Gen Z as the target group of tomorrow, three teenagers looking at a mobile phone together

27.07.2023

Thinking about tomorrow’s customers today

Who are the customers of tomorrow and why are they important?

Generation Z, also known as “digital natives”, is the first generation to grow up in a fully digitalised world – roughly the cohorts between 1995 and 2010, depending on which source you refer to. In the coming years they will become, and in some cases already are, an increasingly important target group for companies, including internet service providers. But how do the needs and expectations of Gen Z differ from other generations? And why is it important to think about tomorrow’s customers today?

The needs of Gen Z

Smartphones are the constant companions of Gen Z and are used not only for making phone calls but also for shopping, obtaining information and sharing in social media. Gen Z has the highest level of internet usage in Germany at just under 75 % (Source: German Institute for Marketing). They expect seamless and user-friendly internet services. When Gen Z customers choose a new internet service provider, they expect a smooth experience. However, when a website is confusing and lacks information, it is frustrating. Such experiences lead to disappointment and dissatisfaction. Therefore, to be successful, ISPs need to understand and respond to Gen Z’s needs and expectations. Gen Z is a tech-savvy generation that expects constant connectivity and uses digital solutions. For example, about 62% of Gen Z will not use an app or website that loads too slowly (Source: IBM). Companies that simplify their processes, offer digital self-service options, are present on different communication channels and provide personalised offers can build long-term customer relationships and strengthen their competitive position.

Understanding the needs of Gen Z

Gen Z customers expect an internet service provider to be fast, hassle-free and reliable. But instead, they often feel abandoned and not taken seriously because there is a discrepancy between their expectations of hassle-free and reliable service and the actual experience. So if they find a lack of care, no personalisation and long waiting times when they need service, Gen Z customers become dissatisfied customers.

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Tips for Internet Service Providers to attract tomorrow’s customers

There are positives to be gained from attracting new young target groups: Companies that adapt to the needs of Gen Z and offer innovative solutions will be rewarded by this target group. Companies should win the trust of new target groups. For customers, trust means quality and reliability in particular (Source: PwC). According to HubSpot, the trust of your customers is a prerequisite for loyalty and brand loyalty. So what are the advantages for internet service providers of thinking about tomorrow today?

Brand loyalty: Satisfied Gen Z customers are more likely to stay with the same ISP, renew contracts and use additional services.
Positive word of mouth: Satisfied customers share their experiences on social media and recommendations, which can attract potential new customers.
Referrals: Satisfied Gen Z customers actively recommend the ISP in their social environment.
Increasing customer loyalty: Meeting Gen Z needs increases customer loyalty.
Competitive advantage: The ISP can differentiate itself from competitors and be successful in a competitive market.

What does this mean specifically for internet service providers? Here are some tips:

Simplify your processes

Gen Z customers expect a fast and straightforward process. Make sure your website and ordering processes are user-friendly and easy to understand. Meanwhile, 43% of Gen Z consider it important that the online experience is easy to navigate (Source: The Center for Generational Kinetics, LLC).

Offer digital solutions

Gen Z is used to doing everything online. Make sure your customers can also view and pay their bills online and offer digital self-service solutions. Products and services should be fast, intuitive, fun and sustainable (Source: PwC).

Be accessible

Gen Z customers want to be able to communicate with you anytime and anywhere. Therefore, offer different channels, such as chat, email and social media. One-fifth of Generation Z prefer to interact with a brand via social media, more than any other channel (Source: Campaign Monitor).

Go for personalisation

Gen Z expects personalised offers and services. Use the data you collect about your customers to create personalised offers and recommendations. Tailor your communications and marketing to the needs and interests of your customers. According to Twilio’s “The State of Personalization Report 2023”, 72% of Gen Z have already been persuaded to make a purchase by personalised experiences in the past.

Invest in technology

Gen Z is tech-savvy and expects innovative solutions from a modern internet service provider. A full 80% of Generation Z want to work with cutting-edge technology (source: Dell Technologies). Therefore, invest in technologies such as 5G, IoT and AI to offer your customers an optimal user experience.

Be transparent

Digital natives value transparency and sustainability (Source: DeskBird). Make sure you communicate transparently about your products, services and prices. Also, be open to feedback and suggestions for improvement.

The benefits of attracting tomorrow’s customers

By adapting to the needs and expectations of Gen Z, you can build long-term customer relationships, improve brand loyalty and strengthen your position as an internet service provider. After all, satisfied customers are the best advertisement for your company. So think about tomorrow’s customers today and make sure you meet their needs and expectations. This way you can continue to operate successfully in the market and inspire your customers.