Verizon is doubling down on efforts to win back cost-conscious customers with a new offer that lets them avoid two major fees. The move comes as the carrier faces elevated churn in its wireless business.
During an earnings call in January, Verizon CEO Dan Schulman revealed that in the last three years, the company lost roughly 2.25 million customers, mainly due to price increases and elevated competition.
In the first quarter of 2026, Verizon’s wireless retail postpaid phone churn, the amount of smartphone customers who canceled service, also increased by 2 basis points year over year, reaching 0.97%, according to the company’s latest earnings report.
The recent customer losses follow Verizon’s decision last year to implement several pricing and discount changes that sparked backlash.
This includes raising prices for its myPlan and New Verizon Plan accounts, increasing Verizon Mobile Protect Multi-Device and Verizon Mobile Secure Multi-Device plans by $8, and discontinuing loyalty discounts.
Verizon drops new rewards program that erases 2 device fees
Amid recent retention struggles, Verizon has recently unveiled a new loyalty rewards program that helps customers save.
The company’s new Verizon Dollars program rewards customers with 3% back in “Verizon Dollars” every month, which can be redeemed for devices and accessories, according to a recent press release.
Starting in July, Verizon Dollars can also be used as discounts for products and services from brands such as “Sephora, Hilton, Marriott, Starbucks and more.”
Additionally, customers who enroll in the program can skip activation and upgrade fees, saving them up to $40 per device. This comes after Verizon raised its device activation fee from from $35 to $40 last year.
Verizon Dollars also gives T-Mobile’s loyalty program, T-Mobile Tuesdays, a run for its money. Currently, T-Mobile Tuesdays, which recently expanded its offerings, grants eligible T-Mobile customers with perks, steep discounts, and sweepstakes every Tuesday.
Verizon Dollars will drop free offers for customers every Monday, however. This includes “tickets to concerts and sporting events, exclusive merchandise, dining vouchers, gift cards,” and “a chance to win once-in-a-lifetime experiences” for customers on all plans to redeem.
Related: Verizon adds generous offers for customers after price increase
“Customers reward us with their loyalty every month. Verizon Dollars lets us reward them back, on their terms,” said Alfonso Villanueva, interim CEO of Verizon Consumer Group, in the press release.
“Not just some customers, on some plans, but for all,” he added. “Customers earn Dollars every single month just for being with us, and we let them choose how to spend it.”
In a statement to TheStreet, RTMNexus CEO Dominick Miserandino said Verizon is creating a “massive financial trapdoor” for customers by offering 3% back in “Verizon Dollars.”
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“By giving people store credit that can only be spent on accessories, new phones, or select travel partners, Verizon is building a massive financial trapdoor,” said Miserandino. “They are creating an ecosystem where leaving Verizon means walking away from real, tangible money you accumulated on your app.”
He emphasized that the new program will make it harder for customers to leave as they continue to face high mobile plan rates.
“When a customer is tempted to switch to a cheaper network, they will look at their saved up Verizon Dollars and decide to stay put,” he added. “It’s a highly calculated, frictionless strategy to buy loyalty and fix their recent churn issues without actually lowering their base monthly phone rates.”
Verizon is responding to rising cost pressures among consumers
The move from Verizon comes at a time when many wireless consumers are becoming more sensitive to high mobile plan prices amid economic pressures such as inflation, high gas prices, and low housing affordability.
A recent survey from Oxio found that 58% of U.S. consumers reconsider their wireless plans after a price increase, and 79% cite affordability as the top priority when choosing a new carrier.
As more consumers exercise their right to switch carriers when faced with higher prices, loyalty programs have become a huge incentive for many, according to a global survey from Kobie last year.
Features consumers want from loyalty programs:
- Approximately 72% of consumers are more likely to purchase from a brand that offers a loyalty program, while 70% are more likely to remain loyal.
- Also, 81% find the ability to make purchases with loyalty program points appealing, while 90% are attracted to cash back benefits.
- Roughly 85% expressed a desire for better discounts, indicating that small discounts, low-value freebies, or generic promotional offers are no longer sufficient to maintain consumer engagement.
Source: Kobie
“Consumers are sophisticated evaluators of value, especially in an uncertain economic climate where every purchase decision carries more weight,” said J.R. Slubowski, associate vice president of strategic consulting at Kobie, in a press release. “Rising costs and economic pressures have made consumers more discerning than ever, which actually makes loyalty programs more critical.”
“The most successful brands will be those that recognize this moment as an opportunity — consumers are actively seeking partners who can help them navigate financial uncertainty, and loyalty programs that deliver real, measurable value become essential tools for both retention and acquisition in challenging times,” he added.
Related: T-Mobile drops new free perks for customers as pressure builds
