As society continues to evolve, business leaders are focusing significant attention on the expectations of Generation Z and millennials—both as consumers and employees. This emphasis is well-founded, given that their growing influence is poised to drive substantial change in the marketplace.
While these younger cohorts share many commonalities with Generation X and baby boomers, notable distinctions exist that organizations must address. Each of these four generations brings unique values, expectations, and preferences to their interactions with brands and employers.
The Digital Landscape and Workplace Flexibility
Consumers today can effortlessly access brands globally with a single click, and modern workplaces offer unparalleled flexibility and diverse work options. These developments create challenges in fostering loyalty among both groups.
Organizations can differentiate themselves by providing exceptional experiences that delight customers and empower employees, thereby enhancing loyalty and retention. However, catering to the distinct expectations of each generation is complex. Fortunately, data can provide valuable guidance.
The Genesys report, “Generational Dynamics and the Experience Economy,” offers in-depth insights into global consumer and employee attitudes. This comprehensive survey of 13,000 adults worldwide explores how they evaluate brands, their customer service expectations, and workplace preferences. It also identifies trends that business leaders can leverage to enhance experiences and improve financial and operational performance.
Reputation and Recommendations Influence Purchase Decisions
Across generations, quality and price remain the primary factors in purchasing decisions. Reputation also plays a critical role, with consumers of all ages valuing a brand’s reputation, particularly its customer service excellence.
However, generational differences emerge in the value placed on others’ opinions. A significant 68% of Generation Z and 76% of millennials rely on customer reviews and ratings, compared to 62% of Generation X and just 39% of baby boomers. This generational divide is also evident in the importance placed on recommendations from friends and family, third-party reviews, and social media.
Brands must prioritize appealing to consumers at the point of purchase while also maintaining empathetic, personalized, and connected interactions throughout the customer journey to build a strong reputation and encourage positive recommendations.
Demand for Personalized, Omnichannel Experiences
Customers experience great frustration when they encounter dead ends or must repeat themselves during service interactions. Some consumers even discontinue business with brands due to disjointed customer journeys.
Despite technological advances, consumers across all generations still prefer interactions with live agents via phone, email, chat, or SMS. Additionally, they desire access to multiple channels. According to the Genesys “State of Customer Experience” report, the foremost form of personalization is receiving service through their preferred channel when needed, with preferences varying significantly between younger and older generations.
The “Generational Dynamics” report highlights that Generation Z and millennials show a marked preference for digital customer service channels, such as messaging apps and social media, more so than Generation X and baby boomers. For instance, younger generations are 25 percentage points more likely to use mobile apps for customer service and 23 percentage points more inclined to use chatbots.
These diverse preferences underscore the necessity for organizations to provide integrated and seamless service experiences. Younger consumers, in particular, expect smooth transitions between channels.
Personalization remains a universal expectation, with younger consumers being 39% more willing to share data for personalized service. They also have higher expectations for personalization in digital channels: 59% of Generation Z and millennial consumers anticipate it in messaging and mobile apps, compared to 42% of Generation X and baby boomer consumers.
Businesses must enhance their digital experience strategies, prioritizing personalization, convenience, and omnichannel continuity to meet the demands of an increasingly digital-first customer base and foster satisfaction and loyalty.
Evolving Employee Experience Expectations
Employees are increasingly bringing their preferences for personalized, empathetic experiences into the workplace. Across generations, employees seek a supportive work environment, flexibility, work-life balance, and opportunities for professional growth. However, Generation Z and millennial employees have notably higher expectations for future flexibility and career advancement.
Younger employees expect their employers to offer greater location and schedule flexibility and enhanced support for work-life balance in the next three to five years. Specifically, 63% of Generation Z and 72% of millennial employees anticipate more job flexibility, compared to 54% of Generation X and 42% of baby boomers. Additionally, there is a 14-percentage-point gap in expectations for work-life balance support between younger and older generations.
Artificial intelligence (AI) is also viewed as a potential tool for workplace personalization. Younger employees, in particular, see AI as a means to enhance their work environment, with 28% of millennials and 21% of both Generation Z and Generation X employees believing AI will improve job efficiency.
This optimism stems from the belief that AI can automate mundane tasks and provide real-time assistance, enabling employees to focus on more complex, rewarding aspects of their roles and enhancing the customer experience.
Crafting Future Experiences Today
The similarities and differences in expectations across generations highlight the importance of a holistic yet personalized approach to managing generational dynamics in both customer and employee experience strategies. Individuals seek experiences that make them feel supported and valued, whether as consumers or employees.
Meeting these expectations is crucial. By leveraging the right technology and adopting a personalized, empathetic approach, organizations can distinguish themselves by delivering exceptional experiences to both customers and employees.
An award-winning editorial leader who has covered CX and marketing for the majority of her career, Ginger Conlon is currently thought leadership director at Genesys and co-host of its Tech Talks in 20 podcast and CX Green Room livestream show. Additionally, she serves on the Environmental Defense Fund’s Digital Advisory Council.
In her prior roles as chief editor of Direct Marketing News, 1to1, and CRM magazines, she set the editorial vision and strategy, which led to increased readership, reader engagement, and revenue. She’s a sought-after speaker and has been cited on several lists of notable industry insiders to follow on social media. Ginger received a DMCNY Silver Apple lifetime achievement award for her contributions to the marketing industry.
