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GenAI to Transform Telco Customer Experiences: Faster, Smarter, More Personalized
GenAI to Transform Telco Customer Experiences: Faster, Smarter, More Personalized

March 4, 2024

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Explore how generative AI will help communications service providers (CSPs) revolutionize customer value at every touchpoint

GenAI has moved beyond the hype – at least for the telecommunications industry which is now set to feel its impact.

As communications service providers (CSPs) evolve from telco to techco, GenAI has the potential to transform CSPs’ landscape, fostering rapid technological evolution, improving network efficiency and performance, enhancing security and data management, personalizing customer experiences and streamlining business operations. However, one area that will see the maximum GenAI-driven transformation is improving customer touchpoints. A recent IDC study projected that GenAI will add nearly USD10 trillion to global GDP over the next 10 years.

The Need to Reinvent Customer Experience

In today’s competitive market, delivering exceptional customer experiences is crucial for telcos to retain existing customers and attract new ones. To meet the expectations of today’s well-informed users, telcos must provide seamless and informative customer experiences at every touchpoint. This requires the agility to anticipate customer needs and deliver personalized experiences that align with their digital lifestyles.

From product marketing to sales, ordering to fulfillment, and operations, all workflows are seeking to reimagine and redefine customer experience. This is where Gen AI is emerging as a game-changer.

GenAI promises to enhance customer engagement by enabling faster, more nuanced interactions. It will revolutionize churn prediction through advanced data analytics and predictive capabilities, providing deeper insights for detecting potential churn more accurately and implementing strategies to boost customer loyalty. GenAI will enhance operational efficiency and customer interaction, driving significant advancements in the sector.

  1. GenAI Powered Bill-Assist

Monthly bills are a primary interaction point with customers, but they remain a significant friction point and cost driver. The increasing complexity of services and billing models leads to more calls and complaints to customer care.

  • Current Chatbot Challenges: Current chatbot technologies often fail to reduce wait times and may even contribute to churn. They are typically rule-based systems that struggle with queries outside their programmed scope, unable to grasp context or linguistic nuances. Their rigid responses make them less effective in handling complex customer queries, lacking scalability as queries increase in complexity and the ability to learn.
  • How Gen AI Helps: GenAI combines data sources across bill files, customer data record (CDR), customer relationship management (CRM), customer profiles, plan catalogues, etc., to create a flexible self-service interface. Subscribers can interact in their language to ask queries like “why is my bill so high?” The self-service assist can provide relevant responses from extracted data and execute actions around bill management, plan changes, payments, bill reduction recommendations, etc. It also helps deflect calls (estimated to be up to 30% deflection), reduce wait times and drive higher net promoter score (NPS).
  1. GenAI-Powered Customer Interaction Insights

Customers interact with CSPs through multiple touchpoints, yet current CSP systems only allow hard-coded customer interaction classification. This means that the granular customer interaction journey data are not collected, extracted and enriched into customer persona/ insights and goes under-utilized.

  • How Gen AI Helps: GenAI summarizes customer interactions – extracting and reasoning call insights to enrich customer profiles. Customer sales representatives (CSRs) can use these insights at the customer or aggregated level. At the customer level, CSRs can leverage predicted user intent or insights from past conversations. At the aggregated level, dynamic reports can visualize trends across different cohorts. GenAI-powered solutions, such as chatbots and virtual assistants, can understand and respond to customer inquiries, provide real-time assistance, and even resolve common issues, ensuring efficient and round-the-clock support for customers.
  1. Content Generation and Personalization

With GenAI telcos can automate content creation, tailor marketing messages, and deliver personalized promotions, enhancing engagement and customer satisfaction.

The industry needs telco-grade GenAI platforms that will enable CSPs to unlock new use cases by leveraging telco data to drive business and fine-tune models. Such models will help drive accelerated revenue opportunities, enhanced productivity and elevated user experience across the board.

Samit Banerjee

By Samit Banerjee, Division President, Amdocs Cloud Operations and Customer Services Management


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