Millennials vs Gen Z: Differences in Customer Service Expectations
Have you ever wondered how Millennials and Gen Z differ in their expectations for customer service? Looking at demography, they are over half of the global human count worldwide. Millennials alone have overtaken baby boomers and from a consumer standpoint, they are entering the peak of their earning and spending years.
Millennials make up a significant chunk of consumer purchase power—28.6%—and their habits are largely shaped by their experiences coming out of the great recession brought about by the pandemic. Gen Z, also known as “Zoomers,” make up 23.5% of the population and are still entering the workforce. A GfK survey believes their economic power will surpass that of millennials by 2031.
First things first;
Generation Z, born between 1996 and 2010, fall between Millennials and the younger Generation Alpha. Meanwhile, Millennials are those born between 1991 and 1997.
Millennials tend to expect faster customer service, while Zoomers are generally more accepting of delayed gratification.
Generation X have strong preferences for traditional customer service channels like email and phone.
A recent report by Pew Research reveals about 75 million millennials reside in the United States.
In customer service, there is no such thing as one size fits all. Although each generation is shaped by their unique experiences, both Gen Z and millennials are deeply committed to purpose-driven work that aligns with their values, whether as customers or employees.
In this guide, we contrast similarities and differences between millennials vs Gen Z in customer service.
Who are millennials?
Who Is Generation Z?
Popular stats on millennials vs Gen z
Millennials vs. Gen Z: Key differences
How millennials and Gen Z are alike in customer service
Tips for keeping both generations happy
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Photo by Jakub Żerdzicki on Unsplash
Who are millennials?
Sometimes called Generation Y, the exact birth years for millenials can vary depending on who you ask. For instance, Pew Research and Gallup say it's anyone born between the 1981-1996 age range. The millennial generation is digital savvy having lived through the explosion of the internet. They are fully accustomed to related digital devices in the form of smartphones, laptops, and tablets in effect transforming how they interact and connect.
Who Is Generation Z?
Generation Z is the second youngest generation, only followed by Generation Alpha. McKinsey classifies anyone born between 1996 and 2010 to this age group. Just like older generations Gen Zers are largely influenced by their environment and upbringing. Before the term ‘influencer’ came about, young people were key in creating new social trends. As a generation born into the internet age, social media, and the mobile phone, they make decisions and relate to brands in a way that is analytical and pragmatic. A recent study by McKinsey shows that Gen Z are less receptive to diverse viewpoints and often more idealistic and confrontational.
Popular stats on millennials vs Gen Z
A recent study by Statistica found that 61% of American consumers who classify as millennials are willing to pay more for quality customer service.
A recent study by Gartner found that a majority of Gen Z and millennials (75% vs 62%) discover more about products from 3rd party CX channels like google search and social media.
Majority of both groups have a favorable view of using technology in efficient service delivery; whether in the form of AI-powered chatbots or other helpdesk tools. It is estimated that AI will power over 95% of customer interaction by 2025.
Millennials vs. Gen Z: Key differences
The differences between millennials and Gen Z as consumer segments are important to marketers to best understand how to strategically connect their brands with their expectations. While millennials are now at the prime of their spending, members of Gen Z are entering the workforce in their numbers. In customer success, here is a summary of the behavioral distinctions.
We can expound on some of the distinctions below:
Personalized services
86% of millennials like brands that give them exclusive treatment and value personalized interactions. A recent study by PYMNTS Intelligence and AWS study found that 45% of millennials consider personalized offers as important in their shopping experiences. An additional 41% would switch merchants if they got more personalized offers. A recent study by HubSpot found that 72% of Gen Z will remain loyal to brands that provide personalized service.
Self-service
While self-service options are being adopted by all generation segments, millennials still have a high preference for human agents. Zoomers favors self-service and other resource knowledge bases and FAQs. A Gartner survey shows that 38% of millennial and Gen Z respondents will likely give up resolving customer service issues.
Sharing personal information
Millennials are generally more cautious about sharing their personal information because they prefer to maintain control over their data. On the other hand, members of Gen Z are not too bothered by that. Gen Zers are more willing to share personal data with social media platforms such as ads on TikTok, Snapchat, and Facebook, as they have done it several times before.
Trying new brands
Gen Z has an unlimited number of options thrown their way; hence, they exhibit a 50% likelihood of switching brands factoring in the price and quality. The same survey by the Oliver Wyman Forum shows 63% of millennials prefer sticking with brands that align with their values, provide convenience, and give value for money.
Communication channel preferences
A recent Bluecore and NAPCO study shows 64% of millennials prefer traditional communication channels such as phone and email. Zoomers are more driven by immediacy, where 75% of their respondents prefer texting to direct phone calls.
Read more: How AI Bots For Sales Can Impact Your Business
How millennials and Gen Z are alike in customer service
A recent study by McKinsey found that millennials and Gen Z have surpassed baby boomers to become the largest consumer market segment. While most of their customer service expectations vary, some similarities stand out. Both have been raised, if not exposed to the digital age, and are using these advantages to get support.
Communication channels
A recent McKinsey study shows that millennials prefer phone (81% vs. 70% for Gen Z), email (84% vs. 75%), and live chat or messaging (82% vs. 74%) for contact. Both groups have similar preferences for social media (59% for millennials vs. 57% for Gen Z).
Fast Feedback
Both Zoomers and millennials expect brands to respond promptly to their support queries. A HubSpot survey shows 57% of Gen Z expect a reply within 24 hours. As per a recent Zendesk study, 80% of millennials expect immediate responses.
Personalization and technology
A McKinsey study reveals how brands are balancing personalized human interactions with other forms of advanced technology, such as AI tools. Both millennials and Gen Z place high value in customer service experiences.
Millennials vs. Gen Z: Tips for keeping both generations happy
Omnichannel support—Deliver consistent communication across multiple channels (email, phone, social media, and chat) to ensure the customer experience remains seamless.
Speed—Provide round-the-clock support by using automated chatbots, such as the out-of-the-box Lookfor sales agent, that can be integrated into your website. Customers get instant feedback and self-service support.
Personalization—Customer browsing data significantly improves the shopping experience and increases the likelihood of converting leads into buyers. Using AI-powered chatbots such as Lookfor will use the customer browsing data and support queries to personalize their shopping experience, including suggesting product recommendations that align with a shopper’s preferences.
Self-service—Always smart to have a knowledge base where users can troubleshoot issues or find answers to common complaints. Alternatively, AI-powered helpers can leverage the company resources and answer inquiries in the live chat. Chatbots like Lookfor are digital helpers and can be trained with your product database and support resources to enhance the overall customer experience.
Remain adaptable to trends—More millennials and Gen Z today are using their mobile devices for shopping or carrying out pre-purchase research. Optimize your digital platforms for smartphones and invest in conversion rate optimization.
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Lookfor support + sales assistant— New AI Employee For Shopify
As you strategize on the best way to deliver customer service, remember to appeal to both millennials and Gen Z. If you run an online store on Shopify, what are you waiting for? Lookfor sales assistant is the right tool to get you to increase your sales volumes. The best part is, you don’t need to be an IT expert to get started.
