When it comes to customer service, few industries have reputations as tarnished as telecom. Long hold times, unhelpful responses, and endless transfers between departments have become synonymous with calling your provider. It’s not just an inconvenience. It’s also a massive business risk.
In a market where competition is fierce, poor customer service is one of the top drivers of churn. And with social media amplifying every misstep, telecom providers can no longer afford to overlook the importance of exceptional customer experiences. Let’s explore why the industry is failing and how to fix it.
A long history of frustration
Telecom companies have long struggled with customer satisfaction, often ranking at the bottom of customer service surveys.
The numbers don’t lie
- Industry rankings: The 2024 American Customer Satisfaction Index (ACSI) placed telecom among the lowest-performing industries, with average satisfaction scores of just 76 out of 100.
- Customer experience: An Infobip survey showed that 53% of customers cite an unsatisfactory customer experience as the reason for switching telecom providers.
Common pain points
- Long wait times: According to Forrester Research, the average wait time for telecom customer service is more than 13 minutes, far exceeding the benchmark for satisfactory service.
- Poor issue resolution: Customers often report being transferred multiple times or receiving incomplete solutions, exacerbating their frustration.
- Lack of transparency: Hidden fees, unexpected charges, and unclear policies lead to dissatisfaction and mistrust.
The cost of poor customer service
Bad customer service doesn’t just annoy customers—it also directly impacts revenue, retention, and reputation.
Churn and lost revenue
Customer churn is a perennial challenge for telecom providers, and poor service is a major driver.
- Stat: An Emplifi report found that 63% of consumers would leave a brand they were previously loyal to due to a poor customer service experience.
- Revenue impact: Reducing churn by just 5% can increase profits by 25% to 95%, according to industry estimates.
Reputational damage
In the digital age, every negative interaction can quickly become a public relations crisis.
- Social media backlash: Complaints on Twitter, Reddit, and other platforms often go viral, reaching thousands of potential customers.
- Example: In 2014, a recorded call between a telecom rep and a customer went viral on social media because of the rep’s use of aggressive retention tactics and refusal to let the customer cancel his service.
Why telecom customer service struggles
Despite its importance, customer service often takes a backseat in the telecom industry.
Legacy systems and inefficiencies
- Outdated infrastructure: Many providers still rely on fragmented, legacy CRM systems that fail to provide agents with a unified view of customer accounts.
- Siloed departments: Poor communication between billing, technical support, and customer care teams results in delays and inconsistent information.
Misaligned priorities
- Cost-cutting measures: Many providers prioritize cost reduction over customer satisfaction, leading to undertrained staff and insufficient resources.
- Focus on acquisition: Telecom companies often invest heavily in acquiring new customers but neglect retention efforts, resulting in high churn rates.
How telecoms can fix the customer service crisis
Turning around customer service isn’t just possible—it’s essential. Here’s how telecom companies can address the issue and win back customer trust.
1. Invest in omnichannel support
Customers expect seamless service across channels, from phone calls to chatbots to social media.
- Best practice: Implement an omnichannel CRM platform to unify customer interactions, ensuring agents have full context regardless of the channel.
- Case study: When an Asian telecom provider integrated an AI-powered chatbot with live agent support, calls handled by agents shrank from 8,000 to 1,000 per day, enabling live agents to spend more time with customers who need the most help.
a leap in customer self-service interactions from 19 percent to 45 percent,” enthuses Heng. “This boost is driven by a 140 percent increase in average messages per user, particularly for Digital Lifestyle products.” He shares Rahmi’s support for her customer service agents, who can now spend more time with the customers who need them the most. “Our agents used to handle 8,000 calls a day, but now that volume has dropped to 1,000 calls, and cross-selling has
2. Train and empower agents
Customer service agents are often undertrained and overwhelmed. Providing them with better tools and training can significantly improve outcomes.
- Actionable step: Implement regular training sessions focused on conflict resolution, technical knowledge, and empathy.
3. Embrace proactive service
Instead of waiting for customers to call with problems, telecoms can use data to anticipate issues and address them proactively.
- Example: Use analytics to identify network outages or billing anomalies and notify customers before they have to reach out.
- Impact: Proactive communication reduces inbound call volumes and increases trust.
4. Measure what matters
Traditional customer service metrics such as average handle time (AHT) often prioritize speed over quality. Instead, focus on metrics that reflect true customer satisfaction.
- Suggested metrics: First-contact resolution, customer effort score (CES), and net promoter score (NPS).
A path to better customer relationships
The telecom industry doesn’t have to be synonymous with bad customer service. By investing in the right technology, prioritizing training, and rethinking their approach to customer care, providers can transform a longstanding weakness into a competitive advantage.
In an industry where trust is rare and loyalty is fleeting, exceptional customer service is no longer a nice-to-have—it’s a necessity for survival.
