Loyalty programme ups outgoing calls, claimsIdea

The Lifetime Idea programme, launched by Idea Cellular Ltd, has resulted in a rise in the ratio of outgoing calls to incoming calls, thus bringing in additional revenue to the cellular service provider.

Idea Cellular Ltd has already disbursed a sum of close to Rs 3 crore to 14 lakh Idea Chitchat (pre-paid) customers since the customer loyalty programme was launched in last December.

"Although it is a bit too early to arrive at the exact increase in usage of the pre-paid services after the scheme was launched, there has definitely been an impact on the outgoing to incoming ratio in the pre-paid segment of the company. The ratio of outgoing has gone up about three per cent," said Sukanta Dey, chief marketing and commercial officer (CMCO), Idea Cellular Ltd.

He added that the outgoing to incoming call ratio, which is about 30 to 70, has changed to 33 to 67 over the past three or four months.

Stating that this scheme is a win-win situation for both the customers and the company, Dey said that this is perhaps the only scheme that has a long life.

"This is also the only scheme, were we are giving additional talktime to customers, while other companies just take money. After 12 months, we will take a relook at the scheme, perhaps we will modify it," said Dey.

Under the scheme, if a prepaid customer is on the network for three months, he gets an extra talk time of Rs 20, which increases as he spends more time on the network, with the maximum extra talktime being Rs 50 if the customer is on the network for 12 months.

Incidentally, Idea is the only cellular service provider in Gujarat circle, that allows post-paid subscribers to migrate to the pre-paid segment, which is considered to be the segment where the churn happens.

The Lifetime Idea scheme basically provides the incentives for pre paid subscribers to remain with Idea Chitchat, as they enjoy an additional free talk time on every recharge. Idea has over 6.50 lakh subscribers in Gujarat, and its pre paid to post paid ratio is about 30:70, which is also the industry ratio.

Commenting on the Rs 2.8 crore worth of free talktime disbursed so far, Dey stated that it has been about four months so far, and so the disbursement has mainly been in the Rs 324.

"The disbursement amount will go up substantially as the year progresses, as this is not a scheme for new pre paid customers and neither is it one that will be discontinued quickly," said Dey.