Is T-Mobile Winning the Loyalty Race in the U.S?

Is T-Mobile winning the loyalty race in the US?

At Mando-Connect we’ve been admiring T-Mobile’s huge play in the US loyalty market: T-Mobile Tuesdays.
The beauty of the programme is its simplicity. Compelling weekly offers from partner brands mean it’s easy
for customers to understand and this in turn is driving high levels of customer engagement.

It’s a win-win: Customers are getting rewards they really want from brand partners, rather than points or discounts from their provider. T-Mobile are driving regular usage and engagement of the programme, and now “own” Tuesdays. They are ramping up engagement levels even further; for example they are asking customers who they would like to see as the next brand partner.

It’s been reported that T-Mobile’s rewards app has been downloaded more than 11 million times. 6 million customers have claimed more than 30 million rewards. Business Insider have reported that T-Mobile have the most loyal customers in the market and the carrier reported a record low branded postpaid phone churn of 1.1% in the latest quarter. We think that T-Mobile Tuesdays must be a major contributor to this success.

They are constantly learning and evolving too; as with all big programmes it hasn’t all been smooth sailing. They learned a hard lesson early on with Domino’s who were overwhelmed with the response for a free pizza offer which caused delays and customer frustration. In turn this quickly led to the partnership being ended. They have since created more high value customer rewards powered by partner brands offering free taxi journeys, fuel and movie tickets and this year the free pizza is back with Papa John’s instead.

So, it appears, for now, T-Mobile are winning the race, but for how long? Verizon are hot on their heels with Verizon Up, offering once-in-a-lifetime experiences, front-row tickets, alongside Apple Music, Uber rides, sports gear, coffee and more. What will T-Mobile do next to stay ahead in the customer loyalty?  Will Verizon, AT&T or Sprint (aptly named) make a surge ahead to the finish line. We will be watching with interest.

 

    Charlie Hills
    MD & Head of Strategy