The loyalty program will be outlined this month. Telstra declined to comment.
Sources said Telstra would look to reward long-time customers and those with multiple devices and services with the telco by offering more than simple discounts, beyond its Telstra Thanks rewards such as movie tickets.
“All customers aren’t created equal,” one source noted, saying Telstra needed to be on the front foot with existing customers, particularly those who spent a lot with the telco, to head off competition from the likes of Optus and Vodafone Hutchison Australia, which is awaiting approval for a merger with TPG Telecom.
Telstra wants to create goodwill among its base at a pivotal moment when Australian households are switching to the national broadband network and are choosing retail service providers.
The telco maintains a pricing premium over its rivals, but mobile average revenue per user is still under pressure as rivals cut prices and as margins on the NBN make it hard to turn a profit. Some smaller telcos have given up selling NBN services because margins are too thin.
“Above all else, customers choose to spend their money with companies who put exceptional customer experience at the heart of everything that they do and who are willing to innovate and lead,” Mr Penn said at a briefing on its T22 strategy last June.
Research by consultancy firm Deloitte has suggested consumers see being rewarded for loyalty as normal, rather than a differentiating factor in staying with a brand.
“Consumers want to be recognised and rewarded as individuals, not as nameless, faceless point collectors,” Deloitte wrote in a report titled “Customer loyalty: a relationship not just a scheme”.
“Consumers want to be rewarded based on their personal tastes and choose how they interact with a brand. Today’s savvy consumer also expects brands to be more relevant in the way they communicate and engage with them. When it comes to consumers’ attitudes to loyalty schemes,” the report said.
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