case study: vertical intelligence in telecommunications

Enabling AI in Telecommunications

Using AI to reduce churn by 60% in Prepaid Mobile Phone Services


Liberty Latin America Ltd. is a US communications provider with a focus on Latin America. It offers a service model with no contracts, no credit check and no activation fees.

For the telecommunications industry, customer churn is a significant risk however many churn prediction solutions in the market do not take into account the unique nature of the industry. Due to the nature of how pre-paid customers use and consume their services, it was very difficult to predict when a customer would discontinue their service which limits the successfulness of programs that have been introduced to identify customers who are about to churn and the steps that can be taken to retain a customer.

Vertically Intelligent Solution:

Liberty Latin America Ltd. engaged with NowVertical to implement and leverage artificial intelligence and machine learning to analyze historical customer behavior, socio-demographic and consumption variables to create a churn model that was able to identify customers who were expected to churn within the next 30 days.

These critical insights were able to allow the company to implement targeted retention strategies including proactive communication plans, personalized offers and providing enhanced customer support to reduce their churn by a staggering 60%.


% Reduction in Customer Churn

% Reduction in Marketing Costs