Loyalty programs are a type of reward program and a marketing strategy structured in order to encourage the customer to continue their association with a product or service. The customer registers their information with a company, following which they are given a unique identifier which can be use while making a purchase in order to enjoy the benefits of a loyalty program. A loyalty program can give a customer special sales coupon, discounts, rewards, free merchandise, advanced access to new products and lot more.

As today’s customers want value, service and rewards; merely a competitive price strategy is not enough to retain existing and acquire new customers. Competition has forced telecom operators to validate their sales and marketing strategies with loyalty programmes. Thus, customer retention is as important as customer acquisition to stay ahead of the competition. In this context, operators are focusing on how to build an effective loyalty program.