Our challenge was simple: Fortify retention of wireless customers in the fiercely competitive wireless market and help drive new customer acquisition.
Kobie responded with a highly targeted, points-based customer rewards program, enrolling high-value wireless customers, as well as those who responded to a co-branded credit card offer.
The customer loyalty reward program offered more than 150 select rewards chosen specifically for their appeal to the target audience, many of them unique local favorites. For sports fans we offered everything from a team hat or mug to exclusive autographed memorabilia. For others, we offered dining at Philly's landmark eateries, from hoagie shops to five-star restaurants, plus tickets to popular area events and attractions. We included shopping rewards at well-known local retailers, as well as a wide range of wireless services as loyalty reward options.
To further enhance the benefits of membership, Kobie recruited a well-known travel company to offer members up to 10 points per dollar on their travel arrangements. Later, long distance service added yet another way for members to accumulate points.
A second tier of unique rewards was created to turbocharge member involvement. Playoff tickets, admission to closed practices, "impossible-to-find" theater and concert tickets - fabulous rewards that kept the customer rewards program running at lofty levels after its introduction. These high-value rewards, offered in limited quantities and at exceptionally low point values, utilized a variety of redemption techniques including "first come, first served," silent point auctions and random drawings, and more than satisfied the need to stimulate member involvement.
Kobie also developed and maintained an exclusive loyalty reward program Web site, which quickly attracted almost half of all member activity. Here, members could browse the online rewards catalog, shop the special offers that rotated through the home page, check or redeem their points, and contact loyalty reward program management with questions and comments.
A simple challenge led us to create a points program tailored to this market segment (high-value, high-appeal rewards) as well as economical, personalized member communications that stemmed from the dedicated program Web site. Our program initiatives generated an astounding ROI of 252% with a 15% reduction in customer churn, and a 35% increase in per-member revenue. Simple, right? Return on investment in this unique rewards program was very positive.
For a FREE customer loyalty and rewards program assessment, contact one of our customer loyalty specialists.