Millennials vs. Gen Z: Insights on Customer Service Needs
Customer service expectations are going through the roof with the rising competition as well as the adoption of new-age technologies such as generative AI (GenAI). A one-size-fits-all strategy is not effective in customer service, especially when there is a drastic generation gap.
Therefore, it is becoming all the more important for companies to understand the preferences, demands and traits of Generation Z (Gen Z) and millennials to serve both age groups in a better way. Failing to do so can lead to lower retention rates and eventually a decrease in revenue.
For instance, there is a difference in how the two age groups believe they are effective in communicating information to different representatives. While 67% of millennials are of the view that they have to repeat or re-explain information to different representatives, only 56% of Gen Z share this view.
So let’s dive in.
Customer Service Expectations of Millennials and Gen Z
Millennials' Customer Service Expectations
The younger generation, including millennials and Gen Z, has exceeded the Baby Boomers and their predecessors in terms of population, making up nearly 24% (1.8 billion) of the world's total population.
Clearly, they are a powerful force when it comes to setting up customer expectations. As a result, strategies for customer service must be developed keeping in mind their needs.
Here’s what they want:
Accessible and Immediate Customer Support Channels
It is important to recognise that millennials are the first generation to have grown up with digital communication, gadgets, and devices. They have an abundance of information available to them compared to previous generations.
48% of consumers, including millennials, expect a response to social media questions and complaints within 24 hours.
25% expect a response within ten minutes to a social media customer query, and 30% expect a response within less than ten minutes when they reach out via text message
That is to say, clients now want businesses to respond to their queries and offer them answers that are precise, timely, thorough, and correct. Customers also expect organizations to offer help desk channels so that they can contact them via mobile devices.
Sincere Conversation
Millennials are the most educated generation and have exceptional attention to detail. Therefore, for businesses, it is important to recognise that more than continuing to use old-fashioned conversation methods will be required to please them fully.
Companies need to communicate with them openly and reliably. They expect brands to actively start and continue on frank, relatable, and productive conversations. Customers want to see and feel that they are in good hands when they contact the help desk. They value fast responses and professional concern handling.
Customisation in Everything
It's important to note that millennials can be very particular as they desire personalized customer care that meets their unique requirements. They will even share private information to interact with the business they support.
- 70% of millennials find it frustrating when brands send irrelevant emails.
- 61% of millennial consumers in the United States stated they would be willing to pay more for quality customer service
- 58% of millennials demand personalized support experiences.
Businesses must optimize customer care platforms to get information on customers' browsing and purchasing behaviours to show its expertise and proactive approach to provide excellent assistance.
Receiving Self-Service Support
Millennials typically search for customer support that resolves their issues on their terms. They would prefer to use the tools and technology to find solutions independently.
Organizations can incorporate digital self-service alternatives into their communication channels to serve customers more precisely, swiftly, and effectively.
Seeking Convenience
Millennials always look for a dependable solution supplier. So, avoid giving the incorrect impression that millennials are diverse individuals – independent and quite the perfectionists despite their occasional impatience.
Businesses can effectively emphasize convenience by optimizing their current technology and resources to meet the demands and requirements of the generation while maintaining their level of efficiency. Excellent examples of this could be using AI assistants like Alltius to solve customer queries on websites, in products or on help desks.
Gen Z Customer Service Expectations
The buying habits of Generation Z deviate significantly from those of millennials and boomers. This consumer segment is by far the most exposed to emerging business models and the majority of digital media.
Due to their high participation in the digital economy, they simply can’t be ignored. In times to come, they might even have the potential to dictate brands’ decisions on customer experience.
Here are some important insights regarding Gen Z's expectations for customer care.
Propensity to Attach and Detach from Brands Easily
Gen Z has extremely high customer service expectations.
37% of Gen Z consumers in the U.S. stated they were prepared to wait three hours for a customer service response
They are more likely to interact with a brand when they hear positive reviews from other consumers and develop a strong sense of affection for it if it meets expectations just about right.
75% of Gen Z prefer to seek knowledge from third-party customer service channels such as social media or Google search
However, Gen Z may also be incredibly harsh when a brand makes a mistake, which could be a single instance of subpar customer care.
65% of Gen Z would leave an online retailer if their experience is not personalized!
Businesses should work to improve their customer-centric procedures because of this clientele and should be open to innovation and use next-generation help desk technologies.
Preferring self-service
Gen Zs have the same tendency to be quite independent as millennials. They prefer addressing problems by conducting independent research and resolving product or service-related difficulties rather than calling the company's customer hotline, and failure to do so, might leave gaps for bad experiences.
- 52% of Gen Z consumers who couldn't resolve an issue through self-service would not buy from the company again.
- 44% of Gen Z consumers would say negative things about a company if they couldn't resolve an issue through self-service
AI self service platforms like Alltius enable businesses to cater to such users. Alltius provides an AI self service platform for customers to solve customer queries within the product or on help desk pages within 10 seconds.
Read how Matchbook AI used Alltius’ in-product assistant which answers 95% of user queries within 10 seconds, thus helping them solve customer queries without contacting human support.
Natives of social media
Compared to other generations, Gen Z's frequently work hard to keep up their social media presence to seem current and fashionable. Considering that 93% of Gen Z members are active on social media, it is clear that companies need to know how to use social media to engage with younger consumers.
Related Read - The Evolution of Customer Service: From Chatbots to Integrated Solutions
6 Key Differences in Customer Service Expectations
Differences in Expectations for Customer Service
- Gen Z: Need for Immediate and Tailored Assistance
Gen Z expects prompt, individualized customer service as they expect responses to their queries right away. Additionally, they value customized communications and are drawn to companies aware of their preferences and demands.
- Millennials: Demand Efficient and Omnichannel Service
Millennials anticipate effective customer service across all channels.
They highly value brands offering consistent and smooth consumer experiences across several channels.
- Need to Offer a Smooth Customer Experience
For Gen Z and millennials alike, offering a flawless customer experience is essential. Both generations value brands offering individualised and consistent experiences at all touchpoints.
Additionally, they value companies who value feedback and consistently improve their products and services.
Differences in Communication Preferences
- Preference for Digital Communication
Though Gen Z and millennials both favor digital communication, they still prefer a multi-platform approach. Millennials favor longer, text-based content on sites like Facebook and X (aka Twitter) as they pay attention to content for around 12 seconds.
Meanwhile, Gen Z favors brief visual content on apps like Instagram and TikTok as they focus on content for a shorter time span like 8 seconds.
- Need for Real-Time and Direct Communication
Both generations appreciate and prefer direct and authentic interactions as they expect brands to reciprocate and respond to them in an honest, quick manner.
- The Benefits of Reviews and Suggestions
While suggestions and reviews are significant to all age groups, millennials are more eager to conduct research and check the reviews before actually purchasing a product.
Difference in Brand Loyalty
- Less Brand Loyalty and More Brand Switching
While millennials show brand loyalty, Gen Z prefers switching from one to another. The latter usually makes the switch if they find the new brand more appealing with a better product or a better offer.
- Brand Values and Social Responsibility
While the two generations share similar beliefs towards brand values and social responsibility, Gen Z is more likely to go for companies that align with their personal beliefs and embrace social justice.
- Preference for Authentic and Transparent Brands
Both generations trust authentic and transparent brands. However, the millennial generation is more loyal to brands that show authenticity in their messaging and offerings.
Difference in Social Media Usage
- Gen Z: Visual and short-form content is predominant
Short-form and visual material consumption is dominated by Generation Z as they are always on apps and websites like Snapchat, Instagram, and TikTok.
- Millennials: Information and Connection is their Interest
Social media sites that facilitate connection and information sharing are preferred by millennials. Platforms like Facebook, LinkedIn, and X (previously known as Twitter) are used by them more frequently.
- Social Media's Impact on Brand Image
Social media significantly impacts how both generations perceive brands. Millennials are more likely to be influenced by brand posts and advertisements, whereas Gen Z is more likely to be impacted by peers and influencers.
Difference in Purchase Behaviours
- Preference for Internet Buying
Both generations opt online shopping over offline buying experience. But while Gen Z is more likely to use mobile devices, millennials prefer using desktops for their online shopping. Compared to 22% of millennials, 28% of Gen Z prefer to place orders via a mobile device.
While Gen Z surfs the web for roughly 10.6 hours, millennials spend about 6 hours and 48 minutes doing so.
- Social Media's Effect on Purchase Decisions
Social media significantly affects both generations' shopping decisions. However, millennials are more likely to be influenced by reviews and suggestions. Whereas, Gen Z is more likely to be impacted by peers and influencers.
- The Value of Evaluations and Suggestions
Though suggestions and reviews are important to all generations, millennials are more inclined to do their homework and read reviews before making a purchase.
Technology Expectations in Customer Service
- Gen Z: The Early Adopters
The Gen Z generation adopts new technologies early. For instance, using cutting-edge technologies like virtual reality (VR) and augmented reality (AR) is becoming common among them.
- Millennials: Using Technology to Make Life Easier
Millennials are a fan of technology because it makes things convenient for them – whether it’s booking a cab or a vacation. Technology is more likely to be used by them to make their life easier and to save time.
- How Technology Affects Purchasing Decisions
Technology has a big influence on what both generations decide to buy. According to 87% of support staff, advances in AI have led to a rise in consumer expectations year over year.
Millennials are more inclined to use technology to make purchases, but Gen Z is more likely to use it for product comparison and research. Therefore, if you're unsure whether to offer a free trial or a demo for your SaaS product, perhaps your choice of target audience will help you decide.
Strategies to Conquer the Challenges
Filling the Void
A Call for Omnichannel Scheduling: While these are strategically relatively different from each other, there is a need to deliver an omnichannel that caters for both. In other words, it means providing the clients with the liberty to choose the particular channel they wish to use when engaging your company.
Encourage openness: To build credibility and clients' trust along with creating positive attitudes toward the company and a sense of loyalty, one should not hide anything like policies and limitations, and if there are mistakes, then they should both be mentioned.
Increasing Productivity
Simplify the competition: The Millennial Generation demands answers from their search engines in microseconds. In order to meet this speed requirement, implementations should be made in process and response time.
Self-service empowerment: Ensure that the tools being used for self-service include functional and well-organized FAQs, knowledge bases, and AI chatbots to reduce on time spending and delayed responses. Every second matters!
Make Use of Social Media
Encourage transparency: Being available to listen and accept any information from the public, accepting when a mistake was made, and showing commitment to improve.
Create Connections: Engage with both generations directly through the usage of social media platforms to communicate brand values, seek its association as a key partner, and foster long-term relations.
Employ AI assistants for self service
Place a strong emphasis on customization: Teach AI chatbots to greet consumers by name, provide appropriate product recommendations based on past exchanges, and provide context-aware assistance, thereby delivering a personalized experience for both generations.
24/7 accessibility: A "now or never" mentality is common in both generations. When a chatbot is used, users may get immediate help whenever they need it, even outside of usual business hours, which reduces irritation and keeps them satisfied.
Conclusion
Businesses must recognize the differences between Gen Z and millennials as consumers. Through an awareness of these important demographic groups' distinct traits, inclinations, and behaviours, organisations can adjust their strategy to suit their needs.
These generations' impact on the market will only increase as they develop and acquire greater purchasing power. Companies that can successfully interact with these generations now will be in a strong position to succeed later on.
It is impossible to overestimate the significance of comprehending Gen Z and millennial consumers. Businesses need to keep educated and modify their strategy as these generations continue to shape the industry.
Using platforms like Alltius can help businesses change their customer service experience.
Alltius, a next-generation AI assistant platform, can triple sales and cut support expenses by half.
We have assisted large companies in cutting their monthly customer service expenses by $50,000. If you are interested:
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