Charter's loyalty gift card aims to reduce churn

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By: Wise Marketer Staff |

Posted on July 6, 2006

Charter's loyalty gift card aims to reduce churn

Charter Communications in Reno has deployed a stored-value card system from Complete Access to launch a loyalty programme to help combat subscriber turnover (churn) and deepen its relationship with 150,000 regional customers in the pay-for-TV market.

Charter Reno used Complete Access' VIPspree technology to launch the Charter Rewards programme, through which subscribers are being mailed a Charter-branded magnetic stripe card that is loaded every month with US$500 worth of credit, redeemable at more than 100 local, regional and national businesses in the Reno area, including restaurants and retailers.

Advertising and discounts The card's US$500 value essentially offsets subscribers' monthly cable service payments. The value on each card is subsidised by Complete Access' network of merchants who use the Charter Rewards card as a pay-for-performance advertising vehicle. Merchants only pay for the credits when consumers actually redeem them in-store.

"Loyalty is so difficult to elicit, but our card basically gives Charter's customers a tangible reason to stay with Charter each and every month," explained Kirk Nagamine, co-founder and CEO for Complete Access. "The card becomes a part of customers' everyday lives and engenders loyalty to the brand on a regular basis."

Monthly statements Charter lets its Reno subscribers know the monthly merchant-by-merchant value stored on their cards and highlights new participating merchants through bill statements and promotional materials.

Complete Access also offers Charter's subscribers support by telephone and online through a branded web interface, through which they can track their usage, view participating merchants, and check the amount of credit they have left for the month.

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