Beyond the race to the bottom

With threats from OTT players, saturated markets and fierce competition, customer loyalty to operators and mobile brands is at huge risk. Facing dwindling ARPUs, operators need to focus their attention on retaining their core customers without needing to spend huge sums of money on last minute interventions. Operators too often engage in price wars to win customers from competitors. This tactic involves significant acquisition costs however. While loyal customers provide greater revenue opportunities and act as brand advocates, creating channels to market to their communities.

Traditional loyalty schemes reward customers with points, based on how much money they spend. These points are then redeemed for products, services or discounts. However, this “earn & burn” model does not offer engagement via rewards and activities, meaning that long term stickiness is not earned. Ideally, companies should focus on creating long-term trust and value, becoming embedded into customer lifestyles without them even noticing.

We believe there is a clear gap in the industry, customer retention schemes are unspecific and don’t spark engagement with customer lifestyles. The majority of platforms do not offer dedicated customer loyalty management solutions, failing to address the specific needs of communication service providers (CSPs). Treating loyalty as an afterthought of customer management and placing it low down on the list of priorities is an inefficient strategy that in the long term can leave operators and platforms vulnerable to competitors.

RDC has expert understanding of how loyalty schemes across the globe are constructed, how they work and what needs improving. You can read more about our innovative approach to loyalty, developed specifically for the TMT industry, in our white paper.

How can we help

  • Interactive dashboards/single customer view development
  • User experience (UX design), including gamification

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