Telecom Loyalty, The Right Way

by Grace Miller |

In our previous post about telecommunications loyalty, we dissected the need for actionable, unified data, and a mindset in which loyalty is a preventative treatment. After understanding why telecom loyalty programs are so beneficial in reducing churn (by 12% in 10 months from what we’ve seen!) and better marketing to both current and potential customers, it now makes sense to really examine more specific tactics and best practices.

Telecom Loyalty Goals: Don’t Forget About Advocacy!

As noted above, it’s wise to look at any loyalty or customer engagement program as a preventative measure against churn, rather than a cure for when it begins to happen. However, it’s even wiser to think about how the program can help grow your business, rather than just work on the retention side.

Consider the following: If a loyal customer has been with your business for a handful of years, it’s an indicator that they’re satisfied. They’re consequently more likely to recommend your company to friends, follow your company on social, write positive reviews, and so on. These types of actions are known as advocate marketing. When you encourage advocate marketing actions through your loyalty program by offering points for successfully referring friends, contributing photos, etc., you increase engagement, acquisition, conversion, retention, and ROI.

Annex Cloud’s clients who’ve switched from a straightforward, points-only-for-purchase loyalty program to one that rewards advocate marketing actions as well have seen their loyalty program revenue increase by at least 300% within a year. Read our white paper, Advocate Loyalty: A Four-Point Strategy, to learn more about this approach!

H2O Wireless is one telecom loyalty client that’s using this best practice. Customers earn points for purchasing online, recharging their accounts, and activating new phones, but they also get rewarded for referring friends.

telecom loyalty h2o

Here’s a closer look at their referral program.

telecom loyalty h2o refer

By investing in their referral program as well as their loyalty platform, the client was able to both capitalize on and increase current customer satisfaction while thanking their advocates and expanding their base. With both the solutions nested together on one platform, integrations have been a non issue, all the data is unified, and total cost of ownership (TCO) is dramatically less than what it otherwise would be. Businesses can also save a considerable amount of money when they introduce the right benefits into their telecom loyalty programs.

Telecom Loyalty Benefits: Positive Reinforcement is Key

A loyalty program is one of the most effective ways to stay in touch with customers, and it should always be treated as such. After all, 76% of US shoppers think that loyalty programs are part of their relationships with businesses. Many companies agree–64% of retailers say that their loyalty program is their best method of connecting with shoppers.

Your program, just like any communication, is what you make of it. You can engage frequently with your customers, keeping them updated on topics ranging from their loyalty membership status to new promotions to corporate social responsibility causes and new perks. With a good pace of communication, you can motivate customers to continue to earn loyalty points using membership and status as goals. This is significantly less expensive than discounting.

On the other end of the communication and rewards spectrum, if your customers feel that they’re left in the dark, they won’t see a point in remaining in your program unless they receive significant discounts or perks from you. These can quickly add up. telecom loyalty benefits

Take a look at the following points strategy suggestions to gain a better understanding of how exactly to motivate activity within your telecom loyalty program.

telecom loyalty best practices

Here are some very specific loyalty actions for prepaid or no-contract MVNOs. However, the thought process is applicable across the board for telecom loyalty and can inspire other segments.

This strategy has been devised for prepaid or no-contract MVNOs but it can inspire other sectors, too.

Telecom Loyalty Emails

Given our emphasis on frequent communication, it’s obvious that triggered emails are going to be a significant part of your telecom loyalty outreach. Consider sending the following:

  • Welcome to the program
  • Monthly points earning statement
  • Points threshold statement (e.g., “You are X points away from reaching gold status!”)
  • Reward earned
  • Successful advocate marketing actions in loyalty program (e.g., “You successfully referred a friend and earned X points!”)

Telecom Loyalty Reporting

With all the data stored in your loyalty program, it’s vital to have quality software that easily shows you what you need to see. Find a provider whose dashboards will let you effortlessly segment customers, prevent referral fraud, track liability, and understand revenue and program metrics by segment and on a unified level.

Note: For more customer loyalty best practices and inspiration, don’t miss out on our guides, “Customer Retention in 2017: Driving Emotion with Technology” and “Advocate Loyalty: A Four-Point Strategy!

[White Paper]
[White Paper]