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11.01.2024

Proactively counteracting provider changes – Are you an attractive Internet service provider?

Why young people switch service providers due to a lack of innovative technologies

In a world characterized by rapid technological development, innovation and progress play a crucial role in customer satisfaction, especially for the younger generation. Young people who have grown up with the constant evolution of technology tend to avoid service providers or suppliers who are lagging behind the demands of digitalization. One area in which this is particularly evident is the ISP sector. This article aims to shed light on why and how innovation and adaptation to new technologies are crucial for internet providers to gain and maintain the loyalty of the younger generation.

Technology-savvy customers & short minimum contract terms

Internet service providers face the challenge that today’s young people are naturally tech-savvy. They are used to information being available in a matter of seconds, real-time communication and digital services being seamlessly integrated into their everyday lives. Internet providers who are unable to keep pace with these developments are increasingly being shunned by a young, discerning clientele. But they are not only avoided.

Since 01.12.21, consumers have had the right to a 12-month contract term under the Telecommunications Modernization Act (TKMoG). After a minimum term of 12 or 24 months, contracts can always be terminated on a monthly basis. And the Internet is full of numerous guides on how customers can best implement their termination. From day one, ISPs have to convince with a contemporary and attractive customer service – for all generations.

According to a Deloitte study, 60% of 18-44 year olds have already switched providers at least once after having a bad experience with customer service.

Understanding customers’ preferences and motivations

In order to meet the increasing demands of customers, companies should understand the preferences and motivations that influence their customers’ behavior. The loyalty of Generation Z and millennials, for example, is based on experience. Both generations show a pronounced tendency to switch providers after negative or inadequate customer service experiences. A study by Genesys shows that 34 percent of Gen Z consumers switched companies last year, compared to 25 percent of baby boomers. Interestingly, however, it is younger consumers (43%) who recommend products or companies to others if they are satisfied with the customer service, while less than 33% of baby boomers do so.

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Expectations of the younger generation:

Always online, always connected

For young people, the Internet is not just a means to an end, but an integral part of their lives. From social networking to information gathering to entertainment, the Internet is their primary source for everything. Internet providers that do not offer the necessary bandwidth, speed and reliability to keep pace with the demands of an increasingly connected world are quickly perceived as outdated.

The desire for innovation

The young target group has a pronounced hunger for innovation. They are constantly on the lookout for new technologies that can improve their quality of life. Internet providers that stagnate in terms of innovative offers and services are no longer considered up-to-date by this target group. The willingness to switch to a provider that implements innovative technologies is high, as young people are constantly on the lookout for improvements and progress.

Seamless integration into everyday life: smart technologies as standard

The integration of smart home technologies, IoT devices and other innovative solutions is increasingly becoming the norm for the younger generation. Internet providers that fail to seamlessly integrate their services into these networked ecosystems are perceived as an obstacle. The ability to offer technologies such as 5G, fiber optic connections and other advanced infrastructures is becoming a decisive factor when choosing an Internet provider.

Speed and responsiveness: the key to customer satisfaction

In the era of streaming, cloud services and online gaming, the speed of the internet connection is crucial. Young people not only expect fast Internet, but also responsive customer service. Providers who are unable to respond to problems promptly or offer innovative solutions for improved connectivity quickly lose credibility and customer satisfaction.

Asynchronous and “contactless” contact channels

Nowadays, the younger generation in particular, especially Generation Z, prefers to communicate less by telephone. This age group shows a clear aversion to telephone calls and prefers asynchronous communication channels instead. There are many reasons for this. Take a look at our article and find out why the younger generation doesn’t like making phone calls.

Competitive advantage through innovation

Competition among Internet providers is intense and innovative technologies are the key to standing out from the competition. By introducing new technologies, offerings and asynchronous contact channels, such as the Conntac self-service solution, Internet providers can not only meet the needs of all generations, but also gain a competitive advantage. Innovative services can not only increase customer satisfaction, but also strengthen customer loyalty.

Conclusion: Digital change as an opportunity for internet providers

The digital transformation offers ISPs the opportunity to position themselves as pioneers and trailblazers in a networked world. Customers are increasingly demanding, informed and tech-savvy. Companies that are able to continuously improve their services and implement innovative technologies have the opportunity not only to acquire new customers, but also to retain existing customers in the long term.