Dive Brief:
- Verizon will continue leaning into customer experience as one of its major differentiators as it looks to improve customer retention, which fell in first quarter 2025 after it increased prices earlier this year, according to executives on a Q1 2025 earnings call Tuesday.
- Verizon Consumer reported 356,000 wireless retail postpaid phone net losses in first quarter 2025, compared to 194,000 postpaid phone net losses in first quarter 2024.
- The company plans to fight churn in part through the launch of AI-driven customer experiences in the second half of the year, according to Sowmyanarayan Sampath, EVP and CEO of Verizon Consumer Group. The company is already deploying AI in its mobile assistants for store associates and call routing tools in call centers.
Dive Insight:
Verizon’s recent customer experience investments, including MyPlan personalization and the Verizon Access loyalty program, are helping it fuel growth. The company plans to further develop its offerings in an effort to build loyalty.
“Over the past few years, we have dedicated substantial resources to capital to enhance our customer experience through various initiatives, including AI for customer care and personalization,” Hans Vestberg, CEO of Verizon Wireless, said during the call. “Although the industry, including Verizon, still has room to improve, we have made great progress towards our goal of seamless customer interactions.”
Verizon is on a growth trajectory despite the increased customer churn. Total wireless service revenue was up 2.7% year over year to $20.8 billion in first quarter 2025, according to a Verizon earnings report.
Sampath called the customer churn “transitory” and predicted that it would abate by the second half of 2025.
“We want to be people's first choice, providing products, services and experiences they can't get elsewhere,” he said.
Executives attributed Verizon’s recent success to its MyPlan service, which suggests personalized offers and products for each customer and lets them customize their subscription. The company expanded the concept to businesses earlier this month with My Biz Plan.
“Our comprehensive portfolio of offerings and strategic moves we’ve made over the last year position us well for sustainable financial and subscriber growth while also improving the customer experience,” Vestberg said.
