The next generation of consumers are on the scene and making waves in customer service. According to Pew Research Center, members of Generation Z – or Gen Zers – were born after 1996. This makes the oldest members of the generation 23 years old in 2020. This generation has grown up with smartphones, social media and climate change concerns, and they have some demanding expectations for companies and the customer service they provide.
HubSpot found that 90% of consumers say an immediate response to customer service questions is important or very important, and 33% rank waiting on hold as the biggest frustration.
Among Gen Zers, the need for speed may be especially great. After all, when you grow up with a smartphone in your pocket, you get used to fast results. Given this, it should be no surprise that Gen Zers have little patience when it comes to customer service issues.
Gen Zers have embraced digital payments. According to Forbes, a survey found that 79% of Gen Zers use digital payment services at least once a month, which is more often than Millennials.
When Gen Zers need to make a payment, they want a fast, easy digital option. And when they are owed money, they want fast payments, too. Companies that provide quick digital payment options are likely to do well with mind share with new consumers.
Technology has given people new communication options, and your customers probably expect you to provide options, too. According to HubSpot Research, 62% of customers want to communicate with companies using email, making this the most popular channel, while 48% want to use the phone, 42% want to use live chat and 36% want to use contact forms.
For Gen Zers, providing options that go beyond the telephone is especially important. According to a HighSpeedInternet.com survey, 60% of Millennials and Gen Zers hate calling people. Don’t make them hate you. Give them another way to reach your company for support, and connect with them the way in which they expect.
Providing excellent customer service may not be enough to keep Gen Zers loyal. This generation expects companies to be ethical and to show support for important social and environmental issues. Think of it as a holistic customer experience.
Need proof? According to McKinsey, 81% of Gen Zers say they’ll stop buying from companies and spread the word about companies with “macho” campaigns, while 79% say the same about racist campaigns, and 76% say the same about homophobic campaigns.
The Deloitte Welcome to Generation Z report says it clearly: “Gen Z no longer forms opinions of a company solely based on the quality of their products/services but now on their ethics, practices and social impact.”
The Role of Your Core System
Like it or not, your core system is often the source of happiness and frustration for both policyholders and agents. To satisfy Gen Zers, you need frictionless and intuitive processing that delivers policy, claims and payment information and capabilities instantly, through a modern, intuitive digital interface. Insurers that understand, and then deliver on next-generation experiences are the insurers that will win the battle for Gen Zers.
If your core system is falling short, and not allowing you to explore how to serve the needs of your current and future policyholders, reach out to the Insuresoft team to learn how we can help you reach a new demographic.