Marketing wireless products and services to millenials
As DefinedLogic’s Social Media and Marketing intern, I am learning to think like a true marketer. In a recent survey I conducted, my goal was to find out what young cell phone consumers (millenials) want, need, and buy. I also wanted to figure out what role social media will play in how we communicate with the companies with whom we do business. The survey was completed by 16 people, the majority of who were between the ages of 18 and 24. The results were interesting. Some results were exactly what I expected. Some were not.
Top providers are still AT&T and Verizon
Being the daughter of a retired AT&T employee, I have always been a loyal AT&T customer by default. (I will try to check my biases at the door in the following analysis!)
Here is what the young adults I surveyed thought about cell phone providers:
- AT&T stood out as being the leader in customer service, reliability, and overall quality to survey participants currently with AT&T or Verizon plans.
- Verizon has the strongest and most reliable network in the minds of cell phone users.
- The iPhone was inextricably linked with AT&T in the minds of consumers, (it will be interesting to see what happens if Verizon users are capable of using the device on their plan as well).
Other carriers were less prominent in participants’ minds. People thought of 4G networks in regards to Sprint, but were indifferent to the brand. T-Mobile was to a large extent associated with Catherine Zeta-Jones, but that was about it; the company enjoyed no strong product or service identity.
18-24 year-olds are a significant market
The young adults I surveyed were typically part of a family plan and did not pay their own bill. Their choice of provider was dictated by their parents. (Sorry advertisers, you cannot easily convert this customer segment without winning over the parents as well). But even so, these “kids” are still generating additional revenue for the providers. The vast majority of respondents had upgraded their plan to include more texting or minutes at least once since they got their first cell phone. (This sounded strikingly familiar: My father had to upgrade my plan more than three times since I received my first phone at age 12. As 100 texts per month turned into 250, then to 500, and finally when I exceeded 1,000, my father gave up and bought the unlimited plan. The month I exceeded 10,000 he almost fell over…woops!)
Accessories generate additional revenue
It is no secret that it’s hard to convince consumers to upgrade to whatever the latest phone model is. Typical cell phone contracts last two years and most people will not buy a new phone unless it is available at the discounted upgrade price. What consumers will spend money on is accessories. Survey respondents admitted to spending on average between ten and fifty dollars per month. Phone covers were among the most commonly purchased accessories, with the primary use for protection (which is imperative for users like me who are a hazard to their device) rather than style. None of the respondents had gone online to buy accessories. They would pick something up at their service provider’s retail location, or more typically, at a third-party electronics store like Best Buy or Radio Shack.
Can customers make the leap…
Ironically, when needing technical assistance or answers to questions about their plan, survey respondents preferred solving their issues online rather than visiting a retail location. They have not yet made the leap to social networking sites for customer service or information gathering.
It will be interesting to see if customers in general will make the leap and crossover to Facebook rather than the wireless service provider’s web site. Reportedly, AT&T alone has 15 people on their staff whose job is to respond all wall posts by customers on their Facebook or Twitter pages. In my experience, the time it takes for an AT&T staff member to respond to a post on Facebook or Twitter is drastically shorter than the time it takes to reach an operator if a customer were to call the 800 number. This forum could become the new site for instant gratification customer service.
Wrapping it up
So where does this leave me? I certainly understand more about how my peers perceive wireless service providers. AT&T and Verizon remain at the top of the totem pole and unlimited texting plans as well as accessories have certainly appealed to the demographic I represent. Where social media plays a role within this is still unclear. The jury (marketing pundits) is still out on the efficacy of AT&T’s social media as customer care push. Only time will truly tell if social media platforms will be the new wave of customer service and sales in the future.
