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PhilStar Business

PLDT, Smart partner with Capillary for loyalty platform

PLDT Inc. and its wireless subsidiary Smart Communications Inc. (Smart) have partnered with Capillary Technologies to transform and unify their loyalty ecosystem across mobile, broadband and partner engagement platforms.

Context & Analysis

For the Philippines’ dominant telecom operators, loyalty has become a strategic asset rather than a marketing afterthought. In a market where adding new prepaid users is harder and data plans are often compared side by side, telcos need reasons for customers to stay, upgrade, and buy more services beyond load. A broader rewards approach also reflects the industry’s shift from selling connectivity alone to managing a wider digital relationship that includes broadband, content, enterprise accounts, and third-party offers.

The practical question is whether this move will make benefits easier to understand and use. Historically, telco loyalty schemes can feel fragmented: one set of points for mobile, another for home internet, separate promotions for business customers, and partner deals that are hard to track. If the platform lets customers see their rewards in one place, redeem them across products, and receive offers matched to actual usage, it could reduce confusion and make loyalty feel less like a gimmick. For consumers, the value depends on whether points have real purchasing power, whether tiers are attainable, and whether partner promotions reach smaller merchants as well as national brands.

For businesses, the opportunity is more than advertising space inside a telecom app. A mature rewards ecosystem can create richer first-party data signals about consumption patterns, household needs, and spending preferences. That can help telcos design better bundles, while merchants may gain access to targeted audiences if they join partner programs. The risk is that such systems can become too complex or opaque, especially if customers do not understand how their data is collected, stored, and used. Under the Data Privacy Act, telecoms have clear obligations around consent, transparency, and security, so consumer trust will matter as much as technology.

What to watch next is rollout quality: whether the platform works smoothly across mobile and broadband services, how broad the partner network becomes, and whether rewards can move outside the telco ecosystem without penalties. Competitors may respond with faster promotions or more flexible points, making loyalty a visible price-and-service battleground in the coming year.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: philstar.com

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