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Blog - How AI, Predictive Analytics and Development Testing Services Can Fix
Telcos’ Churn Problem
HOW AI, PREDICTIVE ANALYTICS AND DEVELOPMENT TESTING SERVICES CAN FIX TELCOS’
CHURN PROBLEM
Telcos’ soaring churn rate, driven by customer dissatisfaction, is a major cause
for concern. But the tools, tech and testing to turn back churn are all at hand.
* May 17, 2023
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Business AI Qualisense Telecom
Telecommunications companies, also known as telcos or telecoms, have a problem:
Customer loyalty. Or rather, lack of loyalty. In a 2022 report on customer churn
in telecoms(1) close to half the respondents reported canceling their service in
the past year—a rate at least twice as high as other industries and 22% higher
than telcos’ score pre-pandemic.
What’s driving the disconnect? Mainly, dissatisfaction with the quality of
service (QoS). For telco customers, QoS includes such issues as unorganized
customer interaction data, lack of reference points, complicated IVR, too many
transfers and too much repeating of information between agents and channels.
This comes at a time when customers expect the same simple, fast omnichannel
service that Amazon, Uber and other digital natives are known for. With
high-speed 5G soon to be everywhere, telco customer expectations will only
increase. Without corrective action, dissatisfaction may well keep soaring too.
To add to the challenges, telcos have another problem: lack of market
differentiation. Customers often see no compelling reason to stick with a
particular brand, so they’re ready to jump ship after one bad experience and hop
aboard somewhere else. Once customers have churned, it is extremely difficult,
and expensive, to bring them back.
SURPRISE CUSTOMERS WITH DATA-DRIVEN PERSONALIZED OUTREACH
Experts say telcos can turn back churn before it happens by adopting a
proactive, personalized CX strategy, fueled by granular customer data and driven
by predictive analytics. Here are some key steps and how a successful
transformation would work.
GATHER DATA
The first step is to build a robust data repository by collecting data from
previous interactions through email, social media, chat, text, phone and CRM
systems. McKinsey suggests including detailed demographic data and historical
information such as browsing, purchases, roaming, and mobile app usage for a
rich, in-depth picture(2).
ANALYZE DATA WITH AI & AA
Employ AI-powered data management platforms (DMPs) and advanced analytics (AA)
to gain insights on customer pain points and needs. Natural Language Processing
(NLP) tools can discern sentiment and intention from text messages. Customer
churn prediction platforms can predict churn probability, helping to find
patterns in existing data that are associated with the predicted churn rate.
By using both historical and near real-time data, telcos can create predictive
models to analyze characteristics and identify predictors of the existing
audience. This information provides businesses with actionable intelligence to
improve customer retention and profit margins.
PREDICT & PERSONALIZE
Empowered with new knowledge and insights, agents at call centers are better
able to anticipate the subject of a call and be ready with a relevant, helpful
response. They can predict which customers may be ready to churn and when,
reaching out with an incentive to stay, such as an upgrade, to turn a
potentially negative encounter into a positive one.
TEST EVERYTHING FIRST
Implementing new tools, platforms and methodologies will amount to a major
change for many telecoms, and any major change carries risk. Data migrations
must be secure. AI and AA platforms must integrate seamlessly with disparate,
third-party and legacy systems. Technical glitches can depress customer
satisfaction and make churn even worse. The solution? End-to-end software
development testing before launch is telcos’ surest safeguard.
REDUCE CHURN AND ADD VALUE AT EVERY STAGE
In recent research conducted by Gartner(3), proactive telco customer service
resulted in a full percentage point lift in net promoter, customer satisfaction,
customer effort and value enhancement scores—all indicators of what a proactive
approach can do to reduce churn and boost retention.
Beyond churn, leveraging customer patterns and pain points through AI &
analytics creates opportunities to deliver new value at every stage of the
customer life cycle, from acquisition through renewal. Upgrades, special offers
and personally targeted messaging show customers they are appreciated,
differentiating a brand and inspiring long-term loyalty. These are precious
commodities for any business, and welcome wins for telcos.
FOR BETTER BUSINESS OUTCOMES, TAP THE TOP TECH, TOOLS AND TALENT
Along with elevating CX and reducing churn, AI, ML, NLP and predictive analytics
can be optimized with automation to boost operational efficiency, enable smart
scheduling, and implement “self-healing” networks. As the world’s leading
AI-driven engineering company, Qualitest has the tools, tech and skilled,
deployable staff to deliver the telecom development testing services you need.
Resources
1.“State of Customer Churn in Telecom 2022,” Tech-See
2. ”Winning in Telecom CX,” McKinsey & Co.
3. “Drive Customer Loyalty and Retention through Service,” Gartner
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Here’s a short guide to help you excel in your rookie year.
Careers Qualitest
4 min
Blog
The Watermelon Effect: How to Embrace and Leverage Digital Transformation for
Maximum Success
Organizations today often want to move fast when it comes to transformation. But
there’s often much to consider. This blog covers the use of digital
transformation and how to embrace it for maximum success.
Digital Transformation
7 min
Video
Remote Patient Monitoring: The Future of Healthcare
Remote Patient Monitoring is a revolutionary practice that allows healthcare
providers to remotely track and analyze patients' vital signs, health data, and
overall wellbeing. Our latest video delves into the game-changing power of RPM
and how it can be reliably and securely delivered to enhance the entire
healthcare ecosystem.
Healthcare Medical Devices
1 min
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