Gen Z demands more digital channels for customer service

New research conducted by CommBox has revealed that younger shoppers in the UK are urging brands to increase their use of digital channels for customer service. The study surveyed both consumers and managers within customer-facing organisations to understand prevailing consumer priorities and the challenges businesses face in delivering customer experience (CX).

Findings indicate that 16-24-year-olds, commonly referred to as Gen Z, are most likely to prefer contacting brands via WhatsApp, with Instagram also ranking highly. This preference for digital channels is in contrast to older generations, who are more inclined towards traditional communication methods such as phone calls. Specifically, only 34% of 16-24-year-olds favour phone calls, compared to 61% of those aged over 55.

Customer satisfaction remains a critical concern, with the survey indicating that less than half (43%) of UK consumers felt satisfied with the online service they received over the past year. Satisfaction levels are particularly low among Gen Z, with just 37% reporting positive experiences, whereas 42% of those over 55 relayed satisfaction. Key issues identified across all age groups include long wait times, difficulty in reaching human agents, and ineffective chatbots.

Generation-based differences emerge significantly in terms of desired improvements to customer service. For instance, only 1 in 4 Gen Z individuals prioritise speaking to knowledgeable agents, compared to 69% of those aged over 55. Instead, younger consumers value multichannel access (25%) and round-the-clock availability (31%) more highly.

The survey also highlights the impact of negative experiences on brands, particularly from Gen Z consumers. A substantial 90% of 16-24-year-olds said they would take action following a poor experience, including avoiding the brand (44%) and seeking alternatives (33%). Additionally, 18% would post a negative review, and 24% would disparage the brand on social media. Such actions can severely affect a business's reputation, particularly given the influence of online reviews in the current eCommerce landscape, where 80% of potential consumers are deterred by negative reviews.

Conversely, positive experiences with a brand also activate Gen Z to speak out, creating promotional opportunities for retailers. As outlined in the study, 33% of Gen Z would recommend a brand to a friend, 31% would leave a positive review, and 18% would publicise their satisfaction on social media. Moreover, 37% reported they would prioritise such brands over competitors, potentially boosting sales conversion rates by up to 270%.

Dvir Hoffman, CEO at CommBox, commented on the generational variances revealed by the survey: "The results of our survey show that the needs and demands of different generations vary considerably, and brands need to adapt to that. It's no longer enough just being available on the phone or email - new tech-savvy generations are demanding brands be available across multiple digital touchpoints. Likewise, brands mustn't risk alienating consumers who prefer to receive service via other, more traditional methods."

Hoffman emphasised the importance of a balanced approach in meeting these diverse needs: "It's about striking the right balance, knowing when to use technology and more digital channels, and when to make agents available for high-value interactions. Only then can brands say they are truly delivering a personalised service." He also recommended that businesses centralise organisational knowledge to support both digital and traditional customer service channels effectively.

The survey, which included responses from 1,001 UK consumers and 251 managers in customer-facing operations, was conducted in line with ESOMAR principles as followed by the Market Research Society. Additional data from the study will be released by CommBox over the coming weeks.