Top tips for telecoms planning loyalty programs

Jensen Ooi, Principal Analyst at Omdia, has revealed the top 10 tips for telecoms for planning loyalty programs.

Maxis loyalty program
Maxis loyalty program

Loyalty program in Asia

Several telecom operators in Asia have loyalty programs for their customers.

For instance, Airtel Thanks App offers rewards and discounts on every Airtel recharge customers make. While recharging or making payments customers get a reward on each payment. Airtel Refer A Friend program enables customers to earn rewards and get discounts.

Customers of Vodafone Idea can participate in online games and win rewards or vouchers. Customers can check out Game of the Day on the Vi App and play free online games.

SoftBank has a loyalty program in Japan called PayPay Point. SoftBank’s PayPay Point had over 63 million users as of April 2024.

Rakuten Point has around 100 million registered users. NTT Docomo’s D Point has around 100 million registered users. KDDI’s Ponta Point has over 110 million registered users.

The MaxisONE Club rewards program is targeting postpaid customers in Malaysia with different tiers based on monthly spend. Maxis says MOC Elite members receive more privileges than MOC members.

China Mobile has a loyalty program called MyLink. MyLink is a digital engagement hub that offers a loyalty program with personalized loyalty points for customers. It also provides access to a variety of products and services, including consumer goods, hotels, and food and beverage.

Indosat Ooredoo’s IMPoin loyalty program offers rewards every time the customers top up and buy any package from any channel.

Loyalty programs in developed and developing telecom markets
Loyalty programs in developed and developing telecom markets

Highlights from Omdia’s 2024 Digital Consumer Insight

Understand Market Segmentation

Omdia’s report called 2024 Digital Consumer Insight: Asia highlights significant differences between developed and developing markets. Loyalty programs must be tailored accordingly. In developing markets, consumers are more influenced by value for money, while developed market users may be less engaged with loyalty schemes. Design offers and experiences that cater to these differing expectations.

Focus on Simplicity and Usability

One of the biggest barriers to engagement in developing markets is complexity. Ensure that the loyalty program interface is simple, intuitive, and accessible for all users, especially those with lower digital literacy. Streamline enrollment processes and offer straightforward reward redemption steps.

Raise Awareness Through Multiple Channels

Omdia’s survey reveals that 42 percent of non-users in developing markets do not participate because they are unaware of how to use loyalty schemes. Use targeted messaging, SMS notifications, in-store signage, and social media to increase awareness and explain the benefits and usage of loyalty programs.

Offer Relevant and Appealing Rewards

In developing markets, 28 percent of consumers avoid loyalty programs due to unappealing offers. Focus on creating rewards that resonate with local needs, such as discounts on data plans, bundled services, or relevant third-party offers. Customize rewards based on user preferences and regional trends.

Improve Digital Literacy

Address digital literacy issues by offering tutorials, FAQs, and customer service support that educates users about the program’s benefits. For consumers in non-urban areas, telecoms should provide additional resources to ensure they can engage fully with loyalty schemes.

Leverage Partnerships for Greater Value

Omdia highlights successful cross-industry partnerships like AIS’s collaboration with retail stores for the “Welcome to Thailand Privileges” campaign. Telecoms should partner with local businesses to provide exclusive deals that add real value for users, such as discounts on shopping, dining, or tourism-related activities.

Address Barriers to Participation

The report shows that entry requirements, such as daily check-ins or sharing content on social media, deter many users. Simplify participation by removing unnecessary hurdles and making the path to rewards as frictionless as possible.

Utilize Physical Advertising in Developing Markets

To overcome low awareness in rural or non-urban areas, telecoms should invest in physical advertising at retail outlets. Billboards, in-store promotions, and traditional media campaigns can effectively capture the attention of customers who might not be reached through digital channels alone.

Target High-Impact Segments

According to Omdia’s insights, while loyalty programs moderately affect decision-making for many users, targeting key segments — such as frequent travelers or heavy data users—with tailored offers can increase engagement. Focus on segments where loyalty programs will have the most significant impact on consumer choices.

Continuously Monitor and Optimize

Finally, ensure that loyalty programs are dynamic and continuously evolving. Regularly review feedback from customers to identify pain points, such as a lack of appealing offers or usability issues. Use this data to refine and improve the program to meet evolving consumer expectations.

By addressing these insights from Omdia’s 2024 Digital Consumer Insight: Asia, telecom operators can enhance their loyalty programs, better serve diverse markets, and drive higher levels of consumer engagement.

Maxis loyalty program
Maxis loyalty program

Baburajan Kizhakedath

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