Nowadays there are so many choices when it comes to cellular options. We’ll discuss Verizon Wireless vs. T-Mobile and how they differentiate themselves. T-Mobile tries to lure customers based on price and speed while Verizon’s big pitch is coverage and reliability. This could change though as T-Mobile and Sprint merge. With Verizon and AT&T owning 70% of the market share currently it will be interesting to see how things evolve and companies push to expand their 5G network.
T-Mobile
The company caters to a younger, smaller niche by throwing all the traditional rules out the window. Listening to their customers is something T-Mobile prides itself on and they feel makes them stand out. They cater to an urban demographic who wants more flexibility and don’t want to be tied down with large termination fees and locked phones. Also, the majority of plans are unlimited. As you can see they stand out by projecting a bright pink logo which conveys a subconscious strong image. They also use social media to listen and respond. After making some mistakes early on they learned to engage and resolve not sell. Their primary goals on social are:
- Identify trending issues & monitor customer sentiment
- Allow tough conversations to take place
- Offer quick responses in real time
- Make positive connections that deliver on brand promise
Verizon
Verizon clearly prides itself on coverage and reliability. Do you remember those can you hear me know commercials? There is a reason why, because they know when it comes to a reliable network, customers can depend on them unlike other carriers with spottier service. This has been a consistent message since the company took over Bell Atlantic. Unlike T-mobile they project a more conservative image through the use of their logo. When it comes to social media Verizon has a different approach than T-Mobile:
- Use social media to gain customer insights (they use a lot of anyalytics)
- Listen to the right conversations, gain insights and take appropriate action
- They have a two-minute response time on Twitter and Facebook
Have you made a decision yet?
As I am writing this I was thinking maybe I should start looking at T-Mobile, it appears you get a lot more for your money: unlimited data, quicker speeds and flexibility. But then the cautious side of me kicks in thinking there has to be a reason I have been with Verizon since their inception in 2000. Then it occurs to me, T-Mobile’s big push is more for less! Then I started to think is that true or is that what they want you to believe? This is where the concept of differentiation comes in. What separates one company from its competitors? While I outlined in the above how both companies have done this through positioning, I have drawn my own conclusion.
What if I told you you will get more for your money with T-Mobile such as unlimited data and faster speeds, however you will get what they call data deprioritization which means they essentially slow down your data speed when the network is busy unless you upgrade your plan. Then it hits me, the reason I have stayed with Verizon all these years is simply because you may not have coverage at all depending on where you are. So for me, I will pay a little more and sacrifice some speed because there is nothing more frustrating than not being able to make a call or to keep dropping them! Click here for a more on coverage. As the T-Mobile and Sprint merger come together and push for a solid 5G network, this is where they could really differentiate themselves – it will be interesting to watch. In the meantime, Verizon is making a pitch for Millenials so we’ll see what moves they make if any.
As an aside, one thing I found interesting in comparing the two companies is T-Mobile was very good at telling their story why they are better than their competition while Verizon was more aloof. Is it because T-Mobile has to work that much harder than Verizon to compensate for their lack of coverage or do they just have a better strategy overall? There must be some reason why Verizon is so vague? Drop a comment below and let me know what you think about all of this.