JEDDAH – The global telecom services market is poised to generate $1.4 trillion in 2009, despite the economic slowdown, according to recent industry forecasts. As the challenges brought by massive budget cuts across organisations drive industry players to take on a more effective approach to their investments, Loylogic Inc., a leading loyalty solutions provider to companies worldwide, is offering unique loyalty solutions to help telecom operators in the Middle East retain customers, reduce churn and increase revenues.
Latest studies have shown that 50 percent of telecom companies in the developed and emerging markets have launched a points-based loyalty program; while a small percentage opted for discounting their services, with the rest choosing different promotional and marketing initiatives. With all players facing challenges in terms of increasing their Average Revenue per User (ARPU) per year and avoiding customer churn, most are forced to implement programs on tight margins, with customers needing a very long time to accumulate enough points.
This underlines the importance of investing in unique solutions that can help boost users and brand loyalty through exciting and valuable rewards.
“There is great potential for the loyalty market to continue growing in the region especially during this economic crisis, and the telecom industry is one of the key markets to watch as far as the evolution of loyalty programs are concerned,” said Mamoun Masarweh, general manager, Loylogic Middle East. “I believe that telecom companies are realising the importance of loyalty programs and the extent of advantages it can provide to their marketing activities. Our aim is to provide regional telecom majors the opportunity to leverage loyalty solutions to retain customers and drive revenues in the face of this recession.”
“Most of the successful telecom players avoid getting into price wars, as they tend to eat into their margins and provide only a temporary solution to churn. We believe that telecom companies can retain their value by building an affinity in the minds of their customers and pre-established expectation of trust that drives loyalty. Loyalty initiatives have become a necessity rather than a luxury tool in the marketing mix, and we are fully equipped to help companies across all industries attain their marketing goals by implementing a successful loyalty program,” Masarweh added.
Loylogic has the technology, tools and the know-how to launch a traditional loyalty program for telecom operators that can tackle most of the shortfalls telecom companies face when implementing a traditional program.
As a testament to its commitment to this particular market, Loylogic recently unveiled a loyalty concept, which will allow telecom companies to give customers the opportunity to launch and run an innovative, liability-free loyalty program that gives customers a 5 to 10 per cent back of their spend without affecting their bottom line. Called ‘LoyCash’, the new concept also gives the freedom to customers to accumulate and redeem for a range of exciting rewards. ‘LoyCash’ holds excellent potential to help reduce churn and increasing the ARPU, while delivering great value to all stakeholders.