Telecom has decided to extricate itself from the Fly Buys scheme at the end of the year saying that it wants to focus on providing better core services to it’s customers.
Perhaps it’s also an indication that they are hurting financially. Their share price has taken a big tumble (along with many other stocks) and they are being outdone in many ways by Vodafone. Now they have removed another reason for becoming, or being a Telecom customer – rewards via Fly Buys.
I have no idea how much it costs a business to be part of the Fly Buys scheme – presumably it’s charged as a percentage of your total sales (at least for the bits that can attract rewards) – so the cost could be considerable.
Perhaps Telecom has data that shows people aren’t making purchasing decisions for Telecom products based on the ability to gain rewards. Once you are locked into a Telecom account you don’t have ann opportunity to change your mind until your plan expires so the rewards keep coming in automatically. Whereas I can choose to spend my money at a Shell service station everytime I fill up to take advantage of Fly Buys – it’s a more active decision that can be more easily measured.
If the withdrawal from Fly Buys adds real benefit to existing and new Telecom customers then that’s a good thing. My sense is that customers won’t notice much of a change to the level of service they receive except they’ll no longer be rewarded for being that customer.