A major provider of local and long distance telephone, voice mail, premium calling features, and high-speed internet services, TDS sought a method to reduce troublesome customer churn - one that avoided profit-eroding discount pricing.

We created Clearly Different Dividends – “a rewards program designed only for our best customers!”

The launch – announced by a four-color, legal-sized letter enclosed in a two-color CDD envelope – was met by an extremely receptive audience, resulting in a 12% double opt-in program enrollment rate. A four-color reminder postcard mailed to those who did not initially enroll boosted the enrollment rate to approximately 15%.

TDS customers were inspired to enroll in the program with the opportunity to win the CDD Grand Prize, quarterly First Prizes chosen from an amazing selection of electronics and home gear…plus the chance to earn additional entries by using the Send to a Friend feature to “spread the word” about the program.

Then we encouraged them to stay with TDS Metrocom by awarding Clearly Different Dividends –
  • 1 Dividend for each dollar spent each month on TDS Metrocom services
  • 50 “Plus” Dividends for each month they are enrolled in Clearly Different Dividends
  • 50 “Bonus” Dividends for each quarter they remain enrolled
Initially rolled out to a test market of 11,000 TDS Metrocom customers, the promotion worked like a charm, reducing churn by an astounding 50% while increasing the average monthly bill.
 
This year, to combat new competition in existing markets, TDS leveraged the program by offering it to customers in key markets.