BrazilAI-powered marketing can drive major personalization wave in telecom sector
Telecommunications companies in the GCC region can generate up to $5.90 for every $1.00 invested in AI tools that enable personalized marketing and customer value management – all while improving reputation and customer satisfaction.
Marketing and customer value have become essential pillars of success for telecom brands, which are constantly fighting for market share in a saturated landscape. AI-powered marketing has the potential to deliver more value to customers and can help generate significant business growth.
A new report from Strategy& found that companies could achieve a nearly six-fold return on investment in AI by creating AI-powered, marketing personalization ‘engines’. These engines, which the report notes could be developed over the course of around five years, would be able to produce deep customer insights and help shape better strategies with greater returns.
Making better use of data
Telecom operators typically only use from 30% to 50% of their huge stores of data. That includes everything from real-time location data and usage patterns to customer interactions. The pressure is on for these companies to make better use of this data – and advanced AI tools are the obvious way forward.
“Facing multiple challenges to growth, GCC telecom operators must harness AI to unlock the full potential of their data,” said Mahmoud Makki, partner at Strategy&.
“Consumers expect real-time and personalized engagement, yet most operators underperform on delivering this due to underutilized data sets, gaps in precision marketing capabilities and operating models that hinder collaboration. An AI-powered customer value management engine can transform telco data into a competitive advantage, delivering personalized experiences and real business impact.”
The Strategy& report highlights the case of one regional telecom operator that put a new AI-powered dynamic pricing tool to work and was able to increase conversion rates by 15%. Another operator leveraged AI to help deliver proactive and personalized solutions to customers that faced a widespread power outage, a move that boosted customer trust and reduced churn related to the incident by up to 60%.
AI-powered ‘engine’
In developing an AI-powered engine for more effective marketing, telcos can follow a few basic steps: Firstly, they should create the data foundation for the project, which should be a high-quality data pool that provides a 360-degree view of their customers. Secondly, AI and analytics can be used to generate insights and predict customer behavior.
A third step is to launch precise marketing campaigns with highly personalized propositions. Lastly, companies should ensure seamless customer engagement across all touchpoints, both physical and digital.
AI as an imperative
AI-driven marketing should be seen as a priority for any telecom company that hopes to stay competitive. But deploying new innovations is no simply task: Incorporating AI tools requires integrated marketing tech, investment, and an agile operating model to accelerate data-driven decisions.
“For telcos, adopting AI-driven marketing is no longer optional – it’s a strategic imperative to remain relevant, competitive, and connected to what customers truly want,” concluded Ankit Kushwaha, principal at Strategy&.
“Operators are already shifting toward hyper-personalized engagement and unlocking value lifts once thought unattainable. But this is just the beginning. Those who move boldly and at scale will redefine how value is created. Operators that fail to act risk ceding value to digital disruptors and becoming commoditized providers of basic connectivity.”
