Revenue in the global communication services market is expected to reach $1.5T by the end of this year, and Asia’s slice of the pie is projected to surpass $550B before the decade comes to a close. With so much on the line, communications service providers (CSPs) who gain even an inch on competitors may see significant improvements in revenue growth and longevity.
Generative artificial intelligence (GenAI) is uniquely well-suited to the task of finding that much-needed extra inch. Its abilities to help organisations cut waste, streamline operations and make more-informed decisions already help CSPs do more with less—and better than ever before. However, AI’s most valuable application within telecoms has only just started to take shape, and it lies in the technology’s potential to transform customer experience (CX) operations.
From Provider to Partner
Today’s consumers are tech-forward and eager to embrace change in the name of convenience. As a result, CSPs and other consumer-focused organisations are looking to AI to help build the foundation of next-generation packages and services. However, going all in on AI applications designed for end-users may not be the best path forward given the unique moment in which the industry now finds itself.
To start, there is the increasingly level playing field on which these organisations compete. Market leaders in the space all offer similar tangible benefits: high reliability, fast connection speeds and diverse product designs. They also have similar resources at their disposal. Should leaders in the space make meaningful advancements to their product lines, the competition will no doubt answer quickly and in kind.
Then, there is the rise of the subscription model. CSPs have used a contract-based model since their earliest days, but the viability of year- or multiyear-long contracts has diminished greatly in the subscription age. Customers may bristle at the prospect of being “locked-in” by a CSP committed to keeping long-term contracts in place. However, shorter timelines can also drive churn as they give users more chances to jump ship.
Taken together, these two trends illustrate a key fact about today’s communications market: strong relationships are a modern CSP’s primary market differentiator.
Push and Pull: The Complexities of CX for Modern CSPs
Most CSPs now understand the implications of the trends noted above, with a recent McKinsey survey finding that 75% of senior telco leaders cite CX as a top priority for 2024. Modern consumers expect personalised, seamless and timely support from customer service representatives that (at least appear to) know their histories with the provider. They expect support teams to turn traditional roadblocks into moments of meaningful connection. Critically, customers expect remediation to happen proactively. And, when users do need to resolve an issue, they want that interaction to feel human.
Unfortunately, the road to meeting these customer expectations is not without its own challenges. CSPs face incredible pressure to deliver high-quality, proactive and compassionate support to an increasingly diverse customer base with different cultural contexts and priorities. Furthermore, they’re expected to do so:
- Amid changes to the product suites and services they offer.
- Across multiple digital and physical touchpoints.
- With few reliable ways to track end-to-end journeys.
- While budgets and teams shrink.
This complexity and the pressure for “always-on” support has led to rapid adoption of CX-focused stacks designed to provide support anytime, anywhere. There are simply too many competing factors in play for CSPs and their CX teams to weigh, analyse and unravel without technological help, and there’s too much at stake should they get it wrong. The trade-off, though, has been the all-important human touch. You may be surprised to hear that’s precisely what GenAI can help with.
GenAI + CX: How Tech Makes CSPs More Human
Somewhat paradoxically, the absence of AI can lead to more generic, less personal interactions. AI excels at data analytics, pattern recognition and real-time signal monitoring, which takes those tasks off the plates of support staff so they can focus on customer needs. It enables large organisations with small support teams to provide human connection at scale. It unlocks critical customer data from siloes to deepen the CSP’s understanding of the customer.
What’s more, AI-supported programs can proactively, automatically alert users about anything from service outages to changes to their bill, providing enough context to get ahead of customer concerns. Live support teams can use these detailed histories and deeper context to ensure that any representative is ready to jump in when an issue arises.
CSPs that layer in conversational AI (CAI) can use this data to train chatbots to handle straightforward concerns, share critical updates relevant to that customer and/or connect the customer with the right representative for more sensitive concerns. AI tools can also provide representatives with prescriptive guidance about the best next step toward a satisfying resolution, which accelerates timelines and boosts trust.
An Inch, Then a Mile
AI tools are only as valuable as the people using them and the data available to them. Deployment alone is not enough to ensure an organisation’s success. In fact, in 2023, the average organisation accessed just 33% of its marketing technology (martech) stack. To get a clear picture of customer needs and operational efficacy, CSPs will also need to invest in infrastructure that eliminates traditional silos so that GenAI tools can draw from that data.
CSPs will also need to invest in updated training programs. Employees – especially in the CX department – need to be trained on safe and ethical AI use, the tasks to which AI is best suited and the intended outcomes of AI adoption. This training will help mitigate risk, encourage compliance and responsible use and empower employees to work smarter, not harder.
Though the prospect of putting more work—and money—into this effort may feel like a non-starter, the results will be well worth the investment. In fact, it’s likely to become an imperative faster than many leaders realise. Advanced, tailored analytics and robust, integrated data in the hands of experienced CX teams can transform customer journeys and support the effortless experiences that modern customers crave.
Picture Courtesy: Pixabay.com
