• by Aaron Baar , December 8, 2009

Verizon is launching its first customer-loyalty program, giving current customers the ability to purchase gift cards from popular retailers at a discount.

"We feel that it's an important thing to do in a market that's very competitive," company representative Bob Elek tells Marketing Daily. "And to show there's more to our service than telephones and broadband."

The Verizon Perks program will be offered to current Verizon residential customers through the company's My Verizon customer-service site. The portal already offers 85 functions and services to customers, allowing them to manage their account, add or change services, buy additional options and pay their bills. Indeed, a key part of the loyalty program is to drive traffic to the customer-service site, Elek says.

"It's not the only reason [for the program], but it's an important one," Elek says.

Initially, the Verizon Perks program will give customers the opportunity to purchase gift cards from retail outlets and restaurants, such as Barnes & Noble, Bath & Body Works, Golfsmith, Lands' End, P.F. Chang's, Romano's Macaroni Grill and Outback Steakhouse. The cards, valued at $25, $50 and $100, will be available for purchase at the discounted rate.

Verizon plans to add other offers through its Perks program in 2010, adding additional retailers, product samples and the ability to learn about new products and services. Marketing for the program will be directed at current Verizon customers with banner ads on the company's home page, e-mail communications and direct mail inserts in monthly bills, Elek says. There are no plans currently to use the program as an acquisition tool.

"It's aimed at our active and current customers," Elek says. "It can evolve as a customer acquisition tool, but don't think it could be a reason for people to come to Verizon. But it might make them feel better about being with us."