Younger generations’ expectations for brands reveal growing opportunity for AI and automation in customer service

• The Talkdesk Research™ report, Winning Gen Z Through Exceptional Customer Service, finds that just 24% of Gen Z want to interact with customer service over the phone

• More than any other generation, 46% of Gen Z consumers stopped buying from a company in the past year due to its stance on social issues

• Omnichannel experiences are an imperative for Gen Z, creating a greater mandate for brands to embrace AI and automation

Talkdesk Inc., a global cloud contact center leader for customer-obsessed companies, today released its newest research report, Winning Gen Z Through Exceptional Customer Service. The report discovered that while 88% of Gen Z consumers are loyal to five or fewer companies in total, nearly a third (31%) have become loyal to a new company in the past year. As their buying power grows, this presents both an opportunity—and major challenge—for brands to win with these coveted consumers.

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“Consumers of all ages consider themselves to be loyal to only a few companies. This is even more so with the case for younger consumers who are establishing their own brand loyalties”

“Consumers of all ages consider themselves to be loyal to only a few companies. This is even more so with the case for younger consumers who are establishing their own brand loyalties,” said David Gardner, vice president of research and insights, Talkdesk. “Locking in loyalty requires investment. Our research shows that companies must be aware of the impact constant digital engagement has on their approach to customer engagement and service when looking to win with Gen Z.”

According to the Talkdesk research, two things are critical to develop and maintain Gen Z loyalty:

1. Allowing them to easily and conveniently resolve their service issues, and
2. Speaking to their concerns and priorities beyond the context of customer service alone.

The Talkdesk research also finds that Gen Z’s changing preferences for developing relationships and engaging with brands puts a greater imperative on organizations to have an authentic and cohesive omnichannel support strategy. Gen Zs put little premeditated thought into channel preference and expect to be able to engage wherever they are to get what they need.

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When it comes to providing convenience for consumers to connect with brands to resolve issues, CX leaders need to think beyond channel siloes. Omnichannel engagement, intelligent self-service, and agent enablement increasingly form the fundamental basis of building and maintaining consumer relationships with Gen Z. Less than a quarter (24%) of Gen Zers prefer to use the phone for customer service, compared with 40% of Gen Xers and 56% of Boomers.

“Gen Z consumers are open to engaging with companies through a broad variety of different service channels and are more likely to have engaged with AI-enabled channels, like virtual chat or voice support, as well as through social media,” said Gardner. “Customer loyalty will be built and solidified by the brands that are thoughtful in their deployment of omnichannel capabilities.”

Strategic deployment of AI to resolve table stakes issues is critical as younger consumers prioritize expediency and convenience. A majority (78%) of Gen Z consumers have reached out to and engaged with virtual chat automated with AI, as opposed to only 38% of Boomers.

Beyond the convenience of digital experience alone, Gen Z is more likely to take into account a company’s messaging and communication around issues that matter to them. In fact, 46% of Gen Z consumers stopped buying from a company in the past year due to its stance on social issues, compared with only 22% of Boomers. This presents an imperative for brands to enable their customer support agents to understand and align with the company’s core values.

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