How telecom retail can meet customer needs | EY
Nontraditional formats are giving the in-store customer experience a new look
The pandemic brought about a dramatic shift in consumer behavior, with a significant decline in traditional in-person store visits observed. According to a 2021 study on telecom retail opportunities, these visits have decreased by 20% post-pandemic, while alternative purchasing methods such as “buy online, pick up in store” (BOPIS) have seen a sharp uptick.⁴ BOPIS has been around for several years, and as customers become more and more comfortable with technology, we continue to see them generally limiting the amount of time they spend in stores.
Compelling survey data published by Doddle supports this trend, revealing that a staggering 85% of shoppers surveyed made additional in-store purchases while picking up their online orders.⁵ These findings highlight the immense potential for retailers to create a frictionless omnichannel experience that seamlessly integrates physical and online shopping. By offering BOPIS and similar services, retailers can engage customers, build loyalty and drive revenue growth.
The consumer of the future is here
Gen Z, the first generation of true digital natives, will have global spending power of US$33 trillion by 2026 and is poised to surpass millennials in terms of income by 2031, according to Bank of America.⁶ Gen Z consumers grew up with technology and expect personalized, connected experiences across the buying journey, from research to advocacy. Despite being digital natives, Gen Z still values shopping in stores, with a study by Euclid Analytics finding that 81% of Gen Z customers prefer to shop in store for items such as electronics.⁷ To attract Gen Z into the retail environment, retailers should consider designing experiences that reflect this important demographic’s values and priorities, such as community, sustainability, affordability and excellent personalized customer service.
