Following a challenging year marked by customer churn and price hikes, Verizon's new CEO, Dan Schulman, is implementing drastic changes. The company saw its postpaid phone churn rise to 0.95% despite adding new customers. Schulman aims to transform the company by focusing on customer experience and addressing issues like price perception and service friction to boost loyalty.

Verizon's operating income dropped 32.6% year-over-year, and customer dissatisfaction grew after multiple price increases last year. To combat this, Schulman is prioritizing an AI-first approach to simplify offers, personalize interactions, and reduce churn. This strategic shift includes leveraging AI to anticipate and resolve customer issues proactively and bundled service deals.

Verizon is also facing intense competition from rivals like AT&T and T-Mobile. Schulman emphasized the need to rebuild customer trust and focus on providing value. While future price increases are possible, they will be tied to added value. The company hopes to add between 750,000 and 1 million new postpaid phone customers this year.

With a focus on fixing the end-to-end customer experience, Verizon is aiming to regain customer trust and improve its standing in the market. A recent J.D. Power survey showed Verizon trailing T-Mobile and MVNOs in postpaid phone plan satisfaction. The company’s acquisition of Frontier Communications is also a key part of its strategy.