T-Mobile: Reaping Rewards with T-Mobile Tuesdays

 

Campaign Summary

T-Mobile has been differentiating itself in the telecommunications market as the “Un-Carrier” since 2012, offering consumers mobile service without a contract. When it developed a customer loyalty app several years later, it wanted to provide customers with the same no-strings-attached service. “T-Mobile Tuesdays” was the relaunch of that app, which showcased new deals and brand partnerships on a weekly basis to keep users coming back, and drive critical brand metrics such as engagement, satisfaction, and likelihood to recommend.

Strategy

Objective and Context:

T-Mobile launched a customer appreciation program powered by a mobile app to differentiate itself from its larger competitors, but quickly learned that consumers didn’t trust loyalty programs. Research showed that 72 percent of consumers felt loyalty programs exist simply to squeeze more money out of them and 90 percent of all social media comments about loyalty programs were negative. T-Mobile reimagined the program and app to present consumers with a new model of loyalty program, with objectives to increase customer engagement, satisfaction, and likelihood to recommend T-Mobile, and reduce churn.

Target Audience:

The campaign’s core target was millennials, the brand’s fastest growing subscriber base. Research showed that millennials check their phones up to 86 times a day, so T-Mobile’s loyalty program was completely focused on mobile media.

Creative Strategy:

In 2016, T-Mobile Tuesdays redefined customer appreciation by moving away from points and required purchases. The brand removed the usual strings attached to customer appreciation, and provided weekly thank-you gifts to all participating customers. Consistently updating the app with new content, deals, and partner brands was vital to maintaining engagement throughout the campaign. In 2017, T-Mobile revamped the program by providing an easier experience to redeem rewards, as well as partners and offers that spoke to consumer passions.

Execution

Overall Campaign Execution:

The app was designed for flexibility, allowing T-Mobile to change redemption steps based on the partner featured that week, creating customized, streamlined experiences week after week. It also allowed for easy in-store redemption, giving the user complete control over how they wanted to experience the program.

Mobile Execution:

The campaign was almost exclusively mobile, as the app was the destination T-Mobile wanted to drive customers to. By updating the app on a weekly basis, the brand was able to insert itself at the intersection of tech and pop culture and appeal to its target audience’s passion points. Roughly 80 percent of the overall campaign budget was dedicated to mobile.

Results (including context, evaluation, and market impact)

The revamped T-Mobile Tuesdays campaign met or exceeded all of its objectives:

  • 21 percent increase in program participation
  • 202 percent increase in registration conversion
  • 25 percent higher redemption rates
  • 27 percent decrease in program churn
  • 28 million app downloads
  • More than 90 million redemptions
  • 13 percent increase in customer satisfaction
  • 20 percent increase in T-Mobile customers’ likelihood to recommend

T-Mobile has more than doubled both its revenue and customer base over the last few years:

  • From 33M customers in 2012 to 73M today  
  • 18 quarters with over one million new customers obtained
  • 15 quarters leading the industry with postpaid phone growth
  • From $5 billion quarterly to $10 billion in total revenues Q2 2018

Furthermore, the churn for T-Mobile’s loyalty program has been cut in half, and the brand went from No. 4 to No. 1 in service satisfaction according to Nielsen.


Categories: | Industries: | Objectives: Mobile App, Promotion, Relationship Building/CRM | Awards: NA Bronze Winner, NA Gold Winner, NA Silver Winner, Silver Global Winner