Generation Y & Z and Customer Experience

Gen-Y-Z Expectations To Transform the Customer Experience

Adam Edmunds

Al Nevarez

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What is Your Role?

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CX Considerations

http://www.youtube.com/watch?v=8r1CZTLk-Gk

Lewis CK Everything’s Amazing Nobody’s Happy

Funny bit about how today’s generation doesn’t appreciate the wonderful things technology does for them.




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We Are Formed by the Events of Our Time

Source: Graphic and some content from Grail Research Consumers of Tomorrow, November 2011

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• 50 million Americans

• 30 - 40 years old

• 60% of Gen X attended college

• Gen X iconic leaders: Lance Armstrong, Tiger Woods, Jerry Yang, Jeff Bezos, Michael Dell

Gen X

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• Individualistic

• Technical

• Flexible

• Work/life balance

• Creative

• Low key

• Innovative

• Flexible

• Independent and adaptable

Gen X Traits

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Gen Y

• Used to emerging digital technologies like email/SMS

• Optimistic, tech-savvy, style conscious, brand loyal

• Changing the workplace– BYOD– Social networks– Instant messaging

• Generation Y has been described in a New York Times article as entrepreneurial and, "a 'post-emotional' generation. No anger, no edge, no ego."

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• Selective about who they listen to

• Not as interested in TV

• Need to stumble onto your message; traditional marketing less effective

• Low cost, good quality, value seekers

• Less loyal

Gen Y Traits

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Gen Z

• Avid multi-taskers

• Demand interactivity (touch screens and connectivity to many things)

• Expect things NOW

• “This isn’t connected to the Internet, huh?”

• 31% of US children, ages 6-12, wanted an iPad over any other electronic device for Christmas in 2010; followed by a computer (29%) and an iPod touch (29%)1

Source1: ‘Kids to Santa: we want an iPad for Christmas’, Neilsen, Oct 2010

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• Collectors

• Not brand loyal

• Social, collaborative

• Friends connected for life

• Self publishers

Gen Z Traits

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• Care deeply about social causes

• Immediacy

• Connected

• Curious

• Interactive

Important Traits of Both Generations

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Brand Gen X Gen Y Gen Z

Kodak/Polariod Yes No No

AOL Yes No No

McDonalds Yes Yes Yes

Apple No Yes Yes

Disney No Yes Yes

Levi’s Yes Yes ?

Jeep/VW Yes Yes ?

Nintendo Yes Yes ?

JetBlue Yes Yes ?

Remaining Relevant for Each Generation

Practical Advice

Al Nevarez

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Favorite Recent CX

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CX Considerations

1. A new model for customer experience

2. Inventions of the past 30 years

3. Best practices from leading companies

CEX Models

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Kano Model

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Tom & Sally

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Maslow’s Hierarchy of Needs

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System Logics – Customer Experience Needs

Feature Need

Activity Need

Life Need

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Important Because

1. Mostly only observe & listen for the feature needs

2. Feature lead only to incremental improvements

3. New technologies will replace features

4. Addressing Activity Needs and Life needs will lead to more valuable, profitable, long term, and strategically powerful solutions

A New CEX Model

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A New Model – a Combination of 2

BasicAttribute

PerformanceAttribute

DelightAttribute

FeatureNeed

ActivityNeed

LifeNeed

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My Nikon on This Model

BasicAttribute


DelightAttribute

FeatureNeed

ActivityNeed

LifeNeed

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A New Model – a Combination of 2

BasicAttribute


DelightAttribute

FeatureNeed

ActivityNeed

LifeNeed

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Example – Your Trip to SXSW – Coach Class

Security check Direct flight to save me time

Lounge access

On time Direct flightWifi on board so I

can work

Power outlet (or solar example)

Airline seatLight for reading

Flight schedule & price

Leg room

Live TV at seatFree upgradeFood on board

BasicAttribute


DelightAttribute

FeatureNeed

ActivityNeed

LifeNeed

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New model – Thinking about Gen Y & Z

Gen Y

Gen Z Gen Y

BasicAttribute


DelightAttribute

FeatureNeed

ActivityNeed

LifeNeed

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New Model – Multi Levels

Generation Z

Generation Y

Generation X

Segment A

Segment B

Segment C

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Independence, self relianceOptimism, Can be & do anythingLive first, work secondJob must bring joy, meaningful workCare for the earthSpeed & fast service & on my scheduleNeed an “experience”Be stylish

Gen Y: Born 1982 to 2002

1975 1980 1985 1990 1995

37 32 27 22 17

1975 Digital camera1977 Personal computer1978 Space Invaders1979 Zagat

1990 WWW, hypert1991 AOL for DOS1993 Pentium1994 Netscape1994 Yahoo1994 EBay1994 Amazon1994 Blog

1995 DVD1996 Hotmail1996 Palm PDA1996 API – Sabre1996 Telecom Act1997 Prius in Japan1999 iMode in Japan1999 Tivo1999 WebEx1999 Napster

1980 IBM PC/DOS1980 CNN1981 Space Shuttle1981 Osborne portable comp.1981 Tunneling microscope1982 PC clones1984 CD-ROM

1985 MS Windows1986 Smoking ban1987 Disp contact lens1987 SMS1988 D. cell phone1988 Starbucks1989 HDTV

YearAgeToday Y

Life

Nee

ds Mass media hype not impactfulSelective about who they listen toNot as interested in TV.Don’t care that Mike Jordan likes NikeTraditional marketing ineffectiveLow cost, good quality, value seekersBrand loyalSense of entitlement

Tra

its

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Independence, self relianceOptimism, Can be & do anythingLive first, work secondJob must bring joy, meaningful workCare for the earthSpeed & fast service & on my scheduleNeed an “experience”Be stylish

Gen Y: Born 1982 to 2002

1975 1980 1985 1990 1995

37 32 27 22 17

1975 Digital camera1977 Personal computer1978 Space Invaders1979 Zagat

1990 WWW, hypert1991 AOL for DOS1993 Pentium1994 Netscape1994 Yahoo1994 EBay1994 Amazon1994 Blog

1995 DVD1996 Hotmail1996 Palm PDA1996 API – Sabre1996 Telecom Act1997 Prius in Japan1999 iMode in Japan1999 Tivo1999 WebEx1999 Napster

1980 IBM PC/DOS1980 CNN1981 Space Shuttle1981 Osborne portable comp.1981 Tunneling microscope1982 PC clones1984 CD-ROM

1985 MS Windows1986 Smoking ban1987 Disp contact lens1987 SMS1988 D. cell phone1988 Starbucks1989 HDTV

YearAgeToday Y

Life

Nee

ds

Mass media hype not impactfulSelective about who they listen toNot as interested in TV.Don’t care that Mike Jordan likes NikeTraditional marketing ineffectiveLow cost, good quality, value seekersBrand loyalSense of entitlement

Tra

its

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Comfortable with technologyLow attention spanMulti-taskersCuratorsNot brand loyalSocial, collaborativeFriends connected for lifeSelf publishers

Gen Z: Born 1995 to 2012

1995 2000 2005 2010

17 12 7 2

1995 DVD1996 Hotmail1996 Palm PDA1996 API – Sabre1996 Telecom Act1997 Prius launched Japan1998 Viagra1999 iMode in Japan1999 Tivo1999 WebEx1999 Napster

2005 YouTube2006 Wii2006 Twitter2007 iPhone2008 Airbnb2009 Quora2009 Pres. Obama

2010 Foreclosures2011 Egyptian Rev.2011 Space Shuttle ends2011 Siri2011 Pizza is a veg.2012 SOPA battle

2000 PayPal2001 Wikipedia2001 9/112001 iPod2003 Skype2004 Flickr2004 Google Maps2004 Facebook2004 Yelp

YearAgeToday Z

Life

Nee

ds

Tra

itsPeer acceptance is importantFlexibilityBeing always connectedInstant gratificationUsing imagination, making an impact

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Comfortable with technologyLow attention spanMulti-taskersCuratorsNot brand loyalSocial, collaborativeFriends connected for lifeSelf publishers

Gen Z: Born 1995 to 2012

1995 2000 2005 2010

17 12 7 2

1995 DVD1996 Hotmail1996 Palm PDA1996 API – Sabre1996 Telecom Act1997 Prius launched Japan1998 Viagra1999 iMode in Japan1999 Tivo1999 WebEx1999 Napster

2005 YouTube2006 Wii2006 Twitter2007 iPhone2008 Airbnb2009 Quora2009 Pres. Obama

2010 Foreclosures2011 Egyptian Rev.2011 Space Shuttle ends2011 Siri2011 Pizza is a veg.2012 SOPA battle

2000 PayPal2001 Wikipedia2001 9/112001 iPod2003 Skype2004 Flickr2004 Google Maps2004 Facebook2004 Yelp

YearAgeToday Z

Life

Nee

ds

Tra

itsPeer acceptance is importantFlexibilityBeing always connectedInstant gratificationUsing imagination, making an impact

Best Practices

What Great Companies Do

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Listen to Social Media - User Count 2011

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Research with Twitter – Free Feedback

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Social Media Monitoring

1. Listen

2. Discover

3. Engage

Free feedback

Have the decision makers start using Twitter themselves

But think about actionability

There’s a gap with what social media can do alone

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Listen Near the Transaction

1. Post Purchase transaction (brick & mortar or ecommerce)

2. Post Flight

3. Post check out of the hotel

4. Call center call / post service

5. During regular use

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Listen with Surveys

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Combine Twitter & Surveys

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Reach Out, Make it Real

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Facebook – Inline Surveys

Insert surveys, polls directly into

social media

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Surveys + Segment + Operational + $

A modern web based survey is much more than the questions you directly ask your customers. Augment the invitation with data which will add value to the analysis.

Survey dataSegment data

Operational dataFinancial data

A Survey

Record

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• Correlation of any independent field to preset dependant fields.

Simple Metrics: e.g. Net Promoter Score

How likely are you to recommend this product to a friend ?

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Sesame-Street Simple Listening Tools

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Helpful Visualizations

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Text Analytics

Natural language analytics power

Multiple concepts per verbatim

Beyond just sentiment analysis

Why: Gen Y & Z provide more unsoliciated feedback through text content

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Data + Analytics + Technology = $$$

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Unlock Deep Value Through Patterns

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Distribute the Results

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Design Thinking

Empathize

Define

Test

Brainstorm

Prototype

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Observe in Their Environment

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Observe Customers in Action

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Focus Groups

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Buy Your Customer a Gift

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Scale

Considerations:

1. Volume2. Setup ease3. Distributing the insights4. Adoption in the organization

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Scaling

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Scaling Social Customer Service

Customer-Managed

Company-Managed

Manual Automated

Most SMmonitoring tools

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Scale to Listen at all the Moments of Truth

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Full Customer Experience

BasicAttribute


DelightAttribute

FeatureNeed

ActivityNeed

LifeNeed

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BasicAttribute


DelightAttribute

FeatureNeed

ActivityNeed

LifeNeed

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BasicAttribute


DelightAttribute

FeatureNeed

ActivityNeed

LifeNeed

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BasicAttribute


DelightAttribute

FeatureNeed

ActivityNeed

LifeNeed

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One Last Example

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Learn More About Customer Experience

Keynote: Tony Hsieh, Zappos CEO

www.vocfusion.com

@allegiancetweetfor copy of sxsw slides

Thank You

Adam [email protected]

@adamedmunds

Al [email protected]

@imusicmash

Generation Y & Z and Customer Experience

Design

Transcript of Generation Y & Z and Customer Experience