secured millions of dollars annually in access fees and revenue shares for a growing number of homeowners associations across America.
Tailored Marketing Approaches
Generic advertising strategies often fall short in resonating with homeowners. Marketing efforts must be specifically tailored, emphasizing reliability, customization, and community-enhancing aspects of services. Understanding the homeowner's perspective is crucial in crafting messages that truly connect.
For a comprehensive exploration of this topic, read Christian Diener's full article on LinkedIn.