In the competitive landscape of the GCC telecom sector, customer value management is becoming increasingly complex. A single mistake in marketing strategy can significantly impact brand value, making it crucial for operators to find innovative ways to engage with customers. One such opportunity lies in leveraging AI-powered marketing to deliver personalized customer experiences, ultimately driving substantial business growth.
According to a report by Strategy& Middle East, a PwC network firm, telecom operators can generate up to $5.9 in EBITDA for every $1 invested in an AI-powered marketing engine over five years. This AI-powered engine would help operators gain deeper customer insights, enhance decision-making, and create precision-targeted strategies to boost returns. Personalization has become more than a competitive edge—it is a fundamental factor in sustaining relevance, differentiation, and driving revenue growth.
The Urgency to Act
Despite having access to valuable data such as real-time location information, usage patterns, and customer interactions, GCC telecom operators typically use only 30 to 50% of their available data. This underutilization limits their ability to engage customers effectively and drive growth. Mahmoud Makki, Partner and Leader of Strategy&’s Telecommunications, Media, Technology, and Digital practice in the Middle East, emphasized the importance of utilizing AI to unlock the full potential of telecom data. Consumers expect real-time, personalized engagement, but many operators fall short due to underused data, gaps in marketing capabilities, and siloed operating models. The key to overcoming these challenges lies in AI-powered customer value management, which can transform telecom data into a competitive advantage.
Successful AI Examples in Telecom
The report highlights several successful examples from within the telecom industry. One regional operator integrated an AI-powered prospecting and dynamic pricing tool into their sales app, resulting in a 15% increase in conversion rates and a reduction in acquisition costs. Another operator used AI to offer personalized resolution after a network outage, reducing churn by 40-60%. In addition, telecom operators are moving away from large campaign cohorts targeting millions of customers, instead focusing on smaller, hyper-targeted groups, which has led to a 2-3x improvement in campaign conversion rates while maintaining high Net Promoter Scores.
The Four-Layer AI Framework
To fully capitalize on AI-driven marketing, GCC telecom operators must develop an integrated capabilities engine that combines data, analytics, technology, marketing, and customer experience. The Strategy& report outlines a four-layer framework that operators must adopt:
- Data Foundation: Establish a comprehensive, high-quality data pool that provides a 360-degree view of the customer.
- Cognitive Marketing Core: Leverage AI and analytics to generate real-time, actionable insights and predict customer behavior.
- Value Pools: Create use cases and AI-powered campaigns focused on precision marketing, targeted sales, and personalized retention strategies throughout the customer life cycle.
- Activation: Ensure seamless customer engagement across all digital and physical touchpoints to deliver the right message at the right time.
Moving Forward: AI as a Strategic Imperative
For GCC telecom operators, adopting AI-driven marketing is no longer an optional strategy; it is essential to remain competitive in an industry that is evolving rapidly. The report recommends that operators integrate their marketing technology stacks, invest in AI capabilities, and adopt an agile operating model to accelerate the transition to data-driven decision-making.
Ankit Kushwaha, Principal at Strategy&, emphasized the urgency of embracing AI to stay relevant and competitive. While operators are already exploring hyper-personalized engagement—targeting micro-cohorts or even individual customers—this is just the beginning. Operators who move boldly and at scale will redefine how value is created, while those who fail to act risk losing out to digital disruptors and becoming mere providers of basic connectivity.
In summary, AI-driven marketing is the future of telecom customer engagement. GCC telecom operators must act quickly to harness the full potential of their data and deliver personalized, impactful experiences to remain competitive and sustainable in the market.
