It used to be enough to just go digital. Now, it’s the bare minimum.
A new digital expectations gap is opening up – one that separates what consumers want from their online experiences and what brands are actually delivering. And no demographic has done more to expose this gap than Gen Z.
As the first fully digital-native generation, they’re no longer content with the half-hearted mobile interfaces or generic brand messages that defined the early days of digital transformation. They want immediacy, intuition and individuality in every interaction. And when they don’t get it, they’re not afraid to move on.
According to Adrian Bryers, Lead Strategist at Great State, for brands, the warning is clear: “Lose pace with Gen Z’s high standards and watch your relevance vanish.”
True children of the internet
Born between 1997 and 2011, Gen Z have never known a world without smartphones, social media or instant access to information. Because of that, this always-on, mobile-first generation has set new benchmarks for what good looks like online. They don’t just crave, but expect real-time customer service, intuitive interfaces and digital journeys that reflect their identity and values – and they expect it from everyone, whether it’s where they buy their cars, their insurance or even their socks.
If a brand fails to please them, they’re gone. In fact, Great State’s Shifting States report reveals that nearly half (47%) of Gen Z consumers in the UK have disengaged from brands that failed to meet their digital expectations, while over half (55%) say they wouldn’t return to a service that disappoints them online.
They’re an emerging generation accounting for 40% of global consumers, so the stakes couldn’t be higher.
“They’re looking for authenticity and trust from any brand they engage with. At a time where authenticity is slowly being eroded, brands that take the time to focus on authenticity stand to differentiate themselves further,” says Adrian. An analysis of the top and bottom 50 brands in the annual UKCSI index consistently shows that those delivering authentic experiences and Gen Z-focused features tend to rank higher.
The cost of falling short
“The disconnect between Gen Z and brands is most stark when digital experiences rely on a ‘one-size-fits-all’ approach – repurposing the same content, tone or journey across every channel,” elaborates Adrian. “This generation expects to be understood on a much deeper level, with experiences that meet their specific expectations. Anything less suggests brands haven’t done the work to earn their attention, let alone loyalty.”
The big utility companies and telcos are good examples of this, either missing the mark through a lack of insight or being renowned for not caring enough to understand their customer needs. Whereas in contrast, smaller telcos are out-performing their larger counterparts, featuring in top 50 lists of overall customer satisfaction.
While a shoddy delivery or customer service experience was excusable in previous generations – the expectations of more than ‘brilliant basics’ is clear with this group, who expect progressive new players to enter the ring. And Gen Z is comfortable with this – happily hopping from one to the other, while Gen X sticks with a bank for life.
We also see how larger organisations that have implemented highly automated, ill-considered customer service models without consideration of their customers, Gen Z or otherwise, are also falling short.
Across the board, there are many examples of brands struggling to resonate with Gen Z and it’s not always because they’re unaware of their needs.
“Navigating change with complex legacy systems isn’t for the faint-hearted,” says Adrian. “It requires a fundamental shift in mindset. If you have a generation that’s thinking differently, your organisation should think differently too. Disrupt and reset. Otherwise a new brand will come in and take over.”
For those serious about creating engaging and fulfilling experiences for their future consumers – or even recruits – they need to understand their needs through continuous discovery and then optimise their digital touchpoints to create the authentic experiences they crave.
Sectors who have previously relied on older, wealthier customers also must think about how to create new services and products that will captivate, engage and inspire the next generation. This process often creates friction as a new set of desires for any new customer group is often not compatible with legacy business offerings.
Lessons from the leaders
Thankfully there are some examples of brands that have been willing, and able, to close the expectation gap. Some of the newer Fintech brands – Monzo and Starling for example – have both pushed disruption in the banking sector, while serving the needs of their Gen Z customers in a way they enjoy.
Giff Gaff has opted for a community operating model that builds customer loyalty and benefits, while also crowdsourcing new customers, that fits the style of engagement that Gen Z is looking for.
While these brands are rising to the occasion, for those brands still playing catch-up, now is the time to act. If you’re in the latter camp, Adrian offers a few guiding principles to help hit the Gen Z spot:
- Brands should invest in ways to listen and truly learn from Gen Z, reflecting their needs into the ongoing strategy and out into the business, across channels and services.
- Design upwards. This means taking time to consider how your experience fits, from the ground up rather than dropping new things on the top, which may create problems at the bottom.
- Build transparency into how your digital experience is enabled. We know that privacy and trust are the currency of authenticity. So over-data harvesting and obscured permissions will not win you fans from Gen Z customers who realise the value of their data.
What comes next?
“While no one truly knows where technology will take us, we do know that the world has moved on quickly, and will continue to do so,” summarises Adrian.
“With this in mind, the opportunity here isn’t just to catch up: it’s to reimagine what digital can be, through the lens of the most demanding and digitally literate consumers yet.”
Source: Great State
