Consumers shun mobile loyalty schemes

UK consumers are shunning mobile loyalty campaigns, despite almost three quarters already signing up to non-mobile schemes, research by customer retention company Buongiorno shows.
The firm found 27% of mobile customers in the UK utilize mobile loyalty schemes designed to increase spend, and 29% use reward-based campaigns. However the figures are dwarfed by the 73% of consumers that readily use similar non-mobile services.
Analysys Mason conducted the research for Buongiorno, quizzing consumers in the UK, Russia, Spain and Nigeria. It found schemes that offer free gifts to be most attractive, with 76% of prepaid subscribers and 71% contract rating the campaigns. Reward points ranked second, with 50% of consumers stating points should make prizes in terms of a free or subsidized handset.
Adhish Kulkarni, Buongiorno’s head of telco products, says the firm is shedding light on the effectiveness of loyalty schemes for which there is “little available research.” He adds that customer retention campaigns can boost revenues between 4% and 9% if correctly implemented.