Zong and its “Dormant Subscribers Offer”
As I have discussed in my previous articles about the importance of customer retention, better, late than never, Zong has reacted intelligently and launched Dormant Subscribers promo couple of weeks back.
This promo comprises of recharge-based incentives, in which if dormant customer will recharge Rs.100 on its dormant connection since 1st September 2008 will get Rs.100 free minutes and 100 SMS and if subsequently continues to recharge, customer will get 15 free minutes and 15 free SMS.
let me remind all of you, about what I had discussed/predicted in my previous articles that Zong could lose its customer base, if they won’t invest invest in brand management, media promotion management and to revise their BYN service fake bookings. We also cannot ignore certain chances of other reasons like “Weak Customer Services, Network Coverage Areas and no customer loyalty development programmes .
As this promo is proof , that Zong has list of “Dormant” (inactive) subscribers and the chunk they selected is from September 1st , 2008 also shows that Zong has got very good response in start for new acquisitions. However, quickly, customers become inactive and main reasons are what I already discussed many times.
Now, let me point out some area for improvements in the promo designing and its execution:
- Never tell your customers What & Why you want them to follow a promotion? it is the main rule for promos but Zong has selected technical term for its promo called “Dormant Subscribers” and it will not only effect the root- cause but it will also not able to give understanding to most of the customers about promo. It is better if Zong will give promo a name that is more attracting to customers and does not show hidden tactic of promo.
- Subsequent recharge minutes and SMS are less and they need to be increased by 25-30 minutes and 30 SMS or it can be developed in slots of recharges like on Rs.50 recharge get 15 minutes and on Rs. 100 recharge get 30 minutes free and vice versa. Because the existing subsequent offer does not give competitive edge over other extra airtime promos offered by competitors.
Overall, I will commend the Zong efforts for its subscriber base and realization of market dynamics. This also shows that Zong strategy developers are in touch with dynamism of market instantaneously, but they also need to bring focus towards customer service innovations and network coverage, because it is the only key to open future success doors.
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These days every company is trying to get their lost customers back. So if you haven’t used your connection for a long time you can get lots of free minutes and sms but what about the old customers? Shouldn’t they be rewarded for being loyal and contributing to the companies revenue. I guess these companies will be better off starting loyalty schemes where users who have spent a certain amount and are active for certain period get bonus on their recharges. This way they will increase the customers retention as well.
Asif
I think u have rad this promotion properly. the free minutes and SMS u have mentioned are on RS.50recharge. for more recharge u will get more till a maximum recharge amount RS.3000 reached. Also I think customers should frequently change their network using MNP to put pressure on telco’s as the don’t prefare loyal customers. The present trend of telcos is Reward for new & Punishment(additional charges on recharge+ helpline rates) for loyal customers. I have change interchange the network of my two numbers, telenor to zong & zong to telenor. yehi ELLAJ hai en companies ka
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