Telco Loyalty in 2025: The Questions You Asked (And the Answers You Actually Wanted)

After our recent webinar, “Telco Loyalty Trends 2025: Are You Ready for What’s Next?”, you had questions—sharp, practical, and a little bit challenging (just the way we like them). So we’re keeping the conversation going with a few answers to the questions our speakers didn’t have time to answer live. They came straight from the audience, and we thought they deserved their moment in the spotlight. Dig in!

If customer churn is already low (like 1–2% in the US), can personalization really move the needle?

Low churn doesn’t mean high engagement. In mature telco markets with long customer tenures, loyalty can get passive. Customers stay not because they love their provider, but because switching feels like a pain. That’s retention by inertia, not by affection.

But personalization changes the game. When telcos use AI to offer proactive value—like upsell bundles that actually make sense, data rewards when customers near their cap, or relevant lifestyle perks—they stop being “just the provider” and become a brand customers choose actively.

Is there really a way to build loyalty for fixed-line services—especially in markets like Germany, where landlines are seen more like utilities than lifestyle products?

Fixed-line services are like the broccoli or spinach of telecom—essential, but not exactly exciting. But here’s the catch: that is the opportunity.

What if you stopped marketing fixed-line services like telco, and instead treated them more like subscription services?

In markets like Germany, where the attitude is “it better work, be cheap, and don’t bother me,” you win by offering quiet value. That could mean perks like:

• Streaming bundles (like Netflix or Spotify) as loyalty rewards
• Smart home partnerships (security, energy monitors)
• “No-thought” hardware upgrades or Wi-Fi boosters at tenure milestones

Think less about flashy points and more about invisible convenience.

Groceries and dining in a telco program—do customers even want that?

Surprisingly? Yes.

According to our Customer Loyalty Predictions 2025 report, here are the top 3 ways global consumers earn and redeem their loyalty points:

It turns out, customers love earning rewards they can actually use in daily life. That’s why loyalty leaders are expanding into lifestyle partnerships. It’s not about pretending to be a bank or a retailer—it’s about being part of your customer’s everyday rhythm.

So yes, your data plan may be boring. But your rewards don’t have to be.

Are points-based loyalty programs dead? Should we just offer experiences now?

As mentioned in the previous answer, points still work—but only when they’re intuitive and tied to real behavior. What’s outdated is the old “earn 1 point per $1 spent and redeem it... eventually” approach.

What’s in? Flexible programs that let you:

• Earn points for things like referrals, surveys, on-time payments, or sustainability actions
• Redeem points for real-world perks (e.g., bonus data, subscription credits, partner deals)
• Use gamification to make it fun and interactive

But yes, experiences and personalization matter more than ever. The goal is to shift from transactional loyalty to emotional connection.

What tier criteria work best in telco and how do we make top-tier rewards actually feel special?

The best tier systems are:

• Clear (customers know how to level up)
• Achievable (not just for the 1%)
• Motivating (with visible perks at each level)

Some smart criteria include:

• Tenure length
• Total spend or product mix
• Engagement signals (e.g., app usage, NPS, referrals)
• Risk profile or churn probability (yes, AI can help)

But your second point is crucial. Don't call someone a VIP and hand them a “20% off coffee” voucher. Make the reward match the message. That could mean:

• Early upgrades or exclusive service bundles
• Concierge support or priority call centers
• Invitations to real-life or virtual experiences

The rule: If the tier title says “gold,” the experience shouldn’t feel bronze.

What’s the difference between telco and bank loyalty programs, especially in terms of benefits?

Banks usually reward saving, spending, and holding products. Telcos reward usage, tenure, and behavior.

Bank loyalty often leans into financial value—cashback, waived fees, insurance add-ons.

Telco loyalty, at its best, leans into lifestyle: extra data, roaming boosts, streaming perks, mobile gaming offers, or even wellness tie-ins. That said, both sectors are converging around one truth: people want personalization and real-world relevance.

If you can make the customer’s life easier, smoother, or more fun, you’re in the loyalty business. Doesn’t matter if you’re holding their money or their megabytes.

The Future of Loyalty Is Personal, Purposeful, and Powerful

Loyalty in telco doesn’t have to be about holding on for dear life in a low-churn world. It can be about becoming something customers genuinely prefer—because you make their digital life easier, better, and more rewarding.

The brands who win in 2025 won’t be the ones with the flashiest app or the lowest churn rate. They’ll be the ones that turn loyalty into relevance.

And if you’re reading this—you’re already ahead of the curve.

Missed the webinar or want a quick refresh? Catch the full conversation with our expert panel and see how leading telcos are already putting these strategies into action. Watch it on-demand here!