Verizon’s Customer-First Shift: A Gamble for Future Growth?
When Dan Schulman took the helm at Verizon last October, he signaled a significant cultural shift: prioritizing customers over pure profit. This isn’t just marketing speak; it’s a response to a worrying trend – a rising churn rate, indicating customers are increasingly willing to switch carriers. The question now is whether Schulman’s strategy, which includes leveraging AI for personalized experiences and simplified plans, can reverse this course and secure Verizon’s position in a fiercely competitive market.
The Churn Rate: A Warning Sign
Verizon’s postpaid phone churn rate, the percentage of subscribers leaving for competitors, has been steadily climbing. In the fourth quarter of 2020, it stood at a remarkably low 0.76%, demonstrating strong customer loyalty. However, by the fourth quarter of 2025, that figure had risen to 0.95%. This increase, while seemingly small, represents a significant shift in customer behavior and a potential loss of revenue for Verizon.
The Power of a Simple Offer: A Reddit Case Study
A recent example highlights the potential impact of attractive offers. A Verizon subscriber shared on Reddit a surprising proposition: a free Pixel 10 Pro in exchange for only the sales tax ($60). No trade-in required, no new line needed. This kind of deal, while not widely publicized, demonstrates a willingness to incentivize loyalty – a tactic Schulman seems keen to expand.
Should You Grab the Bait? Free Phones and Contract Extensions
Offers like the free Pixel 10 Pro are a double-edged sword. While appealing, they typically arrive with a three-year contract extension. For customers already planning to stay with Verizon, it’s a win-win. However, it’s crucial to weigh the benefits against the commitment. The availability of such offers may also indicate Verizon’s inventory challenges, with a surplus of devices like the Pixel 10 Pro that aren’t as popular as Apple or Samsung models.
Beyond Free Phones: The Need for a Robust Rewards Program
Schulman’s vision extends beyond one-off promotions. The core issue is building sustained loyalty. Currently, Verizon’s perks – Netflix, HBO Max, Disney+, Hulu, ESPN+, and Apple Music – all come with a $10 monthly fee each. This contrasts sharply with T-Mobile’s T-Mobile Tuesdays, which offers free benefits, attracting new subscribers and retaining existing ones. A long-term Verizon subscriber might question why they should pay for perks readily available for free elsewhere.
What Verizon Needs to Do: A Three-Pronged Approach
- Revamp the Rewards Program: Focus on free perks and benefits, not add-on costs.
- Proactive Offers: More frequent and attractive offers, like the free phone example, to lock in subscribers.
- Device Engagement: A dedicated platform or newsletter showcasing new and upcoming devices to generate excitement and encourage upgrades.
Opportunity in a Shifting Landscape
With AT&T still defining its strategy and T-Mobile facing criticism for its digital transition, Verizon has a window of opportunity to capitalize on the current market dynamics. A customer-centric approach, coupled with innovative offers and a compelling rewards program, could be the key to regaining lost ground and securing future growth.
