Verizon is making strategic moves to retain its customers amidst challenges from T-Mobile and AT&T. This year, the company is emphasizing customer-centric strategies, seeing personalization as a crucial element in preventing users from switching.
Despite recent price hikes, Verizon believes these adjustments will lead to a more tailored experience for customers through its MyPlan initiative, which allows users greater control over their services. Verizon’s price increases are expected to generate over $1 billion in additional service revenue next year.
However, many customers are holding onto their phones longer, with the average upgrade cycle now exceeding 41 months. This trend raises questions about why manufacturers continue to encourage early upgrades.
A key reason could lie in the partnerships between phone makers and carriers, which may incentivize both parties to push for additional sales during upgrade cycles. Verizon’s Chief Revenue Officer, Frank Boulben, emphasized that upgrades provide an opportunity for the company to upsell existing customers on premium plans, add-ons, and other services.
The company is also leveraging artificial intelligence in its customer service operations to enhance interaction quality, tailoring promotions and offers based on customer conversations. In addition to AI, Verizon is evaluating the potential of satellite connectivity, though demand remains limited.
Boulben indicated that with widespread 4G and 5G coverage, satellite services are often seen as secondary. Verizon is not planning to prioritize this service but intends to offer it as a complement to its existing connectivity options.
Interestingly, while T-Mobile is making strides with innovative satellite solutions, Verizon believes the pricing of such services may deter customer migration. Overall, Verizon’s strategy focuses on personalization and flexibility, aiming to foster loyalty even in a competitive market.