Globe Telecom has just launched a new loyalty rewards program, allowing postpaid and prepaid mobile subscribers to buy products using the rewards points they earned like real cash.
In addition to giving gift certificates, load and gadgets, the revamped "My Rewards, My Globe" expands the previous loyalty program, which ended last March, as a form of payment recognized by Globe partner stores.
This means that subscribers can buy coffee and movie tickets, among other products, using just loyalty points, where a point is equivalent to one peso. Points are earned every time a prepaid subscriber tops up or a postpaid subscriber uses his/her plan.
"This is Globe's way of keeping loyal customers happy. The program has successfully engaged subscribers as evidenced by its millions of redeemers." Ernest Cu (pictured left), CEO of Globe Telecom, said during the launch Thursday.
Pressed for figures, Cu said that specific business results cannot be attributed to the program because a slew of other projects improving overall customer experience complement each other to win new customers and keep old ones.
Without hard numbers, he said that attrition rates have fallen down and have recorded growth on its subscriber base since the program was launched. While profits took a hit from its ongoing modernization program, Globe's mobile subscribers now stands at 35.1 million at end-March, up 12% year-on-year.
To date, over 12 million users have been actively using their points to redeem rewards, which if viewed as foot traffic bodes well for the program's business partners.
Jay Beltran (pictured right), head of customer life cycle management at Globe, said that a whopping 7 million points have already been redeemed at local coffee brand Figaro and Ayala Cinemas, Globe's first partners in the program, during the first two months of the new program. This is equivalent to P7 million pesos.
Five companies have partnered with Globe since. This includes theme park Enchanted Kingdom, Petron, Rose Pharmacy, luxury eyewear shop Sunglass Hut and fast food chain Wendy's Hamburgers.
The seven partners where picked based on a survey with subscribers, according to Beltran but she said that interested companies can approach Globe for collaboration, provided it meets certain criteria.
Beltran is looking for brands which have an extensive nationwide network, partly to match Globe's wide coverage. Also, company partners should have varied products, relevant to Globe users and are low-priced so points can be immediately converted to rewards.
"Globe together with its partners wants to be part of the day-to-day life of our subscribers - to use their points for their day to day needs."
Cu shared with Marketing that they are planning to extend the loyalty program to include sari-sari stores, letting subscribers to buy everyday grocery items using their rewards points.
Figures from Hapinoy, a non-profit supporting sari-sari stores, estimates there are in around 800,000 community convenience stores found virtually anywhere in the country making up 30 to 40% of total retail sales in the Philippines.
In addition, Globe is planning to let Tattoo subscribers, Globe's broadband unit, and landline users to also earn rewards points.
Quizzed on what makes good business sense, Cu said that keeping loyalty is as important as winning new customers.
"You can't grow the company if you're losing customers. We have started to improve our customer services, introduced new subscription plans and improved our retail formats, all because we want to attract quality subscribers. And of course, you want to make sure they'll stay."