domingo, 5 de enero de 2014

T-Mobile's Real Target With Fast Phone Upgrades: Influencers

If you had told me, when the FCC slammed the brakes on AT&T's attempted merger with T-Mobile, that I would soon seriously consider switching to the nations fourth-largest carrier, which was set adrift in the wake of the scuttled deal, I would have said you were crazy.

But here I am, about a year and a half later, thinking about doing just that. The main reason: T-Mobile has just introduced a new program called Jump (which unofficially stands for "just upgrade my phone") that lets customers upgrade their phones up to twice a year. Jump, which costs $10 month and includes insurance, lets any customer trade in the phone they have and get new-customer pricing on a new one.

The program is in stark contrast to AT&T and Verizon's upgrade policies. Both carriers recently extended upgrade periods from 18 to 24 months. That means you can't upgrade to a new phone without paying full price until your two-year contract is up.

Knowing Your Audience

When T-Mobile CEO John Legere, who's really working hard to earn the descriptor "maverick," announced Jump at the company's event in New York City on Wednesday, he cited customers who have damaged their phones as the kind of customer who would value the new program. But, during a Q&A at the event, T-Mobile CMO Mike Sievert probably better identified the customers who are most excited about Jump:

"One of the things that really bothers people about [two-year upgrade cycles] is if they're an enthusiast of one of these lines, like the Galaxy line or the Sony line, they've got to generation skip. And people hate that."

He said to a room full of smartphone enthusiasts who hate that.

Legere played the customer-advocate card several times at Wednesday's event, criticizing the U.S. wireless industry (which he does every time he opens his mouth) for being the only field where listening to customers is a unique approach. He repeatedly said T-Mobile's sole guiding factor in its decisions is "listening to the customer."

But I don't think it's any coincidence that T-Mobile's new Jump program is attractive to a small but important subset of wireless customers: influencers. Besides the tech press, there are many technology enthusiasts who want to upgrade to the latest gadget. If you've ever had a friend ask you: "Should I get the new iPhone or the Samsung Galaxy?" you're one of them.

My personal phone is an iPhone 4S. Had my wireless contract allowed an upgrade last fall, I probably would have upgraded to an iPhone 5. Now I anxiously await Apple's next iPhone to make the switch, lest I get locked into a new two-year cycle too early.

Breaking the Cycle

T-Mobile's Jump looks like a pretty good way to get out of this infuriating cycle. It's not magic: It costs $10 a month, and your trade-in must be in good working order or you'll lose your deductible. But to me, that sounds like a pretty good deal if it lets me upgrade every year — and even switch platforms (and maybe try out Android or Windows Phone for a few months).

Of course, I'd have to swallow switching to T-Mobile's network, which has a reputation for not being as larger or reliable as other major carriers'. As the company announced today, though, it's making strides in rolling out 4G LTE (finally), and the recently completed merger with MetroPCS should improve things over the coming years.

I can't be alone. Think about the effect it would have if the majority of mobile enthusiasts and reporters suddenly switched to T-Mobile. It would be a drop in the bucket subscriber-wise, but influencers are called that for a reason.

So here I find myself, strongly tempted to switch to T-Mobile, a position I would've scoffed at just a few months ago. But is the carrier's Jump program just more Kook-Aid, or is it really on to something?

If you're reading this, you're probably an influencer, too. What say you? Share your thoughts in the comments.

Image by Mashable, Meghan Uno

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