Press Release

Telecom Loyalty: How to Manage Customer Relationships Throughout Entire Life Time

May 23rd, 2012

Global Information Inc. would like to present a new market research report, "Customer Economics: The role of loyalty and CEM in maximizing customer lifetime profitability" by Ovum, Ltd..

The topic of the moment in the telecoms world is Loyalty. Everyone wants to know about it and every operator is either launching or planning to launch more advanced loyalty schemes. The evolution of telecoms loyalty demands that operators build a customer-centric organization, in a way that will align all the processes and teams to fulfil customers needs. Operators will need to take a more detailed approach to evaluating Customer Lifetime Value in order to identify potential revenues for different customer segments. Furthermore, loyalty pushes operators to review the way they interact with their customers and manage the customer experience in all their channels throughout the entire customer life-time.

Informas telecoms loyalty research has found a number of relevant examples from operators around the world acting in different areas within loyalty  from a prepaid loyalty scheme in Africa to Sprints entire review of its approach to loyalty. The research also includes prepaid and postpaid strategies, customer experience management, customer services transformation, handset subsidies, Customer Life Time Value (CLTV) and convergence.

Operators have realized that loyalty is one of the most important strategies to guarantee customer profitability and keep a leading position in their market. Telecoms loyalty has evolved from being an internal effort to improve call-center services into a central part of many operators strategy: Operators are realizing that they need to improve their efforts to retain clients in a highly competitive environment. The market is witnessing a growing number of loyalty initiatives such as point-based reward schemes, motivational rewards offering free or an increased number of minutes and SMS, and smartphone upgrades. Loyalty programs can range from just offering free data allowances, maybe an introductory period, right up to big campaigns promoting loyalty as one of the operators key value propositions (see fig. 1).


Many telecoms operators are rushing to implement isolated loyalty activities, but it is only by integrating these activities that they will be able to drive effective loyalty initiatives. The customer has significant milestones in its relationship with the service provider, starting from the "getting to know you" phase, passing through the "purchasing", "using" and "contacting" up to "rewarding" phases. There are a number of different activities with different focus areas that operators can implement in these different phases (see fig. 2).


Business models

In order to improve customer loyalty, operators need to understand what factors influence loyalty. The most relevant is the customers attitude towards the service provider, which is a result of the customers perception of the operators service quality, care, service portfolio and bundling, value-added services and, finally, brand adherence to lifestyle (see fig. 4). Consequently, loyalty will be a result of a series of initiatives focusing on different areas, which, when combined, will improve customer experience, attitudes and therefore loyalty.


Informas research will help executives:

  • Evaluate the best strategies in different customer loyalty areas.
  • Manage the customers" profitability throughout their relationship with their operator.
  • Assess competitor positioning and direction through case studies and profiles.
  • Gain an understanding of the state of customer loyalty within the telecoms industry and how it will evolve.

Case studies included in this report:

  • O2
  • US Cellular
  • Sprint
  • Bell Canada
  • Vodafone

Global Information Inc.(GII) - specializing in market research provision for the vertical industries, GII offers expert independent recommendations of publications from hundreds of the globe's leading market research firms.

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