Vodafone UK targets prepaid loyalty
UK mobile network operator Vodafone has teamed up with mobile marketing and advertising technology firm Velti to launch a loyalty rewards scheme called 'Freebee Rewardz' for the network's 6 million pay-as-you-go (prepaid mobile) customers, allowing them to either claim immediate prizes - known as a 'grab' - or to wait for something bigger by choosing to 'grow' their points.
Velti used its experience of consumer behaviour to design a loyalty platform that focuses on long-term rewards, encouraging customer loyalty, and building deeper emotional relationships between Vodafone and its customers.
Every time pay-as-you-go customers refill their account balances, they receive a text message (SMS) giving them a voucher code. If customers want to redeem those vouchers, they can go online to 'grab' an instant reward - or they can choose to bank them as 'grow points' to save up for a bigger reward later on. Vodafone has partnered with popular brands such as Thorntons, Blockbuster, Fitness First, and others to provide the rewards.
According to Srini Gopalan, consumer director for Vodafone UK, "Vodafone Freebee Rewardz provides a compelling reason for customers to choose Vodafone for their pay-as-you-go mobile service. It's a unique scheme because we're giving customers something more than simple discounts, and all prepaid customers can take part with whatever phone handset they have."
Vodafone UK has also integrated social media into its rewards campaign in order to increase marketing effectiveness, with programme members being able to share their prizes with friends and family via Facebook.
Menelaos Scouloudis, chief commercial officer for Velti, concluded: "Customer retention and ARPU stimulation is vital for mobile network operators, especially in the prepaid market where competition is increasingly fierce. By understanding who these customers are, and the nature of their relationship with Vodafone, the company is now able to provide a more personalised and rewarding experience."