In a strategic overhaul of its loyalty initiatives, Verizon introduced new rewards and loyalty programmes designed to increase and enhance customer engagement through multiple touchpoints, including a monthly accrual of “Verizon Dollars,” weekly sweepstakes, and daily “Verizon Shine” promotional drops in the My Verizon App. The well-timed drop capitalised on the operator’s FIFA World Cup sponsorship with a sweepstakes to attend the final with David Beckham.
The Verizon Shine programme serves as a gamified extension of the rewards programme, offering daily merchandise giveaways, event tickets, and gift cards. Weekly in-app “once in a lifetime” opportunity sweepstakes launch every Monday and include trips, meet-and-greet opportunities with celebrities and exclusive tickets to major sporting events, starting with the chance to attend the World Cup Finals with David Beckham. The company also promises daily deals from partners such as free coffee or discounts at restaurants and retailers. To get in on those, customers will need to check in daily. Aside from the daily and weekly incentives, device upgrade and activation fees are waived for any postpaid customer to join the reward program, regardless of plan.
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Starting in July, Verizon will reward both home and wireless customers with 3% back in Verizon Dollars on their monthly bills. This direct monetary incentive can be used to buy things like devices and accessories from Verizon or can be used to shop with partner merchants who match or multiply the customer’s Verizon Dollar value with incentives of their own.
The Verizon Dollar model could also streamline the path to device purchases. As subscribers accumulate Verizon Dollars, there is an opportunity for Verizon to educate them on leveraging these rewards effectively when considering new devices or accessories. The inclusion of Verizon One customers provides a clear, accumulating discount on device upgrades, which is a key shortcoming observed in AT&T’s OneConnect convergence strategy.
A noteworthy feature of the Verizon Dollars programme is the teased partnerships with other brands. The operator says the collaborations will multiply the value of accrued Verizon Dollars, which creates the kind of hype around potential deals that incentivises ongoing participation. Reports suggest that some partner brands may offer up to 20 times the value, which is the type of offer that could create promotional fodder. The partner programme could go a long way to reducing the reliance on device incentives through the holiday promotional cycle and create Black Friday and Cyber Monday drops that would bring in all customers, not just those looking for a new phone.
The ambitious reimagining of Verizon’s rewards and loyalty programmes is a solid lead into its long-teased overhaul, promising to increase customer satisfaction (and retention). However, success will depend on effective marketing and customer education efforts. An invite to check in daily puts a tremendous amount of pressure on the company to deliver something new and cool every day. That might be a hard sell, but if daily drops are well-executed, the move could quickly elevate the framework and partner network behind Verizon Shine to a T-Life status.
