As we have discussed in an earlier article, building customer loyalty is an essential and time consuming activity for any business. Reward schemes have long been used by traditional retailers and, with intensive competition in the mobile industry, MVNOs are increasingly exploring ways in which they can build such programmes to boost subscriber loyalty and aid retention.
One of the most interesting developments in the mobile industry in recent years has been the increased tendency to introduce differentiation on mobile bundles and plans. This can be achieved by, for example, including subscription to a popular music streaming service or to a video content platform. Users are attracted by the content and then choose the appropriate service offer that suits their needs and interests.
While MNOs and MVNOs go to great lengths to give subscribers what they want – and are increasingly equipping themselves with the tools to do so – it’s still clear that you can’t please all of the people, all of the time. As a result, the concept of “self-selected” bundles is capturing quite some attention.
Over the years, researchers have tried to make a direct, causal link between customer loyalty and company profit, but it seems the results have been mixed. Recent research from MIT Sloan sheds some light on the situation and provides some guidance for MVNOs that seek to use customer loyalty as a tool to drive business growth. Findings suggest that happy customers are loyal customers, though they don’t necessarily spend more money or are more profitable overall.
As ever, Digitalk is committed to meeting our customers and partners in key industry events around the world in 2017. The Carrier Cloud team will be announcing a series of important sponsorship initiatives, as we take a leading role in Global Carrier Events. Our participation provides an opportunity for you to secure early visibility of new software releases, as well as the chance to meet our team.