Verizon, one of the largest telecom providers in the U.S., is turning to generative AI technology to reduce customer churn and drive revenue growth. The company has developed and deployed several human-assisted generative AI applications aimed at transforming the customer experience. According to Verizon CEO Hans Vestberg, the company receives around 170 million customer calls annually. By leveraging generative AI, Verizon can now determine the reason for 80% of those calls.
This allows the AI to intelligently pair customers with the best-suited agent from Verizon’s team of 60,000 call center employees. The technology harnesses data from 1,500 points on each telephone number, operating within Verizon’s secure network to ensure data privacy. This sophisticated use of data allows for highly personalized customer interactions, whether through call centers or retail stores.
“I know what each agent is really good at, so I can match your call with the right expert,” Vestberg explained at the Future Talent Summit in Stockholm. He estimates this capability will allow Verizon to retain 100,000 customers this year who may have otherwise churned.
In addition to optimizing call routing, Verizon has rolled out AI-powered “personal shopper” and “personal problem solver” tools for employees. These analyze customer profiles in real-time, enabling representatives to provide personalized offers, plans and solutions tailored to each individual’s needs. As a result, Verizon has cut average customer transaction times by 2-4 minutes.
The AI solutions extend to Verizon’s retail stores as well. With around 70 million annual store visits, the company can now customize offers for customers as soon as they walk in, reducing average visit duration by 7 minutes.
“We’re on a journey to provide a premium experience during every interaction because we know it matters to our customers,” said Brian Higgins, Chief Customer Experience Officer at Verizon Consumer.
Verizon’s churn rate currently hovers around 1% for its 145 million wireless retail connections. But Vestberg believes the generative AI initiatives will help lower that number even further in 2024, stating “It’s an experience for you, for my employee, and ultimately I’ll make some more money.”
For credit and collections firms looking to apply similar AI-driven strategies, Verizon’s multi-pronged approach highlights the technology’s potential to optimize operations, personalize customer interactions, and boost loyalty and revenue.
