Sky VIP is the first loyalty scheme in the TV and broadband sector as Sky looks to reward long-term customers.

Sky is launching a loyalty scheme, the first in the TV and broadband sector, as it looks to reward some of its longest-standing customers amid growing competition from the likes of BT and Netflix.

Launching today (3 August), the Sky VIP app will reward customers for how long they have been with Sky, rather than how much they spend every year, according to chief commercial officer Lyssa McGowan.

The loyalty space is a crowded market as brands as diverse as Marks & Spencer, Virgin and Saga aim to encourage consumers to spend more of their money with their brand. And Sky is the latest to get in on the act with the first loyalty scheme for the broadband and TV market.

Its strategy takes a novel new approach. Rather than reward people for how much they spend, it is saying thank you for how long they’ve been customers. Any current customer can be a member, but the rewards get better based on tenure, with those that have remained loyal for more than 15 years getting the best treats.

It’s a bold move for an industry usually obsessed with attracting new customers rather than retaining old ones. But as has so often been proved, retention is cheaper than acquisition. And with ever more competition in the TV and broadband space, both from traditional rivals such as BT and newer arrivals like Netflix, it is refreshing to see a provider look to remind long-standing customers that they are valued.