[Asia Economy Reporter Seulgina Jo] Starting next month, the controversy over the SK Telecom T Membership revamp changing from 'discount' to 'point accumulation' is heating up with criticisms of 'deterioration' and 'benefit reduction.' The existing system, which provided immediate discounts, is changing to a method where points are accumulated and then used all at once, raising concerns that user benefits will immediately decrease. Will SK Telecom's membership benefits really be reduced?
SK Telecom emphasizes that with this revamp, users will be able to use points all at once without expiration, actually increasing user benefits. The industry also views this not simply as a 'discount → accumulation' change but as a key step toward building a subscription service platform that will be SK Telecom's future growth engine. This is why attention is focused on SK Telecom's moves targeting a broad subscription economy including media, commerce, and education.
◆'Discount → Accumulate then Use'... Why Are Customers Complaining?
According to SK Telecom on the 10th, this membership revamp is the first in 24 years since launching the first mobile carrier membership service, '011 Leaders Club,' in 1999. The core change is shifting from a discount-focused system with partners to a point accumulation and usage-centered system.
For example, previously when purchasing a 1,000 won bread at a franchise bakery, customers could get an immediate 100 won discount on the spot, but now 100 points will be accumulated instead. The accumulated points can later be used all at once at any desired location, not necessarily the same store.
Immediately after the announcement, T Membership users have protested, saying the benefits have effectively decreased. Customers who want immediate discounts on-site naturally feel dissatisfied with having to accumulate points and use them later. Netizens have criticized, saying "More points will be lost due to forgetting to use them," and "A trick that forces at least two purchases for what used to be one." Additionally, the fact that the new accumulation rates are the same as the existing discount rates has also come under scrutiny. Currently, the number of T Membership subscribers is estimated to be about 14 million.
◆SKT Takes Steps to Evolve: "2,000 Points at Membership Start... Double Accumulation Benefits"
SK Telecom appears clearly unsettled by the controversy. They hurriedly revealed some new partner stores and additional accumulation benefits that were originally planned to be disclosed with the membership revamp in August.
In response to criticism that users cannot enjoy benefits immediately due to having no initial points, SK Telecom decided to grant 1,000 points uniformly to all participants through a 'pre-accumulation event' this month. Some customers will receive up to 50,000 points by lottery. Additionally, before the membership revamp next month, all customers will receive another 1,000 points. This allows users to freely use at least 2,000 points from the start of membership.
Furthermore, SK Telecom will run an event doubling the accumulation rates at 14 preferred partner stores for membership users. At convenience stores CU and 7-Eleven, 20% of the purchase amount can be accumulated; at franchise bakeries Paris Baguette and Tous Les Jours, 20% and 30% respectively. The accumulation rate at family restaurant VIPS is 40%, Domino's Pizza 50%, and Lotte World 60%. New partners such as coffee brand Paul Bassett, Green Car, and About Pet have also been added.
SK Telecom explained, "All customers will be able to experience a 2,000-point discount benefit on their first use after the revamp, along with accumulation benefits on the remaining amount, so they can accept the new membership program without inconvenience. During the launch period in August and September, we will operate promotions that provide double the existing accumulation rates weekly."
Additionally, from September, events are planned where customers can use their points with benefits up to 10 times. For example, promotions allowing purchases of products worth 130% of the points at membership partner stores and events offering benefits up to 10 times the points held will be operated to significantly enhance the perceived value of using accumulated points.
SK Telecom emphasized, "We plan to make high accumulation and high usage promotions a regular monthly event, not a one-time occurrence."
◆"Points Without Expiration" as a Foundation for Expanding SKT Subscription Services
SK Telecom drew a clear line against the controversy over 'breakage revenue,' where unused points could be exploited to fatten corporate profits. Instead, their policy is to prevent points from expiring unused.
Accordingly, the validity period of points is set to 5 years. Using artificial intelligence (AI), they will analyze customers' frequently visited areas and preferred benefits to provide personalized recommendations tailored to individual tastes, ultimately operating as 'points without expiration.' The newly revamped membership points can also be gifted up to 100,000 points at once to family or friends.
The reason SK Telecom undertook this membership revamp is their internal judgment that the utilization of the membership, which was mainly discount-based with partners, was very low. In particular, concerns that the current telecom membership system is not keeping up with customers' changed lifestyles in the COVID-19 era also motivated the revamp.
Moreover, as SK Telecom positions itself as an AI subscription company, utilizing the approximately 14 million membership customers is essential in building the subscription service platform. Linking with future subscription services will not only attract users but also maximize a kind of lock-in effect.
SK Telecom will unveil the membership revamp plan along with the subscription service 'Uju' in August. Accordingly, the use of points is expected to expand beyond current offline partner product purchases to diverse subscription economies including online partners, F&B, beauty, and flowers. Integration with SK Telecom's commerce platform 11st, OTT service Wavve, and cloud services is also anticipated.
An SK Telecom official said, "This T Membership revamp was planned to provide more benefits in line with customers' changed lifestyles in the COVID era. We will spare no cost to support services that enable reasonable consumption through expanded membership partners and operate them on a large scale. We ask customers to look forward to the service launching in August."
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