New York • Verizon Wireless is launching a nationwide loyalty program this week for its 100-million-plus subscribers. There's a twist, though: To earn points for every dollar spent, subscribers must consent to have their movements tracked so the company can help target ads that match their interests.
Verizon is the first wireless carrier to roll out a comprehensive rewards program, and it's expecting big benefits from it. The program has already been offered for a few months in some states. Jeffrey Nelson, vice president of wireless marketing, suggested that even that limited program helped with customer retention, though he didn't provide details. On July 10, Verizon said customer retention was "very good" in the second quarter.
Because nearly every adult American now has a cellphone, the industry is past its days of heady growth. Any new customers have to be lured over from other carriers, and defending the customers you have against such overtures is paramount.