Kenya's Safaricom Builds Up Backlog of Customer Loyalty Points
Published on: 4th Mar 2014
Kenya's Safaricom has revealed that the value of unclaimed tokens in its customer loyalty programme has reached Sh3.2 billion (USD36 million).
The Bonga loyalty scheme was set up in 2007 and customers accumulate points for making top-ups or other suitable transactions. Customers gain one point for each Sh10 spent.
Since it was set up, some 80% of the points have been redeemed by customers through exchanges for additional airtime or mobile services.
However, the outstanding 20% is now worth Sh3.2 billion, and has to be held as a liability on the company's accounts. The company is also not able to record the revenue of points not redeemed when done so against mobile services, which impacts on its headline revenue figures.
The help clear the unclaimed bonus points, the company added a feature last year allowing people to pool their accounts to purchase a large single item.