Digital-First Futures Being Driven by Younger Customers, Report Underlines

December 5, 20194min

Companies must provide digital-first omnichannel experiences to meet consumer expectations and effectively compete in the experience economy.

That is the key takeaway from the third annual 2019 NICE inContact Customer Experience (CX) Transformation Benchmark report, which 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, best-in-class Customer Experience.

As millennials and Generation Z become dominant consumer groups, with Gen Z purchasing already reaching an estimated $100 billion, according to research conducted by Barkley, their comfort level and familiarity with multiple digital channels including social messaging and chatbots means organisations, no matter their size, must provide digital-first omnichannel experiences to meet consumer expectations and effectively compete in the experience economy.

The global study reveals that almost 60 percent of Gen Z and millennials have used private social messaging for customer service. In contrast, just 38 percent of Gen X, 19 percent of baby boomers and 16% of those born before 1945 have done so. 

The majority of Gen Z and millennials also want companies to allow them to interact with customer service using private social messaging apps (72 percent and 69 percent, respectively).

Meanwhile, consumers are using AI more and feeling more positive about chatbots over time. Half of all consumers have used AI for any purpose (50 percent), compared to 2018 (45 percent).

This can be attributed to a significant increase in the use of an automated assistant/chatbot online (34 percent, up from 25 percent in 2018). Gen 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.

Seamless digital-first omnichannel experiences, meanwhile, are vital to a positive Customer Experience. Most consumers (93 percent) want seamless omnichannel experiences, and yet they are increasingly giving companies a poor rating on seamlessly switching between channels – 73 percent give companies a poor rating, up from 67 percent in 2018.

This is especially important for meeting and exceeding the expectations of millennials and Gen Z, who are the most likely to have experienced omnichannel customer service (16 percent and 21 percent, respectively).

Paul Jarman, NICE inContact CEO, said: “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.

“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 Gen 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.”

Paul Ainsworth

Paul Ainsworth

Experienced Irish journalist and former newspaper editor now helming executive editorial duties with Customer Experience Magazine, the UK's premier online source for Customer Experience news, features, and opinion, along with its sister site, CXM World.

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