Q
Live It with Charter targeted high-value customers and rolled out last July.? Why did Charter Communications launch a loyalty program?
A
Everyone in telecom is looking for ways to reduce churn. This is a good way to stand out a bit to our customers and provide extra value to them while we deliver service.
Q
How does Live It with Charter work?
A
Members accumulate points based on use of Charter services, and there are a number of ways to spend them. Twice a month we have a redemption period. We also have sweepstakes, which drive the most engagement. We work with?our programming partners to obtain unique, experiential prizes, like a tour of the Yankees’ dugout with the YES Network.
Q
Who is your target customer?
A
There is some danger if you exclude certain customers, but we are definitely targeting high-value customers. While the program is open to any customer, we actively market to the highest value — such as people who purchase triple-plays (bundled phone, cable and Internet) — in order to acquire them as members.
Q
How do you promote the program?
A
Direct mail and e-mail are the main tillers. We use Live It e-mails and the Live It Web site, as well as periodic direct mail and a banner presence on Charter.net. We’re also getting?a Live It presence into our migration mailings, acquisition mailings, purchase materials, and video on demand.
Q
How has the program evolved since the national roll-out?
A
Originally, redemption periods were once a quarter, and now they’re twice a month. We’ve added a newsletter to the program, a discount service, and the scale and scope overall has become broader.
Q
What results has Charter seen so far? that lead you to consider this program ?a success?
A
Almost 6% of our customer base is in the program; we are currently at 340,000 members. We’ve seen two primary benefits: members spend more than non-members, and their churn rate is lower than non-members’. We’ve seen a double-digit percentage reduction in churn. We have also seen a significant bump — in the single digits in terms of percentage increase — in spending among members.
