In today’s hyper-competitive telecommunications landscape, telcos and cable operators face a daunting challenge: how to break free from the perception of being mere utilities and become brands that inspire genuine loyalty and advocacy. As network parity becomes the norm and price wars erode margins, the opportunity for differentiation lies not in the pipes, but in the experience. The path forward is clear—transforming from a functional provider to a “magical” brand that customers love, trust, and recommend.
For decades, telcos have been locked in a cycle of competing on coverage, speed, and price. While these factors remain important, they are no longer sufficient to drive growth or customer retention. As one industry leader put it, “If you’re the thing enabling the experience, versus the experience or product itself, it becomes hard for the consumer to point to you and say, ‘you’re the magical brand.’” In a world where consumers can switch providers with a few clicks and where tech giants threaten to disintermediate the customer relationship, emotional affinity is the new battleground.
Publicis Sapient’s research, spanning over 30,000 consumers and 160 brands, reveals that brands fall into four categories: Functional, Valuable, Essential, and Magical. Most telcos remain stuck in the functional category—reliable, but uninspiring. Magical brands, by contrast, are seen as extensions of the customer, driving the highest engagement, advocacy, and lifetime value. The difference is profound: magical brands enjoy a 99% renewal rate and upsell products 2.5 times more than their peers.
To move from utility to magical, telcos must reimagine every touchpoint of the customer journey. Publicis Sapient’s LEAD framework—Light, Ethical, Accessible, Dataful—offers a practical blueprint for this transformation:
Leading telcos are already experimenting with new ways to create value beyond connectivity. For example, T-Mobile’s Team of Experts model connects customers with dedicated support squads, blending digital convenience with a human touch. This approach has driven significant increases in customer satisfaction and reduced service costs. Similarly, cable providers are exploring whole-home solutions that integrate Wi-Fi, security, and entertainment, moving beyond the traditional “speeds and feeds” narrative.
But true innovation goes further. Imagine a provider that automatically pauses billing when it detects a customer is on vacation, or one that uses AI to recommend the best plan based on real-time usage. These are the kinds of magical moments that build emotional affinity and set brands apart.
Data is the most important investment telcos can make to limit churn and grow loyalty. Advanced customer data platforms (CDPs) and AI-driven segmentation allow providers to:
For example, AI-powered chatbots can handle common queries, while predictive analytics can spot upsell opportunities or proactively resolve issues. This blend of automation and human touch is essential for delivering magical experiences at scale.
With network quality and pricing converging, the emotional connection between brand and customer becomes the ultimate differentiator. Magical brands don’t just meet needs—they anticipate them, surprise and delight, and make customers feel understood. This requires a shift from transactional relationships to meaningful, ongoing engagement.
Practical steps for telcos include:
Brand transformation is not a one-time campaign—it’s an ongoing journey that requires alignment across people, processes, and technology. Publicis Sapient partners with telcos to deliver holistic change, combining strategy, design, engineering, and data science to unlock new sources of value.
In a world where customer expectations are shaped by the best experiences across all industries, telcos have a unique opportunity to redefine what it means to be essential—and even magical. The brands that rise to this challenge will not only survive, but thrive, earning the loyalty and advocacy of customers for years to come.
What’s next for your business? Let’s achieve it together.