New rewards program offers points for online interactions, but requires customers to sign up for Precision Market Insights, Verizon's program to sell customer data to advertisers.

Sarah Thomas, Director, Women in Comms

July 21, 2014

2 Min Read
Verizon Rewards Customers for Their Data

Verizon is launching a new nationwide program that rewards its customers for interacting with it, but -- like most things in life -- it's not giving its customers something for nothing.

Verizon Wireless is positioning the program as an innovative way to reward customers, but it helps Verizon too. At launch, most of the rewards seem to be for doing things online, like using the Verizon online account management tool, paying monthly bills, using the Verizon Trade In program, or choosing paperless billing. That's all good for Verizon in that it helps cut down on costly service calls and makes sure its customers are paying on time without a paper bill.

Where it gets more interesting is that in order to participate its customers must be enrolled in Verizon Selects, part of the carrier's Precision Market Insights program that sells aggregated customer information to marketers looking to target their ads. Verizon Rewards becomes a clever way for it to get more eyeballs for its opt-in program. (See Big Data Attracts Big Dollars, New Faces.)

Some may see that –- more relevant ads! -- as a perk in itself, but it's already made others uncomfortable since it can include data down to browsing history, location, and app usage.

Verizon is offering additional points for each line opted in for as long as customers stay opted in. It's possible it hasn't had that great a level of sign-ups for its privacy-bending program, so this is likely one way it's trying to persuade more people to get on board. Even if we hate ads, it's a proven fact that people love free stuff.

Verizon says that any postpaid customer can sign up for the rewards program starting on Thursday and get 10,000 points out the gate. The points they earn are then redeemable for discounts on merchandise, coupons from local retailers, Verizon gift cards, and other deals, which it says will evolve over time.

The ad angle aside, Verizon is taking a cue from C Spire , which has had a similar program, PERCs, in place for years now. It doesn't require backend changes to the carrier's policy or charging functions, and a spokeswoman says it's run by a vendor that administers the points and manages the merchandise catalog. (See C Spire Lets SPIT Percolate and C Spire's COO Sees the Percs in SPIT.)

The program won't appeal to everyone who wants a more hands-off relationship with their carrier, but rewards will be enough to entice some people and greatly reward Verizon in the process.

— Sarah Reedy, Senior Editor, Light Reading

About the Author(s)

Sarah Thomas

Director, Women in Comms

Sarah Thomas's love affair with communications began in 2003 when she bought her first cellphone, a pink RAZR, which she duly "bedazzled" with the help of superglue and her dad.

She joined the editorial staff at Light Reading in 2010 and has been covering mobile technologies ever since. Sarah got her start covering telecom in 2007 at Telephony, later Connected Planet, may it rest in peace. Her non-telecom work experience includes a brief foray into public relations at Fleishman-Hillard (her cussin' upset the clients) and a hodge-podge of internships, including spells at Ingram's (Kansas City's business magazine), American Spa magazine (where she was Chief Hot-Tub Correspondent), and the tweens' quiz bible, QuizFest, in NYC.

As Editorial Operations Director, a role she took on in January 2015, Sarah is responsible for the day-to-day management of the non-news content elements on Light Reading.

Sarah received her Bachelor's in Journalism from the University of Missouri-Columbia. She lives in Chicago with her 3DTV, her iPad and a drawer full of smartphone cords.

Away from the world of telecom journalism, Sarah likes to dabble in monster truck racing, becoming part of Team Bigfoot in 2009.

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