Study Finds Opportunities in Mobile Loyalty Schemes

A new whitepaper suggests that loyalty schemes from mobile operators are struggling to tempt customers. 

The research, carried out by Analysys Mason and customer loyalty framework provider Buongiorno, found that, while mobile subscribers are familiar with the concept of operators rewarding customer loyalty, only 29 per cent participate in current mobile operator reward schemes to encourage loyalty, and 27 per cent in schemes to increase spend.

However, 73 per cent of UK mobile subscribers surveyed are members of loyalty schemes outside of the mobile industry, such as loyalty schemes such as store points, club points, frequent flyer programmes. 

The study surveyed mobile consumers in both developed (UK, Spain) and emerging (Russia, Africa) markets, focusing on the UK, Spain, and Russia and Africa.

The top three reasons that subscribers plan to change providers are: wanting a new handset, believing they pay too much for calls and providers not offering additional loyalty benefits.

Adhish Kulkarni, global head of telcos product solutions at Buongiorno says: “Telcos are using marketing budgets to drive mobile loyalty and CRM campaigns, however there is little available research that investigates the effectiveness of such programmes. Our study gives practical advice on the creation and optimisation of loyalty programmes, and coupled with our experience of implementing a variety of loyalty campaigns across the world can help operators see gross revenues increase typically between 4 per cent and 9 per cent.”