Charter Streamlines Direct-Mail Efforts
by Linda Haugsted -- Multichannel News, 7/28/2008
Charter Communications estimates it could save up to 20% per piece on its direct-mail marketing this year, thanks to centralizing the creation and production of those missives.
Efficient direct mail is vital to the MSO which, with the possible exception of its St. Louis home base, does not dominate any major media markets. It has systems in parts of such DMAs as Los Angeles, Boston and Dallas, making local TV and radio buys inefficient, said vice president of marketing science Tim Doolitle. By comparison, satellite-TV providers offer service throughout those markets, making heavy use of TV. Doolittle declined to state how much per piece Charter spends on its direct mail.
“DBS outspends us in those markets by many multiples. We have to be as efficient as we possibly can be,” he said.
So four months ago, Charter took direct mail functions back from its divisions and also centralized its outbound telemarketing. By moving that function to St. Louis, it has also been able to leverage its centralized customer database.
Many other operators have decentralized databases which share pieces of the customer view with divisional offices. Doolittle said Charter has developed a full set of predictive models that determine which households are most likely to respond to promotional pieces.
The company's first effort realized a 20% to 30% improvement in response to that mailing, he said.
Doolittle declined to state the cable operator's traditional response rate to direct mail, noting that response levels change with different products and offers.
By centralizing this marketing tactic, Charter can ensure a unified message throughout its divisions and make last-minute design changes, making the marketing effort more nimble, he noted.
Now Charter is faced with a positive dilemma: Should it take the marketing savings to the company bottom line, or reallocate that money to new marketing campaigns which would target those who've proven responsive to past efforts.
Doolittle said Charter is “cautiously reinvesting” in its marketing activities.
