Cricket testing loyalty program to help reduce churn

MetroPCS and Cricket had figures over 5 percent in the third quarter 2009, leading to disappointing overall subscriber numbers. It looks like Cricket plans to do something about it, as they’re testing a loyalty program that offers customers an incentive to stay. Sticking with Cricket can earn customer a discount on a future phone purchase. It’s obviously not as much as the subsidy on a two-year contract, but Cricket doesn’t have those contracts in the first place. Customers with the company for six to 11 months will get $50 off a phone purchase, customers with 12 to 23 months get $100 off, and customers with the company for more than 24 months get $100 off plus a free month of service. Presumably, the loyalty clock restarts when a customer redeems her reward. This does sound like an effective tactic for retaining customers. Sure, they can leave if they’re not satisfied with the service, but that would be going with the devil they don’t know while the devil they do know is offering a discount on a handset. It won’t cause everyone to rethink their decision, but it should help out some. And that’s all Cricket’s looking to do. Cricket is currently testing the program in Houston, and plan to roll it out to all of their markets eventually. I think it will help them put a dent in a churn rate that has greatly affected its overall subscriber adds over the past two quarters.]]>