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

Publisher IDC
Published Nov 26, 2025
Length 8 Pages
SKU # IDC20611060

Description

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

Table of Contents

8 Pages

Executive Snapshot

New Market Developments and Dynamics

The Problem of High Churn and Cost of Acquisition

AI-Driven Retention: Transforming Telecom SMB Customer Value

Proactive Intervention and Personalization

State of AI Adoption for SMB Retention

Operationalizing AI for SMB Retention: Analyzing Successful Strategies

Advice for the Services Provider

Foundational (Communications SP Starting AI Journey With Low Level of Data Integration)

Evolving (Communications SP Running AI Pilots But Still Using Siloed Data)

Performing (Communications SP With AI Embedded in Core Processes, Already Scaling Solutions)

Advanced (Communications SP Using AI at the Enterprise-Wide Level and Seeking to Differentiate on This Basis)

Innovator/Frontrunner (Leading the Industry and Focused on Responsible AI)

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