Post on 09-Oct-2020
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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.
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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
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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Bridging the Generational Gap: Millennial vs. Gen Z CX Expectations
“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.
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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.
©2018 PPT Solutions. All rights reserved.
Confidential & Proprietary –
Do Not Replicate or Distribute Without Permission.
Bridging the Generational Gap: Millennial vs. Gen Z CX Expectations