Keeping customers loyal while attracting new ones is a constant challenge in the highly competitive telecom industry.

Brand awareness ads are important, of course—but they can also be elusive. And alone they're usually not enough to succeed in such a competitive landscape.

That's why proactive telecom companies today are reallocating part of their marketing budgets towards more impactful strategies like incentives.

"Our customer insights indicate that incentives have one of the lowest Customer Acquisition Costs (CAC) while yielding significant impact. By prioritizing incentives, you can ensure that your marketing spend is utilized efficiently, driving tangible results and maximizing ROI."

_ Sofia Baltasar, Giftbit Head of Customer Success
Sofia Baltasar
Giftbit Head of Customer Success



Choosing the right incentives makes it easier for telecom providers to implement successful promotional programs. Here are four proven and scalable strategies that are actively working ‘on the ground’ for Giftbit clients in the telecom sector. 


How to choose the right incentives to lower your Customer Acquisition Costs (CAC)

incentive program table

Icon-Number 1Incentivize People to Switch Providers

Switching telecom providers can be a hassle for consumers. It takes time and effort to change plans, transfer data, and navigate new systems. 

To overcome this consumer inertia, telecom companies can offer high-denomination gift cards. These incentives make the switch worthwhile by providing immediate, tangible value that offsets any perceived inconvenience.

→High-Denomination Cards: Offering gift cards valued at $200, $300, or even $500 can significantly motivate potential customers to switch providers.

→Overcoming Inertia: High-value incentives help overcome consumer inertia caused by habit, brand loyalty, and the costs and hassle of switching providers.


“We've helped telecommunications customers do really successful promotions where they are using prepaid cards as a way of incentivizing provider switching. There's usually a finite population of customers for telecommunications companies, so they need to find interesting ways to compel them to consider switching between the number of providers available in their area."

_ Matt Brossard, Giftbit Business Development Director


Matt Brossard
Giftbit Director of Business Development


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General Enrollment Incentives

Telecom providers often use incentives in their general enrollment strategies. Whether it's a new provider entering the market or an existing provider offering a new type of service, digital gift card incentives can encourage customers to sign up.

→New Service Enrollment: Offering digital gift cards for enrolling in a new service package can attract customers looking for better deals or enhanced services.

→Upgrades and Add-Ons: Incentives can also be used to encourage existing customers to upgrade their plans or add new services, such as additional data or access to premium streaming platforms.

customer service rep answering a call in a telecom company

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Behavior Change Tactics

Encouraging existing customers to change their behavior can be challenging, but targeted incentives can make a significant difference. Telecom companies can use digital rewards to promote actions like switching to online billing, upgrading to new packages, or adopting new technologies.

→Billing Changes: Offering incentives for customers to switch to paperless billing or autopay can reduce operational costs and improve efficiency.

→Adopting New Technologies: Encourage customers to try new services or technologies by offering gift cards for early adopters.

“We've seen some really successful behavior change tactics from our clients. When they want people to sign up for something like a certain kind of billing or package, they'll pair choosing that option with a good incentive and get some really great results."
Matt Brossard

Icon-Number 4Service Recovery

Customers expect timely solutions. Many telecom companies also leverage Giftbit for service recovery, addressing situations when things don't go as planned for their clients. Whether it's a delayed installation technician, a service outage, or any other inconvenience, offering a gift card as an apology can help restore customer satisfaction and trust.

→Apology and Compensation: Using phrases like, "We're sorry you experienced this..." or "We apologize for the delay..." along with a gift card, shows customers that their inconvenience is recognized and valued.

Restoring Trust: Quick, tangible gestures like gift cards can turn a negative experience into a positive one, maintaining customer loyalty and satisfaction.

Don't forget the personal touch. It's the personalized message and apology plus the bonus gift that has the impact. 

For example, here's a sample email template you might write in Giftbit:

sample service recovery email template




  • Incentives must be compelling enough to break customers' habitual loyalty to their current providers and services.

  • High-value gift cards can offset the costs and perceived hassle of switching providers or packages, making the transition smoother and more appealing.

  • Offering incentives for signing up for multiservice packages can help telecom providers differentiate telecom providers and offer more value to customers.

  • Emphasizing the latest technologies and services, coupled with attractive incentives, can help telecom companies stay ahead in a crowded market.

  • If and when things go wrong, a thoughtful apology with a gift card goes a long way. 



Stand out in the competitive telecommunications market

The telecom landscape is increasingly competitive, with new players entering the market and existing providers offering more diverse services to keep up. This disruption makes it essential for telecom companies to stand out with attractive promotions and incentives.

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Giftbit offers an easy-to-use platform and user-friendly API that can simplify the process of running global rewards and payouts. Giftbit makes it incredibly easy to implement a wide variety of incentive strategies that can attract new customers, retain existing ones, and drive desired behaviors. 

Choose from an extensive catalog of global reward options, including popular brands like Amazon, Starbucks, Target, Uber, Apple, charity options, and prepaid Visa and USD Virtual Prepaid MastercardⓇ. Then deliver those incentives any way you like—via email, SMS, social DM, intranet, or embedded in your platform—all around the world. 

Giftbit’s transparent and integration-friendly approach can help telecom companies get effective incentive programs up and running quickly. Reach out to sales to book a demo now.