Segmentation - Cellphone

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Talk and text is now unlimited in plans Verizon makes up for that with the array of data packages they offer. The pricing for data is as follows: $30/1GB, $45/3GB, $60/6GB, $80/12GB, and they are small, medium, large and extra-large. The only negative about the date plans, is they have the largest charge for an overage $15/GB compared to that of Sprint and AT&T. Overall their pricing plans are the best in terms of different choices and packages for use. It shows the dedication and attention Verizon pays to its customers.

CRM Strategy

Verizon has one of the most aggressive, if not the most aggressive CRM strategy in the industry. Based on a USPS study, more than 75 million pieces of mail were sent out to wireline customers by Verizon. The study also talks about how they view different segments of their market. “We often target them with new products or services, realizing that they appreciate the latest gizmos”. This quote from the study referred to generation x customers Verizon markets to. Verizon breaks down its customers into three segments to better reach them. They are as follows: retention/loyalty, winning customers back, and pinpointing the audience and its needs. A key element of Verizon’s retention program is replacing its traditional loyalty program, with a new regional program called “Surprise and Delight”. This new program targets small geographic regions. For example, In the Boston area, customers received a Red Sox videotape due to the large support the Red Sox get from the Boston area.

To win back customers, Verizon uses a multistep program. The first mailing is a letter that verifies that the customer changed service. If the letter doesn’t work, they follow up with a direct-marketing offer such as fee waivers or free minutes. Verizon varies its creative offers based on geography, too. With information about where and why customers are leaving, the company can target an area with personalized offers. This allows Verizon to send a piece that highlights the offering they were looking for. This is great, because it shows that they hear their customers and they not only know how to reach them, but also keep them satisfied and loyal to the Verizon brand.

A successful and profitable company knows the market it operates in and the customers in it. Version proved it knows the market very well. In the third quarter last year, Verizon added 1.5 million users to their network. That equated to a $3.7 million dollar profit. Once, again showing Verizon is only getting stronger and growing with its customers. With this growth, more stores will come to service its customers.

Store Layout

Speaking of stores, Version is transforming its retail stores with the help of Chute Gerdeman (Retail Designer). All 1,700 locations will undergo the change. Now the stores will focus on life styles and how the products can benefit them. This should boost the customer experience to go along with the quality service. Also, in the near future all corporate locations will be converted to “Smart Stores”.

The smart stores will focus more on the lifestyle all together as opposed to products. Right now only Las Vegas, Nevada, Troy, Michigan, and Burbank, California to name a few locations have smart stores. Above, you will see an image from a section of the smart stat.

AT&T

AT&T is the second largest provider of cellphones and is in fact the largest provider of in home phones or a “fixed telephone” a service that certainly isn’t as popular as it once was. It is ranked second in preferred mobile phone provider between Verizon and Sprint. AT&T is a publicly traded company, and has a board of directors that run the company. AT&T is one of the oldest telecommunication companies in the world and that is one way they differentiate themselves from the competition.

Pricing

AT&T is not the cheapest plan option that is offered; in fact it is priced very similarly to Verizon

Below are some of the plans that AT&T offers to its clients (AT&T, 2015):

Lines

Line cost

4G LTE data

Total cost

2

$25 x 2

$15 x 2

$30 w/2GB

$50 w/5GB

$100 w/15GB

$80

$100

$130

3

$25 x 3

$15 x 2

$50 w/5GB

$50 w/5GB

$100 w/15GB

$125

$125

$145

4

$25 x 4

$15 x 2

$50 w/5GB

$100 w/15GB

$10 w/15GB

$150

$160

$160

5

$25 x 5

$15 x 2

$50 w/5GB

$100 w/15GB

$100 w/15GB

$175

$175

$175

AT&T has pricing plans that are very similar to Verizon’s, and again also offer both a contract and no contract options for service. The most popular plan is the AT&T Mobile Share Value Plan, which offers no contract is the lauded as the best option for families but it often gets confusing. They are targeting families with the promise that it will be less expensive for them to buy more data. This is true, but only very large families reap the benefits, without a large amount