Tariff Trends SnapShot 150 - A global survey of MNOs' Loyalty Programmes
In SnapShot 150 Telecoms Pricing considers 28 Loyalty Programmes around the world provided by the MNO. It identifies the main types of loyalty programme available. At the simplest it includes points provided for mobile usage which can be redeemed against more mobile services or a mobile bill but most Loyalty Programmes are becoming more ambitious.
The other forms of loyalty programme include:
Discounts are offered for selected partner goods or services (non-mobile)
MNOs have introduced a VIP programme with extra benefits for high value users.
Finally, MNOs are offering free goods or services to users as an extra benefit – with examples including Orange CineDay (France) with a 2 for 1 e use of ticket on Tuesdays.
What is a loyalty programme?
Loyalty programmes are offered as a way to attract and retain customers. These offer rewards, discounts or other special incentives and are designed as a reward for brand. The programmes benefit companies not only by developing customer loyalty but by providing crucial information on how customers are spending and what products or types of offers are most appealing.
Sir Terry Leahy, British businessman, previously the CEO of Tesco, once said: “The true source of loyalty is to create benefits for people… Sometimes people concentrate too much on devices like a loyalty card”. This statement demonstrates the need for schemes to evolve with changing consumer expectations.
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