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19.05.2023

Do apps have an impact on the choice of service provider?

Google search results for the keyword GenZ return numerous articles regarding their demands on the employer or many posts about the “laziness” of the new generation. A fascinating topic! That’s what we at Conntac think too. Because the requirements and behaviour of new generations also affect our customers and thus also our self-service solution. What are the demands of Generation Z on companies with regard to a service?

We recently reported that the younger generations do not like to make phone calls and that this fact will change customer service in the long run. In this article we take the question further: What role do apps play in the choice of service provider? Read more in the article.

When considering whether an app is a decision criterion for a service provider, we look at an important aspect when it comes to communicating with service providers: making appointments.

Appointment allocation: Apps as a decision-making factor when choosing a doctor’s surgery, hairdresser or restaurant

Who doesn’t know it? To be more precise, who of Generation Z, which is particularly reluctant to make phone calls and wants to coordinate and communicate almost everything contactlessly, doesn’t know it? The frustration of making appointments at the doctor’s office, the hairdresser’s or the restaurant. There is often no way around a phone call – and in the worst case with long waiting times.

In this case, of course, it depends on whether you already have a favourite restaurant, a regular hairdresser or a GP practice and whether they also use an app or a web service to make appointments digitally. If we assume that neither of these is the case and the choice of service provider is still pending, it is very likely that the use of digital contact and communication channels will have a huge influence on the choice of a new service provider.

In a study by GetApp, 70% of respondents – regardless of generation – within Germany said that when choosing a new service provider, they would choose the one that offered online appointment scheduling. In the USA, the figure is over 90%.

 

Pie chart: probability in the choice of service providers

Source: https://www.getapp.de on the basis of our own presentation.

Conversely, the question arose whether it is likely not to choose a service provider if there is no online appointment? Slightly more than 50% clearly affirm this.

Pie chart: probability of service provider selection in the absence of online appointment scheduling

Source: https://www.getapp.de on the basis of our own presentation.

And for which services are online appointments most important to respondents? This question was also asked in the study. The top 3 services look like this:

  1. Recreational activities – 24.96%
  2. Medical appointments – 22.99%
  3. Repair appointments – 22.17%
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Whitepaper

Customer service for Generation Z

What does Generation Z expect from today's customer service? This whitepaper will give you an insight into the behaviour of the younger generation. Find out more now!
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Reasons why online services are preferred over phone calls

At least as exciting as knowing whether offering online services makes a service provider more attractive are the reasons why.

 

Long queues, long wait times for appointments, telephone hotlines not being permanently staffed.

“What bothers you most when making appointments?” of the study, about 37% of respondents said that the negative side effect of making phone calls was due to long waiting lines. In second place, respondents cited the fact that appointments are not available promptly. Around 16% felt that having to keep to the service provider’s opening hours when making appointments was a nuisance.

 

Meeting customer needs with online services

Based on the reasons that respondents find annoying when making appointments, it is possible to derive clear customer needs that online services, such as service apps, definitely meet:

Customers want to make appointments outside fixed opening hours, spontaneously, when it suits them.
In doing so, they want the appointment to be made quickly on the one hand, and they don’t want to have to wait long for a free appointment on the other.

The last point cannot be influenced by using online services, but there is a clear advantage: plannability. If free appointments are far in the future, online appointments leave enough time to think about capacities for appointments in the future. This avoids (spontaneous) appointment cancellations in particular.

Online appointment scheduling does not require real-time responses. Do I have time on the free date in question? Does the time fit into my daily schedule? Using online services leaves enough time for consideration.

 

Gen Z favours tech-savvy companies

The previously presented study was not conducted specifically within Generation Z. Nevertheless, this study gives a taste of what the results of this survey would be within the GenZ. The generation is not called digital natives or always online for nothing.

A major challenge for Generation Z is making decisions. They are confronted with a lot of information, many channels and sensory overload. At the same time, they lack the time to think about decisions in peace (source: https://simon-schnetzer.com/generation-z/). They spend a lot of time on their cell phones, are almost always online and communicate too little in real life – but asynchronously via messenger services. This is one of the reasons why this generation finds it so difficult to make real phone calls these days. We have already looked at this and other reasons in detail in the article Gen Z and Millennials: The mute generation.

A mobile app or other online services make every company stand out from the crowd and give the impression, especially among younger generations, that they are up to date and tech-savvy.

 

Conclusion

Those who already think about the wishes and requirements of new generations can use this as a unique selling point and win over new target groups. Potential new, young target groups love the high level of comfort, 24/7 availability and the familiar, asynchronous communication medium of chat. Although the trend has not yet gained widespread acceptance and is literally in its infancy with the new generations, companies that are already thinking about tomorrow’s generations today can gain a real advantage over the competition.

 

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Through her agency experience and in-depth research, Cynthia has extensive knowledge of the customer service industry and its future development.

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Whitepaper

Customer Service for Generation Z

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Gen Z and millennials- The mute generation

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