FORMATION OF A LOYALTY SYSTEM IN THE TELECOMMUNICATIONS SERVICES MARKET

Abstract

The article examines and systematizes the main theoretical foundations for developing a customer loyalty system in telecommunications companies amid high competition and market digitalization. The key conceptual categories of the research are reviewed, including customer satisfaction, loyalty, loyalty programs, customer retention, and churn rate. The study identifies the specifics of loyalty formation in the telecommunications market, taking into account the reduction of switching barriers between mobile operators, the development of digital communication channels, and the transformation of customer loyalty. Loyalty programs are analyzed as a tool for customer retention and for creating additional value for consumers. The concept of customer lock-in is also considered, including contractual, economic, technical, and psychological mechanisms, as well as data-based lock-in. The role of digital approaches to customer relationship management is substantiated by the RACE model and the TOFU-MOFU-BOFU content funnel in building long-term customer relationships. Particular attention is paid to the hybrid customer experience and the specifics of evaluating customer loyalty across various communication channels. The article proposes an adapted hybrid loyalty model tailored to the specifics of the telecommunications market. The adapted model incorporates the division of digital channels into self-service (mobile applications, websites, chatbots) and assisted interaction (call centers), the impact of loyalty programs as additional touchpoints, and the role of critical situations in shaping customer satisfaction and loyalty. It is established that an effective customer loyalty system should be based on a comprehensive combination of digital, behavioral, and economic mechanisms influencing consumers. The results obtained can be used to further improve practical approaches to customer loyalty management in telecommunications companies and may also be adapted to other industries, taking into account the specifics of customer behavior.