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Bridging the Generational Gap: Millennial vs. Gen Z CX Expectations As the first generation born in the digital age, major corporations

and analysts have spent years decoding the mysterious Millennial

consumer. More recently, the Millennial’s younger counterparts

known as Generation Z is the newest group of mass-market

consumers reshaping how companies approach customer experience

design. While both generations share some of the same behaviors

and characteristics, they have distinct preferences that will be

important to address as companies are forced to deliver traditional

and digital customer experience options for both.

What’s the difference?

A “Millennial” is a term generally used for individuals born in the

early 1980’s through the 1990’s. Millennials are given credit for

being the most open-minded and socially conscious generation that

have grown up in a time of rapid change. Over the last decade, the

Millennial generation has significantly influenced how companies

transformed their approach towards customer experience, with a

focus on technology and social media as a means of engaging with

their customers.

CX Insights Series


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Generation Z consists of individuals born in 1995 or later and are the first generation to not have known life without

technologies such as smartphones, iPads, Facebook and Instagram. According to Nielsen, this generation is the largest single

population segment and biggest influencers contributing to $44 billion of the American economy. By 2020, they will account

for more than one-third of the U.S. population.

While Millennials have been pegged as being entitled and lazy, a recent study found that 69% of Gen Zers said that their

achievements will come from hard work, which is a stark contrast from the Millennial. Companies are also seeing this

disparity in their purchasing and customer engagement preferences. Understanding the differences between both generations

is critical in preparing companies and adjusting leadership to adapt to the customer experience expectations of the newest

consumer population.

According to a recent Forrester study

commissioned by American Express, when

comparing responses to a survey between

Millennials and Gen Zers, Gen Z is more

accustomed to interacting with the world on

their mobile phones and expect full mobile

functionality. While the top 3 preferred

channels of engagement between the two

generations are the same: over the phone,

via email and in person, 55% of Gen Zers

prefer to access product information digitally.

This is where customer experience design has

shifted towards self-service and automated

engagement options.

As we take a look at how to retain the Gen

Z customer, the traditional loyalty rewards

programs are not as effective as with prior

generations. According to a report

Bridging the Generational Gap: Millennial vs. Gen Z CX Expectations

Over the phone with customer service rep

Email

In person in retail store location

Live chat through a website

Searching online resources provided by the company (e.g., FAQs)

Text/SMS message

Searching online resources through other forums, blogs, etc.

I will talk to my friends and/or family for ideas rather then dealing with customer service

Live chat through a brand’s mobile app

Over the phone with automated system

Engaging on social media (e.g., tweeting a brand, commenting on a brand’s Facebook page)

Secure online chat/IM (e.g., Whatsapp)

Video Chat

Gen Y (23-37) Gen Z (16-22)

49%

38%

46%

41%

41%

40%

29%

13%

12%

16%

8%

17%

6%

15%

7%

12%

11%

7%

6%

11%

5%

8%

7%

6%

2%

7%

published by Ernst & Young, only 30% of Gen Z consumers see loyalty programs as apositive thing. Gen Zers rely on peer-

to-peer interactions and social media where brands are shared, liked and mentioned, thus influencing their longevity as a

customer. Brand loyalty for Gen Z is less about a program and more about the brand experience.

Don’t fall behind

The Millennial and Gen Z customer are similar in many ways. They both want secure digital experiences. While Gen Zers may

crave highly personalized experiences on social media, they are also very keen to protect their privacy. Customer Experience

leaders need to make sure they are connecting with Gen Zers on their terms, so they don’t come across as overly invasive.

According to IBM’s survey Uniquely Gen Z, less than one-third of teens say they are comfortable sharing personal details other

than contact information and purchase history. However, 61% would feel better sharing personal information with brands if

they could trust it was being securely stored and protected.

The Gen Z customer values quality over price and wants to be engaged with a company across all channels. Brands like Nike,

Netflix, and YouTube, have successfully stayed ahead of the Gen Z curve by offering experiences that are conversational in style,

easily accessible, shareable, secure and controllable. Brands and customer support teams will need to become more customer

obsessed. Ignoring the distinction in customer experience preferences between the two generations can result in significant

missed revenue opportunities as the Gen Z consumer continues to mature.

Contact PPT Solutions today to learn more about how we can help.


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“Understanding the generational differences between the Millennial and Gen Z consumer is key in building a sustainable and holistic Customer Experience Design Strategy. Evolving customer engagement channel preferences and generational needs have forced Customer Experience leaders to adjust their support infrastructure to align with this new dynamic.” Dennis Weikle,

Founder and Managing Director

Recognized by CIOReview as one of the Top 20 Most Promising Customer Experience Solutions

Companies, PPT Solutions empowers our Clients with transformational business solutions

that deliver exceptional performance, outstanding customer experiences and

measurable results. Visit pptsolutions.com to learn how we can optimize

your business and Customer Experience.

p 918.518.6336

w pptsolutions.com a 9521 B Riverside Pkwy, Suite 266 • Tulsa, Oklahoma 74137

About PPT SolutionsSince 2013, PPT Solutions has served as a premier provider of Client-

centric, performance-based Customer Experience and Business

Optimization Solutions. Whether a Fortune 50 company or an emerging

small business, we passionately deliver a broad range of people,

process and technology solutions customized to increase customer

advocacy, enhance revenue and optimize operational efficiency. With

over 100 years of combined experience and an extensive portfolio

of Management Consulting, Professional Services and Partnership

Solutions capabilities, our Clients rely on us for advanced insights,

adaptive business processes and innovative growth strategies.


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