“Please, don’t leave, dear customer” ... South Korea’s three telecom carriers court long-term customers

[Financial News] As South Korea’s mobile market nears saturation, the country’s three telecom carriers are stepping up marketing efforts to retain long-term customers. They are expanding experiential benefits beyond discounts on service plans, with offerings ranging from renting out an entire amusement park to inviting customers to popular tourist destinations. The strategy is seen as an effort to prevent existing customers from leaving and build loyalty at a time when attracting new subscribers is difficult.■ From Hwadam Forest to Lotte World: Special perks for long-term customersAccording to the telecom industry on the 18th, LG Uplus will invite 5,000 long-term customers to Hwadam Forest in Gwangju, Gyeonggi Province, on the 19th. The event drew 46,000 applicants, a competition ratio of 9.2 to 1. LG Uplus plans to offer a range of activities throughout Hwadam Forest, including a stamp tour and family photo sessions. It has also continued to offer experiential benefits for long-term customers this year, including musical outings and a water-play event at LEGOLAND.
On the 12th of last month, SK Telecom rented the indoor section of Lotte World Adventure for an exclusive event and invited 3,000 people, including customers with at least 10 years of tenure and their companions. In August, it held “Table Day,” where renowned chefs showcased their cooking. SK Telecom CEO Jung Jae-heon personally visited the event venue to greet customers. Jung has been focusing on retaining long-term customers, attending “Forest-cation Day” in May as well. The company plans to exclusively rent a venue for a performance of the musical Chicago in December.
KT is also expanding its sports and cultural experiences. At a recent friendly match involving the national soccer team, it held family events, including a “player escort” experience in which 88 children of long-term customers entered the stadium alongside the players, as well as outings to watch baseball at KT Wiz Park.■ New subscriber acquisition hits a limit; retaining existing customers becomes more importantSlowing growth in the mobile market is behind the three telecom carriers’ focus on long-term customers. With the number of new subscribers declining, long-term customers can be seen as a stable source of revenue for telecom companies. When a customer switches to another carrier, the revenue generated by that line disappears, and the company must spend more on marketing to attract new customers to replace them. Retention is especially important for customers who use internet, IPTV and family bundle plans together, since the departure of one customer can lead to multiple services being canceled.
“As the mobile market nears saturation, retaining existing customers has become just as important as attracting new subscribers,” an industry source said. “Because long-term customers provide a stable revenue base, competition among telecom companies to differentiate their marketing and build customer loyalty will become even fiercer.”
[email protected] Yun Hong-jip Reporter