Universal Opinions – T-Mobiles Sales Tax

Date: February 26, 2018
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PROMOTION IN REVIEW:

At the end of January, T-Mobile USA announced that customers with unlimited high-speed data could pick up a new smartphone and get back at least what they paid in sales tax.

For a limited time, T-Mobile USA offered customers a prepaid Mastercard worth 11.2% of the smartphones retail price. The deal was valid on every type of new smartphone T-Mobile sold, including iPhones, providing it is activated with a T-Mobile or Simple Choice Unlimited 4G LTE plan.

Customers had to redeem the Mastercard offer within 30 days – the cards would then take between 6-8 weeks to arrive, turning the sales tax into savings.

UNIVERSAL OPINIONS:

Prepaid cards are a great way to flip the conversation about ‘discounted product’ into something more appealing. Additionally, offering a discount doesn’t help endorse brand loyalty post sale, whereas branded prepaid cards remind the customer that your brand gave them a little extra – always a bonus! You can firmly place your brand in the hands of your customers which then encroaches into their day to day lives… visibility is key to believability.

It’s also a terrific way to promote brand awareness; standard discounts don’t do this without the need for heavy, and therefore costly, advertising.

The final appeal of this promotion was by dressing it up as ‘get the tax back’, added extra value for the consumer, because everyone likes to think they have won one over the tax man, don’t they?!