When it comes to people’s expectations for remarkable experiences, all the hype is around what Gen Z and millennials want — as customers and as employees. And for good reason: As they exert more influence as consumers and workers, their preferences will drive change.
Those younger generational cohorts have plenty in common with Gen X and baby boomers, but there are also striking differences that organizations must address. These four generations each bring unique values, expectations, and preferences to the interactions with brands and employers.
Another reality is that consumers can access nearly every brand across the globe with a simple click. And the modern workplace offers unprecedented flexibility and work options for employees.
These factors are creating challenges that make it harder than ever to secure loyalty from either group.
Organizations can set themselves apart in this environment by providing remarkable experiences. These are experiences that delight customers and empower employees, solidifying loyalty, and boosting retention.
Determining how to cater to each generation’s expectations isn’t always straightforward. Fortunately, data can guide you.
The Genesys report, “Generational dynamics and the experience economy,” dives deep into global consumer and employee attitudes. It reveals findings from a survey of 13,000 adults worldwide, examining how they evaluate brands, their customer service expectations, and their workplace preferences. It also uncovers trends that provide business leaders with insight they can use to enhance experiences and improve financial and operational performance in the process.
Here are some key findings from the survey.
Reputation and Recommendations Shape Purchasing Decisions
When determining which brand to purchase from, all generations prioritize quality and price. Reputation is also crucial, with consumers of all ages valuing a brand’s reputation, and especially its reputation for customer service excellence.
Beyond these, generational differences emerge. Younger generations highly value others’ opinions, with 68% of Gen Z and 76% of millennials relying on customer reviews and ratings. Even 62% of Gen X share this attitude, but only 39% of boomers do. The generational stance is similar when it comes to recommendations from friends and family, third-party reviews, and social media.
Of course, brands must focus on appealing to consumers at the point of purchase. But with reputation and recommendations being so important, it’s vital that businesses also prioritize maintaining empathetic, personalized, and connected interactions throughout the customer journey.
Customers Expect Personalized, Omnichannel Experiences
Customers’ frustration is at its highest when they get stuck at a dead end or have to repeat themselves during service interactions. Some consumers will even stop doing business with a brand when their customer journey is disjointed.
Consumers across all generations still prefer interactions with live agents, whether by phone, email, chat or SMS. But consumers also want access to a variety of channels. Notably, their number one form of personalization is getting the service they need in their preferred channel when they need it, the Genesys “State of customer experience” report finds. And those preferences diverge among younger and older generations.
The “Generational dynamics” report shows that Gen Z and millennials prefer digital customer service channels such as messaging apps and social media markedly more than Gen X and boomers do. For instance, these younger groups are 25 percentage points more likely to use mobile apps for customer service and 23 percentage points more inclined to use chatbots.
These varied preferences highlight the importance of organizations shifting toward more connected and integrated service experiences. Younger consumers, especially, expect seamless transitions between channels.
Personalization is another expectation across all generations, with younger consumers being 39% more willing to share data for personalized service. They also have higher expectations for personalization in digital channels: 59% of Gen Z and millennial consumers expect it in messaging and mobile apps, compared to 42% of Gen X and boomer consumers.
These findings indicate that businesses must enhance their digital experience strategies, prioritizing personalization, convenience, and omnichannel continuity to meet the needs of a growing digital-first customer base and build both satisfaction and loyalty.
Employee Experience Expectations Being Redefined
Increasingly, employees are taking their customer preferences for personalized, empathetic experiences to work. Across generations, employees expect a supportive work environment, flexibility, work-life balance, and opportunities for professional growth. However, Gen Z and millennial employees have much higher expectations for future flexibility and career growth.
These younger workers expect that over the next three to five years, their employers will provide more location and schedule flexibility and greater support for work-life balance. Specifically, 63% of Gen Z and 72% of millennial employees expect more job flexibility, compared to 54% of Gen X and 42% of boomers. Additionally, there’s a 14-percentage-point gap in expectations for work-life balance support between younger and older generations.
Workers also see AI as a potential avenue for workplace personalization. Younger employees, in particular, see AI as a tool that can enhance their work environment. Twenty-eight percent of millennials and 21% of both Gen Z and Gen X employees believe AI will make jobs better and more efficient.
This optimism stems from the belief that AI can automate mundane tasks and provide real-time assistance, allowing employees to focus on more complex, rewarding aspects of their jobs and improving the customer experience.
Design Future Experiences Today
The similarities across customer and employee expectations, and the differences of those expectations across generations are notable. They show how important it is for organizations to take a holistic yet personalized approach to managing generational dynamics in both customer experience and employee experience strategies. People expect experiences that make them feel supported and valued, whether they are consumers or employees.
Meeting these expectations is crucial. With the right technology and a personalized, empathetic approach, organizations will stand out by delivering exceptional experiences to both customers and employees.
An award-winning editorial leader who has covered CX and marketing for the majority of her career, Ginger Conlon is currently thought leadership director at Genesys and co-host of its Tech Talks in 20 podcast and CX Green Room livestream show. In her prior roles as chief editor of 1to1 Media, CRM magazine, and Direct Marketing News, she set the editorial vision and strategy, which led to increased readership, engagement, and revenue. Ginger was a founding board member of CXPA, was selected as the 2023 CXStars awards’ #1 CX industry influencer by CX Magazine, and received a Silver Apple lifetime achievement award from the Marketing Club of NY for her contributions to the marketing industry.