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BSNL to bet Rs 90 cr on customer retention

To deploy an integrated customer loyalty and engagement programme for its mobile and broadband users

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In a first-of-its-kind, state run telecom player BSNL plans to deploy an integrated customer loyalty and engagement programme for its mobile and broadband users.

The plan is to reward customers for specific actions, which will in turn generate a revenue stream for the company, a senior official from BSNL told DNA Money.

BSNL has identified a targeted customer base of 19 million users across all its segments – mobile (postpaid), broadband and wireline users. It has invited proposals from companies to deploy the new programme, which is expected to cost Rs 90 crore for 12 months, the official said.

Under the programme, the company will reward its targeted user base with reward points for performing specific actions. The reward points can be redeemed in various retail stores or e-commerce sites, which will have a tie-up with BSNL.

The programme is expected to take off in the next fiscal. It will offer users video offerings specific to their interest areas, will enable a programme through which BSNL users will be able to meet celebrities from Bollywood, cricket and from other areas.

For the last few years, BSNL has taken various measures to improve its bottomline and is leaving no stone unturned to catch up fast with the intense competition in the sector and be a relevant player.

Earlier this year, BSNL had tied up with Call2Action Communication India to offer its customers reward points if they allow advertisements to appear on their phones via SMSs and calls. After obtaining the user's consent, advertisements will be pushed to the screen with calls and text messages. These advertisements will be interactive, meaning the user can also choose to respond to it for knowing more about a particular service or product. The service can be availed by downloading MyBSNL app from Google and Apple playstores.

The revenue will be shared between BSNL, consumer (in form of reward points), and Call2Action. Even subscribers of private operators who download the MyBSNL app and opt for the advertising platform can get the reward points. An user can choose to discontinue with the arrangement at any point of time.

A similar but a more wide programme is being planned this time, that too for targeted customers, the BSNL official said.

With declining average revenue per user (Arpu), the telecom players are constantly innovating to find new stream of revenues. Videos or content will be the next big thing as we go forward to adopt 4G in a big way.

The entry of a new player Reliance Jio has pushed the financials of incumbents on a downward spiral apart from triggering a consolidation phase in the industry where now only three private players have left along with BSNL/MTNL. BSNL and MTNL have been posting losses and struggling to survive in a hyper competitive market.

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  • 19 mn – Users BSNL is targeting across all segments
     
  • 12 months – The programme would run for
     
  • Rs 7,992 cr – BSNL’s loss during fiscal ended 2018

REWARDS ON CARDS

  • It will reward its targeted user base with reward points for performing specific actions
     
  • The reward points can be redeemed in various retail stores or e-commerce sites
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