News

Generation gap narrowing when it comes to customer service

New research shows there is no secret formula for serving millennials who have higher expectations.

May 14, 2015

Companies have placed emphasis on customizing their customer service strategies to the wants and needs of the millennial generation, those born between 1980 and 2000. This age group has been regarded for being "always-on" and for having higher expectations and demands for intuitive, seamless customer experiences.

The gap that once existed between generations is shrinking, howevere, when it comes to expectations for customer service, and these higher expectations and demands are now common across all generations, according to new data released by Nuance Communications, Inc.

In a recent survey of 1,000 American consumers, conducted by Wakefield Research, Nuance revealed current perceptions and frustrations with customer service across all generations. Findings from the study revealed that while there has been a clear divide in the past across millennial, generation x and baby boomer generations, higher expectations and preferences when it comes to customer service are now common across all age groups. The findings indicated that companies that are catering only to the millennial generation are missing the bigger customer care picture.

"While the wants and needs of millennials should still be an important piece of an organization's customer service strategy, it cannot be the entire strategy," Robert Weideman, executive vice president and general manager, Enterprise Division, Nuance, said in a statement. "As technology has continued to weave its way into all facets of consumers' lives, expectations have in turn grown when it comes to quick, easy, efficient, and always-on service. In order to provide the kind of service that consumers expect, businesses need to offer more compelling and natural self-service experiences across channels."

Key findings from the research showed:

• Nearly nine out of 10 (87 percent) consumers reported that a company's customer service had a significant impact on their decision to do business with them.
• With higher expectations come dire consequences of negative experiences. Two-thirds of consumers said they have cancelled a service or ended a relationship with a company because of a bad customer service experience.
• American consumers are also increasingly turning to self-service to meet their needs. In fact, nearly nine in 10 consumers said they have used an automated self-service system to complete a transaction with a company that they did business with, such as paying a bill or scheduling an appointment.
• More than half (59 percent) of consumers also agreed that automated self-service options have improved customer service.
• Where each generation of consumers had a distinct top pet peeve for customer service last year, the top complaint has now converged across all age groups. Today, not being able to get through the system to a real person is the top pet peeve for millennials (32 percent), gen x (30 percent) and baby boomers (47 percent).
• Customers are seeking more human-like, self-service interactions. For instance, 73 percent of consumers agreed that interacting with an automated phone system that they could converse with and be understood as if it were a live agent would significantly improve the experience.
• Customers also welcomed messages from companies they interact with, with 87 percent surveyed saying they were interested in receiving proactive messages.

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