Customer Experience and Sales Training: The Impact of AI on Telco companies

BY:  Rebecca Herson
October 9, 2023
Updated on December 12, 2023

Table of Contents

Telco companies are facing a number of challenges, including changing customer demands, fierce competition, and high costs. AI in telco offers a number of ways to help companies deal with these challenges by improving agent training and skills, enhancing customer experience, and driving more revenue. 

In this post, we’ll discuss what’s motivating the adoption of AI in the telecommunications industry, the challenges facing telco AI, and the many benefits that AI in telecommunications can bring. 

The Emergence of AI in the Telco Sector

A brief history of the role of AI in telecommunications 

Given that telecommunications revolves around data connections and technology, it’s not surprising that it’s among the first to adopt automation and AI applications. 

Over time, telco sales and support has evolved from using basic customer support automation like interactive voice response systems, to virtual assistant and chatbots. In the last few years, we’ve seen the rapid development and adoption of more advanced technology. 

This includes machine learning (ML) tools that can analyze data to make personalized recommendations and detect potential fraud; more sophisticated chatbots that use conversational AI; sentiment analysis that monitors and responds to customer feedback; and faster, omnichannel support. 

The key drivers pushing AI integration in the telco industry

The swift adoption of AI by telco companies has been driven by more than an inclination towards cutting-edge technology. The telco industry is facing a number of challenges, driving telco enterprises to use AI to find solutions. 

Financial challenges

The last few years saw telco companies invest massive amounts in upgrading infrastructure and services, partly as a result of the digital transformation explosion and work from home boom caused by COVID-19. Now telcos are facing cost pressures and urgently need to boost profits. AI offers ways to make operations more efficient, optimize sales, and increase revenue. 

Fluctuations in demand

The telecom sector, like many others, is still struggling with lingering pandemic-related changes to the way that people use telecommunications services. Demand is higher than predicted and remains difficult to forecast, but AI can detect patterns in big data that open up visibility into future customer needs. 

High customer churn rates

Today’s customers have high expectations and are quick to churn. Competition is fierce, so there’s no shortage of rivals promising better services at lower costs. Telcos have no margin for error when it comes to customer experience; they need to deliver high quality services, fast issue resolution, and ensure that all agents deliver positive customer interactions. 

Labor shortage

Telco organizations are grappling with the same labor shortage affecting other industries. It needs to increase employee retention and satisfaction to ensure a dependable customer-facing workforce, as well as strategies to maintain personalized customer experiences despite a lack of qualified workers. AI sales coaching and training, chatbots, and personalized customer insights can help with these goals.

Competitive advantage

In an extremely competitive market, leaders and digital upstarts are already deploying AI, so companies that don’t keep up will quickly become obsolete. At the same time, indiscriminate AI investments are not likely to succeed. Telco companies need to integrate AI into operations quickly and wisely if they want to maintain their competitive advantage. 

Enhancing Customer Experiences through AI

AI offers many opportunities for telecom companies to improve their customer experience. Here are some of the AI use cases that are having the biggest impact on customer satisfaction and retention. 

Personalized customer interactions

Everyone wants to feel seen as an individual, rather than just another ticket in the customer support docket or potential source of revenue. Personalized interactions make customers feel valued, increasing their loyalty and satisfaction while driving down churn. 

With the help of AI data analysis, telco platforms can suggest products and services that are tailored to each individual customer. With more relevant offerings, you can improve upselling and cross-selling opportunities, helping increase ARPU values and grow your customer base. 

Efficient problem resolution with AI-driven support

In a post-covid world, patience is in short supply. Telco customers expect agents to have all the details of their issue at their fingertips, address them by name, and resolve their issue in the shortest amount of time. AI platforms help make that possible. 

For example, AI can identify and categorize customer issues, feed the agent with information about the customer and their concern, and push suggested solutions. AI support management also helps remove the risk of mistakes arising in customer information or of tickets getting overlooked. 

Freeing agents for complex issues

AI chatbots and AI-powered customer portals can take over low-level, simple customer support interactions, like answering common questions, guiding customers through billing and account management, and troubleshooting minor issues. This frees agents to dedicate more time and energy to complex and value-added activities, while also speeding up response times overall. 

AI can even remove the need for customers to contact customer support in the first place. For example, AI can detect connection issues and resolve them before customers experience a slowdown. Or sense that a customer is out the country and automatically apply a roaming data package to their account, so the customer won’t get a shock when they receive their next bill and call the company to challenge it. 

By adding AI to customer support interactions, telco companies can improve customer satisfaction levels, reduce tension and stress for employees, cut churn among both customers and agents, and build loyalty among your customer base. 

Sales Training Transformation with AI

Besides enhancing customer support, telcos can use AI to significantly improve sales training, resulting in telco sales agents who are more skilled, confident, and drive more revenue. 

Personalized training for each agent

Without AI, it’s extremely difficult to differentiate training for each agent. But AI sales training platforms like Second Nature make it easy to provide customized training based on each individual’s strengths, weaknesses, and learning styles. The AI engine tracks and analyzes agent performance, then uses the insights to adjust content, pace, and training methods. 

Second Nature’s AI role play partners allow each agent to conduct realistic sales and support conversations, and deliver timely, customized feedback and corrections. With Second Nature, agents can practice the encounters they find most challenging, and see performance analysis that helps them understand what to improve. 

Managers who can focus on agents who need more support

In traditional telco sales training, managers carry out one-on-one role plays and/or review recordings of agent pitches. But most are responsible for so many agents that they get overstretched. As a result, agents can’t receive the personalized training they need, and managers are only partially aware, at best, of who needs extra support. 

AI sales training can relieve the burden of role plays, evaluation, and scoring, freeing managers to give more time to sales agents who need more help. Additionally, detailed reports like those produced by Second Nature give managers insight into agents’ strengths and weaknesses, so they can direct more intensive training where it’s needed most. 

Risk-free practice to boost agent skills

Typically, agents receive limited training before trying out their sales and support skills on live prospects. Inevitably, they make mistakes, making them likely to lose leads and irritate customers before they get into their stride. It’s also very stressful for agents to enter a call without feeling they’ve mastered the potential situation. 

AI-powered virtual sales conversations like those offered by Second Nature create a risk-free, judgment-free, stress-free environment for agents to practice their skills. This gives agents confidence for a live call, which has an add-on effect to their performance. Since they rehearsed difficult scenarios, they are better able to defuse tensions and soothe irate customers, leading to increased customer satisfaction, reduced employee burnout, and less churn both for employees and customers. 

Continuous learning in the flow of work

Once telco agents have completed initial onboarding and certification, they’re usually eager to focus on smashing quotas. They’re frequently reluctant to interrupt this for sales or support training. 

But AI-powered sales training can change this. An AI platform can push bite-size learning modules to the agent that needs them, when they need them. This enables agents to acquire new skills and knowledge smoothly and easily, without resenting the interruption to their work day. 

More effective training programs

AI sales training tools can crunch big datasets from sales, marketing, and support, producing insights into the most effective sales and support strategies. Sales and support leadership can then use these analyses to refine their training programs and improve coaching tactics. 

AI analysis also makes it possible to identify the leads with the most potential to convert and customers with the highest risk of churn, so managers can direct telco agents more effectively. 

By incorporating conversational AI for sales into sales training processes, telcos can ensure that their sales teams are better equipped, more informed, and capable of delivering a higher level of service to customers, ultimately driving increased sales performance.

The Benefits of Integrating AI in Telco Companies

Integrating AI in telco organizations brings a number of important benefits. 

Enhanced operational efficiency

By automating routine tasks, AI can reduce the risk of manual errors and save time for sales and support departments. Agents get full, accurate details about every support case, and enter sales calls with as much customer information as possible.

AI sales platforms help qualify leads and direct sales agents to the best prospects, according to the company’s KPIs. AI analysis also produces data-driven insights that inform strategic decisions, leading to better resource allocation and revenue growth.

Unlimited scalability 

With AI, fast-scaling organizations can manage a larger volume of customer interactions, including support tickets, sales processes, and pre-sales inquiries, without dropping any balls. AI ensures that no ticket gets overlooked or query goes unanswered, providing the framework to scale without limits. 

AI-driven training also allows telcos to scale up sales and support departments with the same amount of training resources. AI role play partners, AI agent evaluation and scoring, and AI reports enable managers and sales/ support leadership to onboard more new hires and deliver ongoing training to rapidly expanding sales and support teams. 

Improved customer retention 

Thanks to its role in reducing errors, shortening the time to resolution for support tickets, and enabling personalized and relevant product and service suggestions, AI goes a long way to enhancing customer experience. 

Happier customers are more loyal, reducing churn and increasing revenue for the telco company, and are also more likely to recommend the company to others, helping to drive up business reputation and bringing in new customers. 

Streamlined communication processes

AI sales and support platforms give managers better visibility into agent performance. With these insights, they can allocate employees more effectively and suggest extra coaching and training resources to those who need it most.

AI customer portals and chatbots also offer 24/7 access to customer support and instant answers to the majority of queries. When agents talk with customers, they can see all the details of previous interactions, saving customers from having to repeat information they’ve already provided and allowing agents to deliver a more personalized service. 

Increased employee satisfaction

Employees greatly appreciate the support they receive from AI sales and support tools. They value access to rich customer information, which allows them to enter sales or support calls fully briefed. 

AI sales training gives agents more confidence because they’ve already practiced a similar call. With less stress and tension about sales or support conversations, agents are less likely to suffer burnout, more engaged, and more likely to remain with their organization. 

Increased revenue 

Inevitably, happier customers, more satisfied and engaged employees, and higher retention rates translate into more revenue. Agents who are more confident, better at building relationships, and have better listening skills are likely to close more deals. Equally, AI analysis helps identify more relevant, personalized upselling and cross-selling opportunities. 

Thanks to the affordability and easy scalability of SaaS AI tools in telecommunications, all this is possible for minimal additional costs, which ultimately boosts the bottom line. 

Potential Challenges and Considerations of AI in Telco 

Although AI in telco brings many benefits, there can be obstacles to overcome before you reach them. Here are some of the main challenges to consider when you introduce AI to your telco company. 

Data quality

Every AI model is only as reliable as the data that it’s trained on. Although many AI tools address generic purposes, you’ll need ones that have knowledge and understanding of your specific industry and audience. Before you start, make sure you have the high-quality data you need, and that it’s stored in a way that makes it accessible and available for your AI platforms. 

Data privacy and security 

Handling sensitive customer data requires robust security measures to prevent breaches or unauthorized access. You’ll need to set up processes that enforce compliance with data privacy regulations like GDPR and CCPA. Whichever AI systems you use, they have to comply with all the strict regulatory requirements that apply to telcos, especially in areas like call recording and data handling.

Integration with existing infrastructure 

It’s not usually practical, or even possible, to replace your entire technology stack, so you’ll need to make sure that your new AI tools integrate easily with your existing systems. You might need to make significant investments in technology and expertise before you can fully introduce AI platforms. 

AI Can Be Transformative for Telco Sales and Support

AI integration into telco sales and support brings many benefits, including greater customer satisfaction and retention rates, more engaged and skilled employees, improved efficiency, and increased revenue opportunities. Despite the challenges of AI adoption, the ultimate benefits of more revenue and increased profits make it worth the effort. 


How does AI improve customer experience in Telco companies?

AI training tools give sales and support agents the skills and confidence to handle any customer interaction. At the same time, AI platforms provide agents with full information about customer issues and previous communications with the company, so they can deliver more personalized service and resolve issues more quickly. AI chatbots can often respond to customer queries more quickly than human agents, improving customer satisfaction and freeing agents to focus on value-added calls. 

Customers appreciate more personalized product and service recommendations, faster issue resolution, and informed agents who don’t require them to repeat the same information, all of which increase their customer experience. 

In what ways is AI transforming sales training in telecommunications?

AI sales training is transformative in many ways. With the help of AI, agents receive personalized training experiences which help them improve more quickly. Timely feedback means they can correct mistakes before they become entrenched, while AI-powered evaluations are more trusted because they are more consistent and objective.

AI sales training is also more enjoyable and engaging, with the result that agents will practice more often and further boost their skills. Finally, AI sales training platforms offer a safe practice space that’s available 24/7, encouraging agents to rehearse difficult conversations and enhance their abilities. 

Are there any privacy concerns regarding the use of AI in Telco?

Yes, privacy is an ongoing concern for AI in any industry. However, they shouldn’t hold you back from tapping into the benefits of AI. Choose a vendor that takes data privacy and security seriously and complies with all relevant regulations. 

When you introduce AI into your telco company, it’s important to make sure that you have robust data privacy policies in place. This includes checking that personal and sensitive data isn’t used for training AI models, and ensuring that AI tools comply with data privacy regulations.

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About the author

Rebecca Herson

Rebecca is head of marketing at Second Nature.

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