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Airtel's Zawadi Points - Illegality
mypesa
#1 Posted : Thursday, May 29, 2014 10:59:02 AM
Rank: Member


Joined: 8/14/2007
Posts: 111
wazuans a company should be accountable for what that promise .No offence but Airtel launched its loyalty program yrs back .Todate its been a game of musical chairs . Every time you dial *796# the reply you get is '''the system is under maintenance thus unable to access you Zawadi pts '''.Loyalty programmes promised by an org/comp are they Legally binding such that one can always proceed n Seek legal litigation in courts ?
Other loyalty programmes from other org eg Safaricom , Nakumatt , Tuskys have been successful .My pt is simple honour what you promise as a company
Any insight welcome on recourse asanteni
Even In The Most Severe Drought In The Jungle Lions Will Never Feed On Grass.
josiah33
#2 Posted : Saturday, May 31, 2014 7:43:53 PM
Rank: Elder


Joined: 1/27/2011
Posts: 1,777
True that.....
Gordon Gekko
#3 Posted : Friday, June 06, 2014 8:18:48 AM
Rank: Elder


Joined: 5/27/2008
Posts: 3,760
A quick way to confirm this is to look at their financial accounts. Safaricom's accounts have an amount for Customer Loyalty as an accrued liability. That means that bonga points have been recognized as a financial outflow by the company.
I have looked for airtel Kenya accounts, cant find them. I have however located the group accounts, which don't mention a liability for this (maybe it is under "Other Liabilities") but on the the basis of this, it is prudent to assume that the loyalty points are not recognized, hence don't exist.
Rankaz13
#4 Posted : Sunday, August 10, 2014 10:27:43 PM
Rank: Elder


Joined: 5/21/2013
Posts: 2,841
Location: Here
Simply dial *326# to access your Zawadi points.
Life is like playing a violin solo in public and learning the instrument as one goes on.
mkenyan
#5 Posted : Monday, August 11, 2014 11:42:00 AM
Rank: Veteran


Joined: 4/1/2009
Posts: 1,883
Gordon Gekko wrote:
A quick way to confirm this is to look at their financial accounts. Safaricom's accounts have an amount for Customer Loyalty as an accrued liability. That means that bonga points have been recognized as a financial outflow by the company.
I have looked for airtel Kenya accounts, cant find them. I have however located the group accounts, which don't mention a liability for this (maybe it is under "Other Liabilities") but on the the basis of this, it is prudent to assume that the loyalty points are not recognized, hence don't exist.

how can they be a liability when despite the fact that there is no way of redeeming them (apart for credit i think) if you don't use them for a certain period they reset to zero?
Stract_Consulting
#6 Posted : Monday, August 11, 2014 12:27:12 PM
Rank: New-farer


Joined: 6/3/2014
Posts: 58
Location: Nairobi
mkenyan wrote:
Gordon Gekko wrote:
A quick way to confirm this is to look at their financial accounts. Safaricom's accounts have an amount for Customer Loyalty as an accrued liability. That means that bonga points have been recognized as a financial outflow by the company.
I have looked for airtel Kenya accounts, cant find them. I have however located the group accounts, which don't mention a liability for this (maybe it is under "Other Liabilities") but on the the basis of this, it is prudent to assume that the loyalty points are not recognized, hence don't exist.

how can they be a liability when despite the fact that there is no way of redeeming them (apart for credit i think) if you don't use them for a certain period they reset to zero?


As long as they are redeemable (even via Credit/Airtime) then they should be treated as a liability and a fair value attached to them (IFRIS 13/IFRIC 13). Note that by awarding loyalty points, the company is deferring some revenue until you redeem it. When you redeem the loyalty points, this amount is recognized as revenue but the company will not receive any cash from this redemption and therefore it should it will reduce the liability amount in it's books.
Be ignorant and ask a few questions - Peter Drucker
mkenyan
#7 Posted : Monday, August 11, 2014 1:41:11 PM
Rank: Veteran


Joined: 4/1/2009
Posts: 1,883
Stract_Consulting wrote:
mkenyan wrote:
Gordon Gekko wrote:
A quick way to confirm this is to look at their financial accounts. Safaricom's accounts have an amount for Customer Loyalty as an accrued liability. That means that bonga points have been recognized as a financial outflow by the company.
I have looked for airtel Kenya accounts, cant find them. I have however located the group accounts, which don't mention a liability for this (maybe it is under "Other Liabilities") but on the the basis of this, it is prudent to assume that the loyalty points are not recognized, hence don't exist.

how can they be a liability when despite the fact that there is no way of redeeming them (apart for credit i think) if you don't use them for a certain period they reset to zero?


As long as they are redeemable (even via Credit/Airtime) then they should be treated as a liability and a fair value attached to them (IFRIS 13/IFRIC 13). Note that by awarding loyalty points, the company is deferring some revenue until you redeem it. When you redeem the loyalty points, this amount is recognized as revenue but the company will not receive any cash from this redemption and therefore it should it will reduce the liability amount in it's books.

my comment was more tongue in cheek - that they never intend to honour them as they make it impossible to redeem them and at the same time if you don't redeem within a given period of time you lose them. in effect agreeing that it is a con.
jerry
#8 Posted : Monday, August 11, 2014 1:55:10 PM
Rank: Elder


Joined: 9/29/2006
Posts: 2,570
I hear you @mkenya. Any testimony to success in redeeming?
The opposite of courage is not cowardice, it's conformity.
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