Driving Telecom Growth with “Cash Drops”  

In the Canadian telecom market, loyalty often lasts exactly as long as the latest promotion.

Canada’s telecom market is crowded, and customers know it. With three major players and a growing number of low-cost disruptors, the fight for market share is relentless. 

Promotions are everywhere: limited-time discounts, free months of service, gift cards, bundles, and bill credits. 

The challenge lies in earning that hard-to-come-by loyalty.

Most customers are highly price-sensitive and quick to switch providers if a better offer comes along. According to a recent study, as many as one in five Canadian telecom customers consider switching their service every year, driven primarily by cost, service incentives, or dissatisfaction with the value they receive.

Since 2021, the three largest operators have also experienced increasing subscriber churn.

Retail mobile phone subscriber churn (%), 2020 to 2023

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This has created a difficult bind for telecoms. To stay competitive, they need compelling offers, but constant discounting cuts into margins, and still doesn’t guarantee long-term retention. 

It's clear that traditional promotional tactics are beginning to show their limitations.

A growing number of telecom providers are rethinking their approach. Instead of relying on deep discounts or one-size-fits-all incentives, many are turning to payment reward cards. These rewards are flexible, fast, and far more impactful on customer perception. 

In this article, we’ll look at what’s broken in the traditional promotional playbook, why payment rewards work better, and how telecoms can use them to drive smarter acquisition and retention strategies.

The Problem with Traditional Promotions

For years, telecoms have relied on familiar tactics to lure and retain customers - things like a free month of service or a branded gift card. But these strategies come with hidden downsides that can erode both revenue and customer satisfaction. 

Free months lower ARPU: Offering a free month of service might sound generous, but it also means giving up revenue. Over time, this reduces ARPU (average revenue per user), especially if customers hop between providers chasing similar deals.

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With revenues from traditional telecom services in steady decline, and mobile now accounting for a majority share, telecom providers must be especially cautious not to cannibalize this critical revenue stream with overly generous mobile promotions.

Virtual Prepaid Cards: The Loyalty Lever Telecoms Need

Telecoms looking for smarter, more sustainable rewards are increasingly turning to virtual prepaid cards because these programs excel at driving behaviours and incenting specific actions. Payment rewards deliver better value, faster fulfillment, and far more flexibility than traditional promotions: 

• Open-loop cards = universal utility: Unlike closed-loop options, prepaid Visa or Mastercard cards can be used almost anywhere. That alone makes them feel more valuable to the customer, who can choose how to spend their reward.
• Higher perceived value than discounts or gift cards: A $25 cash reward feels more concrete and personal than a small discount on a monthly bill. It also avoids the pitfalls of tying value to a gift card brand the customer might not care about.
• Apple / Google / Samsung Wallet integration: Payment rewards can be issued as either physical prepaid cards or virtual prepaid cards delivered via email or SMS, whatever suits the customer best. Digitally issued incentives at the moment of engagement work best.
• Works for both acquisition and retention: Whether the goal is attracting new customers or encouraging loyalty among existing ones, prepaid cards are a versatile and easily understood reward mechanism.

“Cash Drop” Use Case: Drive Subscriber Behaviour with Payment Rewards

One of the most innovative applications of virtual cards in the telecom space is the delivery of surprise “cash drops” to customers via email or SMS. This requires no app or intermediary - customers receive the email, click the link, activate their card, and add it to their Apple / Google / Samsung wallet immediately. 

These ongoing email rewards can be triggered by key customer milestones (e.g., 6-month, 12-month tenure), behaviors (e.g., plan upgrades, autopay enrollment), or marketing engagement (e.g., completed surveys, referrals).

Instead of offering one-time discounts, telecoms can reinforce long-term value with recurring incentives that show up directly in a customer’s inbox or as SMS messages—incentives they can use online, in-store, and in their mobile wallet. 

This model not only improves retention and satisfaction but also creates habitual engagement (monthly or quarterly), making the customer “stickier” over time.

Imagine a message like: “You Just Got a Cash Drop! Thanks for Being a Subscriber for 6 months!”  

That moment of delight is memorable, measurable, and margin-friendly.

Why Telecoms Love Berkeley’s Solution

Telecoms that use Berkeley’s payment reward platform get a system built for flexibility, speed, and security, without the operational friction that usually comes with running promotions at scale.

It’s a practical, streamlined solution that avoids many of the pitfalls of traditional incentives while giving teams more control, insight, and adaptability:

• Instant issuance means no delays, no inventory: Berkeley creates cards on demand. There’s no need to manage stacks of pre-printed inventory. Physical cards can be shipped when needed, and virtual cards can be issued instantly, delivered straight to a customer’s inbox or mobile device, and then pushed onto Apple / Google / Samsung Wallets.
• Options that match your brand: Every aspect of the card can be customized, from logo and color to messaging and campaign details. It becomes a branded experience that keeps your company top-of-mind each time the card is used.
• Incent actions and behaviours - instantly: Funds can be emailed based on triggered events, milestones, or marketing objectives. From “complete your profile” to “refer a friend,” rewards feel immediate and personal.
• Built-in safeguards against fraud: To reduce risk, physical cards are shipped inactive and only loaded with funds once activated. That means even if a card is lost or intercepted, it can’t be used, protecting both your business and your customers. 
• Easy to integrate, easy to manage: Berkeley’s platform can operate as a standalone system or plug directly into your existing marketing stack. That makes it easier to launch campaigns without creating new technical headaches.
• Insight that helps you refine and improve: With detailed reporting, campaign managers can track everything from activation rates to spending behavior. That data turns a one-time reward into a source of ongoing strategic value.

Marketing Friendly, Finance Approved

Telecom providers operate in a high-cost, high-competition environment, where every promotion has to justify its place in the budget. Traditional discounts, like free months or service credits, might win short-term attention, but they also cut directly into revenue. 

Payment card programs offer a different path. Instead of being treated as a reduction in revenue, they can be categorized as customer acquisition or retention costs, making them easier to plan for, track, and approve from a finance perspective. 

These programs also scale easily. Whether you’re running a national campaign or targeting a specific region or customer segment, prepaid rewards can be tailored to fit the scope without adding operational burden:

• Seasonal promotions: During key moments in the calendar, like back-to-school or holiday periods, telecoms often need to act fast to stay competitive. Prepaid card campaigns can be launched and closed quickly, with minimal internal lift, making them ideal for time-sensitive pushes.
• Competitive takeovers: When trying to win customers away from another provider, the offer needs to be compelling and immediate. A prepaid card - delivered instantly and usable anywhere - feels more valuable than a vague discount or a retailer-specific voucher.
• Bundled service incentives: Encouraging customers to upgrade or add services often comes down to perceived value. A universal prepaid reward creates that value without locking the customer into a single brand or experience. It’s a flexible incentive that aligns with different customer needs.

For telecoms under pressure to deliver results without cutting deeper into margins, prepaid card programs offer a rare combination of cost clarity, campaign flexibility, and customer appeal.

Use Case Examples: Telecom Campaign Scenarios

Here’s how telecoms are using virtual and physical prepaid cards to retain customers and win over new ones: 

• Winback Campaigns: Customers leave for all kinds of reasons, but a well-timed offer like “come back and get a $25 prepaid card you can use anywhere” can reignite interest without lowering your price point. It turns a re-engagement effort into something that feels like a thank-you, not a plea.
• Referral Rewards: People trust their friends more than they trust marketing. That’s why referral rewards work best when they feel simple and fair. Offering a prepaid card to both the referrer and the new customer creates a win-win. 
• Bundle Upsell Incentives: Getting customers to upgrade or add services is all about showing value. A prepaid card adds a clear benefit without adding friction, especially when it doesn’t tie them to a specific store or product. “Upgrade to our premium package and choose your reward card” feels like a good deal.
• Churn Reduction Programs: When someone’s contract is up, you have one last chance to convince them to stay. “Renew now and enjoy $25 on us” is easy to understand, quick to deliver, and hard to ignore. It’s a small gesture that sends a bigger message: we want to keep you around, and we’re willing to show it.

Instead of cutting into the value of your core service, virtual cards add something extra. And that shift—from discounting to rewarding—can make all the difference when loyalty is on the line.

Cut Through the Noise with Instant, Valuable Rewards

Price wars might grab attention, but they rarely inspire loyalty. Telecoms need smarter tools that help them retain value while still delivering real, tangible rewards.

Berkeley’s payment card programs offer a more sustainable way forward: secure, scalable, and designed with the customer experience in mind. With instant delivery, full brand control, and built-in fraud protection, they support acquisition and retention without eating into your margins.

Move beyond short-term incentives and give your customers a reward they actually want, and your team the tools to deliver it quickly and confidently.

Contact us and learn how Berkeley can support your next campaign.

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