Adapting to the evolving needs and expectations of new generations
Gone are the days of one-size-fits-all customer service. Today’s contact centres are navigating a generational maze, from Baby Boomers to Gen Z, each with their own communication quirks and expectations.
Research shows Millennials and Gen Z like to interact with companies in distinctly different ways than Boomers and Gen X, posing a generational challenge for contact centre operators.
TSA’s Group Operations Manager, David Machar, says Baby Boomers and Gen X generally tend to prefer traditional channels such as phone calls or emails, valuing personal connections and formal interactions. And the less tech-savvy of these generations may require additional support with digital channels. Millennials and Gen Z, on the other hand, are much more likely to prefer to use digital options such as messaging apps and social media, valuing quick responses higher than speaking with a human. These generations are also more comfortable with AI and chatbots than their older predecessors.
According to a December 2022 Gartner survey, more than one-third of Gen Z and Millennial consumers reported they would likely abandon attempts to resolve a customer service problem if they couldn’t do so through self-service options.
“The key here is speed and convenience,” Mr Machar says. “Millennials and Gen Z will often do anything to avoid a phone call – they don’t want to spend time waiting on hold, which is why we are seeing a rise in asynchronous messaging, where it’s basically having a text conversation. With channels like social media, chatbots or messaging, you can get your issue sorted without having to make a phone call or speak with someone.”
New options emerge, but voice endures
But while there is an emerging obvious divide, Mr Machar says voice will still have a place for every generation.
“If I think about 10 years ago, a lot of people had this view that digital was the future,” Mr Machar says. “Many expected that voice was going to die out as a channel and that shift was going to be quick. What we’ve found in the industry, however, is that that couldn’t be more untrue.”
Mr Machar’s assertions are in line with industry research. While digital channels have gained popularity, voice support remains essential, especially for complex enquiries and high-value transactions. Across all generations, some 78% of consumers reach out by phone as their first point of contact.
“The underlying reason for that is it is almost like a trust-building exercise,” Mr Machar says.
“There is some scepticism that exists where people need to be sure that they are interacting with the right people, so voice channels seem to reign supreme.”
Costs of communicating
Mr Machar says a key challenge for consumer-facing businesses remains providing as many channels of communication as possible in a cost-effective manner.
“There are so many competing differences in how people want to interact, so you have to have them all,” he says.
“Similarly, your agents need to be capable of interacting with people via multiple channels. More and more companies want their customer service agents to be multi-skilled and able to spend several hours of their shift on chat, then shifting over to voice, depending on wherever the demand is from the customers. That’s really challenging, particularly in an environment where a lot of businesses are looking to take costs out wherever they can.”
“The cost per interaction is typically lower with digital channels, but some of the lowest cost options do not always align with where customer preferences are.”
Location, location, location
In addition to providing the omnichannel experience, companies should also consider their location of service.
Mr Machar says where a contact centre is physically located can also mean the customer interaction is experienced in different ways by those of different generations.
“One of the benefits that we have at TSA Group, is we have the option to deliver in Australia, we could do it in New Zealand, or we could do it in the Philippines, or even a mix of all three, depending on what customer preferences are and what sort of enquiry that you’re talking about,” Mr Machar says.
Mr Machar says adapting to the evolving needs of different generations is crucial for contact centres to provide exceptional customer experiences.
By understanding generational preferences, offering multiple communication channels, personalising interactions, and continuously refining strategies based on data-driven insights, contact centres can effectively bridge the generational gap and meet the diverse expectations of their customer base.
TSA are Australia’s market leading specialists in CX Consultancy and Contact Centre Services. We are passionate about revolutionising the way brands connect with Australians. How? By combining our local expertise with the most sophisticated customer experience technology on earth, and delivering with an expert team of customer service consultants who know exactly how to help brands care for their customers.