Verizon admits customers left after price hikes and has a predictable plan to stop more from leaving
More customers than expected left Verizon in the first quarter of the year and the company is betting on AI to lower churn or cancelation rate.
Verizon lost 289,000 postpaid subscribers in Q1 because of price hikes and less spending by federal agencies. This was the biggest loss in customers since 2021.
In contrast, the company had gained 568,000 subscribers just a quarter ago, in Q4 2024.
And even though the company acknowledged the impact of price increases on customer retention, it noted that the price adjustments were necessary, and expects churn to subside. CEO of Verizon Consumer Group Sowmyanarayan Sampath said that the price increase locked steady income for the rest of the year.
It's futile to hope for a reduction in prices as the company believes its other strategies will help it attract new customers and keep existing ones.
And then, there's convergence, or the bundling of wired and wireless service, which is known to keep churn in check.
And, like every other company these days, Verizon is betting on AI to improve customer experience. The company plans to roll out AI-powered tools and features throughout the year. It is not known whether this is what Project 624 is about.
The company has invested heavily in AI for customer care and personalization to improve customer experience. The company is already leaning on AI in stores and call centers to assist customers and cut down on transaction times.
While customers might get some reassurance that Verizon doesn't have its head in the sand, unlike a certain company, and understands that it lost many customers because of price increases, the bigger question is if AI is the solution to its problems.
At this point, AI isn't necessarily advanced enough to provide the same level of personalized assistance as an employee, which is why, this strategy may backfire and alienate customers further.
Verizon lost 289,000 postpaid subscribers in Q1 because of price hikes and less spending by federal agencies. This was the biggest loss in customers since 2021.
And even though the company acknowledged the impact of price increases on customer retention, it noted that the price adjustments were necessary, and expects churn to subside. CEO of Verizon Consumer Group Sowmyanarayan Sampath said that the price increase locked steady income for the rest of the year.
It's futile to hope for a reduction in prices as the company believes its other strategies will help it attract new customers and keep existing ones.
The first is the three-year price guarantee and free device offer. The second is C-Band expansion. The company had previously said that the user experience on C-band is better, which is why customers in markets where it offers C-band connections mostly go for its expensive plans.
And then, there's convergence, or the bundling of wired and wireless service, which is known to keep churn in check.
And, like every other company these days, Verizon is betting on AI to improve customer experience. The company plans to roll out AI-powered tools and features throughout the year. It is not known whether this is what Project 624 is about.
The company has invested heavily in AI for customer care and personalization to improve customer experience. The company is already leaning on AI in stores and call centers to assist customers and cut down on transaction times.
While customers might get some reassurance that Verizon doesn't have its head in the sand, unlike a certain company, and understands that it lost many customers because of price increases, the bigger question is if AI is the solution to its problems.
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