Cable Company

Claritas marketing tools help capture Hispanic market segment

The Company

Cable Company is the fourth largest cable provider in the nation. It is noted for its high capacity, reliable broadband delivery network, as well as the company's ability to provide superior customer service. Cable Company–Phoenix, covering the metro Phoenix service area, is the largest Cable Company's system and carries video, voice and data services.

The Challenge

With a 32.9 percent Hispanic video penetration rate in Phoenix, Cable Company realized it needed a new strategic direction to boost that rate in the area's rapidly growing Hispanic market segment. According to the U.S. Census, Hispanics make up 24.7 percent of the Phoenix population, and statewide Hispanic population is the sixth largest in the country–a population that has skyrocketed 88 percent between 1990 and 2000.

The Case

Cable Company wanted to create a target list in order to establish a baseline for direct mail testing, and then expand that list to increase penetration into the Hispanic market segment and decrease costs. To help do this, Cable Company opted for a suite of Claritas products that integrate marketing and demographics data and provide powerful reporting, charting and mapping capabilities.

For a Winter 2003 direct marketing campaign, Cable Company utilized the Compass software platform to create a Hispanic market segment demographic profile based on ZIP Codes and tapped Claritas segmentation to evaluate the Hispanic clusters within the Phoenix market. ConsumerPoint, a comprehensive and powerful target marketing software system, was also brought into the mix. The platform provided access to data on cable and satellite usage derived from Convergence Audit and data on cable and television network media usage provided by Claritas strategic partner Mediamark Research Inc. (MRI). Armed with this information, Cable Company created five different versions of a mailer for each Hispanic market segment and distributed 96,000-plus copies during the winter months.

The Results

Cable Company's connection rate in the Hispanic market segment increased 100 percent compared to the Fall 2002 campaign, jumping from 1.2 percent to 2.4 percent. The general market connection rate is 3 percent. But, despite its success, the campaign is not complete. The next steps are to:

• Identify control cell and test tactics
• Tailor messaging to specific Claritas segment characteristics
• Continue to refine mailing list to reduce quantities for the next campaign