Verizon's CFO Addresses Customer Exodus Amid Strategic Overhaul

Verizon's Chief Financial Officer, Daniel Schulman, recently shed light on the factors contributing to the company's customer losses during a virtual conference last Friday, as reported by Barron’s.

Verizon Takes Accountability for Market Share Decline

Over the past five years, Verizon has seen its market share erode by approximately 5 to 7 percent, leading to significant revenue pressures. In response, the carrier increased service rates, which unintentionally accelerated customer departures, pushing the churn rate up by nearly 0.25 percent.

Verizon's customer satisfaction ratings have slipped relative to competitors, attributed partly to frontline employees lacking adequate resources to resolve customer issues efficiently. Schulman emphasized that the extensive layoffs of 13,000 employees were a difficult but necessary step to reallocate resources toward enhancing customer value. He warned that without decisive actions, Verizon’s market share could have deteriorated further.

New Leadership Direction: A Mixed Track Record

Not all of Schulman’s initiatives have yielded immediate success, but some promising moves suggest Verizon may be heading in the right direction.

Although details about Verizon’s future plans remain limited, Schulman revealed that artificial intelligence will be a cornerstone in simplifying operations and reducing expenses. He highlighted that prior promotional complexities generated customer friction, which the company aims to minimize. Improving customer service remains a top priority.