UPDATED 23:39 EDT / JUNE 06 2016

NEWS

T-Mobile offers free shares in company: Desperate ploy to retain customers and attract new ones

In a desperate ploy to attract new customers and retain existing ones, or perhaps an inspired promotion depending on which way you look at, wireless carrier T-Mobile International AG has announced that it’s literally giving away shares of the company to customers.

T-Mobile users on post-paid plans, said to number around 11 to 12 million, qualify for the offer that will allow them to obtain exactly one share of T-Mobile stock.

In addition to obtaining one share for absolutely nothing, customers are able to earn additional shares through an affiliate-like referral scheme that allows them to earn one additional share for every person they refer to the company, up to a maximum of 100 people/shares per year.

However, in true Billy Mays style, there is more, with T-Mobile users now qualifying for free pizzas and other items each Tuesday.

Using the unimaginatively named T-Mobile Tuesday app, users are able to claim a free Domino’s pizza with up to two toppings every Tuesday (seemingly on an ongoing basis) along with a free Wendy’s Frosty, and a free movie rental. Over time, additional freebies will be offered through the app from partners including Gilt, StubHub, Fandango, Legendary Pictures, Universal Pictures, Lyft and others.

“Get ready for a gratitude adjustment, America! This Un-carrier move is all about giving you a good thanking! No strings. No gotchas. Just ‘thank you for being a customer!’” T-Mobile President and Chief Executive Officer John Legere said in a statement. “At T-Mobile, we already wake up every day working for our customers—so I’ve decided to make it official and turn T-Mobile customers into T-Mobile owners by offering them stock. And we’re thanking customers every week with cool stuff from brands people love. For free. Every Tuesday!”

Running out of steam

The nicest thing you can probably say about T-Mobile’s offer is that it’s different and perhaps even courageous, but it does certainly seem like a bit of a desperate ploy.

Jackdaw Research Chief Analyst Jan Dawson describes it as indicative of a company “running out of steam,” writing:

It’s hard to avoid the sense that T-Mobile is running out of really meaningful things to do to attract new customers. Its rate of postpaid phone adds has been falling year on year for a while now (although it’s still adding significantly more than the other carriers). It’s questionable whether stock ownership and free junk food will really make much difference in either retaining existing customers or winning new customers – this certainly isn’t likely to move the needle in terms of boosting phone net adds. The free GoGo is a nice perk, but you do wonder whether a mobile carrier should be aligning itself so closely with an Internet experience that’s generally pretty terrible. These latest Un-Carrier moves feel more like gimmicks than things that are likely to meaningfully improve people’s experience with T-Mobile, let alone attract many new customers.

T-Mobile users interested in obtaining their free company share need to download the T-Mobile Tuesdays app and follow the prompts; registration for the free share ends June 21st.

Image credit: fanaticTRX/Wikimedia Commons/CC by 3.0

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