Want in on Verizon's new rewards program? You might be tracked. http://www.fastcompany.com/3033326/fast-feed/verizons-new-rewards-program-has-a-catch-it-gets-to-track-you by @cgayomali via @FastCompany

Verizon's New Rewards Program Has A Catch: It Gets To Track You First

Racking up points earns you gift cards.

Verizon is launching a new rewards program for customers that's being billed as the first of its kind among the big carriers.

Under the terms of "Smart Rewards," Verizon's 100 million customers will be able to rack up points for things like gift cards and discounts. But as the Associated Press reports:

Smart Rewards is designed as a loyalty program, but the company is also using that to encourage enrollment in Verizon Selects. That program, launched in 2012, uses subscriber surfing and location data to better target ads they see on the phone.

Enrollment in Selects is mandatory for subscribers who want to start taking advantage of Smart Rewards, but they can then leave Selects and keep using Smart Rewards. Those who stay with Selects get additional Smart Rewards points every month.

Smart Rewards is designed like your run-of-the-mill rewards program to keep you using Verizon's services. Basically, it gamifies super-fun stuff like paying your phone bill and upgrading your phone plan to include more data, rewarding you with points to spend on gift cards to places like Staples or TGI Fridays. Verizon Selects, which is a separate ad platform, keeps tabs on your location and behavior. But as the AP reports, you have to opt into it in order to take advantage of Smart Rewards.

Verizon says that the rewards program, which has already been available in some states, has actually helped with consumer retention, although the company declined to give specifics. So if you're comfortable with having your location beamed to Verizon in the name of an extra helping of deep-fried mozzarella sticks, by all means, feel free to learn more about it over here.

Update: This article has been updated to reflect Verizon's customer count: It's 100 million, not 100,000. And Verizon's Smart Rewards program does not require location data; Verizon Selects, which you have to use to enroll in Smart Rewards, does.

[h/t: AP]

[Image: Flickr user Randen Pederson]

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  • Buddy

    Horrible rewards program! The discounts aren't worth the time as you can usually find a sale that is better than the price offered on Verizon's Smart Reward Program. The points only auctions take too much time... at least I don't have hours to spend clicking the bid button and there isn't a max bid option. Verizon might consider offering $25 gift cards for 100,000 points. At least then, more customers would benefit... Get with it Verizon!

  • bobjr94

    Yes, but its a pretty useless program. Most items you still have to buy. $50 Dennys gift card for 2000 points and $40. $100 home depot card, 3000 points and $90. Some fancy handbag or watch, $200 and 8000 points.

    There are some auction items for only points, but you can't pre-bid, you have to bid on it in real time, only using their pre-set bid amounts. And they only have a few auction per day, so your likely never going to be on when one ends.