A LOYALTY/REWARD SCHEME BY ZAIN NIG. Zain Nig. Is one of the companies in Nigeria that provides mobile telecommunication services.

Now have come up with her first loyalty scheme which gives customers of Zain an opportunity to earn points, collect prizes and enjoy discount when they would have accumulated enough points. Various prizes can be won depending on the number of points earned by the customers. According to Shamel Hanafiz the Chief

Commercial Officer, Zain Nigeria, this is a way to please our customers and he added that the introduction of the new scheme is in line with Zains policy of empowering Nigerians especially its customers as well as its brand philosophy of enabling Nigerians enjoy a Wonderful World.
To qualify for this Scheme: 1. Customers need to register for this Scheme. Registration is free and customers will earn points irrespective of whether they use the airtime to make voice calls, send SMS (Short Message Service or for texting) or for Internet browsing. 2. Customers are to register by sending SMS containing the word: REWARDZ to 797 or by dialing *141*797*1#. 3. The prizes that can be won by any customer is determined by the number of points he has earned. 4. For every N10.00 spent on any Zain services, a customer earns a Reward Point. Usually the customers account will be credited after 24 hours. The number of Reward Points earned can be verified by sending an SMS containing the word: POINTS to 797 or by dialing *141*797*2#.

5. Under the terms of the program, customers can choose to accumulate Reward Points and Level Points and therefore, redeem big tangible rewards.. 6. A special catalogue which indicates codes and points to be earned to redeem each item has been created by Zain to serve as a reference material for customers. The catalogue or Zain Rewardz Catalogue is available at selected Centers across the country, Zain website, and at the companys business partners outlets nationwide. 7. To redeem any item in the Zain Rewardz Catalogue, customers are required to send by SMS RD followed by space, then, PRODUCT CODE of the item(s) of choice to 797. 8. Customers who redeem non-GSM items will receive Voucher codes via SMS which they can present at designated Zain Rewardz Partner Stores to receive their item of choice. 9. On the other hand, Zain will send SMS customers who redeem GSM related items such as airtime, SMS and data bundle, confirming the transaction and their phone number would be credited directly with the right amount of airtime redeemed. 10. All vouchers are valid for up to six months. 11. Qualified Reward card carriers will be contacted automatically by Zain for their personal details and their preferred delivery options. All cards are valid for one year and validity will elapse every December 31st. Prizes to be won: 1. Prizes that can be won include trips to Dubai (the United Arab Emirate),

2. a weekend in Obudu Cattle Ranch in Cross Rivers, 3. Plasma Televisions, 4. Refrigerators, airline tickets, iPods, and a variety of other items. 5. Customers who register for the Loyalty program will also have an opportunity to enjoy special discount and privileges such as 30% discount on accommodation at the Federal Palace Hotel, Victoria Island, use Airport VIP Lounge and get priority check-in at the international wing of Murtala Mohammed Airport, enjoy discount at exclusive restaurant and receive first-class priority service at all Zain Shops as well as get priority treatment when they call 111 or Zains toll-free customer care line amongst others. 6. Registered customers are classified into Bronze, Silver and Gold categories depending on the number of points (Level Points) they have earned or accumulated. 7. By default, all newly registered customers are placed in the Bronze category and can move to other categories as they use more airtime. Level point of 3000 will earn the customer Silver card while 6000 points is required to reach the Gold category. 8. Silver and Gold Card carriers get additional 20% and 50% extra on all Reward Points and can confirm their Level Points by sending LEVEL to 797 or by dialling *141*797*3#. 9. To enjoy discounts and privileges at all Rewardz Points, eligible customers will be required to present their Silver or Gold membership cards and another valid means of personal identification a valid form of personal identification. Analysis:

1. This Loyalty program can have a significant impact on retaining the Zain customers and their purchase behavior, also attract new Zain users. This is because consumers: y y y y y y Respond to rewards they are not asked to pay a dime for Respond to offers perceived to be rewarding Respond to offers perceived relevant to them, Respond to offers perceived to be attainable Respond to offers that are convenient to use. This offer is not going to very expensive for Zain because they are producing another product for this reward rather they are using they already available product for the offers, and the rewards definitely will be generated from the money that customers pay for the services they get. However the program has this inherent problems: y Communication problem on the part target market especially the non-Zain users: this is because of how technical the nature of the offer is and could thereby be perceived as too complicated to be easily understood. y Consumer disinterest/apathy/fatigue with the program could arise because of the difficulty in understanding and comprehending the offer to be at their finger tips y Cost of incentives: though the telecommunication firms have a wider opportunity to revenue generation but I still find it difficult to agree with the ability of Zain Nig. To be able to fulfill the entire offer they are proposing to give to the consumers as rewards.

It may result to slow response from consumers because it may be perceived to be too good to be true