AI for customers' loss prevention of telecommunication services

Acquiring a new client in the telecommunication industry costs money, time and a lot of invested effort. On the other hand, keeping clients happy with purchased services is vital to the health of a business. Customer losses are one of the leading problems within the industry, making the need to understand customer satisfaction patterns crucial to the growth and profitability of companies. Customer retention teams in telecommunications must be aware of clients that will likely churn (quit the telecommunication services or stop using them over a specific period), so they can adequately allocate retention efforts and make these customers happy again.

The business model of telecommunication companies is mainly based on subscriptions and requires distinct customer service and sales approaches. The focus is not on constantly looking for new clients but on intensifying the retention of existing ones. Artificial Intelligence (AI) predictive analytics successfully detect clients for which there is a high probability of cancelling the service subscription. AI is a high-effective tool for discovering patterns in data, weighting and tracking all consumer engagements across services and providing insights into consumers likely to churn. Previous billings, demographics, usage information, and registered complaints, are examples of data helpful for AI training and making a powerful prediction tool. Once the consumers of interest are located and classified depending on their satisfaction level, the telecommunication company takes retention actions among them. These actions could be sending personalized messages, discounts, or offering new enhanced subscription packages. In practice, it has been shown that this approach of personally addressing customers reduces churn rates and increases service satisfaction. AI tools have shown to be a great option to avoid customer losses and effectively serve customers’ needs.