I’ve converted…
I've converted. Not religions...wireless carriers.
Two weeks ago, after a decent bit of agonizing, I switched from Verizon to T-Mobile, and so far, I couldn't be happier.
I'd been a Verizon customer since the early 2000's, around the same time they launched the now-legendary "Can You Hear Me Now" campaign. That campaign became iconic for a few reasons, and not just because the tagline was memorable. Back then, wireless network reliability and call quality were a very mixed bag, so much so that wireless phones were not considered serious candidates to replace wireline phones anytime soon.
Verizon's campaign worked because they had credibility - a significantly better network than other carriers in most geographic areas. In fact, I briefly switched to AT&T in 2007 and switched back to Verizon a few months later because of all the dropped calls. Verizon's promise of a better network both mattered and was credible given their well-earned reputation.
Verizon's customer service was icing on the cake, particularly for business owners. Upgrade discounts every 2 years and warranties on accessories purchased through Verizon made business customers feel valued over time.
20 years later, things look very different. Across the industry, reliability and call quality have gotten good enough that over 3/4 of U.S. homes are wireless only. As a side note, while representing local wireline phone companies (the former Baby Bells) in regulatory proceedings in the late 90’s and early 00’s, we regularly argued that wireless service was already competing with wireline and would become even more competitive in the near future. Unfortunately for our clients, that argument didn’t resonate with regulators at the time. Nobody would question it now.
But back to Verizon…
Their reliability and call quality are no longer significant differentiators. Once I was ready to upgrade phones this year (including two that were 6 years old), the best they would offer was a nominal discount off of new iPhones. And that was even after I told them T-Mobile would provide up to 5 new iPhones for free plus a slightly lower monthly bill and a few other perks. None of the reps I spoke with seemed to show any interest in finding a way to keep me. Their loss…I took the plunge.
Since the switch, T-Mobile's network has been every bit the equal of Verizon's, including on a recent road trip from NC to Tennessee and Kentucky. And the icing on the cake...every T-Mobile employee I've spoken with (at least 10 counting phone reps and in-store as we migrated multiple phones, Apple Watches, and iPads) has been excellent. I've been very impressed.
Very few organizations that size can pull off that level of consistency in mass market (i.e., non-premium, non-luxury) customer experience. And even if you get there, it's hard to sustain (just ask Southwest Airlines).
So here are a couple of interesting questions to consider:
T-Mobile's motivation to up their game has been high while chasing Verizon for top market share in the U.S., and they're now very close. What will it take to sustain that motivation and commitment if/when they overtake Verizon?
Verizon built its brand value on a promise (better network) that mattered and they could deliver. If they can't deliver a better network because T-Mobile has caught up, can they find a new promise that will matter to customers and they can deliver? If not, they have a tough road ahead.
It will be interesting to see how this plays out over time. Curious to hear your thoughts and experiences...
