Global Survey Reveals Telecommunications Providers Lag in Use of Applied AI and Machine Learning
- While telcos view personalization as very important, only 41 percent said they are using advanced analytics when they onboard a new customer,
- The majority (81 percent) use analytics in advertising and marketing, but do not use it in the later stages of the customer journey,
- The #1 driver for analytic investment is to improve the customer experience, followed by the desire to improve profitability, and reduce churn.
FICO, a leading analytics company, today announced results of a global survey with
"With CSPs under pressure to increase profitability, they are turning to data-driven, predictive models in all stages of the customer lifecycle," said
Advanced analytics including AI and Machine Learning can enable CSPs to gain a greater understanding of customer expectations and experiences across the customer lifecycle, but few have yet to implement technology solutions. Data points to consider:
- Few CSPs use prescriptive analytics later in the customer journey - Only 35 percent are using advanced analytics or machine learning for renewals, and only 36 percent are using artificial intelligence for collections and recovery.
- Personalization is an opportunity yet to be fully realized - While operators view personalization as very important, only 41 percent said they are using advanced analytics for it when they onboard a new customer. Only about half are proactively working to match offer packages to customer needs.
"The survey results underscore that there is still a tremendous opportunity for telcos to utilize analytics throughout the customer journey," said
Other data points of note:
- A large majority - 81 percent - are using or plan to use analytics in marketing and advertising campaigns.
- 70 percent are still using a reactive and rules-based approach to fraud, with just over a quarter using machine learning and predictive models.
- Text is the dominant channel of communication - 94 percent communicate with their customers via text, however only 20% use personalized text for late payment communications.
The research surveyed 64 professionals from CSPs around the world who are applying, leveraging and/or planning to deploy advanced analytics in some capacity at various points across the customer lifecycle. More information on the survey results can be found at: https://www.fico.com/en/latest-thinking/analyst-partner-collateral/telco-research-report.
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in
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Greg Jawski for FICO, Email: firstname.lastname@example.org, Phone: +1 212-601-8248