<\/p>\n
T-Mobile is reversing course on two recent policy changes that sparked backlash because the updates restricted customer discounts. The move follows an uptick in customer losses in recent months.\u00a0<\/p>\n
Customer retention has been an ongoing challenge for T-Mobile as consumers nationwide grow more sensitive about high prices. This has led to higher competition among carriers over the past year.\u00a0<\/p>\n
T-Mobile CEO Srini Gopalan revealed during an earnings call in April that the company\u2019s postpaid phone churn, the rate at which customers are canceling their postpaid phone service, spiked by 3 basis points year over year.\u00a0<\/p>\n
Even though this uptick followed recent price increases from the carrier, Gopalan said that increased competition was a main factor.\u00a0<\/p>\n
\u201cJanuary was particularly competitive and particularly heavy in one-dimensional competition based on subsidies,\u201d said Gopalan. \u201cI think February and March and going into April, we have seen some cooling down of that environment.\u201d<\/p>\n
More T-Mobile customers threaten to leave after discount changes\u00a0<\/p>\n
In February, Gopalan raised eyebrows when he warned during an earnings call that T-Mobile is rethinking how it rolls out subsidies (device discounts\/promotions).\u00a0<\/p>\n
\u201cOn subsidies, we will always be competitive with phones,\u201d said Gopalan. \u201cIt’s really changing the center of gravity of the conversation to stuff that creates sustained value.\u201d<\/p>\n
By April, T-Mobile added two major restrictions to device promotions. First, it limited most promotions to use only twice per customer account instead of four times, according to a report from The Mobile Report. Second, it stopped allowing most free mobile lines to receive device promotions.<\/p>\n
Related: T-Mobile tests customer loyalty with another fee hike<\/p>\n
These changes sparked backlash, with some customers taking to the social media platform Reddit to claim they are switching carriers as a result.\u00a0<\/p>\n
\u201cLimiting promos to 2 devices per account is hilariously counterintuitive. You’d think they’d wanna encourage people to get as many lines on those promos as possible and lock them in for 2 years at a time,\u201d wrote one consumer.\u00a0<\/p>\n
\u201cTime to ditch T-Mo during next upgrade cycle and need to take serious look at US-Mobile,\u201d wrote a T-Mobile customer.\u00a0<\/p>\n
\u201cWell, the argument to leave just got better…pretty silly stuff here. Another reason to buy phones from manufacturers, management has lost the plot,\u201d wrote another customer.\u00a0<\/p>\n
T-Mobile recently faced sharp customer criticism over recent limitations on device promotions.<\/p>\n
Helen89/Shutterstock<\/p>\n
T-Mobile walks back device discount restrictions\u00a0<\/p>\n
Now, it appears that T-Mobile has heard the criticism loud and clear as it has quietly reversed these changes, according to a recent report from The Mobile Report.<\/p>\n
When viewing T-Mobile\u2019s latest iPhone deal on its website, it states the promotion can be redeemed up to four times per account. This means that four lines on one account can get new phones using this same deal.\u00a0<\/p>\n
T-Mobile reportedly decided to make this change after receiving employee complaints about limiting promotions to two per account. Sales representatives claimed that the restriction made it more difficult for them to earn commission on these transactions.\u00a0\u00a0\u00a0<\/p>\n
In addition to walking back this decision, T-Mobile slightly reversed its recent limit on device discounts for free lines.<\/p>\n
More T-Mobile News:<\/p>\n
T-Mobile customers set to receive a significant network upgradeT-Mobile revives free perk for customers amid challengesT-Mobile adds convenient new offering for customers<\/p>\n
As mentioned earlier, T-Mobile banned most free lines from receiving device promotions with a few caveats. Customers who are enrolled in the carrier\u2019s Yearly Upgrades program, or obtained free lines through “Third line free\u201d and Buy One Get One (BOGO) deals at the time of activation, are exempt from this rule.\u00a0<\/p>\n
While this change is still in effect, T-Mobile has lessened the blow for customers by allowing those who received “Line On Us” free lines years ago to be eligible for device promotions again. The name of this promotion has been changed to \u201c3rd Line Service Promo with New Line.”<\/p>\n
Despite this change, device promotions remain restricted for BOGO lines. When it is time to upgrade devices, the free line out of the two won\u2019t be able to receive device promotions.\u00a0<\/p>\n
The move from T-Mobile comes as phone upgrades remain challenged across the wireless industry. This is mainly due to consumers holding onto their current devices for longer, according to a\u00a0Reviews.org survey last year.<\/p>\n
How often Americans replace their smartphones:Americans typically hold onto a smartphone for about two years and five months.The iPhone 13 is the most widely owned iPhone model among U.S. consumers.The leading factors driving phone upgrades are: improved speed and performance (22%), battery-related problems (18%), and wanting access to newer features (13%).Only about 6% of consumers said trade-in deals or better contract options push them to upgrade their phones.\u00a0When purchasing a new smartphone, 47% pay the full cost up front, while 36% finance it through their cell phone carrier.
\nSource: Reviews.org<\/p>\n
In a statement to USA Today, Kelly Huh, a staff writer at Reviews.org, said that each new smartphone\u2019s promotional campaign \u201cmakes you think that people are always upgrading their phones and getting the latest one.\u201d However, the latest survey shows that \u201cpeople aren\u2019t going for the latest and greatest phones.\u201d<\/p>\n
\u00a0\u201cThey\u2019re getting a phone used, or getting a hand-me-down,\u201d she said.\u00a0<\/p>\n
Related: T-Mobile lifts a frustrating perk restriction for Costco members<\/p>\n
#TMobile #rolls #customer #discount #backlash<\/p>\n","protected":false},"excerpt":{"rendered":"
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