Using a points program to engender loyalty in an industry immune to brand attachment

The Situation:

The brand was struggling with customers defecting to other carriers regardless of their tenure, which we believed was partly due to a lack of attachment to the brand.  Wireless customers have little incentive in forming an emotional attachment to their carrier.  Their attachment is to their device and the mobile lifestyle.  The carrier is seen as a functional requirement.  Additionally, carriers are constantly introducing highly compelling offers for customers to switch carriers.  Retention is very difficult in such a competitive environment.  The question is how to win loyalty where customers have little incentive to attach to the brand.

The Solution:

We created a branded points program that rewarded customers for shopping in an online partner network.  The shopping component provided a ‘bounty’ that funded the points redemption, essentially making this a self-funded program.  Customers could redeem their points for cash off their monthly wireless bill.  It created stickiness by providing customers with tangible benefits.  They were concerned about losing their points if they were to leave for another brand.

The Result:

• 60% of customers engaged in earning points
• 6 bpts higher NPS
• 9 bpts higher overall satisfaction
• 7 bpts more likely to continue service