Consumers' channel of choice for B2C wireless—digital or retail?

Question

Accepted Answer

The COVID-19 pandemic drove many telcos to accelerate digital channel capabilities to keep up with consumer expectations and real-world constraints. Even as countries transition back to normalcy (or something like that), it is pivotal that brands operate in and excel in the channels that consumers favor. We surveyed telecom consumers (B2C wireless) in North America to identify the preferred channel of choice (see figure).Consumers want digitalThe North American consumer continues to identify digital as their go-to transaction channel even post-COVID. Forty-five to 50 percent of consumers prefer to transact through a digital channel (for example, branded websites/apps, digital assisted, and third-party digital). While this trend is reflective of the US and Canada, the American consumer prefers to buy more from big box/mobile OEM websites and through BOPIS (buy online pick up in store).Retail is here to stayWhile digital has emerged as one of the most preferred and growing channels, retail has not lost its footing. During COVID, some telcos in the developed world drove even 50 to 70 percent of transactions digitally. However, as normalcy returns, retail has bounced back, but not without losing a significant chunk to digital. We believe that retail will continue to play a significant role despite increased digital shares, particularly for transactions with devices where digital journeys still have some catching up to do (device browsing, instant delivery, and activation). With retail here to stay, it becomes essential that brands can effectively leverage the channels in support of each other with clearly defined and complementary roles.The rise of big box and OEM device retailPreference for big box and OEM device retail is on the rise. While it is understandable for physical stores, given some BTL promotions at these stores, the preference for big box or OEM websites/apps is also on the uptick, especially in the US. This could be explained by the seemingly better digital experience and e-commerce capabilities these companies have built. While this may be great for a consumer, telcos may end up having to shell out more for acquisitions from such channels (owing to greater market power of these partners) and may not enjoy as much flexibility as they do in a franchisee model.Consumers and their preferences are fast evolving. Telcos’ own digital (telco-branded website and app) is a key lever to greatly improve customer experience, reduce costs, and ensure channel control—almost a no-brainer. Let's talk about reality. Do consumers behave according to their preferences? Are the North American telcos leveraging the digital opportunity? Click here to find out more.