Customer loyalty is the telecom industry’s biggest challenge—and biggest opportunity. With switching barriers vanishing and expectations rising, traditional tactics like points and discounts no longer deliver. Telcos are competing not just on price, but on experience, trust, and relevance. Yet, many loyalty programs still miss the mark. Let’s break down what’s standing in the way—and why solving it is key to winning customer loyalty.
Moving from Transactional to Emotional Loyalty
For years, telecom loyalty was built on contracts, bundles, and pricing plans. But today, those are not enough. eSIM adoption has made switching nearly effortless, and customers are quicker than ever to churn when the experience doesn’t meet their expectations.
Despite growing enrollment in loyalty programs, engagement is still lagging. Customers might sign up, but few feel emotionally connected. Why? Because they want relevance, recognition, and rewards that actually fit their lifestyles—all things that many loyalty programs aren’t delivering. But before telcos can fix loyalty, they need to understand what’s standing in the way.
Top 5 Challenges in Building Loyalty in Telco
1. eSIM Has Made Switching Frictionless
With over 500 million eSIMs shipped in 2024 alone, customers can now switch providers with just a few taps. That convenience is great for consumers, but not so great for loyalty. Long-term contracts and lock-in strategies are no longer effective. Telcos must shift from just holding onto customers to actively earning them every day.
2. Competing on Price Isn’t Sustainable
In an inflation-sensitive market, price still matters—but you can’t base your whole loyalty strategy around it. Offering discounts might attract attention, but it doesn’t build brand affinity. And when everyone’s competing on price, it quickly becomes a race to the bottom. Telcos need to deliver value elsewhere: through meaningful rewards, useful perks, and a clear reason to stay beyond.
3. Siloed Legacy Systems Prevent Seamless Experience
Customers expect fluid journeys—from app to chatbot to in-store. But many telcos are still battling fragmented tech stacks and outdated infrastructure, making seamless omnichannel experiences hard to deliver. Without unified, clean customer data, even basic personalization falls flat, and loyalty programs can feel disconnected or irrelevant.
4. Finding a Balance Between Personalization and Privacy
Customers want tailored offers and individualized experiences, crafted in real time—but not at the cost of their privacy. Transparency around data use is now non-negotiable. And with regulations tightening, telcos face a tough challenge: delivering meaningful personalization without crossing the line on customer trust.
5. Failing to Reflect Customer Values
Modern consumers—especially younger ones—want to align with brands that genuinely care. Telcos that ignore sustainability, community impact, and social responsibility risk losing out to competitors who make those values part of their loyalty strategy.
Why Loyalty in Telco Matters More Than Ever
Despite the challenges, loyalty in telecom is still achievable—and what’s more, it’s worth the effort. Telcos that shift from transactional rewards to customer-centric loyalty strategies can achieve numerous benefits, including:
• Turning Churn into Retention: It costs far less to retain an existing customer than to acquire a new one. With predictive tools powered by AI, telcos can spot churn risks early and act in real time, offering just the right incentive to keep customers engaged.
• Higher ARPU and Customer Lifetime Value: Personalized offers and dynamic rewards increase upsell and cross-sell success. When customers feel seen and rewarded, they’re more likely to upgrade plans, add services, or stick around for the long haul.
• Brand Differentiation: In a room of identical telecom offers, a well-thought-out loyalty program can help you stand out. Lifestyle perks, seamless experiences, and values-driven rewards give customers something that pricing alone can’t—an emotional connection.
• Cost-Effectiveness: Loyalty is often more cost-effective than running constant discount campaigns. When customers feel emotionally connected to your brand, they’re more likely to stay—even when cheaper offers are on the table. Offering exclusive perks or lifestyle rewards can deliver stronger retention at a lower long-term cost.
• Deeper Customer Insights: Modern loyalty platforms, such as Comarch Loyalty Marketing Platform, capture valuable behavioral data across every interaction. Telcos can leverage these real-time insights to personalize offers, optimize marketing strategies, and stay ahead of customer expectations.
Let’s Start Building Telco Loyalty
Loyalty in telco is built on relevance, recognition, and real, everyday value. It’s about giving people a reason to stay—and to keep choosing you in a sea of lookalike brands. Creating an emotional bond takes time—and is certainly a lot more challenging than just handing over discounts—but let’s be honest: nothing valuable ever comes easy.
Want to dig deeper into telco loyalty strategies that actually work? Download the free Telco Loyalty Trends 2025 e-book for more expert insights, best practices, and real-world examples from the industry leaders.
