CTAM Cable Apprentice Time Warner Cable CASE

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CTAM Cable Apprentice Time Warner CableCASE

• One Stop
  Shop

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Executive Recommendations

• To grow and retain market share focus on
• Ethnic packages
• High-speed Data
• Proactively up-sell
• Personalize customer experience

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Agenda

• Consumer trends
• Competitive landscape
• Customer acquisition
• Customer retention
• Budget allocation
• Key take away points

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Bills Goals
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Consumer Trends
Source Mintel
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Competitive Landscape
TWC
Price
ST
T
Telcos are TWCs main competitive threat
Performance
TWC Timer Warner Cable ST DirecTV or
Dish Net and/or ATT DSL or Verizon DSL T
ATT U-Verse or Verizon FiOS
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TWC Competitive Threats

• Price wars and aggressive marketing
• Perception of poor customer service
• LA Sues Time Warner Cable Over Adelphia Mess
• Lack of mobile phone service
• Landline phones were down by 4.6 in 2008

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TWC Competitive Advantages

• Faster and reliable high-speed data
• Flexible packages
• Video On-Demand
• Quality content

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Customer Acquisition Untapped Markets
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Incentives for New Customers

• Power of You promotion
• One month risk free trial promotion of any
  service
• Free low-cost upgrades for 6 months
• Free phone service for 2 months with free
  international calling

• Sign up for a year of high-speed data or digital
  TV and get 6 months free phone
• Refer a friend promotion (Q3 Q4)
• 50 credit to your account and 50 credit to your
  friend service

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Channels to New Customers -I

• Hispanics
• Event marketing at local events
• Insert a voice advertisement when consumers call
  using phone card
• TV Ads on specific channels
• (2 Ads a day)
• Women
• Retail cross promotion
• Direct mail (1 per quarter)
• TV Ads on specific channels
• (2 Ads a day)

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Channels to New Customers - II

• Baby Boomers
• Direct mail (1 per quarter)
• FSI (1 per month)
• TV Ads on specific channels
• (2 Ads a day)
• OTA
• Retail cross promotions

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Innovative Buzz Marketing
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Promotions Up Sell

• Customized upgrades (Q1)
• Based on ethnicity
• Based on current subscribed services
• Price lock guarantee on service upgrades (Q2)
• Free trial periods for 1 or 3 months (Q3 Q4)

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Channels to Existing Customers

• Promotion flyers with bill
• Online bill customers Send Email
• Paper bill customers Flyer with bill
• Direct mail (1 per quarter)
• Call customers (Q1 Q2)

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Customer Retention in Tough Times

• Give customers control and empowerment - Power
  of You
• Online account modification and bundling
• Allow people to downgrade than disconnect
• Offer cheaper and flexible bundles or services
• Offer free services to About to leave customers
• Free Digital Phone for 6 months
• Promote better entertainment at home
• On Demand Movies and TV Shows

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Customer Loyalty Programs

• Online competition / Video contest
• Raffle prices each month worth 2500
• Chance to win a Grand Prize every 6 months
• Recognition of winners and people with noteworthy
  accomplishments at TWC sponsored community events
• Personal touch enhancing user experience
• Calling customers
• House call

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Budget Allocation
Total lifetime revenue 425 million
Dollars amounts in millions
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Key Take Away points for Bill

• Focus on customer experience
• Focus on High-speed data
• Power of You - Flexible and low-cost packages
• Focus on ethnicity
• Kill Competition by giving free digital phone

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Thank you!QA
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Budget Allocation Details
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Cost to Attract New Customers

• "Power of You" promotion (Q1, Q2)
• Cost 4 Million
• Revenue 20 Million
• Sign up for a year of high-speed data or digital
  TV and get 6 months free phone service (Q1, Q2)
• Cost 1.2 Million
• Revenue 3.3 Million
• "Refer a friend" promotion (Q3 and Q4)
• Cost 1 Million
• Revenue 2.2 Million
• Innovative "Buzz" Costs
• Youtube videos cost 6000 (2 Videos per month)
  12 Months 72,000
• www.knowyourcablefacts.com Cost 22,000
• Celebrity Endorsement George Lopez cost 1
  Million
• Sports team tie-up LA Galaxy (Soccer) Dodgers
  (MLB) VOD Cost 1.3 Million
• Facebook Sponsored Group cost 600,000
• Total Innovative "Buzz" Costs 3 Million

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Cost to Attract New Customers - II

• Retail Promotion (Limit to 10,000 subscribers
  per quarter)
• Cost 4 Million
• Revenue 20 Million
• Channels to new customers
• Event Marketing cost 20,000 per event 52
  events 1 Million
• Phone Card Promotions cost 1 per call 1
  Million calls 1 Million
• Direct Mail (Women Baby Boomers) cost 1.8
  Million
• FSIs cost 1.8 Million
• TV Advertisements 6 Million
• Internet Advertisements 1 Million
• Total Cost 11.6 Million
• Total Cost 24. 8 Million
• Total Revenue 45.5 Million

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Cost to Up Sell to Current Customers

• Channel Costs (Mail and Flyer) 250,000 per
  quarter
• Customized upgrades for customers (Q1 2009)
• Cost 1.25 Million
• Revenue growth 18 Million
• Price lock-in for existing customers on adding
  new service (Q2 2009)
• Cost 1.65 Million
• Revenue growth 22 Million
• Free Trial Periods for 1 or 3 months (Q3 Q4)
• Cost 7.3 Million
• Revenue Growth 5.7 Million

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Cost to Retain Customers

• Free On-Demand Movie
• Total Cost 1.7 Million
• Offer 4 free on-demand movies to people to
  upgrade
• Cost 160000
• Revenues 1.25 Million
• Online competition / Video Contest
• Cost 80,000
• Personal Touch
• Calling customers cost 1.6 Million
• Door-to-Door House Call cost 1 Million
• FSI
• Cost 400,000

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Channel Costs

• Direct Mail 0.30 per mail
• Flyers 0.05 per Flyer
• Telemarketing
• 4 per satisfaction call 8 per up sell 20 per
  new customer
• Door to Door
• 25 per satisfaction
• TV Advertisements 20,000 production cost
• Community Events 20,000 per event
• Internet Advertisements 500 per banner
• Celebrity Endorsements 1 Million

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Average Lifetime Value of Customer

• Video Only
• Average Revenue per month 40
• Annual Revenue 12 40 480
• Churn per month 3.5
• Number of months a customer stays 28 months
• Life time value of customer 28 40 1120
• Internet Only
• Average Revenue per month 39
• Annual Revenue 12 39 468
• Churn per month 3.1
• Number of months a customer stays 32 months
• Life time value of customer 32 39 1250
• Phone Only
• Average Revenue per month 29
• Annual Revenue 12 29 348
• Churn per month 3.5
• Number of months a customer stays 28 months
• Life time value of customer 28 29 800