Generation Alpha are those born between 2010 and 2024. They were born in a world embedded with instant and on-demand technology. It is a world far from what Baby Boomers, Generation X, Millennials, or even Generation Z have ever seen.
This early adaptation to smart technology feeds into the way they communicate. They are interacting with their peers and family through digital channels, and the vast majority are well-versed in instant messaging.
In fact, Infobip found that more than three quarters (77%) of those aged between 6 and 11 have access to a tablet. More than half (59%) have access to a smartphone. 60% of those who have an iPad or tablet had used one by their fifth birthday.
What’s fascinating – and quite daunting – is that by 2030, the youngest generation will have become customers. How should businesses prepare now for the technological and social expectations of future customers?
True digital natives
To explore the way this generation interacts with others and the devices they use, Infobip and YouGov conducted research across the UK and France. This revealed that they might be more comfortable interacting with technology than humans – perhaps unsurprising given that they are accustomed to using smart devices from an early age especially in learning environments.
But how are the youngest generation interacting with the technology, and what does it tell us about the potential service and product development? According to the above-mentioned research, almost two-fifths who use a smart device do so to complete schoolwork. Nearly a third (30%) have used a smart device to answer a question or help them, rather than asking their parent or guardian.
Meet the customer of 2030
By 2030, the first members of Generation Alpha will be adults and will begin to have direct interactions with businesses. Personalisation will play a huge role in these interactions. This young generation will expect to be treated as individuals with their own interests and values.
Communication will need to be relevant, derived from insights into the kinds of information they want to receive and events that trigger contextual experiences within the customer journeys. For example, if they enjoy browsing shoes on their mobile phone, they’ll expect offers to be sent via email, SMS or WhatsApp with relevant product suggestions and promotions. Businesses should leverage customer data relating to behaviour and sentiment to tailor messaging, content-type, and timing.
Experiences based on insight
Any digitally enabled interaction generates data. This data can then be leveraged to improve future communications, providing insights into customers’ interests and the kinds of experiences they engage with. This is especially important if they have a negative experience. There’s arguably nothing more frustrating than having an issue with a retailer, only for the company to continue to send you communications about other products and promotions as if there’s nothing wrong.
With the right customer data management platform and infrastructure, businesses can use predictive analytics to inform communications with customers and forecast likely behaviours. This could be anything from the engagement patterns of similar customers, to factors that indicate how likely a customer is to purchase a product. The more quality data that algorithms have, the better their predictions, and with machine learning they will improve over time.
Friction is the enemy of convenience
In practice, channels are anything that can deliver content and experiences to customers. We know that the youngest generation are already using more conversational channels like WhatsApp to communicate.
The secret to great customer journeys is providing all the options and letting the customer choose. With the right platform, businesses can cater to customer needs; irrespective of the channel in question. If those needs change, all you need to do is change the rules.
AI chatbots, for example, will be vital tools for more flexible interactions – delivering timely communications that provide useful information and accurate answers to frequently asked questions. It is hard to predict how AI and the younger generations will interact. But, considering their seamless introduction to the tech-world from infancy, it’s almost certain that they will, and most likely on a daily basis.
Final words
The prospect of new customers and a smart new world may seem daunting to some businesses. Change can be difficult, especially on an organisational level. The demands of this generation will be different to anything that came before them.
Digitalisation is at the heart of the transformation businesses need to undergo to better serve the customer of the future. A unified view of customer data and all the interactions they have had with a business will inform seamless, personalised experiences, which are sure to win over this next generation of shopper.
2030 is closer than you might think – we’re less than ten years away. As we’re starting to see these traits in younger generations today, now is the time to prepare. Ensure that your business isn’t left behind.