How can AI help telecom operators reduce churn?

Automate your customer interactions using AI

The largest problem for telco operators is losing customers to another operator (churn). Or to be more specific increase customer lifetime value (CLV) while increasing net promoter score (NPS). Despite advanced churn prediction models, many operators have lost sight of what actually creates value for their customers. Today’s customers are smart, connected, web savvy, and fickle as hell. They’re swimming in brand choice and it’s never been easier to switch operator. To proactively reduce churn it’s crucial to provide a great customer experience (CX).

At the same time, consumers are bombarded by messages and advertising more than ever. But surprisingly, operators tend to communicate with their customers as if they were still prospects, using generic communication that erodes trust and commitment. This is a huge problem! Our study shows that 47% felt they didn’t receive relevant communication or at the wrong time. 93% of them would have been more content with their telecom operator if they would get more personalised communication.

In a perfect world, operators would probably want to talk to each customer and create that customised interaction with each individual. By creating a personal bond with each customer you wouldn’t have that brand loyalty and churn issue. But, in reality, there are hundred thousands of customers, and the time and cost would be unbearable!
By using machine learning within artificial intelligence (AI) you can use data to create that human and personal contact at exactly the right moment. And by automating those interactions you’re allowed individual dialogues with large customer groups simultaneously.

Research shows that conversational AI platforms are estimated to cut business expenses by 8 billion dollar in the next five years. By 2020, 80% of all customer interactions will be handled without a human (Gartner). It’s not a coincidence that businesses are investing more in AI than ever before. A survey from Deloitte shows that 40% of telecoms, media and tech executives are substantially benefitting from cognitive technologies and 25% have invested 10 million dollars or more.

AI is no longer a “nice-to-have”, it is a must have for any telecom operator looking to thrive in the next 20 years!


Tom Stenius

Chief Product Officer