This is how the history of #telecommunications could read in the near future:
Once upon a time, #telco giants reigned supreme. Their prosperity was hinged, less upon customer loyalty, than the powerful spell of customer inertia and the dreaded hassles associated with switching carriers.
However, the sorcery of “contentment” might soon be broken as global economic changes threaten to expose the vulnerability of these wireless titans.
Echoing one of our previous articles – “Inflation’s toll: can telcos survive the shake-up?” – we discussed how telcos are feeling the heat as consumers are pressured into tightening their purse strings. That gloomy sentiment hasn’t dissipated.
With economic uncertainty casting a long, dark shadow over people’s willingness to spend, consumer inertia to switch may be approaching the tipping point sooner than later. For telcos with their sights set on long-term customer acquisition and retention, it’s no longer a question of “if” but “when” consumers will switch. Most probably to a competitor that’s newer, shinier, and, most of all, truly digital.
Digital generations want it all – and they want it now
The rapid development of digital transformation and a new generation of digital consumers are chipping away at the once impenetrable fortress of consumer loyalty. As economic conditions shift, with inflationary pressures and job market uncertainty becoming the new normal, consumers will be compelled to reevaluate their spending priorities.
This newfound frugality puts pressure on traditional carriers to adapt or risk losing market share. Millennials, who have surpassed baby boomers as the largest age group in the workforce, look set to lead the charge against wireless titans in profound ways. Joined by Gen Z, they want more than just affordability. They want it all: a smooth, seamless digital experience, personalised #customerexperience that wows them, unbeatable value, freedom to switch plans, and more. And they want it now.
Call them the “convenience customers” if you want, but this kind of digital-based shopping, social purchasing, and DIY ethos popularised by tech companies like Amazon, Netflix, Spotify and Uber no longer impresses today’s digital generation. Because it’s all they know – it’s not unique. Having a digital brand has become table stakes and operators without a digital telco are already missing out.