Ep. 235: Jon Freier | From Near Death to NPS Disrupter: T-Mobile’s Journey to Customer Leadership

Episode 235: In 2012, T-Mobile lost nearly two million customers. Its revenue fell precipitously. Its situation seemed hopeless. Then came a new CEO with an audacious plan and a penchant for F-bombs.

Jon Freier, president of T-Mobile’s US Consumer Group, joins host Rob Markey to share his firsthand account of the remarkable corporate turnaround. Jon describes the “Un-carrier” strategy, from its risky beginnings to its industry-reshaping impact. He shares how T-Mobile broke the mold, challenged conventions, and ultimately won over customers by putting their needs first.

According to Jon, “The whole premise of the Un-carrier movement was about fixing a stupid, broken, arrogant industry.”

Under the leadership of new CEO John Legere, T-Mobile used data-driven insights to uncover the “bad profits” that dominated the mobile telecom industry in the US at the time. Determined to not only turn the company around but to change the industry, T-Mobile made a huge bet on customer value and what we at Bain now call Earned Growth: the idea that forgoing bad profits to deliver more value to customers would not only reduce churn but ultimately attract new customers through word of mouth.

Jon shares some of T-Mobile’s biggest game-changing innovations. He lays out bets on dramatic changes to handset pricing and contract renewal terms, a daring move from high-priced “buckets” of limited data to unlimited plans, repricing international roaming, and the innovative T-Mobile Tuesdays rewards program. He also highlights the impact of the “Team of Experts” customer service model.

The results have been eye-popping. T-Mobile reestablished customer growth, received the highest ranking in the telecommunications & media Internet sector regarding NPS rankings (as measured by Bain’s NPS Prism telecom benchmarking), and has outperformed the stock market by many multiples.

Guest: Jon Freier, President, T-Mobile US Consumer Group

Host: Rob Markey, Partner, Bain & Company

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Want to get in touch? Send a note to host Rob Markey: https://www.robmarkey.com/contact-rob

Additional resources:

T-Mobile’s CEO on Winning Market Share by Trash-Talking Rivals

Reinventing Customer Service: How T-Mobile achieved record levels of quality and productivity

Un-carrier History

Learn about Bain’s NPS Prism

Time-stamped list of topics covered:

[2:29] The dire state of T-Mobile in 2012

[6:00] John Legere’s arrival and the birth of the “Un-carrier” strategy

[10:36] Breaking down the old telecom model: from contracts to transparency

[16:28] Early signs of success and the importance of leading indicators

[19:17] Overcoming internal skepticism and building organizational buy-in

[21:51] T-Mobile’s unique ap