Serving the Millennial Generation This social media savvy, techno-dependent generation of consumers is a game-changing force for contact centers.
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1 superior service / feb 2013 Serving the Millennial Generation This social media savvy, techno-dependent generation of consumers is a game-changing force for contact centers. By Guillermo Valiente, TELUS International Pipeline Articles
2 Guillermo Valiente TELUS International The millennial generation (born ) has grown up in a connected world. They are renowned for being social-media savvy, techno-dependent and exceptional at multitasking. At the same time, they are deemed impatient, demanding and seekers of instant gratification. Their behavior and other forms of social interaction are influenced by modern media and 24/7 access to the Internet. Growing up in an era of saturated information means it s harder to earn their trust, which is why millennials are more likely to challenge the status quo than other generations. These characteristics are vastly different from previous generations, making them a gamechanging force from a customer service perspective. Whether it s an over-the-counter interaction, exchange or telephone conversation, millennials expect an instant response. As for Twitter, Facebook or online chat, millennials expect the same level of service as experienced on other channels. To stay competitive, companies need to adapt their service strategies to meet these new expectations. In this article, I ll discuss the potential of millennials, along with how to engage, reach and encourage millennials to share their experiences online. This knowledge is essential to better serve this hyper-connected generation. The Potential of Millennials The potential of engaging millennials is huge. By 2014, millennials will make up 36% of all U.S. workers. This is projected to be 46% by 2020 (source: research by The University of North Carolina Kenan-Flagler Business School in partnership with the Young Entrepreneurs Council). That s almost half of the U.S. working population heading toward their peak earning years, controlling and influencing a lot of spending. As this group ages, they are quickly becoming the largest and most popular consumer group for companies to target. Companies that engage this group well should see a positive impact to their bottom line. Millennials are a group that cannot be ignored so tailoring customer service to match their expectations is essential. Millennials also have a great influence on their peers. Their decision-making is much more collaborative and their networks are much wider than previous generations. Millennials value the recommendations of their friends and are likely to follow suit. When done well, companies can motivate millennials to share their experiences, especially on social networks, becoming brand ambassadors on their behalf. Given the nature of social media, anyone who engages regularly online can develop a substantial following, and therefore have a significant reach and influence. Any experiences that are particularly unique, engaging or unexpected, have the potential to go viral. Companies that engage online can earn repeat customers, increase sales and boost their reputation with this key audience. Engaging Millennials Engaging millennials is important, but how do you do it? And how can you achieve brand loyalty with this somewhat fickle generation? Millennials are notorious for being convenience consumers. It s not always about being impatient, a word often associated with millennials; it s about having access to the right information, the right products, the right channels, at the right hours. Customer service needs to be accessible and fast. If there are barriers or delays, millennials will happily move their business elsewhere, and tell their friends about it along the way. When it comes to serving millennials, it s all about personalization. They seek out only the information that s relevant to them. Millennials will want to know what s in it for me? It s important for companies to spell this out and home in on the specific product features that meet their needs. As much as possible, communication must be tailored to individual requirements. 2
3 Millennials share what they like, including great customer experiences. It s important for companies to provide engaging and compelling customer interactions. Give millennials content that can be shared via word of mouse. Making customer experiences sharable has the potential to boost brand sentiment, potentially leading to new customers. Millennials also like visuals, with 68% reporting to use YouTube to browse and research retailers. Help millennials buy with their eyes by using videos or images to better connect them to your brand online, and while doing so, be sure to speak their language keeping interactions short and relevant. Finally, it s important for companies to extend the experience. Millennials have fewer dollars to spend than previous generations but are willing to spread out their spending over multiple paychecks. Smart companies will influence that future spending now by training agents with both customer service and sales skills to offer incentives for millennials to return. Reaching Millennials There are many customer service channels available, including voice, , online chat, social care (queries dealt with via social media channels), text message and mobile. The more channels available, the more customers you re likely to satisfy. However, what are the best channels for reaching millennials? Phone support: People like to speak to other people; it makes them feel valued. While it may not be millennials first choice of communication, they expect it and may notice if it s not offered. Of course, long hold times, poorly designed IVR menus, and call-routing to the wrong departments must be avoided regardless of generation! remains convenient and easy to use, but with the growth of smartphones and 24/7 access to websites and texting capabilities, is declining as a preferred channel for millennials. Further, when is used, many companies redirect consumers to their websites to source answers for themselves, which isn t helpful. Online chat: Online chat allows companies to talk to customers in real-time via its website an important offering for millennials. Online chat continues to grow in popularity as it s easy to use, cost effective and customers can multitask while waiting for agents to respond. Agents, however, must respond quickly and be well versed with the company s brand and products to avoid turning this valuable offering into a negative experience. Social media: Whether invited or not, millennials ask questions via social networks, opening a back door into customer service. Millennials like sharing experiences or issues, and when they do, help comes from all directions. For companies, it feels like the entire world is listening. The big warning is that millennials will publicly complain if their inquiries are ignored. Customer service remains one of the best uses of social media today. Mobile and texting support: Smartphones and millennials go hand in hand, making it easy for millennials to ask questions via text or social media whenever, wherever and however they want. It s affordable, too, with many consumers having unlimited text messaging or large data packages as part of their mobile service plans. The drawback is that responses may be too long or complex for texting or mobile apps to handle. Moving the individual to a more suitable communication channel is critical in this instance. Millennials will attempt to reach customer support in which ever communications channel they choose. Companies must prepare themselves for all types of interactions. This includes having empowered agents in place to make experiences personal and potentially shareable with every customer interaction viewed as an opportunity to amplify the brand. What Do Millennials Share? Millennials spend a lot of time in the virtual world. Not afraid to voice their opinions, Millennials like to update followers constantly about their experiences, positioning themselves as experts in their own right. 3
4 Millennials expect companies to be as equally present in the social media world, and when done right, millennials may become brand advocates on behalf of companies. So what motivates millennials to speak up and act? Price: They want to feel like they are getting value for money. Broadly speaking, millennials don t have a lot of disposable income, but they aren t thrifty shoppers either. If they see a product or service as being valuable or a good deal, then you re more likely to get their attention. But be ready, they are also prepared to negotiate everything. Service: Customer service is especially important. Online is their go to medium to connect with businesses. They want what they want, their way or they will go elsewhere. Companies offering live chat or customer service agents available 24/7 on Twitter or mobile apps will outshine competitors. Brand name: Millennials tend to be shopping defined. They are drawn to high-end labels and are more likely to be an advocate when they recognize a brand than earlier generations. They need something to identify with and to be able to share with peers. Keep your brand name recognizable and visible at all times. Meaning: Millennials expect a company to stand for something. They look to express themselves through the brands they associate with, so be bold with your brand and its significance in the community or the world. Millennials will share if they can make that emotional connection to your company. Overall experience: In today s instantly gratifying world, millennials can be picky about the speed and relevancy of answers to their questions. Even with the sharing of good experiences, the sharing of bad experiences can undo all that good. Dangers of Ignoring This New Generation Organizations that ignore millennials needs are missing a huge market, which could impact brand recognition, sales numbers and customer loyalty. Millennials are quick adopters and even quicker droppers. Most millennials don t give second chances when it comes to customer service. If their first experience isn t efficient and solution-based, they will move on. Word of mouth spreads almost instantaneously and the potential for widespread attention (good or bad) is higher now than ever before. Due to the influence of social media, it can take minutes for an issue or concern to go viral. Final Word on Engaging This Audience Millennials are quick to leave companies, disregard their brand loyalty and change opinion. Once a company has recognized the potential of millennials, it s important to understand how to engage and reach this audience, and how to empower them to be ambassadors on your behalf. If you want this generation to speak positively about your brand, you just need to walk, talk and surf like a Millennial. That way, you may gain their attention and possibly their respect, too. Guillermo Valiente is Executive Director at TELUS International, a global provider of contact center and customer care solutions. Guillermo is based in the company s El Salvador operations where he manages a team of over 2,000 highly-connected millennial team members and call center agents. guillermo.valiente@telusinternational.com 4
5 About Contact Center Pipeline Contact Center Pipeline is a monthly instructional journal focused on driving business success through effective contact center direction and decisions. Each issue contains informative articles, case studies, best practices, research and coverage of trends that impact the customer experience. Our writers and contributors are well-known industry experts with a unique understanding of how to optimize resources and maximize the value the organization provides to its customers. To learn more, visit: Online Resource This issue is available online at: Feb 2013, Contact Center Pipeline Pipeline Publishing Group, Inc. PO Box 3467, Annapolis, MD (443) info@contactcenterpipeline.com 5
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