Loyalty Technologies creates unique web-based loyalty program for national wireless phone company
During the past five years, the wireless phone industry has become extremely competitive and highly saturated. As a result, there are fewer opportunities to acquire new customers. In addition, the cost to acquire new customers is staggering when pitted against that of retaining current customers.
With these challenges in mind, Loyalty Technologies’ client – a leading national mobile service provider – switched its marketing focus to that of retention. However, with all the constant bidding wars and specialized offers in the market, the client needed a more creative approach to garnering its customers’ loyalty and thus reducing turnover rates.
Help client reduce its customer turnover rate.
- Reduce customer turnover rates.
- Build and strengthen relationships with existing customers.
- Further understand customers' needs and wants.
Loyalty Technologies Solution
To help its client gain a better understanding of their customer base, Loyalty Technologies created a web-based loyalty marketing program. The program was designed to gather more valuable customer information so that the client could segment its customer base and provide offers and rewards that the customer considered more meaningful.
Participants were targeted via e-mail and direct mail campaigns, which enticed them to register for the program by visiting the customer-designed program website. Once inside the website, customers had the opportunity to register for the program, learn more about special offers and service information, and participate in various online surveys. The website also provided a platform to initiate one-to-one marketing between the client and its customers, with special offers and messaging that could be targeted to a customer-specific profile.
For their participation, customers were rewarded with either frequent flyer airline miles or additional airtime minutes for their mobile phone service. In addition, program participants were encouraged – and rewarded with additional program points – to visit the website every two weeks to take advantage of exclusive member offers and benefits.
- Percent Registered of Solicited subscribers (10% Goal)
- More than 10% registered by Week 8 (goal exceeded)
- More than 15% registered by Week 13
- More than 20% registered by Week 20 (goal more than doubled)
- Percent Participating of Solicited subscribers (8% Goal)
- More than 8% participating by Week 10 (goal exceeded)
Customer Turnover Reduction
- Percent Participating of Registered subscribers
- More than 40% participating by Week 1
- More than 50% participating by Week 3
- More than 60% participating by Week 8
Increased Average Revenue per User
- Percent Reduction in Customer Turnover within six months - Treatment Cells vs. Control Cells
- Registered-only subscribers: More than 35%
- Participating subscribers: More than 50%
- Registered-only & Participating: More than 40%
Even though average revenue wasn’t a program objective, the program was so successful that positive revenue results were clearly realized:
- Percent Increase in Average Revenue Per User - Treatment Cells vs. Control Cells
- Registered-only subscribers: Increased average revenue by more than 11% within six months
- Participating subscribers: Increased average revenue by more than 11% within six months