The wireless retail industry has reached a tipping point. The U.S. wireless industry is booming as more consumers and businesses snap up smartphones, tablet computers and billions of wireless applications. With wireless penetration at nearly 100% in the U.S., commoditization threatens to further cut product margins and make an already competitive industry even more challenging. Retailers who can successfully differentiate from the market stand to capture the largest gains in this rapidly changing industry.
In a 2018 study by Deloitte, more than 80% of all smartphone owners (almost 90% of 18 to 24-year-olds) reported purchasing their current phone within the past two years. Global smartphone ownership reached 85% – a YoY increase of 3% – and with 5G slowly becoming commonplace, sales aren’t slowing anytime soon. The biggest factor they identify in the success of wireless retail industry is providing a superior customer experience. If the customer doesn’t get the perfect experience, they’re not going to come back. With razor-thin margins, particularly in pre-paid sectors, a differentiated customer experience is the only way to ensure that customers do not switch brands or providers.