Nearly everyone has a cell phone these days. According to the Pew Research Center, 97% of Americans have a cell phone, and usually it’s a smartphone.
While it’s true that 70% of customers have remained loyal to their mobile carrier for around 3 years, a significant shift is underway. The number of customers staying with the same carrier for 5 or more years is decreasing. Half of subscribers are considering switching to get better data coverage, and 42% would make the switch for better streaming.
These changing trends in customer loyalty should serve as a wake-up call for telecommunications providers.
In today’s highly competitive telecom market, the key to attracting and retaining customers goes beyond offering the latest technology at the lowest prices. Instead, businesses need to leverage hyper-personalization solutions that align with customer needs and preferences.
Mckinsey found 76% of consumers believed personalized communications was a key factor in prompting them to consider a brand. Additionally, 78% indicated that such content increased their likelihood to repurchase. With the advent of AI, hyper-personalization is getting an additional boost — and it’s more expected by customers than ever.
In this article, we’ll cover how you can use hyper-personalization solutions to reach your target audience.
Implementing Teleco Hyper-Personalization Solutions
For a primer on hyper-personalization, read our blog about what hyper-personalization is. But for a short overview, hyper-personalization draws in many different data points to provide customers with tailored content and solutions just for them. It can also leverage machine learning and analytics to predict what customers may want next. AI technologies can help with this, taking hyper-personalization to the next level.
But at its essence, hyper-personalization is about the individual. It means more than just addressing them by their first name, which anyone — including all the brands who send you spam mail — might know. Hyper-personalization considers data such as customer behaviors, actions, interests, and preferences. From there, you can craft bespoke content for a range of use cases.
For example, use hyper-personalization to help customers demystify how their monthly charges, usage patterns and additional fees are calculated in a more human way.
Watch how BT explained a new customer’s first bill in a video hyper-personalized for them.
This helps eliminate customer surprise after receiving a first bill that might be different from what they expect. That surprise can lead to churn, but a hyper-personalized message gets ahead of the confusion and builds trust in the relationship.
One important note for hyper-personalization is that you don’t always need reams of customer data. Users can personalize their own journey by interacting with the content.
In the video below, EE uses hyper-personalization for a choose-your-own-adventure type of experience, letting viewers navigate through the video as they please. As a result, the video changes based on what users decide.
This is a fun example, leveraging gamification, but we’ve seen brands use a similar approach in customer service use cases. For example, you can let users get more information about what they need or even enter what they’re looking for and get real-time quotes and answers.
Both examples above involve video content, which can be a deal-breaker for telco brands strapped for resources, but AI can help here as well. Use AI video to generate content that’s on brand and in the styles you need — for ads, explainers and more.
Hyper-Personalization Benefits
Let’s take a look at some of the key benefits of hyper-personalization.
Enhanced Customer Engagement
Hyper-personalization keeps viewers engaged longer than generic content. Over 70% of consumers report that they are more inclined to interact with marketing messages that are tailored to their preferences. And over 90% of people say they’re more likely to shop with brands that personalize for them.
Personalized content can also get as much as 16x higher click-to-open rates compared to generic content when it’s in video form.
In short, more personalization means more engagement.
Higher Conversion Rates
Hyper-personalization can drive higher conversion rates by delivering tailored messages. A good example could be a video featuring a data plan upgrade to a customer that frequently exceeds their data limit.
In many industries, this approach has proven to lead to effective business results such as a 9x increase in conversions, 8x higher sales and an 81% conversion rate.
This relates directly to your bottom line — one study found that 80% of business leaders noted an increase in consumer spending of 38% with hyper-personalization.
Increased Customer Satisfaction and Loyalty
Providing hyper-personalized user experiences through dynamic digital content can significantly enhance customer satisfaction and loyalty. According to Epsilon, 80% of consumers are more likely to purchase when brands offer personalized experiences.
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In the telco sector, hyper-personalization can be used in multiple ways. For instance, a video explaining a customer’s billing details, a troubleshooting guide for common issues, or an interactive walk-through of tailored offers and tips based on the customer’s usage patterns and other real-time data.
These strategies can significantly improve customer understanding and satisfaction.
While hyper-personalization can lead to brand loyalty, it’s not without their challenges. For instance, ensuring data privacy and security when using customer data to personalize videos is a key concern.
When implemented correctly, personalization can lead to a 10% to 30% increase in ROI. Satisfied customers are likely to remain loyal to their telecom provider, reducing churn rates and making referrals more likely.
When To Use Hyper-Personalization Solutions for Telco
There’s good news for telco providers looking to get started with hyper-personalization. Customers are largely willing to share their data with brands they trust. Over 70% of customers are willing to share data for a more personalized experience, indicating a strong preference for tailored interactions.
But customers don’t want personalization at only one touchpoint. It should be throughout the customer journey.
Here are some points where hyper-personalization can make the biggest impact for telco providers.
Personalized Onboarding Experiences
Telecom operators can use hyper-personalization to make new customers feel like valued members from day one. Navigating the setup process can also be daunting, especially for customers with varying levels of technical expertise.
Onboarding is a key opportunity to make a good first impression. A personal welcome can go a long way in setting the tone for a positive customer experience right from the start.
In this example, see how Bell welcomes customers, describing program details and explaining how they can make the most out of their telecom experience. This onboarding strategy makes the initial touchpoint feel special for first-time customers.
The goal of hyper-personalization is to build a lasting relationship with customers by using data to deliver personalized experiences, and that’s exactly what this does.
Product and Service Education
Telecom companies often have a whole suite of features that are underused simply because customers are unaware of them.
Hyper-personalization lets you educate customers in a way that isn’t overwhelming so they make the most of your services. For example, it can help you identify the most beneficial features for every customer
For customers who regularly exceed their data limits, you can show them how to monitor their data usage through their telecom app or share how to upgrade for a higher data consumption rate.
For customers on a family plan, you can educate them on how to set internal controls for their kids’ internet usage.
Again, each personal touchpoint showcases your value and increases retention long-term.
Customer Support
When customers encounter issues with their telecom services, personalized troubleshooting can provide immediate assistance. Whether shared in a chatbot, customer support portal or an interactive step-by-step video, this personalized solution can address specific problems a customer is experiencing. This resolves the issue faster, leading to less frustration and less churn.
For example, if a customer reports intermittent internet connectivity, a Personalized Video might walk them through how to check their settings. It can even include tips on Wi-Fi optimization and cloud services.
Churn Reduction and Loyalty
How can you prevent customers from switching providers? Analyze when churn is most likely to occur and address it in advance with personalized points of contact.
For a customer exceeding their data limit, as mentioned above, offer an upgraded plan with more data at a better value. At the end of the year, when many customers reevaluate expenses, send a personalized year in review to recap your time together.
Or share a personalized showreel of loyalty rewards your customers have taken advantage of, as Vodafone did below.
This proactive approach helps foster a sense of connection that promotes customer loyalty. And loyal customers are much more likely to refer friends, another boost to your bottom line.
Billing and Account Management
Understanding a telecom bill can be challenging for many customers, especially when it involves multiple services or additional charges. Hyper-personalization solutions can help break down billing details in an easy-to-understand format.
For customers who receive a bill with pro rata charges or other terms they may not understand, a video can explain this easily (as we saw with the video from BT above). You can also share hyper-personalized guidance in app, allowing customers to self-serve on demand and on the go.
Customer Acquisition and Sales
Delivering the best offer to the right customer at the right time is crucial for the success of marketing campaigns. Businesses can leverage hyper-personalization to advertise deals or timely upgrades with content tailored to niche customer segments. Dynamic Video Ads are one kind of personalized content that work across digital channels, from social media to email.
This example from O2 shows how you can personalize different video ads based on audience data.
Remember that current customers are an avenue for sales as well, and this is where hyper-personalization solutions are most effective because you have the most customer data.
To make the most out of this information, recommend services that add value to the customer experience. For customers who frequently play online games, upsell entertainment bundles that include high-speed internet and streaming service subscriptions. Customers who make frequent international calls could benefit from international calling plans that offer lower rates or unlimited calling to specific countries.
You should share upselling and cross-selling offers relevant to individual customers so they’re more likely to click and convert.
Empowering Your Telecom Business with Hyper-Personalization Solutions
In today’s rapidly evolving digital landscape, telecom companies must meet customer expectations to improve their competitive advantage. Hyper-personalization, which can be combined with generative AI, advanced analytics and machine learning, allows for the creation of compelling touchpoints.
By delivering hyper-personalized and engaging solutions, service providers can transform every aspect of the customer journey — from onboarding and support to billing and marketing — leading to both higher sales and better retention.
Are you ready to leverage the power of hyper-personalization in the telecom industry? Contact us and we’ll show you how it can boost customer engagement and elevate your brand at the same time.
