Winning with customer loyalty programs – A practical guide

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Summary

Customer loyalty programmes are nearly universal across telecommunications, yet few deliver the engagement their design promises. Building loyalty initiatives that hold up under competitive pressure calls for a clear framework, drawn from an in-depth study of programmes run by telecom operators across Asia.

Loyalty management has become table stakes for telcos for a few clear reasons: technology companies setting new service benchmarks, declining average revenue per user pushing operators toward retention-focused strategies, and customer journeys that now extend well beyond core connectivity into streaming, shopping, and other over-the-top services. A checklist distilled from studying loyalty programmes across the region anchors the discussion that follows.

One operator's loyalty programme in Thailand illustrates this evolution through market liberalisation, price competition, and saturation, and explains why the operator chose tiered segmentation over price-based competition to protect its highest-value customers. The programme's structure spans a multi-tier rewards system, from entry-level point accumulation through an exclusive top tier built around lifestyle privileges and dedicated service channels, with the operator measuring programme effectiveness through retention, redemption, and spending metrics over time.

  • How lifestyle-based customer segmentation shaped the design of a tiered loyalty programme
  • Comparative approaches to loyalty programmes among telecom operators across the Asia Pacific region
What separates a loyalty programme that genuinely retains high-value customers from one that merely discounts its way to short-term engagement?

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