Customer Loyalty Programs in Mobile Telecom Sector: A Need Based Approach

Abstract

The telecom sector is the fastest growing market in the world with much potential in the third world countries. The Indian Telecommunications market is the 5'h largest in the world with 2 IO million connections. It is also the second largest among the Asian countries. The total telephone subscriber base in India may not be very attractive presently at only 210 million but is expected to rise tremendously i.e., 280 to 300 millions by 2010 and much more in the future ahead. A very attractive part of telecom sector is broadband Internet and mobile services. The number of telecom subscribers (JOO million handline and 110 million mobile) has grown to 210 million by the end of December 2006 and is expected to reach a height of 300 million by end of 2010. These magic figures speak about the immense potential of the telecom sector. This trend demands for special attention for driving the sector in a profitable path. Various players of the telecom sector have been adopting multiple management techniques for smooth functioning and development of their businesses. For retention of present customer and attract more customers in future, what kind of treatment should be given to the senior, long-term and loyal customers is the main crux of this. paper. Further, to highlight the issues as to how the customer loyalty has been addressed so far and what can be done in future like ABMB strategies are also suggested for managing customer loyalty programs with special reference to mobile I cellular customers. To sum up, Indian telecom companies should give requisite service for their loyal customers by offering monetary benefits because, for Indian customers money does play a big factor in decision-making.