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Millenials move over – the Smart generation has arrived!

Do you ever wonder what is going on in the brains of younger members of society as they adopt and understand technology better and faster than any previous generation? They are so far ahead of the curve that by the time their predecessors, Millenials, catch up, the technology is passé. These are Generation Z, or iGen, born from 1995 to date. They are the most connected generation to date, and are driven and independent, hard-working and good at solving problems.

Their education is mostly tech-based, using smartboards, laptops, AI, and apps. Their social life is planned – and often carried out – online. They facetime, rather than skype, preferring Instagram and Snapchat to Facebook and WhatsApp. They understand the importance of online privacy and prefer to keep their interactions limited to their known friends (versus Facebook’s cyber friends). Connectivity shapes their lives and dictates how they interact. In fact, globalwebindex published a report in 2017 which suggests that Gen Zers spend around 52% of their daily online time on their phones, accounting for over 4 hours a day. Consequently, older generations regard them to be lazy and obsessed with social media, but they are clearly much more than that.

They stream TV programs and videos, rarely watching ‘live’ TV, living in their moment rather than being dictated to by schedules. They listen to music digitally and they vlog, or follow favourite vloggers. They are confident in their opinions and use YouTube to reach an audience with their own brand of thought leadership.

They take an interest in the world around them, and question the ethics and values of brands, especially if they are not aligned with their own. They have favourite brands and are highly critical when they underperform. Mention Apple’s latest iPhone creation, they know all about it, its functions, applications, Face ID technology, relative performance versus previous gen iPhone, OLED screen and on and on…They may want to keep their communications private but not their customer preferences. They want their thoughts and opinions to be listened to and given importance. All these are significant considerations to future employers and brands.

Brands need to engage directly with Gen Z and be sensitive to their concerns, such as caring for the environment, and respecting social and gender diversity. Content marketing directly to social sites, and personalisation is key to gaining their attention. This new generation have heightened awareness of brands and social memes. They have grown up with the Amazon approach to personalised online instant retailing, and although physical retail channels are still popular, most prefer to window shop on the High Street, then proceed to buy online. For many, high street brands are too predictable and prefer online sites that reflect their individuality, sharing their style with friends.

There are some conflicting findings about this new generation. Firstly, Gen Z are said to be more optimistic about the future and are resourceful and creative. Many are too young to remember Gulf War II, 9/11, July ‘05 London bombings, the introduction of university tuition fees, or the effects of the Recession, whereas the Millenial generation saw the fall of Saddam Hussein and Osama Bin Laden, figureheads of terror. The new generation are witnessing the horror of ISIS and Syria, and the mass migration of refugees. For them, terrorism has always been around them, (according to Oxford Royale Academy study in 2018) and although they are keen to travel they are anxious about encountering extremism or conflict.

One of the most disturbing aspects of Gen Z is the sharp rise in reported mental health issues among young men and women. A greater number are seeking treatment for low self-esteem, anxiety, depression and self-harm than any other generation according to World Health Organisation statistics. Some experts put this down to the extent of connectivity on social media and feelings of low self-worth when they see friends enjoying themselves or attending parties that they haven’t been invited to. There is also the constant exposure to celebrity images and photoshop’d images of the body beautiful.

This is a generation of tolerance. They are more accepting of difference than previous generations and are more likely to know people who are openly transgender or gender neutral. They expect to be treated the same whatever gender they are or choose to be and dismiss gender stereotyping as irrelevant, as they do political correctness. Across the UK Gen Z and their friends are likely to be a mix of cultures and races, and culture stereotyping is also irrelevant.

We are still learning about these young adults and children, but it is clear that they are very different from their Millenial siblings and forbears. Their innate knowledge of all things digital and their easy adoption of new technology and artificial intelligence augurs great things for this new generation.

Millenials move over – the Smart generation has arrived!

Do you ever wonder what is going on in the brains of younger members of society as they adopt and understand technology better and faster than any previous generation? They are so far ahead of the curve that by the time their predecessors, Millenials, catch up, the technology is passé. These are Generation Z, or iGen, born from 1995 to date. They are the most connected generation to date, and are driven and independent, hard-working and good at solving problems.

Their education is mostly tech-based, using smartboards, laptops, AI, and apps. Their social life is planned – and often carried out – online. They facetime, rather than skype, preferring Instagram and Snapchat to Facebook and WhatsApp. They understand the importance of online privacy and prefer to keep their interactions limited to their known friends (versus Facebook’s cyber friends). Connectivity shapes their lives and dictates how they interact. In fact, globalwebindex published a report in 2017 which suggests that Gen Zers spend around 52% of their daily online time on their phones, accounting for over 4 hours a day. Consequently, older generations regard them to be lazy and obsessed with social media, but they are clearly much more than that.

They stream TV programs and videos, rarely watching ‘live’ TV, living in their moment rather than being dictated to by schedules. They listen to music digitally and they vlog, or follow favourite vloggers. They are confident in their opinions and use YouTube to reach an audience with their own brand of thought leadership.

They take an interest in the world around them, and question the ethics and values of brands, especially if they are not aligned with their own. They have favourite brands and are highly critical when they underperform. Mention Apple’s latest iPhone creation, they know all about it, its functions, applications, Face ID technology, relative performance versus previous gen iPhone, OLED screen and on and on…They may want to keep their communications private but not their customer preferences. They want their thoughts and opinions to be listened to and given importance. All these are significant considerations to future employers and brands.

Brands need to engage directly with Gen Z and be sensitive to their concerns, such as caring for the environment, and respecting social and gender diversity. Content marketing directly to social sites, and personalisation is key to gaining their attention. This new generation have heightened awareness of brands and social memes. They have grown up with the Amazon approach to personalised online instant retailing, and although physical retail channels are still popular, most prefer to window shop on the High Street, then proceed to buy online. For many, high street brands are too predictable and prefer online sites that reflect their individuality, sharing their style with friends.

There are some conflicting findings about this new generation. Firstly, Gen Z are said to be more optimistic about the future and are resourceful and creative. Many are too young to remember Gulf War II, 9/11, July ‘05 London bombings, the introduction of university tuition fees, or the effects of the Recession, whereas the Millenial generation saw the fall of Saddam Hussein and Osama Bin Laden, figureheads of terror. The new generation are witnessing the horror of ISIS and Syria, and the mass migration of refugees. For them, terrorism has always been around them, (according to Oxford Royale Academy study in 2018) and although they are keen to travel they are anxious about encountering extremism or conflict.

One of the most disturbing aspects of Gen Z is the sharp rise in reported mental health issues among young men and women. A greater number are seeking treatment for low self-esteem, anxiety, depression and self-harm than any other generation according to World Health Organisation statistics. Some experts put this down to the extent of connectivity on social media and feelings of low self-worth when they see friends enjoying themselves or attending parties that they haven’t been invited to. There is also the constant exposure to celebrity images and photoshop’d images of the body beautiful.

This is a generation of tolerance. They are more accepting of difference than previous generations and are more likely to know people who are openly transgender or gender neutral. They expect to be treated the same whatever gender they are or choose to be and dismiss gender stereotyping as irrelevant, as they do political correctness. Across the UK Gen Z and their friends are likely to be a mix of cultures and races, and culture stereotyping is also irrelevant.

We are still learning about these young adults and children, but it is clear that they are very different from their Millenial siblings and forbears. Their innate knowledge of all things digital and their easy adoption of new technology and artificial intelligence augurs great things for this new generation.

Are you serious about your CX strategy?

It has been over a decade since the penny dropped in B2C marketing departments across the globe:  the internet and social media has made consumers more powerful  so it is more effective to treat them as individuals rather than customers as a whole. This same message has got through to B2B businesses, albeit somewhat later.

Paper chain family protected in cupped handsAcknowledging the importance of Customer Experience as a key component to company strategy is one thing, but getting the right amount of investment is the biggest hurdle CX teams have to overcome. There is a plethora of quotes from CEOs of companies that have successfully adopted customer excellence citing full staff engagement with the mission to treat each customer as an individual. These organisations talk about a top-down approach to achieving customer excellence, building a product that each member of staff from CEO to sales team would be proud to own, and taking their eye off the profit line to focus on the customer. How they actually achieve this is by constantly investing in their people, systems and products to create a positive customer-centric experience.

Customer-centric begins with having an in-depth understanding of each individual customer, and not just about why they buy the product or service. It means profiling the customer at the start of the relationship, and monitoring how it changes as the experience becomes more relevant to the individual.

‘Now’ is the benchmark containing ‘needs fulfilled, nothing special’ and ‘Tomorrow’ is the goal with ‘needs fulfilled better than expected, memorable service, outstanding value’ and ROI.  Success is about creating meaningful, relevant and engaging experiences for the customer  and for each element of change to reach ‘Tomorrow’ it is important to set KPI’s and intermediate goals. Frequent monitoring importantly removes surprises, minimises bad decisions and allows the CX team to adapt the strategy to new information and protect its investment. Companies that crack this realise their reward in increased market share and profit growth. (e.g. Amazon, John Lewis Partnership, First Direct Bank, Delta Airlines)

There are still companies that fail to see the point of market research (we understand our customers/our CRM tells us all we need to know) and do not invest in marketing technology to facilitate better understanding of the customer. They rely on 2 dimensional data, social media monitoring and internal software. Some companies fail to set measurable goals – or set the goals but do nothing if the plan misses the target – and wonder why ‘Tomorrow’ never comes. They lose C-suite support and investment shrinks further. Believe me, it really happens.

Too many companies do not fully embrace the importance of creating a positive customer experience, some attempt it at the coal face but its relevance becomes increasingly diluted the further away from the customer the business is. The result is under investment in CX and losing out to competitors who do take it seriously. This first quarter of the first century in the third millenium has seen so much power handed to the customer that ignoring them is perilous.

 

  

Big up your customer contact charm offensive

 

wordcloud (3)Customer Experience is something I expect we all know a fair bit about. We are all customers and at the user end of hundreds of products and services daily, the experience of which is mostly subliminal until something exceptional happens. At this point we are propelled towards delight in one direction (tweet, tweet, fb, fb!) or deep disappointment in the other (tweet, tweet, tweet, fb, fb, fb!!)*.

As a CX researcher I pay close attention to the performance of companies called to deal with complaints, requests for refunds, dispatch of replacement items or booking appointments for repairs. Most of us understand that a company that cares about its customers will employ people who are well trained in dealing with the public empathetically, and who have a good knowledge of the company’s products. Retailers like Waitrose and John Lewis, and online retail like Amazon, First Direct and Office Depot (Viking Direct) have taken creating a positive customer experience to a fine art. They understand the equation:

Happy customers = loyal customers = customer advocates = £££

The many organisations that outsource their customer contact services needn’t lose out on achieving positive CX so long as the appointed agency understands its value to the client, and the need for training consistent with the client’s internal programme.

But just think how many times you have contacted a customer enquiries or credit control line only to be transferred multiple times across some complicated telephony system before speaking to someone who is ill-equipped to deal with your enquiry. Or, you become stuck in a queue with other equally frustrated customers. When the time comes to replace the product or renew the service contract this experience will inevitably be a factor in deciding to stick with the company or go elsewhere.

Yet, the path to CX enlightenment is not overly littered with obstacles if the company’s focus on its customer is in the correct place: at the heart of the business. So here are a few basic steps towards creating satisfied customers:

  • Employ people for front line positions (sales floor, customer services, contact centre, credit control) who stand out in interviews as personable, energetic, eager to learn and empathetic
  • Ongoing product and services training across the business. Of course the level of knowledge required depends on the department, but a customer services agent who can converse with a customer about a product, understand the issues and reach a good and rapid resolution is a powerful advocate for the company.
  • Treat every customer as an individual, their relationship to the product or service bought (or intending to buy) is as important to the company as it is to the customer
  • Improve the telephony process: reduce call answering times, speak to an operator rather than an automated redirection message, good training (as above) will ensure the caller is directed to the correct department.
  • Select outsourced services such as contact centres and logistics on the basis of shared customer focus and empathy, good training and personable call handlers. Outsource agents should share the company’s values
  • Go beyond the CRM in trying to understand the customer
  • Set performance indicators to measure improving customer relationships, and to identify where greater attention and training is needed.

For more details on measuring customer experience levels, or any aspect of CX please contact WDG Research.

 *The reference to social media where more comments are posted when customers have a negative experience than a positive one is borne out by years of CX (customer experience) research carried out by WDG Research.

 

 
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