This case study examines how Total Wireless can optimize the customer experience to improve satisfaction, reduce churn and boost customer loyalty
Hypothesis
If Verizon implements targeted strategic initiatives for its Total Wireless value brand, it will reduce churn leading to higher customer retention, and improved customer experience.
Challenges and Opportunities
The Prepaid Market
Top 3 Telecommunication Organizations as of 4Q 2023 (by Prepaid Segment)
T-Mobile - 21.6M subscribers
Verizon - 21.4M subscribers
AT&T - 19.3M subscribers
Market Dynamics:
Data Usage Trends — Consumer demand for data is growing, and many prepaid providers are changing their offers accordingly. Most buyers use mobile internet for communication, entertainment, and work, which is why many "pre-sponsored" tariff plans practically offer access to the internet for free, often providing many GBs of free data included in the price.
Flexibility — Prepaid plans are advantageous when it comes to commitment since they are mainly used when a certain company or an individual is sure that the possible usage of the services will not exceed a given amount of money. The customer is not bound to long-term contracts, allowing him to switch providers or plans easily. The mentioned flexibility is a significant advantage for students, travelers, and people eager to sign for a shorter term.
No Credit Checks — While most postpaid plans often require credit checks, the same cannot be said for prepaid plans; therefore, no credit history check is usually conducted. Because of this, prepaid plans are openly suitable for all consumers with inferior or 'Zero' credit scores, such as students, young employees, or many immigrants.
Source: www.statista.com
The global Prepaid Phone Plan market generated USD 582.17 Billion revenue in 2023 and is projected to grow at a CAGR of 4.51% from 2024 to 2033. The market is expected to reach USD 904.96 Billion by 2033.
Source: Yahoo Finance
Growth Strategy for Total Wireless
**Note** - For the purpose of this case study, I will focus on strategic initiatives specific to Customer Experience and Digital Enhancements.
Common Pain Points for Total Wireless Users
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Reps are unable to address issues outside of scripted procedures, leading to frustration when problems fall outside standard responses.
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Customer care reps are inadequately trained, often unaware of basic service plan details and unable to provide meaningful assistance.
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Users face recurring problems logging into their accounts, including incorrect password errors and difficulty resetting passwords.
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The app and website direct users back and forth with no resolution, making it difficult to manage accounts without needing to contact support.
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“Total wireless has great service once it is set-up, but the customer service is HORRIBLE!!!”
“Total by Verizon customer service reps are awful – they cannot help with anything that does not fall within the steps they are told to follow.”
“Too often, the app gives me trouble with logging in. I input my password and then I get the error that the password is incorrect. And then when I try to update it, the system still won’t let me log in to the account because the password is still incorrect. smh”
“If you can get into the app, it’s fine, but it doesn’t consistently save login info so constantly have to reset password.”
Key Focus Area
Driving growth from existing customers by creating a seamless and enjoyable experience that encourages increased usage of the company's products and services over time.
Improve digital platforms for better usability and account management
Reward long-term customers
Provide personalized, responsive customer support
Value creation along the customer life cycle
Delivering and enhancing value at every stage of a customer’s interaction with a brand, from initial awareness to post-purchase engagement.
Source: McKinsey & Company
15-25%
Typical increase in cross-selling
Typical Impact
5-10%
Higher Wallet Share
20-30%
Higher satisfaction and engagement
Strategic Initiative A
Improve Customer Support
Goals: Reduce wait times, provide more personalized, knowledgeable, and proactive support to customers.
Drivers:
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Comprehensive Service Plan Training:
Ensure reps have a deep understanding of all Total Wireless plans, features, and pricing structures, including promotions and limited-time offers. Training should focus on the ability to clearly communicate plan details, compare different plans, and help customers choose the right option based on their needs
Technical Troubleshooting Proficiency:
Equip reps with the skills to troubleshoot common technical issues, such as device activation, network connectivity, and app login problems.
Account Management Skills:
Provide in-depth training on account-related tasks, such as billing inquiries, updating customer information, managing payments, and handling disputes. Ensure reps understand how to guide customers through self-service features like plan changes, bill payments, and data usage monitoring on both the app and website.
Continuous Learning & Development:
Establish ongoing refresher courses and knowledge assessments to ensure reps stay up-to-date on the latest changes in service plans, technical features, and customer management tools.
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Increase Staffing Levels:
Hire additional support agents during peak periods to handle high call/chat volumes. Use data analytics to identify when support demand spikes and allocate resources accordingly. This helps in minimizing wait times to meet the goal of under 2 minutes.
Multichannel Integration:
Ensure seamless integration between chat, phone, and other support channels (e.g., social media or app-based support). This allows customers to switch between channels without repeating information, improving the overall efficiency of the support experience.
AI-Driven Chatbots for First-Level Support:
Introduce AI-powered chatbots that can handle basic inquiries and common issues, like resetting passwords or checking account balances, to reduce the burden on human agents. This ensures faster resolution for simple tasks, allowing live agents to focus on more complex problems.
Real-Time Monitoring and Support Allocation:
Implement a real-time dashboard that monitors support queues and reallocates agents to high-demand channels (e.g., moving agents from chat to phone support as needed). This dynamic resource allocation ensures that no channel becomes overloaded during high-demand periods.
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AI-Powered Assistance for Agents:
Equip agents with AI-driven support tools that provide real-time suggestions during customer interactions. These tools can analyze the conversation in progress and recommend the best solutions or next steps based on the customer’s issue (e.g., troubleshooting steps for technical problems, plan upgrades for billing inquiries).
Real-Time Coaching and Mentoring:
Implement a live coaching system where team leads or experienced agents can monitor calls/chats in real time and step in to provide guidance during complex interactions. This feature can help new or less experienced agents handle challenging situations, while ensuring the customer still receives accurate and effective support.
Automated Alerts for Escalation:
The AI system can flag complex or unresolved issues early in the interaction and recommend escalation paths, ensuring that cases requiring supervisor intervention are escalated in a timely and efficient manner, without frustrating the customer.
Personalized Customer Insights:
Provide agents with customer data in real-time (e.g., previous support history, active service plans, and known issues) so they can offer more personalized solutions. This enhances customer experience and minimizes the time needed to resolve issues by avoiding repetitive questions.
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Personalized Outreach:
Assign dedicated customer support agents to high-value customers to perform regular check-ins, offering assistance before issues arise. These check-ins can cover various aspects, such as account health, service satisfaction, upcoming promotions, or potential technical concerns.
Proactive Problem Resolution:
Agents can address common pain points proactively, such as troubleshooting app issues or suggesting plan optimizations. This ensures customers feel valued and cared for, while also minimizing the chances of dissatisfaction due to unresolved issues.
Strategic Initiative B
Enhance Digital Experience
Goals: Improve app and web usability, offering consistent and reliable account management and customer support tools.
Drivers:
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Improved User Interface (UI):
Focus on creating a cleaner, more intuitive UI that simplifies navigation. Reduce clutter, improve button placement, and ensure key actions (e.g., payments, plan changes) are easily accessible. This will help users accomplish tasks with fewer clicks and less confusion.
Incorporate user-centered design principles by conducting usability tests to identify pain points in the current app layout and flow. Use this feedback to optimize the experience for different customer segments, including tech-savvy and less tech-savvy users.
Enhanced Login Experience:
Resolve recurring login issues by ensuring the app consistently remembers user credentials without frequent logouts. Implement secure, reliable authentication methods like biometric login (fingerprint/face recognition) and seamless two-factor authentication (2FA) for better security and ease of access.
Improve the password reset process, making it faster and less prone to errors, while reducing the number of steps required to regain account access.
Performance Optimization:
Reduce load times by optimizing back-end infrastructure and minimizing unnecessary data processing. Faster load times will improve customer satisfaction and reduce frustration, particularly for customers in low-network coverage areas or using older devices.
Conduct performance tests on various devices and operating systems to ensure the app works smoothly across a broad range of customer environments.
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Improved Password Management System:
Strengthen the password management system by ensuring it accurately and securely stores user credentials, reducing the chances of frequent logouts or failed login attempts.
Implement encrypted password storage to protect users' login information, ensuring both security and reliable access.
Streamlined Password Reset Process:
Simplify the password reset process by making it more intuitive and seamless. Users should be able to reset their passwords with fewer steps and without encountering recurring issues after resetting.
Offer multiple secure authentication methods for resetting passwords, such as one-time codes sent via SMS, email, or app notifications, ensuring flexibility and ease for users.
Auto-Save Credentials and Persistent Login:
Enable a secure auto-save feature that allows users to save their credentials for faster, consistent logins without repeatedly entering their username and password.
Implement a persistent login feature, allowing users to remain logged in for a customizable duration (e.g., 30 days), while maintaining high security. Biometric logins, such as fingerprint or face recognition, can further improve convenience and security.
Troubleshooting and Error Monitoring:
Deploy a system that monitors failed login attempts and automatically flags recurring issues. This helps the support team proactively resolve any underlying technical problems related to login errors.
Provide immediate troubleshooting tips in the app if a login fails, with clear instructions on resolving the issue without needing to contact support.
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Unified User Interface (UI) Design:
Ensure the app and website share a consistent and intuitive design language, so users can easily switch between the two without having to learn different layouts or navigation systems. This includes harmonizing the look and feel of key elements such as menus, buttons, and fonts.
Standardize features across both platforms, ensuring that users can complete the same tasks (e.g., managing accounts, payments, troubleshooting) on either the app or the website, without needing to switch.
Shared Session Data:
Enable cross-platform session persistence by ensuring that user data (e.g., account details, usage history, and current activities) is synchronized in real-time between the app and website. For instance, if a user starts a task on the website (like updating a plan) but switches to the app, their progress should seamlessly transfer without requiring them to start over.
Avoid redirects that force users to switch platforms mid-process (e.g., from the app to the website for certain features), allowing all actions to be completed within one platform unless absolutely necessary.
Integrated Support Channels:
Ensure support tools (e.g., chat, FAQs, troubleshooting) are fully integrated between the app and website. If a user starts a support inquiry in the app and later accesses the website, they should be able to pick up where they left off, including chat history or ongoing support tickets.
Real-Time Syncing and Notifications:
Implement real-time syncing between app and website activities, ensuring that any changes made on one platform (e.g., plan adjustments, payment status) are instantly reflected on the other. This prevents users from seeing outdated information and creates a smoother, more reliable experience.
Ensure notifications (e.g., payment reminders or promotional offers) are synchronized across platforms, so users don’t receive duplicate or contradictory information when switching between app and website.
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First-Level Troubleshooting:
Deploy AI-driven chatbots capable of handling common customer inquiries and performing first-level troubleshooting tasks such as resetting passwords, checking account status, and diagnosing service issues (e.g., connectivity problems, data usage limits).
Chatbots can guide users through step-by-step solutions for technical issues, plan adjustments, or billing queries by following pre-configured workflows based on common customer interactions. This reduces the need for human agents to address routine requests, freeing them up to handle more complex cases.
Natural Language Processing (NLP):
Implement NLP technology to make chatbots more conversational and user-friendly. This allows chatbots to understand and respond to customer queries in natural language, making interactions smoother and less robotic.
NLP ensures chatbots can handle a wide variety of phrasing, slang, and spelling errors, which helps users feel understood without needing to conform to rigid commands or keywords.
Handling FAQs and Basic Information:
Program the chatbot to answer frequently asked questions (e.g., plan details, billing cycles, data usage, coverage areas) and provide links to relevant help articles, user guides, or videos. This will quickly resolve a significant portion of inquiries without human intervention.
For more complex issues, the chatbot can triage customer problems, gathering essential information (e.g., account details, specific complaints) and forwarding the case to a human agent, ensuring agents are fully briefed and can resolve issues faster.
Integration with Live Support:
If the chatbot is unable to resolve an issue, it should seamlessly hand off the conversation to a human agent, providing a summary of the interaction so far. This avoids forcing the customer to repeat information and allows the agent to pick up where the chatbot left off.
The chatbot can also schedule callbacks for issues that require more in-depth support, ensuring customers are never left waiting without assistance.
Continuous Learning:
Incorporate machine learning capabilities so the chatbot can improve over time by learning from interactions. With every customer interaction, the chatbot can refine its responses and expand its ability to handle more complex queries.
Strategic Initiative A Outcome
Enhanced Training Program
Reps will be empowered to offer accurate, informed, and effective support, reducing the number of repeat calls and improving customer satisfaction.
Customers will experience faster resolution times for complex issues, reducing frustration and ultimately contributing to higher retention rates.
Better knowledge and communication will enhance the overall customer experience, decreasing churn and improving brand perception.
Expand Chat and Phone Support Availability
Reduced wait times for chat and phone support, meeting the goal of under 2 minutes.
Improved customer satisfaction by offering more immediate assistance during critical times.
More efficient handling of inquiries by freeing up agents for complex issues, thanks to AI-driven first-level support.
Real-Time Coaching and AI-Powered Support Tools
Faster issue resolution as agents receive timely guidance and solutions for more complex problems.
Improved customer satisfaction due to more accurate, personalized, and efficient service.
Better agent performance through real-time coaching and feedback, leading to increased confidence and competence in resolving complex inquiries.
Introduce a Proactive Outreach Program
Higher retention rates among high-value customers, as they feel supported and appreciated through personalized service.
Increased customer satisfaction by addressing concerns and optimizing service before issues escalate, reducing churn.
Enhanced revenue opportunities through tailored offers that meet customer needs, encouraging plan upgrades or add-on services.
Measuring Success (KPI)
First Call Resolution (FCR) Rate
Definition: Percentage of customer issues resolved during the first interaction with a service rep.
Target: Increase in FCR rates post-training indicates that reps are more knowledgeable and better equipped to handle inquiries without needing to escalate or transfer calls.
Average Handling Time (AHT)
Definition: The average time a customer service rep spends on each interaction, including talk time, hold time, and after-call work.
Target: A decrease in AHT without negatively affecting the quality of service indicates reps are more efficient in handling issues due to improved knowledge and troubleshooting skills.
Response Time for Chat Inquiries
Definition: The time it takes for a customer to receive an initial response when using chat support.
Target: A decrease in response time indicates quicker engagement with customers and reflects the effectiveness of the expanded chat availability.
Abandonment Rate
Definition: The percentage of customers who abandon the phone call or chat session before connecting with a live agent.
Target: A decrease in abandonment rates shows that customers are not being forced to wait too long for support, leading to a better experience.
Agent Productivity (Interactions per Hour)
Definition: The number of customer interactions that each agent handles per hour.
Target: An increase in productivity as AI-powered tools and real-time coaching help agents work more efficiently and handle more inquiries in less time.
Training Effectiveness (Post-Coaching Performance Improvement)
Definition: The measurable improvement in agent performance (e.g., FCR, AHT, CSAT) after receiving real-time coaching or using AI-powered tools.
Target: Significant performance improvements following coaching sessions, indicating that the tools and guidance are effective.
Customer Retention Rate
Definition: The percentage of high-value customers who remain with the company over a given period after being part of the outreach program.
Target: A noticeable increase in retention among customers who receive proactive outreach, compared to those who don’t.
Net Promoter Score (NPS)
Definition: A measure of customer loyalty and the likelihood of recommending the company to others.
Target: An increase in NPS among high-value customers who have been part of the proactive outreach program, indicating a positive shift in customer perception.
Strategic Initiative B Outcome
Redesign Mobile App
Enhanced user experience, reducing the number of complaints related to navigation, load times, and login failures.
Higher customer satisfaction, as users will be able to manage their accounts more easily without technical difficulties.
Reduced churn from customers frustrated with app usability, leading to increased retention rates and a more positive brand perception.
Address Stability Issues
Reduced frustration among users who frequently experience login issues, leading to improved app usability.
Lower support inquiries related to login problems, as users will face fewer disruptions in accessing their accounts.
Higher customer retention, as a smooth and reliable login process is critical to maintaining a positive digital experience and brand loyalty.
Enhance Integration Between Mobile App and Website
Enhanced user experience through reduced friction when moving between the app and website, leading to lower frustration and confusion.
Fewer support inquiries as users will be able to complete tasks within their preferred platform without unnecessary redirects.
Increased customer satisfaction by providing a cohesive, seamless experience across all digital channels.
Leverage AI Capabilities
Reduced load on human agents, allowing them to focus on higher-level issues and improve overall response times.
Faster issue resolution for common queries and basic troubleshooting, leading to increased customer satisfaction.
Measuring Success (KPI)
App Usability Score (UX/UI Feedback)
Definition: The average rating given by users for the ease of navigation, clarity of information, and overall design of the app interface.
Target: A noticeable increase in usability scores post-redesign, indicating that the new interface is more intuitive and user-friendly.
Time Spent in App (Session Duration)
Definition: The average time users spend within the app during each session.
Target: An increase in session duration, as users find the redesigned interface more engaging and easier to use for account management and other tasks.
Login Success Rate
Definition: The percentage of successful logins without errors or the need for password resets.
Target: An increase in login success rates, indicating that the redesign resolved previous login issues, including recurrent password errors.
User Satisfaction with Login Process
Definition: The average satisfaction rating provided by users specifically related to the login process and experience.
Target: An increase in satisfaction ratings, indicating that users find the login process easier and more reliable.
Cross-Platform Task Completion Rate
Definition: The percentage of users who successfully complete key tasks (e.g., account management, transactions) across both the app and website without issues.
Target: An increase in the task completion rate, demonstrating that users can seamlessly complete actions regardless of the platform used.
User Experience Consistency Score
Definition: A rating of how consistent users find their experience across the app and website, measured through user surveys or feedback.
Target: An improvement in the consistency score, indicating that users perceive a uniform experience between the app and website.
First Contact Resolution Rate
Definition: The percentage of customer issues that are resolved during the initial interaction with the chatbot.
Target: An increase in first contact resolution rate, reflecting the chatbot’s effectiveness in resolving issues on the first attempt.
Customer Satisfaction Score (CSAT) for Chatbot Interactions
Definition: The average satisfaction rating given by users who interact with the chatbot, typically collected through post-interaction surveys.
Target: An increase in CSAT scores, suggesting that users are more satisfied with their chatbot interactions.
Final Thoughts
Final Thoughts
In summary, the strategic initiatives to enhance Customer Support/Experience and the Digital Experience are crucial for improving Total Wireless's service quality and user satisfaction. Expanding chat and phone support availability, along with implementing real-time coaching and AI-powered tools, will streamline customer interactions and reduce wait times. These changes are expected to boost customer retention and loyalty while decreasing churn rates.
Additionally, redesigning the app interface and resolving login issues will provide a more intuitive and reliable digital experience. While integrating AI-powered chatbots will efficiently handle common queries, easing the workload on human agents and ensuring 24/7 support.
Overall, these initiatives represent a strategic investment in both customer support and digital infrastructure, aimed at creating a more responsive, reliable, and engaging experience for Total Wireless users. By addressing key pain points and leveraging technology, Total Wireless can set a new standard for customer service excellence and drive sustained success in the prepaid market.