The Vital Role of CX in Telecommunications

 
In today’s hyper-connected world, customer experience (CX) reigns supreme, especially in the telecommunications industry. CX encompasses every interaction a customer has with your brand, shaping their perception and loyalty. With the advent of 5G networks, the stakes are higher than ever, making exceptional CX a competitive necessity.  Despite doing an excellent job connecting people and devices, telecom businesses don’t always excel at communication with their own customers.

In the past, communication service providers (CSPs) focused primarily on monetization, often short-changing customer experience (CX). Now, in response to greater customer expectations and competition, telecommunications providers are paying attention to CX and developing a communication plan that leads to satisfied, loyal customers. Telecom companies must proactively anticipate customer needs, leveraging data to deliver personalized, seamless experiences across all channels.

What Is CX in Telecommunications?

From the customer perspective, experience is all about how the person feels when interacting with your brand before, during and after a transaction. From a business standpoint, customer experience (CX) refers to everything a business does to put customers first, managing their journeys and serving their needs. A customer journey is a series of interactions that a customer has with a brand for any task or decision (e.g., activating service, paying a bill, scheduling a service appointment, renewing a contract). Delivering exceptional CX means making those interactions quick and convenient through effective, personalized communication across channels.

With 5G networks increasing coverage and speed in all markets, CX is becoming the primary competitive differentiator for telecommunications companies. To win at CX and retain customers, leading communication service providers take a proactive approach that uses customer data to predict needs and deliver personalized, relevant experiences in real time.

Why Is CX So Important in the Telecommunications Industry?

CX is critical to prevent customer churn—particularly high in the telecommunications industry. The average annual churn rate of the telecommunications industry is between 20–40%. In the U.S., the cable television and financial industries had the highest churn (25%) in 2020, with telecom/wireless at 21%. According to one report, 39% of telco customers reported leaving because of poor customer service. Of these, 41% switched because of inferior self-service options and 51% because they had to call more than once to resolve a problem.

According to the 2022 State of Customer Churn in Telecom report, customer loyalty to telecom providers is down 22% post-pandemic due to poor customer experience. The telecommunications industry lags in customer satisfaction, with wireless phone service (74 out of 100), subscription TV service (69), and internet service providers (68) ranking 36th, 40th and 41st, respectively, out of 42 industries in 2023.

With 1,001 Wireless Telecommunications Carriers businesses in the US as of 2023, customers have more choice than ever. Competition drives the need for deeper engagement with customers. Customers expect interacting with their wireless, internet or cable provider to be as quick, easy and convenient as it is with digital native disruptors such as Netflix, or Amazon. Telecom or cable operators that don’t meet customer expectations are at a disadvantage and risk losing business.
 

CX improvements boost

• Customer engagement and satisfaction. According to McKinsey research, 71% of consumers expect companies to deliver personalized interactions, and 76% are frustrated when they don’t receive them. Delivering personalized experiences (e.g., recommending an upgrade to an unlimited data plan before the customer exceeds the data allowance) is an excellent way to enhance customer engagement and satisfaction.
• Customer retention and loyalty. Negative experiences drive customers away. Across industries, 55% of respondents to the PwC Customer Loyalty Survey 2022 said they would stop buying from a company after several bad experiences, and 8% said they would walk away after just one bad experience. What is the best way to keep your customers? Deliver experiences that are

  • Fast
  • Convenient
  • Consistent
  • Friendly
  • Human touch-focused

• Revenue growth. McKinsey analysis shows that, across industries, companies that are CX leaders achieved more than double the revenue growth of “CX laggards” between 2016 and 2021. The revenues of CX leaders also rebounded from the COVID-19 pandemic more quickly than those of other companies.

4 Best Practices to Improve Telecommunications CX

1. Communicate proactively.

Some CSPs only engage with customers once a month, when their bill is due or overdue. More frequent, proactive communication—especially regarding service outages or pending service appointments—are key to CX improvements. Use digital engagement channels such as SMS, email, outbound IVR and in-app mobile and develop a communication plan that includes coordinating communications across those channels.

Send proactive, personalized communications via the customer’s preferred channel (email, SMS, etc.):

• Payment reminders
• Service outage notifications and updates
• Contract renewal
• Targeted offers (e.g., upgrade packages based on the customer’s data usage history)

2. Improve the billing and payment process.

Bill confusion frustrates customers, leading them to call the contact center for clarification—especially when a bill is significantly higher than last month’s. CSPs can eliminate this confusion and reduce call center volumes by implementing a digital bill explanation tool that helps customers understand changes from month to month, so they don’t have to call. Designing your billing statement to avoid five common billing statement errors also improves the payment experience.
 

3. Use customer journey orchestration to deliver consistent, personalized experiences.

Customers expect convenience, which means businesses must engage with them where they are, often on their phones. Creating a seamless omnichannel communication experience is crucial for delivering personalized and consistent interactions. Journey orchestration coordinates interactions across channels on a personalized level, sending the right messages at the right time via the customer’s preferred communication channel (e.g., email, SMS). A journey orchestration system acts like an air traffic controller, using a decisioning system to prevent sending too many messages or conflicting messages. For example, the system does not send an “upgrade now” message while a customer is challenging a recent bill.
 

4. Use Artificial Intelligence.

CSPs use AI to troubleshoot technical issues, provide predictive maintenance, and optimize network performance, reducing down-time and improving CX. Machine learning algorithms can be used to personalize recommendations and promotions (such as cross-sell or up-sell) based on customers’ behavior patterns (usage history) and preferences. AI-powered chatbots and virtual assistants improve customer experience and satisfaction by providing immediate, human-like responses to questions or concerns, 24/7.

CSG Simplifies Your Company’s CX Improvement Efforts

Delivering exceptional CX is essential for telecommunication companies to retain customers and remain competitive, as it directly impacts customer loyalty and revenue growth. CSG Xponent Ignite makes it simple to launch your telecommunications CX improvement initiative, using pre-templated journeys specifically designed for the telecommunications industry. Our CX experts will help you build a business case (including calculating potential return on investment) and identify the high value journeys to improve for quick wins. The foundation of CSG Ignite is CSG Xponent, our industry-leading CX solution that combines a customer data platform with journey analytics and journey orchestration to analyze current behavior, predict future behavior and guide customers to the next best action to achieve their desired outcome.