The Value of Loyalty for Telecoms Brands
The Loyalty Challenge Customer retention is a challenge for all industries, but churn rates are particularly high in the telecommunications industry, averaging between 10 and 67% annually. For example, it is estimated that 75% of the 17 to 20 million subscribers signing up with a new wireless carrier every year are coming from another wireless provider. Loyalty is extremely difficult for telecommunications brands to attain, especially due to the lack of differentiation in the product and service offerings. We spoke with Chris Sullivan, who has experience managing telecommunications clients at Lenati, a marketing and sales strategy consulting firm, about why this is the case and he told us, “In recent years, there’s been a massive shift in the telecommunications industry. With T-Mobile’s “Uncarrier” moves, it removed long term contracts that led to dependable, recurring income for the major providers (amongst other changes.)” Successful loyalty programs provide telecommunications brands with the ability to differentiate from…