Why T-Mobile is going all-in on customer rewards

No risk, all reward?

As many brands have pulled back on or devalued their consumer rewards programs in recent years, T-Mobile is doubling down.

This month, the brand is celebrating 10 years of T-Mobile Tuesdays, its customer appreciation program that started as a way to thank all users, Mike Belcher, SVP of partnerships and growth marketing at T-Mobile and the creator of the program, told us.

“We felt at the time that most loyalty programs were really complicated [or] required customers to have to earn their status,” Belcher said. “We set out to change that…It’s really become a defining part of who we are as a company.”

The program is accessed through the brand’s T-Life app, which counts more than 25 million monthly active users, and through it, customers can claim discounts and receive free gifts at T-Mobile stores each Tuesday. To date, the mobile brand has provided its customers with around 1.4 billion perks from 500-plus brands, Belcher said. To celebrate the 10-year anniversary, T-Mobile is bringing back fan-favorite parks, giving out swag, and hosting events like a T-Pain concert as part of what it’s calling Member Month. The brand is also relaunching T-Mobile Travel, which offers discounts on hotels and rental cars, as part of the broader T-Life app.

Customer centrality is a big component of T-Mobile’s “un-carrier” brand strategy, which positions it as a lifestyle brand and seeks to differentiate it from other wireless providers that may focus on the more technical aspects of their services. The program has helped create some brand envy among customers of other providers, Belcher said, but the focus remains on driving T-Mobile customer engagement and satisfaction.

“We want to be famous for how we appreciate our customers,” he said.

Deals, deals, deals

Belcher said the crux of T-Mobile Tuesdays is for the brand to show its loyalty to its customers rather than the other way around, but the loyalty seems to go both ways. Customers line up weekly at stores and events to get freebies like magenta blankets, of which T-Mobile gave out more than 2 million last December. They also congregate on social media each week to discuss deals and trade discount codes.

Belcher said that 10 years ago, he and his team faced an uphill battle when pitching brands to participate in T-Mobile Tuesdays. Now, he said, brands often approach them, hoping to benefit from the marketing and sales boost that can come from getting in front of T-Mobile’s user base.

When it comes to deciding on which deals to offer, Belcher’s team looks at the save and redemption data from past deals, as well as feedback from customers on social media. The most popular deals tend to be things that have a “meaningful impact on [customers’] daily lives,” Belcher said, which could range from discounts on gas to chicken sandwiches.

“That’s the one thing that we learned,” he added. “People love chicken. Whether it’s a chicken sandwich or chicken wings, it’s extremely popular.”

During Member Month, users can expect more chicken deals, as well as free premium drinks on Delta flights and $1.99-per-gallon gas at select Shell stations in LA, Houston, and Chicago, which could be particularly attractive at a time when fuel prices around the country are soaring. Belcher said T-Mobile has seen steady growth in engagement in the T-Life app and expects to see a “significant uptick” by the end of the month.

As many people struggle to pay for necessities in a K-shaped economy, Belcher believes it’s the “perfect time” to invest in expanding a brand rewards program. In the last 10 years, he said he’s encountered customers who have expressed their gratitude for the savings, whether it’s a $5 movie ticket or a T-Mobile branded spatula.

“It’s just another reminder of these things, they matter,” he said. “And people go nuts to get them.”