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Customer loyalty programs for Internet Service Providers (ISPs)

CRM expert Michael Lowenstein answers a reader question about customer loyalty programs for Internet Service Providers (ISPs).

Do you know of a successful loyalty program at an Internet Service Provider (ISP)? What is the best approach to a loyalty program for ISPs?
Several ISPs have created loyalty-like programs, though their principal approach is to bundle services for customer value-add. These programs might simply offer a discount to customers who buy a package with more than one product or service, or add another service to their existing plan at a discount. Or, companies might create "enforced loyalty" through required long-term contracts.

My suggestion is to review ISP material in sources like Frequency Marketing's Colloquy archives or obtain The Customer

Loyalty Report, a compendium published by The Wise Marketer.

Also take a look at this article from CLEC marketing that discusses telecom-specific loyalty solutions, focusing on one company that created a loyalty program that encourages customers to accrue points through spending, upgrading and referring new customers. The company allowed points to be redeemed for a range of rewards.

This was first published in October 2006

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