Earlier this month, Verizon (VZ) made a harsh decision threatening to exacerbate its fleeing customer problem.
The phone carrier began messaging customers warning them that it plans to pull the plug on loyalty discounts on Sept. 1 after gradually hiking phone plan prices over the past year.
These discounts, which usually ranged between $10 and $40, were renewable and were offered to keep customers from switching providers.
Related: Verizon quietly removes two beloved offers amid customer losses
“We are writing to let you know that a discount on your account will soon end,” said Verizon in an email to a customer, according to a recent Reddit post. “This discount will be removed no sooner than September 1, 2025. It is important to us to be upfront and transparent when changes are made to your account. We want to ensure you get the best value and experience from Verizon and encourage you to check out our myPlan options for the plan that works best for you.”
The move sparked outrage from customers, with some even threatening to switch phone providers in response to the change.
Verizon should not take this risk lightly since it lost about 51,000 postpaid phone customers during the second quarter of this year. Also, its wireless postpaid phone churn (the number of customers who cut phone service) remained flat at 0.9% compared to the previous quarter.
Verizon plans a desperate move to keep customers from leaving
A few days after the backlash erupted, Verizon quietly began offering customers via the My Verizon app $20 off per phone line for 12 months.
Now, Verizon may be taking another giant step to mend broken fences with customers after announcing the end of loyalty discounts.
Related: Amazon shuts down free service for customers after 14 years
According to a recent Reddit post, a Verizon customer said several customer service representatives informed them that the company plans to introduce a new loyalty discount program on Sept. 1 that will be specifically tailored to each customer.
Percentage-based loyalty discounts, which will be applied to total bill amounts, will be determined based on the number of lines and plans a customer has on their account.
The alleged plan from Verizon comes after it also recently frustrated customers by hiking the monthly price of its tablet plan by $5. It also recently pulled Apple Arcade and Google Play Pass subscriptions from its 5G Get More and 5G Play More plans.
Verizon battles a growing consumer trend
Many Americans across the country are sick of price hikes, especially when they impact phone bills.
According to a recent report from Doxo, the average amount of money 94% of Americans spent on phone bills per month last year is $121, a 2% increase from what they spent monthly in 2023.
More Telecom News:
- Verizon’s push to make switching harder for customers hits a snag
- T-Mobile announces generous offer for conflicted customers
- Amazon pulls the plug on a free service for customers
Amid more expensive phone bills, a survey from Comcast and Morning Consultant in July found that 1 in 4 Americans (42%) are looking to switch mobile provider within the next 12 months with cost being the biggest factor.
As more Americans explore other options for phone services, Verizon is further focusing on improving the loyalty and retention of its customers.
“We have taken a series of actions to address our elevated churn (the number of customers that ended service),” said Verizon Chief Financial Officer Tony Skiadas during a July earnings call. “On June 24th, we launched initiatives designed to improve the customer experience, including leveraging AI for more personalized support. In addition, we continue to enhance our value proposition and build customer loyalty through the best value guarantee. We provide exclusive access to the best events and experiences, and our Refresh app helps customers maximize the value of their plans.”
Related: Comcast takes drastic action as customers rapidly cut service
