Sky steers clear of ‘bribery tactics’ as it targets 4.5 million loyalty members

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Sky says it is on track to have 4.5 million VIP customers within the next year, around a third of its UK customer base.

1.8 million people have already signed up to Sky’s 10-month-old loyalty programme &- which rewards tenure rather than spend &-& which& launched last summer following complaints from existing customers that newer ones were getting better deals.

It was also an attempt to reduce churn amid growing competition from the likes of BT and Netflix, as well as to encourage more people to download the mobile app, which is where Sky VIP sits and one of Sky’s core metrics.

The loyalty scheme now accounts for 33% of the weekly traffic to the app, while Sky claims churn is at its lowest level ever having entered a fifth consecutive quarter of decline. Figures for the second half of 2017 reveal the number of customers leaving Sky fell from 11.6% at the end of 2016 to 11.2%.

Sky’s head of customer loyalty, Rob Chandler, says the tenure framework of the programme allows Sky to play into a “far more emotional space” &- something that more functional rewards schemes like Tesco Clubcard and Aeroplan lack.

“They’ve still got a value but they’re not really about

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