Charter 2007 Annual Report Download - page 6

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4
This business has clearly evolved from providing
one service just a few years ago to providing multiple
services over one advanced network. We plan
to continue to leverage the Bundle to drive
sustainable growth.
Customer Care
The importance of providing a superior end-to-end
customer experience cannot be overstated. And in
an increasingly competitive environment, it is even
more critical. We continue to improve our service
capabilities by narrowing appointment windows
to two and four hours, improving average time
to repair and providing online, self help and
chat capabilities. In 2007, our care center service
levels improved considerably compared to 2006.
Improving the customer experience will continue
to be a major focus in 2008.
LETTER TO STOCKHOLDERS
Marketing
Our marketing strategy has been to drive product
growth by emphasizing the value of the Bundle and
targeting the right customers with the right offers.
With our data-driven marketing capabilities, we
measure not only campaign response rates, but also
the lifetime value of our customers to evaluate the
effectiveness of our marketing tactics. We believe
our ability to modify, monitor and measure the
effectiveness of our campaigns contributes to our
success. In 2007, we increased our overall marketing
spend by 32% over 2006, and increased marketing
spend as a percent of revenue from 3% to 4%. In
2008, we expect to increase the amount we spend
on targeted marketing.
Financing
In order to invest in the business, drive the Bundle
and improve the experience for our customers,
we remain opportunistic as it relates to our capital
structure. During 2007, we completed a number
of transactions designed to extend maturities and
enhance liquidity.
As of December 31, 2007, availability under
our revolving credit facility totaled approximately
$1.0 billion, none of which was limited by covenant
restrictions. We expect that cash on hand, cash
flows from operating activities and the amounts
available under our credit facilities will be adequate
to meet our projected cash needs through the
second or third quarter of 2009, and thereafter will
not be sufficient to fund such needs. We will need to
obtain additional sources of liquidity by early 2009.
We continue to improve
our service capabilities by
narrowing appointment
windows, improving average
time to repair and providing
on-line, self help and
chat capabilities.