Business Description
Today’s technological advancements have had an impact on all sectors and it is inevitably shaking up the telecoms industry – from the way customer engage, interact and connect with their telco providers. Below you will find a series of insights that aims to shed some light on consumer behaviour in regard to telco providers as well as the industry overall.
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Over 60% of us view being connected and reachable as the most important experience associated with telcoservices.
Telco 2025 insights, Oliver Wyman (2019)
Covid-lense:
45% of people working at home due to COVID-19 finding it difficult to connect to meetings due to poor internet connection
Moneyexpert.com, 2020
53% of people who attempted to make contact with ISP in last month faced difficulties: A new poll of UK adults has revealed poor levels of customer service from Internet Service Providers (ISP) in the last month (April 2020), due to the impact of COVID-19.
Djs research, 2020
Nutshell: The fundamentals remain largely the same, accessibility and connectivity are a priority, providers should not lose sight of this as technology continues to improve and providers diversify their offering. And let’s not forget, how customer service experience and the approach in managing user issues are vital to customer-retention in this competitive landscape.
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49% of respondents nowadays would rather grab a smartphone than a wallet.
Telco 2025 insights, Oliver Wyman (2019)
Covid-lense:
The COVID-19 pandemic has also dramatically accelerated the use of contactless payments, accounting for a whopping 90 per cent of all ‘face to face’ transactions since April 1.
Barclaycard, 2020
Nutshell: This shows the importance of digital wallets and how the integration of zero-touch is becoming a standard in consumer’s lifestyles. Therefore, considering partnerships and collaborations with payment platforms and integration of biometric and security measures are essential.
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61% would rather use Google maps than ask a pedestrian for directions
Telco 2025 insights, Oliver Wyman (2019)
Covid-lense:
Since Covid began in March, smartphone & mobile is device that has seen the largest increase in usage, up 70% worldwide (compared to laptop up 40%).
Statista, 2020
Nutshell: Consumers are increasingly leading digitally led lives, creating new habits and comforts that are embedded in connected devices. It is important to acknowledge behavioural insights as they allow telco providers to build successful solutions that are led by consumer lifestyles.
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“The telecommunications industry and related verticals will continue to evolve dynamically over the next five years. Boundaries will blur among product categories as a range of industry actors shape customer demand scenarios” – EY, Global telecommunications study: navigating the road to 2020
Disruptors: Consumer Ownership
With the rise of tech companies becoming more than just manufacturers of hardware, customer ownership could be at risk. Especially with millennials and a younger generation that have engaged and become loyal to certain brands – they are likely to see the equipment manufacturers/ tech-led brands as legitimate options for telecom services. (i.e. Apple, Samsung, Google etc.)
Diversification: Decentralized communications
With the availability of new technologies across communication platforms and software, telco providers are seeing the market decentralize and move away from one single provider. In other words, the lines between telecom companies and technology vendors are blurring.
Transparency: Data Security & Privacy
New technology comes with great opportunities as well as emerging security threats. Consumers are fast to learn about hacks and are becoming increasingly aware of the value of their personal data. Setting up the operational and technical innovations are needed to meet customer expectations, but also being able to show the ways in which users are protected will be key to reassure, retain and sign on new customers.
What this means:
Telco providers need to raise their game to retain customer ownership.
Whilst virtual customer relationship is on the rise, telcos may need to start to reconsider their customer experience and journey and their branding – so as to build stronger emotional connections with their customers, the way many leading-tech brands already have. This can be achieved in various ways – through creating a new and improved customer journey, rethinking the brands’ image and USP as well as restructuring its offering to become more agile.
