ShortCut: Consumer Trends 2021

How the telecommunication sector can leverage new consumer needs




How the telecommunication sector can leverage new consumer needs
Communication requirements have changed through the COVID-19 pandemic : Connectivity plays a critical role in the work of healthcare providers , remote work of businesses , and education of children . Consumers use communication technology in a new intensity to keep in touch with their families and friends , to consume entertainment services or to buy everyday goods online . Restrictions imposed by lockdowns have increased openness and exploration for digital services such as video calls , and already known trends such as mobile payment have intensified . But how can telcos leverage new consumer trends and incorporate them into their service offerings ? We have compiled the most important trends that telcos should consider .
Another e-commerce push
During the pandemic , approximately 85 % of telecommunication stores remained closed across Germany , while 15 % operated with restricted opening hours . This forced consumers to use digital sales channels and accelerated the trend toward online retail in general , which grew by 19 % in 2020 . Many consumers see online shopping as less risky due to the lack of contact with others . Safety , in times of COVID-19 , may also be reflected in the way people pay . According to Mastercard , contactless payment options as a proportion of physical payments have grown by 25 % in 2020 compared to 2019 .
As many brick-and-mortar stores remain closed , consumers increasingly seek digital contact with vendors , resulting in new ways of presenting products relying on specialized hardware . Virtual showrooms and virtual or augmented reality enable consumers to experience products as realistically as possible from home before buying them .
As online and offline sales and service channels become more interconnected , consumers expect a seamless and personalized channel experience . Consequently , telcos should optimize their customer touchpoints toward an innovative omnichannel approach , leading to an increase in consumer satisfaction and loyalty , while positively impacting the overall revenue performance .


Phishing / scam / fraud
Malware / ransomware
Malicious domains
Fake news
14 %
22 %
36 %
59 %
The COVID-19 pandemic has permanently changed consumer behavior in the long term . Telecommunication companies should act now and adjust their service offerings to the new requirements .
Increased demand for data security and privacy
With many consumers working from home due to the pandemic , the number of cyberattacks , such as phishing and malware , has increased by up to 250 % in 2020 compared to 2019 . Companies and consumers will therefore continue to look for strong security solutions to protect their data , e . g ., with secure VPN . In addition , with consumer preferences shifting online , many people are required to share more personal data , e . g ., for health apps , but are often reluctant to do so . Therefore , balancing privacy , usability , and personalization of applications and services become a more pressing issue .
By leveraging customer relationships , telcos should expand their security offerings such as virus and spyware protection and establish themselves as a one-stop service provider , in addition to offerings strongly focusing on sole connectivity .
Note : As cyberattacks can be categorized as several threats , numbers add up to more than 100 % Source : Interpol