Verizon debuts new plan, loyalty program in battle for customers

The freebies competition is heating up among U.S. wireless carriers.

On Tuesday, Verizon Communications Inc. announced it’s launching a simplified wireless service plan while also introducing a new loyalty rewards program, which will offer free and discounted deals to existing customers.

The moves are the first major changes to Verizon’s consumer-facing offerings under Dan Schulman, the company’s new chief executive officer, who has promised to shake up the largest U.S. wireless carrier and reinvigorate its growth.

The Simplicity plan will allow customers to sign up for the network with a minimal number of choices at the outset, the New York-based company said in a statement Tuesday. Its current My Plan offerings, which range in price, require customers to choose one of three network tiers and then select add-on bundles.

While the My Plan pick-and-choose matrix isn’t going away, some customers have expressed frustration with the process and would prefer to make a single decision, said Alfonso Villanueva, who heads the company’s consumer group. During an initial promotional period, Verizon will offer the new $45-a-month plan at a discount for $30.

The company is also rolling out Verizon Shine, a new loyalty program offering weekly sweepstakes for experiences, such as tickets to music festivals, and free giveaways from brands like Starbucks, Arby’s and Dunkin’.

Additionally, Verizon is introducing a new 3% money-back program with rebates that can be redeemed for various discounts and promotional offers from a range of partners.

At the same time, Verizon said it will stop charging $40 activation and upgrade fees.

The changes come as part of Schulman’s broader effort to transform the company, which had seen stagnant growth over the last several years. Speaking recently at the Bloomberg Tech conference, Schulman said customers should expect a “steady drumbeat of improvements” over the next several months.

T-Mobile US Inc., the second-largest U.S. carrier, has found success in wooing customers with benefits unrelated to mobile service. Its signature T-Mobile Tuesday promotions entice people to interact with the brand regularly and have garnered a dedicated fan base. In a tight, highly competitive market, additional perks and incentives are increasingly seen as an important strategy.

For years, according to Villanueva, Verizon emphasized the “rational components” of decision making, such as the strength of its network. “What we didn’t have was a comprehensive effort to engage the customer on an emotional level,” he said.