How does the sixth-largest mobile carrier compete with brand giants such as AT&T and Verizon? They come out swinging with a counter-intuitive stroke of brilliance by sticking to the belief that attrition is best fought by completely eliminating contracts for all existing customers. Think about it: a strategy to keep customers in contract by dropping the penalty for breaking out! It’s the perfect irony. Turns out, it is also perfect marketing.
The majority of Americans in the mobile phone market already have a mobile device and contract so carriers are resorting to stealing customers from each other. 82% of American adults own a cell phone, Blackberry, iPhone or other smart phone. The customer’s question has evolved to: what can you do for me that my current provider doesn’t? The mobile market is changing drastically, leaving carriers scrambling for ways to stay ahead of one another. Many carriers are finding out how beneficial it can be to use loyalty programs to invigorate your network of customers and ultimately increase growth.
Teaming up with TIBCO Loyalty Lab, U.S. Cellular brought to fruition its visionary concept, called the “Belief Plan,” powered by enterprise functionality that orchestrates a complex landscape in which most users own multiple lines in different stages of contract cycles.
“Customers can get emotional about their devices. We couldn’t ask associates to play ‘Solomon’ when redeeming points for upgrades, accessories and other rewards,” says John Coyle, Senior Director, Customer Strategy for U.S. Cellular.
The nation’s sixth-largest mobile operator saw exponential growth in customer participation for their “Belief Plans.” Of their nearly six million customers, over 2.3 million signed up for the plan in less than a year since the program’s launch in October 2010. In an independent survey of over 1,000 wireless customers, 90 percent say that carriers should earn their loyalty, not require it through a contract. If carriers should take one thing from U.S. Cellular’s loyalty program, it’s that customers come first. The market is wide open and diverse, so treat your loyal customers with loyalty or another carrier will.
Be sure to watch the video of U.S. Cellular presenting their success story at the TIBCO Loyalty Summit.
