Are phone carriers finally taking customer loyalty seriously?

Source: Android Authority

It’s no secret that loyalty has never been particularly important to the big mobile carriers, but there was certainly a time when customer contracts and other incentives created the illusion of fostering loyalty. Because customers were locked to a contract, big discounts and free‑phone promotions were even more common in the early days of the smartphone era as a way to keep people renewing.

Those days are long past, but over the last half‑year I’ve seen hints that carriers may finally be taking customer loyalty—or at least retention—more seriously. Does this mean there’s finally a reason to stick with a postpaid plan, even if a newer prepaid option might offer better value? I wouldn’t go that far, but the mobile landscape is definitely shifting.

Are postpaid carriers finally offering incentives that interest you?

The big three have ramped up customer incentives

Over the last few months, Verizon has offered more customer incentives and loyalty perks than it has in arguably a decade. New promotions that offer free lines to existing customers, steeper loyalty discounts, and similar shifts have made sticking with the carrier a bit more bearable for some users (including myself)【source】.

Likewise, T‑Mobile has recently added three plans that reward loyalty. Two of these plans are aimed at specific customers—typically accounts that are more likely to bolt for another provider【source】. There’s also the Better Value Plan, which offers improved pricing for long‑term customers. This plan is open to new customers as well, but they must meet additional qualification criteria【source】.

AT&T hasn’t been as bold as Verizon or T‑Mobile in rolling out new promotions, though it has promoted discounted internet service for existing customers and has become more aggressive with its marketing.

The big three still don’t care about you personally—retaining customers is simply more important now that prepaid options provide a viable, cheaper alternative for many. Some customers may jump into exciting new offers without doing full homework, giving up older legacy perks in the process. For example, signing up for the Better Value plan means forfeiting any free lines and perks like legacy Insider Access【source】. Once you switch away from a legacy plan, there’s typically no going back; older plans often offer perks or lower pricing that make them less profitable for the company, so newer offers help push customers toward more lucrative plans.

Could this be the beginning of a trend, or just a temporary thing?

The answer depends on the state of the mobile market. If uncertainty persists for the big three, they are likely to double down on retention efforts to keep customers from defecting.

It also hinges on how well new loyalty plans—like T‑Mobile’s—are received. I’d love to see an even bigger push. I remember a time when carriers offered loyalty programs such as Verizon’s “New Every Two” program, which gave customers a $30‑$100 credit at contract renewal, and you could stack these credits. Two‑year contract phone deals were also much cheaper, so keeping a phone for four years often resulted in a free device.

While those systems were built around contracts, similar credits or extras for customers who stick around year after year would be a more effective way to keep people happy than waiting until they complain to offer a discount.

That said, I’m not holding my breath. It’s the first time in years that, as a Verizon subscriber, I don’t feel royally overcharged—just slightly overcharged, which is an improvement. Between a recent free‑line promo and loyalty discount, many customers have seen rates that are much easier to swallow.

I do believe there’s less reason to jump to postpaid than ever before, provided you have a decent legacy plan or a large family. I wouldn’t recommend switching from prepaid to postpaid right now, nor would I suggest jumping to another network. I also don’t expect the current level of retention effort to last forever.

Still, it’s nice to see carriers semi‑rewarding loyalty, even if there are still plenty of catches and gotchas embedded in the process.