Editorial
The Gist
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Simplicity drives satisfaction. Gen Z expects a frictionless, one-click experience across all services, from insurance to shopping, and brands must adapt.
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Customization is key. Young consumers expect brands to know their preferences and offer personalized experiences, powered by advanced technology and data.
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Empathy matters most. Gen Z values emotional intelligence and expects brands to meet them where they are, offering human interaction during tough times.
No matter what kind of business you operate and which industry you’re in, Gen Z is coming for you. Are you ready?
Born between 1997 and 2012, Gen Z is the world’s largest generation, comprising almost 30% of the global population. Gen Z’s economic power is relatively small today, and in 2020, they were responsible for just 5% of global retail spend.
But as more Gen Zers enter the workforce, that will quickly change. In fact, according to a 2020 report, Gen Z’s spending power is expected to reach $33 trillion over the next decade, surpassing the spending power of Millennials by 2031.
While Gen Z doesn’t yet have the buying power they will eventually gain, their customer expectations and preferences are already having an impact on brands of all stripes. Previous generations held intangible products, like insurance and banking, to a different standard than consumer packaged goods (CPG) products, especially when it comes to the experience they provide to customers.
However, that isn’t the case with Gen Z. What they expect of one brand, they expect of all brands, and other generations are adopting their point of view.
Table of Contents
- Understanding Gen Z's Impact on Customer Expectations
- How Gen Z is Shaping the Future of Customer Experience
Understanding Gen Z's Impact on Customer Expectations
The good news is that we can understand Gen Z’s brand and customer expectations by looking at the companies they engage with most often.
Simplicity: Frictionless Customer Experience Across All Services
Once a customer has been exposed to how simple things can be, they expect everything to be that simple. The generation that has grown up with “one-click buying” expects a frictionless experience across all services. At my company, we frequently have employees across all levels go through the process of submitting an insurance claim, witnessing firsthand how simple the experience really is and identifying any pain points so we can fix them quickly.
Customization: Advanced Technology Helps Cater to Gen Zers
As digital natives, young consumers expect brands to know who they are, their preferences and their previous behaviors. Fortunately, advanced technology solutions make this easier than ever. While many organizations staunchly believe that customers should always be given the option to interact with real people, the use of advanced technology is an excellent complement, creating a more efficient and personalized customer experience.
Transparency: Provide Real-Time Updates to Improve Customer Experience
Whether they’re online ordering a couch, toothpaste or a pizza, customers have gotten used to being able to track the status of their order from start to finish, and Gen Z has never known anything else. This isn’t limited to CPG companies that offer tangible products. In fact, we created a “claims tracker” that allows our customers to see how their claims are progressing in real time, from initial review to verification and payment.
Empathy: Humanize Your Customer Experience
Beyond understanding who they are, young consumers also expect brands to meet them where they are, reflecting customer expectations for emotional intelligence. Within industries like insurance, this is absolutely crucial.
At my organization, we often hear from our customers on their worst days, when they or a loved one has had an accident or been diagnosed with an illness. This is why we’ll never use AI to replace talking to a real person during our customers’ times of need. Empathy also means taking the emotional burden off customers when it comes to interacting with brands about heavy topics. For example, our automated process leads a policyholder filing a cancer claim related to an initial diagnosis to a dedicated group of claims professionals – humans – who are specifically trained for this purpose with great sensitivity.
Continuous Improvement: Obsoletion Not an Option
Customer expectations are always changing. That means that when it comes to the customer experience, brands always need to be improving. Standing still means that companies will run the risk of becoming obsolete.
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Related Article: 4 Ways to Tailor the Customer Experience for Gen Z
How Gen Z is Shaping the Future of Customer Experience
New to the workforce and usually in good health, Gen Z is only just starting to engage with service providers like insurance companies. But as they advance in their careers, start families and realize they’re susceptible to accidents and illnesses like everyone else, that will change. They will no doubt expect the same quality of customer experience that they have with CPG brands.
For industries that don’t offer a tangible product (i.e., financial institutions, higher education and healthcare), customer experience is incredibly important.
In many ways, customer experience is the product. Fortunately for those of us in these “boring” industries, there are plenty of lessons to learn and inspiration to glean from flashier CPG companies when it comes to interacting with young customers.
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