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Will Verizon's Customer-Focused Approach Drive Sustainable Growth?
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Key Takeaways
VZ launched AI-driven features and redesigned its app to enhance customer control and service efficiency.
Competition looms as T and TMUS deploy AI to boost customer experience and response times.
VZ added 400 stores in two years, placing 93% of Americans within 30 minutes of a retail location.
Verizon Communications Inc. (VZ - Free Report) recently announced the launch of cutting-edge AI-powered features that will transform the customer experience. Verizon Customer Champion is a standout personalized customer service feature that leverages Google Cloud’s AI, including Google’s Gemini models, to deliver complete resolution to end users. The company is also offering 24/7 live support to cater to diverse customer schedules and preferences.
Verizon has also redesigned its app and introduced leading-edge AI features such as AI-powered Verizon Assistant and Savings Boost. The new features enhance transparency and control, and allow end users to maximize efficiency and value from Verizon’s services. The company has substantially expanded its retail footprint. It has opened 400 retail stores in two years and 93% of Americans now live within 30 minutes of a Verizon store. Such a customer-focused strategy, combined with one of the fastest 5G networks in America, augurs well for long-term growth.
In the current quarter, the company also announced a three-year price lock guarantee for all its myPlan and myHome network plans. This ensures that the core monthly plan price for calling, data and texting will not change in the next three-year period, excluding taxes, fees and perks. The hassle-free enrollment for the changeover is being done automatically for all existing users and is reset for the next three years each time myPlan is changed. This strategy will allow Verizon to woo new customers and retain existing ones amid a challenging macroeconomic environment.
How Are Competitors Faring?
Verizon primarily faces competition from AT&T, Inc. (T - Free Report) and T-Mobile, US, Inc. (TMUS - Free Report) in the telecom space.
AT&T has been using data, AI-powered analytics and automation to support a wide range of applications, such as network design and planning, and network management optimization. The company also deployed AI to anticipate possible server issues and resolve them before they affect end users. It also introduced AT&T Guarantee, a first-of-its-kind industry initiative that promises to pay bill credits for any network outage across its wireless and fiber networks for consumers and small businesses.
T-Mobile has formed a strategic collaboration with OpenAI to transform customer experience. The partnership is working on a platform called IntentCX, which will comprehend customer intent and sentiment in real time and will offer faster responses and proactive resolution to issues customers face. T-Mobile is testing the use cases of IntentCX and expects to implement it in 2025.
Image: Bigstock
Will Verizon's Customer-Focused Approach Drive Sustainable Growth?
Key Takeaways
Verizon Communications Inc. (VZ - Free Report) recently announced the launch of cutting-edge AI-powered features that will transform the customer experience. Verizon Customer Champion is a standout personalized customer service feature that leverages Google Cloud’s AI, including Google’s Gemini models, to deliver complete resolution to end users. The company is also offering 24/7 live support to cater to diverse customer schedules and preferences.
Verizon has also redesigned its app and introduced leading-edge AI features such as AI-powered Verizon Assistant and Savings Boost. The new features enhance transparency and control, and allow end users to maximize efficiency and value from Verizon’s services. The company has substantially expanded its retail footprint. It has opened 400 retail stores in two years and 93% of Americans now live within 30 minutes of a Verizon store. Such a customer-focused strategy, combined with one of the fastest 5G networks in America, augurs well for long-term growth.
In the current quarter, the company also announced a three-year price lock guarantee for all its myPlan and myHome network plans. This ensures that the core monthly plan price for calling, data and texting will not change in the next three-year period, excluding taxes, fees and perks. The hassle-free enrollment for the changeover is being done automatically for all existing users and is reset for the next three years each time myPlan is changed. This strategy will allow Verizon to woo new customers and retain existing ones amid a challenging macroeconomic environment.
How Are Competitors Faring?
Verizon primarily faces competition from AT&T, Inc. (T - Free Report) and T-Mobile, US, Inc. (TMUS - Free Report) in the telecom space.
AT&T has been using data, AI-powered analytics and automation to support a wide range of applications, such as network design and planning, and network management optimization. The company also deployed AI to anticipate possible server issues and resolve them before they affect end users. It also introduced AT&T Guarantee, a first-of-its-kind industry initiative that promises to pay bill credits for any network outage across its wireless and fiber networks for consumers and small businesses.
T-Mobile has formed a strategic collaboration with OpenAI to transform customer experience. The partnership is working on a platform called IntentCX, which will comprehend customer intent and sentiment in real time and will offer faster responses and proactive resolution to issues customers face. T-Mobile is testing the use cases of IntentCX and expects to implement it in 2025.
Verizon's Price Performance, Valuation & Estimates
Verizon has gained 2.7% over the past year compared with the industry's growth of 23.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, Verizon trades at a forward price-to-sales ratio of 1.28, below the industry average.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Verizon’s earnings for 2025 has remained static over the past 60 days.
Image Source: Zacks Investment Research
Verizon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.