Cohorts’ Direct Mail Mojo: Jumpstarting Response Rates through Household-based Segmentation

After experiencing typical response rates of between 0.6% and 0.8 percent for its direct mail initiatives promoting its digital telephone service (VoIP), Time Warner Cable – Charlotte decided that it was time to adjust its direct mail marketing strategy to drive increased sales.

The company turned to Denver-based Cohorts to provide a greater understanding of its client-base. Cohorts is a household-based segmentation tool that categorizes all US households into approximately 30 segments, characterized by distinct demographic, lifestyle and consumer behavior patterns. Cohorts aided Time Warner Charlotte with a detailed portrait of how its client base is segmented.

Once the program had determined which clients in Time Warner – Charlotte's database would be most likely to respond to the digital phone service, Cohorts designed three versioned direct mail pieces designed to appeal to the different segment groups. The pieces they produced were named “Dog,” “Frog,” and “Lottery,” referring to the creative content of each piece.

The “Dog” versioned mailer was directed at adults between 26-33 with no children at home, and had a response rate of 1.31%.

The “Frog” mailer was directed at parents with kids at home and had a response rate of 1.27%.

The “Lottery” piece was directed at older adults, 46-58 years of age, with no kids in the home, and produced a response rate of 1.47%.

On average the campaign achieve a response rate of 1.35%, more than doubling the response rates of its prior direct mail initiatives.

When asked about what she attributes Cohorts' success to, Erica Gunn commented, “Well one major factor is that our system is household-based as opposed to many programs that are geographically based, targeting specific zip-codes.”

Cohorts also launched Hispanic Cohorts in October of 2004. Hispanic Cohorts identifies 19 different Hispanic household segments within the USA. Whereas many Hispanic segmentation tools are based on Hispanic sounding surnames, Hispanic Cohorts instead focuses on acculturation levels of its identified Hispanic segments. “This approach allows us to hone the message more precisely and in turn resonate more with each household that we target,” says Gunn.


Trackback from your site.

Editorial Staff

Portada Staff

MORE FROM PORTADA

North American World Cup Bid Moving Closer For 2026

North American World Cup Bid Moving Closer For 2026

FIFA has reviewed (markedly different) bids from Morocco and North America for the 2026 World Cup. Initial signs point towards the United 2026 bid, and as that gains traction, marketers can plan for increased interest here.


MARKETER INTERVIEWS: Nestlé and NFL Discuss What’s Next in Marketing

MARKETER INTERVIEWS: Nestlé and NFL Discuss What’s Next in Marketing

In what some are calling the fourth industrial revolution, new technologies like AI and VR are expected to dominate the marketing space. Marketers like Bravo and Fernandez agree that companies need to evolve to survive. We talked to Nestlé's Margie Bravo and NFL's Marissa Fernandez about what's next in marketing and how to prepare for what the future brings.


Meltwater’s Ana Hoyos: “We See Great Potential for AI Expansion in Latin America”

Meltwater’s Ana Hoyos: “We See Great Potential for AI Expansion in Latin America”

The social media landscape is changing at an accelerated pace; artificial intelligence is acquiring a prominent role and companies have to adapt to survive. We talked to Ana Hoyos, area director at Meltwater Latin America, about the recent acquisition of Sysomos and what it means for social media analysis.