Millennials and Generation Z Are Driving the Digital-First Future of Customer Experience


A picture of young people on mobile phones

NICE inContact announced findings from its global research study exploring the impact of Millennials and Generation Z on digital-first omnichannel customer experiences.

The third annual 2019 NICE inContact Customer Experience (CX) Transformation Benchmark details how understanding younger generations’ use of and expectations around next-generation solutions like artificial intelligence (AI) and digital channels, including private social messaging, are fundamental to building exceptional customer experiences.

As Millennials and Generation Z become dominant consumer groups, with Generation Z purchasing already reaching an estimated $100 billion – according to research conducted by Barkley – their comfort level and familiarity with multiple digital channels is very high.

With this in mind, organizations will ideally provide digital-first omnichannel experiences to meet consumer expectations and effectively compete in the experience economy.

The findings of this latest NICE inContact research back up this assertion, so let’s look further into this research, highlighting key findings.

4 Key Findings From the NICE inContact Report

1. Almost 60% of Generation Z and Millennials have used private social messaging for customer service. In contrast, 38% of Gen X, 19% of Baby Boomers and 16% of the Silent Generation have done so. The majority of Generation Z and Millennials also want companies to allow them to interact with customer service using private social messaging apps (72% and 69%, respectively).

2. Consumers are using AI more and feeling more positive about chatbots over time. Half of all consumers have used AI for any purpose (50%), compared to 2018 (45%). This can be attributed to a significant increase in the use of an automated assistant/chatbot online (34%, up from 25% in 2018). Generation Z and Millennials are more likely to agree that chatbots make it easier and quicker for their issues to get resolved, and are also the most likely of all generations to have used all forms of AI for any purpose, as well as for customer service.

3. Half of consumers who start with AI are transferred to a live agent, and age is a significant factor when it comes to AI and the importance of the human touch. While chatbot usage and performance are improving – and preferences and attitudes are changing – most consumers want to be informed if they are using a chatbot (92%), and 91% of all consumers prefer a live agent. However, this preference follows a downward trend generationally: 98% of the Silent Generation, 96% of Baby Boomers, 91% of Generation X, 86% of Millennials and 83% of Generation Z say they prefer a live agent.

4. Seamless digital-first omnichannel experiences can be key to positive customer experiences. Most consumers (93%) want seamless omnichannel experiences, and yet they are increasingly giving companies a poor rating on seamlessly switching between channels – 73% give companies a poor rating, up from 67% in 2018. This is especially important for meeting and exceeding the expectations of Millennials and Generation Z, who are the most likely to have experienced omnichannel customer service (16% and 21%, respectively).

Paul Jarman

Paul Jarman

“Understanding the nuances of what consumers expect and how they actually engage with brands via a myriad of digital channels, and integrating these in-demand channels seamlessly to deliver digital-first omnichannel experiences, is key to sustainable growth,” said Paul Jarman, NICE inContact CEO.

“The NICE inContact CX Benchmark looks beyond education around demographic customer service trends and gets to the root of what makes new channel options attractive.”

“Millennials and Generation Z are bellwethers of what consumers expect and are increasingly likely to recommend a company on social media based on personal experiences – the influence they wield is tremendous.”

For more information about NICE inContact, visit www.niceincontact.com

Published On: 3rd Dec 2019 - Last modified: 4th Dec 2019
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