How European Telcos Are Leveraging AI to Revolutionize Their SMB Customer Retention Strategies

This IDC Market Perspective examines how European telecom providers can address mounting pressure to retain SMB customers amid rising churn and acquisition costs. AI-driven retention strategies are emerging as a critical solution, enabling telcos to shift from reactive service models to proactive, personalized engagement. By leveraging predictive churn models, customer health scores, and automated workflows, communications SPs can intervene before dissatisfaction escalates, improving customer lifetime value and operational efficiency."AI is of strategic importance in this transformation. It is no longer a future investment but a current necessity. For telcos targeting SMBs, embedding intelligence across the customer journey is the only sustainable path to profitability and relevance in a hyper-competitive market." - Associate Vice President Alejandro Cadenas, IDC