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Telecom Loyalty Programs: Rewards And Examples – Guide 2023
Loyalty pays off in telecommunications, and we've got a guide to prove it. Here you know benefits, rewards, and examples of successful telecom loyalty programs.

If you are a telecom entrepreneur, then ensuring customer loyalty should be your main focus. That’s because customer churn rates are extremely high in the industry. As per the Database Marketing Institute, the churn rate for telecom businesses averages between 10 and 67 percent per year.

For telecommunication brands, customer loyalty is exceedingly hard to achieve due to several challenges. The biggest challenge is the lack of differentiation in the service offerings. Another big challenge is the lack of customer interactions. That’s why it’s not surprising to find the porting of mobile numbers and switching from one service provider to another is on the rise.

This blog post discusses the best features telecom companies’ loyalty programs should have. It also lists the five best loyalty programs of telecommunication companies from across the world. Read on to learn more.

Best loyalty program rewards for telecom companies

Retaining customers is not the only challenge for many telecom companies. Finding the right rewards for their loyalty programs is also a task. That’s because many rewards that suit other industries may not be practicable or feasible for telecom companies. But here are some rewards that can work like magic for telecom brands.

  • Tiers

This is one of the most common rewards that many telecom companies use. In this way, telecommunication brands rank their customers based on their seniority and purchasing capacity. The oldest and highest-paying customers are given the highest tiers.

  • Special rewards

 Some telecom companies use rewards to surprise and delight their customers on certain special occasions. It can be a customer’s birthday, wedding anniversary, or membership anniversary. The rewards can be some minutes of free talk time to free internet data. Providing rewards like this shows that a company cares for its customers.

  • Assorted rewards

Some companies mix and match a wide range of assorted rewards for their customers to give them a unique experience. For instance, joining forces with partnering companies during sporting events (such as national or international cricket premier leagues or football tournaments) can be a good idea. It’s not uncommon to find telecom companies’ merchandise, which can range from apparel, accessories, toys, mementoes, keepsakes, and more, being given to members during special events.

Five best telecom loyalty programs around the world

Almost all major global telecom companies have some kind of loyalty program in place. In this post, we have discussed the loyalty programs of five prestigious companies in brief detail.

1. AT&T’s Thanks

US-based telecommunication service provider AT&T launched the AT&T Thanks loyalty program in 2016. Since then, the world’s largest telecom company by revenue has provided a wide range of benefits as a token of appreciation. Under the loyalty program, members receive the following benefits:

  • A dedicated expert to assist with all services they need
  • Exclusive access to concerts and events (for qualifying members only)
  • Chance to win VIP tickets, trips, and giveaways
  • Deals on products and services, gift cards, accessories, entertainment, and more

2. Verizon UP

Delaware-based Verizon Communications Inc. has a loyalty program named “Verizon UP.” The loyalty program is integrated into Verizon’s app in such a way that most features are exclusively available there. Here are some of the following benefits of Verizon’s loyalty program:

  • No complicated rules
  • Focuses on simplicity
  • Service-focused reward portfolio
  • Super tickets to shows, music, or sports events can be claimed every six months
  • Device dollars can be easily claimed

3. HKT’s “The Club”

The Club is HKT Limited’s (Hong Kong Telecom’s) customer loyalty program and digital ventures arm. The loyalty program of one of the leading telecommunications companies in Hong Kong.

Anyone can join the program for free. Even those who are not customers of the telecom service provider. Members get to enjoy many rewards, privileges, and tiers. The program has four tiers. Platinum, gold, silver, and blue Each have their privileges. Here are some highlights of the loyalty program.

  • Loyalty program members earn one ‘Club’ point every time they spend HKD 10.
  • Tiered system based on the overall amount of points earned.

4. O2 UK’s “Priority Moments” loyalty program

British telecommunications services provider O2 UK’s “Priority Moments” is one of the fastest-growing loyalty programs in the UK. The loyalty program segments customers based on their spending history and tenure and also provides location-based offers.

  • The free loyalty program has delivered millions of pounds in savings in reduced customer churn.
  • Highlights of Priority Moments:
  • Free loyalty program
  • No point earning or redemption system
  • Special deals for Pay As You Go customers (5 to 10 percent cashback from their top-ups)
  • Customers can claim the reward in the form of a mobile voucher, movie ticket, or an airtime credit

5. Bharti Airtel’s “Airtel Thanks”

Indian multinational telecommunications services company Bharti Airtel Limited’s loyalty program “Airtel Thanks” is three-tiered. The three tiers—Silver, Gold, and Platinum—offer a special set of benefits to customers.

  • The Silver tier, which starts at a monthly tariff of INR 119, offers basic content which includes AirtelTV (satellite television service) and Wynk (the music streaming platform of the company).
  • The Gold tier, which ranges between INR 119 and INR 499, gets add-on premium content and telecom benefits.
  • The Platinum tier, priced at INR 499, gets priority services such as device protection plans, e-books, and a dedicated customer service desk.
  • An interesting thing about the loyalty program is that it replaced the “My Airtel” app and turned it into an overall Airtel app experience.
Summing up,

Retaining customers in the telecommunication industry is one of the biggest challenges for service providers. That is why telecom companies should leverage telecom loyalty programs to keep their customers and reduce the churn rate.

At LoyaltyXpert, our team of loyalty experts is adept at designing and creating effective telecom loyalty programs. If you want to know how we can help and book a free demo to see how our software works for you, then contact us today.

 

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