Generation Y & Z and Customer Experience
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Generation Y & Z and Customer Experience

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Slides from our talk at 2012 SXSW Tues March 13 on the subject of Generation Y and Z and how to think about a complex customer experience to address those generations' needs and feature requirements. ...

Slides from our talk at 2012 SXSW Tues March 13 on the subject of Generation Y and Z and how to think about a complex customer experience to address those generations' needs and feature requirements. Characteristics of Generation Y and Z described. Best practices the most admired companies perform to listen to the voice of customer were reviewed.

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  • What’s your roll. Raise your hand if you are… Experience or usability designerCustomer loyalty managerMarketingOther (ask)
  • What should we do about these generations and their characteristics?I’m going to cover 3 areasThe inventions of the past 30 years and how they feed or respond to the needs of gen y and zI’m going to propose a new model for ensuring you’ve got all the bases covered in regards to customer experienceAnd wrap up with some of the best practices we’ve seen and have been involved with in our work helping large enterprise maintain great customer experience
  • “Generation Y is slowly growing up. Brigham Young University labeled Generation Y as ‘80s babies’ or more broadly the ‘net generation.’ Some Gen. Y’s have kids, yet some are still considered kids. Their grandparents were a part of the greatest generation and stormed across Europe. Their parents indulged in the 60’s and 70’s and birthed this generation during the excess of the 80s.” (Tampa Bay Examiner, March 2012 Blog)
  • From a business week article on Gen-Y… “Asked what brands are cool, [Gen-Y’ers] rattle off a list their parents blank on. Mudd. Paris Blues. In Vitro. Cement. What's over? Now, the names are familiar: Levi's. Converse. Nike. ''They just went out of style,'' shrugs Lori Silverman, of Oyster Bay, N.Y.“Some of the biggest brands on the market are meeting with a shrug of indifference from Gen-Y. A host of labels that have prospered by predicting--and shaping--popular tastes since the baby boomers were young simply aren't kindling the same excitement with today's Gen-Y-age youth. Already, the list includes some major names: PepsiCo Inc. (PEP) has struggled to build loyalty among teens. Nike Inc.'s sneaker sales are tumbling as the brand sinks in teen popularity polls. Levi Strauss & Co., no longer the hippest jeanmaker on the shelf, is battling market share erosion. Meanwhile, newcomers in entertainment, sports equipment, and fashion have become hot names.What's the problem? These kids aren't baby boomers. They're part of a generation that rivals the baby boom in size--and will soon rival it in buying clout. These are the sons and daughters of boomers.”http://www.businessweek.com/1999/99_07/b3616001.htm [Favorite Gen-Y brands are shown above]
  • Don’t understand the concept of live television
  • Don’t understand the concept of live television
  • The future is shaping differently than other generations, and the product and experiences must too evolve. Top firms have struggled to remain relevant over time. It’s not about being fresh, cool, or even social. It’s about being relevant. And not just your product, the entire experience needs to be relevant.
  • Thanks Adam.As for my favorite recent customer experience. It has to be my new camera. Beginner level Nikon D3100.With the little photography skill I have, this thing turns out pictures like I could never capture with my phone.Full of features, too many features maybeBut this camera addresses my needs on many levels. We’ll get into why that’s important later
  • What should we do about these generations and their characteristics?I’m going to cover 3 areasThe inventions of the past 30 years and how they feed or respond to the needs of gen y and zI’m going to propose a new model for ensuring you’ve got all the bases covered in regards to customer experienceAnd wrap up with some of the best practices we’ve seen and have been involved with in our work helping large enterprise maintain great customer experience
  • First let’s review a couple of traditional modelsThe Kana model is a popular way to balance features and engineering effortIt suggests there are 3 types of features.Basic features are those that have come to be Must-HaveFor example, seatbelts in cars. Auto manufactures and standards have done all they can in this regard. Any more effort would not improve customer satisfaction about the carPerformance attributes are those which you can compete on. Customers will use these to compare you with others.For example, the cars roominess, the engine’s power, or the beauty of the car’s design.Delight features are those where innovation and additional engineering effort can indeed increase customer satisfaction.Sticking with the automobile example, adding more connected services in the car may do this. DVD players for the kids already embedded in the back of the front seats, one tap open all windows to let the heat out feature,
  • We all know about Maslow’s Hierarchy of NeedsThis model is designed to address our motivations in life.
  • I propose a similar model to address the needs of your customer.This is in-part based on a model called System Logics, which some old friends of mine from Ford Motor Company, developed at their design firm in the bay area called Jump Associates. They had 4 tiers. I propose a simpler 3 tier model here. I also renamed them a bit.The premise is that all needs are not created equal.Features needs are there simply because you’re doing something with a product. e.g. I need for my laptop power to remain healthy during this presentation. I need a comfortable seat on my flight to sxsw.. I need my coffee cup to keep me from getting stained and burned.Important: feature needs may disappear if the currently available solutions are redesigned or replace.Activity needs are about your immediate goals or activities. They are about the situation in which you live, work, and operate.E.g. need to deliver a new product design. I need to visit a customer in a city across the country. I need to get some customer supportLife needs are the most fundamental and universal of all. The need to build a relationship with that customer, the need to feel informed, The need to make a difference
  • Read the bullets
  • What if we were to lay the 2 models out as shownKana on the horizontalThe need levels on the vertical
  • What if we were to lay the 2 models out as shownKana on the horizontalThe need levels on the vertical
  • What if we were to lay the 2 models out as shownKana on the horizontalThe need levels on the vertical
  • Let’s think about how your trip to SXSW falls into these areas.Helpful for sales team!
  • So now we have a framework to consider the generations.Gen Y may consider something a delight at feature need level or even life need levelBut Gen Z might consider it just a basic attribute and feature need“Of course it’s connected to the internet, why wouldn’t it be”
  • Perhaps we need a new version of the needs and attributes grid per each generation, or each customer segment
  • Theres a lot here, but trust me.. This is one Tufte would like because it has a high data to ink ratioWhat should we do about these generations and their characteristics?I’m going to cover 3 areasThe inventions of the past 30 years and how they feed or respond to the needs of gen y and zI’m going to propose a new model for ensuring you’ve got all the bases covered in regards to customer experienceAnd wrap up with some of the best practices we’ve seen and have been involved with in our work helping large enterprise maintain great customer experience
  • Mapping some life needs to products which were invented
  • We’d like to propose a new model for thinking about customer experience
  • Mapping some life needs to products which were invented
  • There are many social networksThese are their #s end of summer 2011Facebook is now at 1bilI just read this weekend that Twitter will be at 500mil in Feb.Stat: 100 mil tweets per dayCustomers are talking about products and services here.
  • Leading companies review what customers say about them and their competitors on the new tools like TwitterTwitter, Facebook, and all social networking services have an inherent interest in growing their user base. Hence, they continuously innovate and build new tools and services to foster easy sign-up, discovery and broadcasting of users’ experiences
  • Survey data remains one of the most powerful ways to drive action and accountability of your studyGood companies keep them short, design them well, and augment the heck out of the data with hidden informationSolicited and unsolicited feedback
  • Survey data remains one of the most powerful ways to drive action and accountability of your studyGood companies keep them short, design them well, and augment the heck out of the data with hidden informationSolicited and unsolicited feedback
  • We’ve built prototypes that embed surveys directly into facebook.Many of our clients are particular about their data sample so there hasn’t been a huge request for this,At least not yetWe think it’s a good mechanism for unsolicited feedback.
  • Read slide
  • Leading companies use simple and enterprise class tools to manager their VOC programs
  • Leading companies use design thinking to listen, plan, test, and and build products
  • Great way to create advocacy. If someone just said they’d recommend you on the survey, why not ask them to tweet it at end of the survey.
  • Leading companies build processes that scale.More and more social media monitoring will need to become automated to make it scale.Today it’s just like another phone that’s ringing.
  • At the end of the day, it’s about understanding the full customer experience and knowing which one of these 9 points you should focus on
  • Could be 2 of them
  • Could be 3 of them.
  • Or could be all of them.
  • Companies that don’t adapt will be brutally punished. Kodak/Polaroid.For entrepreneurs, find an industry that is not adapting: Skullcandy/Beats have taken over headphones because they figured out Gen Y.

Generation Y & Z and Customer Experience Generation Y & Z and Customer Experience Presentation Transcript

  • Gen-Y-ZExpectations ToTransform theCustomerExperienceAdam EdmundsAl Nevarez
  • What is Your Role? 2
  • CX Considerations Lewis CK Everything‟s Amazing Nobody‟s Happy Funny bit about how today‟s generation doesn‟t appreciate the wonderful things technology does for them. http://www.youtube.com/watch?v=8r1CZTLk-Gk 3
  • We Are Formed by the Events of Our TimeSource: Graphic and some content from Grail Research Consumers of Tomorrow, November 2011 4
  • Gen X• 50 million Americans• 30 - 40 years old• 60% of Gen X attended college• Gen X iconic leaders: Lance Armstrong, Tiger Woods, Jerry Yang, Jeff Bezos, Michael Dell 5
  • Gen X Traits • Individualistic • Technical • Flexible • Work/life balance • Creative • Low key • Innovative • Flexible • Independent and adaptable 6
  • Gen Y • Used to emerging digital technologies like email/SMS • Optimistic, tech-savvy, style conscious, brand loyal • Changing the workplace – BYOD – Social networks – Instant messaging • Generation Y has been described in a New York Times article as entrepreneurial and, "a post- emotional generation. No anger, no edge, no ego." 7
  • Gen Y Traits • Selective about who they listen to • Not as interested in TV • Need to stumble onto your message; traditional marketing less effective • Low cost, good quality, value seekers • Less loyal 8
  • Gen Z • Avid multi-taskers • Demand interactivity (touch screens and connectivity to many things) • Expect things NOW • “This isn‟t connected to the Internet, huh?” • 31% of US children, ages 6-12, wanted an iPad over any other electronic device for Christmas in 2010; followed by a computer (29%) and an iPod touch (29%)1Source1: „Kids to Santa: we want an iPad for Christmas‟, Neilsen, Oct 2010 9
  • Gen Z Traits• Collectors• Not brand loyal• Social, collaborative• Friends connected for life• Self publishers 10
  • Important Traits of Both Generations • Care deeply about social causes • Immediacy • Connected • Curious • Interactive 11
  • Remaining Relevant for Each GenerationBrand Gen X Gen Y Gen ZKodak/Polariod Yes No NoAOL Yes No NoMcDonalds Yes Yes YesApple No Yes YesDisney No Yes YesLevi’s Yes Yes ?Jeep/VW Yes Yes ?Nintendo Yes Yes ?JetBlue Yes Yes ? 12
  • PracticalAdviceAl Nevarez
  • Favorite Recent CX 14
  • CX Considerations 1. A new model for customer experience 2. Inventions of the past 30 years 3. Best practices from leading companies 15
  • CEX Models
  • Kano Model 17
  • Tom & Sally 18
  • Maslow’s Hierarchy of Needs 19
  • System Logics – Customer ExperienceNeeds Life Need Activity Need Feature Need 20
  • Important Because1. Mostly only observe & listen for the feature needs2. Feature lead only to incremental improvements3. New technologies will replace features4. Addressing Activity Needs and Life needs will lead to more valuable, profitable, long term, and strategically powerful solutions 21
  • A New CEXModel
  • A New Model – a Combination of 2 Life Need Activity Need Feature Need Basic Performance Delight Attribute Attribute Attribute 23
  • My Nikon on This Model Life Need Activity Need Feature Need Basic Performance Delight Attribute Attribute Attribute 24
  • A New Model – a Combination of 2 Life Need Activity Need Feature Need Basic Performance Delight Attribute Attribute Attribute 25
  • Example – Your Trip to SXSW –Coach Class Security check Direct flight to Lounge access Life save me time Need On time Direct flight Power outlet Activity Wifi on board so I (or solar can work example) Need Airline seat Flight schedule & Live TV at seat Feature Light for reading price Free upgrade Need Leg room Food on board Basic Performance Delight Attribute Attribute Attribute 26
  • New model – Thinking about Gen Y & Z Gen Y Life Need Activity Need Feature Gen Z Gen Y Need Basic Performance Delight Attribute Attribute Attribute 27
  • New Model – Multi Levels Generation Z Generation Y Segment AGeneration X Segment B Segment C 28
  • Gen Y: Born 1982 to 2002 Independence, self reliance Mass media hype not impactful Traits Life Needs Optimism, Can be & do anything Selective about who they listen to Live first, work second Not as interested in TV. Job must bring joy, meaningful work Don‟t care that Mike Jordan likes Nike Care for the earth Traditional marketing ineffective Speed & fast service & on my schedule Low cost, good quality, value seekers Need an “experience” Brand loyal Be stylish Sense of entitlement1975 Digital camera 1985 MS Windows 1990 WWW, hypert1977 Personal computer 1986 Smoking ban 1991 AOL for DOS 1987 Disp contact lens 1993 Pentium 1995 DVD1978 Space Invaders 1987 SMS 1994 Netscape 1996 Hotmail1979 Zagat 1980 IBM PC/DOS 1988 D. cell phone 1994 Yahoo 1996 Palm PDA 1980 CNN 1988 Starbucks 1994 EBay 1996 API – Sabre 1981 Space Shuttle 1989 HDTV 1994 Amazon 1996 Telecom Act 1981 Osborne portable comp. 1994 Blog 1997 Prius in Japan 1981 Tunneling microscope 1999 iMode in Japan 1982 PC clones 1999 Tivo 1984 CD-ROM 1999 WebEx 1999 NapsterYear 1975 1980 1985 1990 1995Age 37 32 27 22 17Today Y 29
  • Gen Y: Born 1982 to 2002 Independence, self reliance Mass media hype not impactful Traits Life Needs Optimism, Can be & do anything Selective about who they listen to Live first, work second Not as interested in TV. Job must bring joy, meaningful work Don‟t care that Mike Jordan likes Nike Care for the earth Traditional marketing ineffective Speed & fast service & on my schedule Low cost, good quality, value seekers Need an “experience” Brand loyal Be stylish Sense of entitlement1975 Digital camera 1985 MS Windows 1990 WWW, hypert1977 Personal computer 1986 Smoking ban 1991 AOL for DOS 1987 Disp contact lens 1993 Pentium 1995 DVD1978 Space Invaders 1987 SMS 1994 Netscape 1996 Hotmail1979 Zagat 1980 IBM PC/DOS 1988 D. cell phone 1994 Yahoo 1996 Palm PDA 1980 CNN 1988 Starbucks 1994 EBay 1996 API – Sabre 1981 Space Shuttle 1989 HDTV 1994 Amazon 1996 Telecom Act 1981 Osborne portable comp. 1994 Blog 1997 Prius in Japan 1981 Tunneling microscope 1999 iMode in Japan 1982 PC clones 1999 Tivo 1984 CD-ROM 1999 WebEx 1999 NapsterYear 1975 1980 1985 1990 1995Age 37 32 27 22 17Today Y 30
  • Gen Z: Born 1995 to 2012 Comfortable with technology Traits Peer acceptance is important Life Needs Low attention span Flexibility Multi-taskers Being always connected Curators Instant gratification Not brand loyal Using imagination, making an impact Social, collaborative Friends connected for life Self publishers 1995 DVD 1996 Hotmail 2000 PayPal 1996 Palm PDA 2001 Wikipedia 1996 API – Sabre 2001 9/11 2010 Foreclosures 2005 YouTube 1996 Telecom Act 2001 iPod 2011 Egyptian Rev. 2006 Wii 1997 Prius launched Japan 2003 Skype 2011 Space Shuttle ends 2006 Twitter 1998 Viagra 2004 Flickr 2011 Siri 2007 iPhone 1999 iMode in Japan 2004 Google Maps 2011 Pizza is a veg. 2008 Airbnb 1999 Tivo 2004 Facebook 2012 SOPA battle 2009 Quora 1999 WebEx 2004 Yelp 2009 Pres. Obama 1999 NapsterYear 1995 2000 2005 2010Age 17 12 7 2Today Z 31
  • Gen Z: Born 1995 to 2012 Comfortable with technology Traits Peer acceptance is important Life Needs Low attention span Flexibility Multi-taskers Being always connected Curators Instant gratification Not brand loyal Using imagination, making an impact Social, collaborative Friends connected for life Self publishers 1995 DVD 1996 Hotmail 2000 PayPal 1996 Palm PDA 2001 Wikipedia 1996 API – Sabre 2001 9/11 2010 Foreclosures 2005 YouTube 1996 Telecom Act 2001 iPod 2011 Egyptian Rev. 2006 Wii 1997 Prius launched Japan 2003 Skype 2011 Space Shuttle ends 2006 Twitter 1998 Viagra 2004 Flickr 2011 Siri 2007 iPhone 1999 iMode in Japan 2004 Google Maps 2011 Pizza is a veg. 2008 Airbnb 1999 Tivo 2004 Facebook 2012 SOPA battle 2009 Quora 1999 WebEx 2004 Yelp 2009 Pres. Obama 1999 NapsterYear 1995 2000 2005 2010Age 17 12 7 2Today Z 32
  • BestPractices
  • 34
  • 35
  • 36
  • 37
  • What GreatCompaniesDo
  • Listen to Social Media - UserCount 2011 39
  • Research with Twitter – FreeFeedback 40
  • Social Media Monitoring1. Listen2. Discover3. EngageFree feedbackHave the decision makers start using TwitterthemselvesBut think about actionabilityThere‟s a gap with what social media can do alone 41
  • Listen Near the Transaction1. Post Purchase transaction (brick & mortar or ecommerce)2. Post Flight3. Post check out of the hotel4. Call center call / post service5. During regular use 42
  • Listen with Surveys 43
  • Combine Twitter & Surveys 44
  • Reach Out, Make it Real 45
  • Facebook – Inline Surveys Insert surveys, polls directly into social media 46
  • Surveys + Segment + Operational + $ A modern web based survey is much more than the questions you directly ask your customers. Augment the invitation with data which will add value to the analysis.A SurveyRecord Survey data Operational data Segment data Financial data 47
  • Simple Metrics: e.g. Net Promoter Score • Correlation of any independent field to preset dependant fields.How likely are you to recommend this product to a friend ? 48
  • Sesame-Street Simple Listening Tools 4 49
  • Helpful Visualizations 50
  • Text Analytics Natural language analytics power Multiple concepts per verbatim Beyond just sentiment analysis Why: Gen Y & Z provide more unsoliciated feedback through text content 51
  • Data + Analytics + Technology = $$$ 52
  • Unlock Deep Value Through Patterns 53
  • Distribute the Results 54
  • Design ThinkingEmpathize Define Brainstorm Prototype Test 55
  • Observe in Their Environment 56
  • Observe Customers in Action 57
  • Focus Groups 58
  • Buy Your Customer a Gift 59
  • Scale Considerations: 1. Volume 2. Setup ease 3. Distributing the insights 4. Adoption in the organization 60
  • Scaling 61
  • Scaling Social Customer Service Customer-ManagedManual Automated Most SM monitoring tools Company-Managed 62
  • Scale to Listen at all the Moments of Truth 63
  • Full Customer Experience Life Need Activity Need Feature Need Basic Performance Delight Attribute Attribute Attribute 64
  • Full Customer Experience Life Need Activity Need Feature Need Basic Performance Delight Attribute Attribute Attribute 65
  • Full Customer Experience Life Need Activity Need Feature Need Basic Performance Delight Attribute Attribute Attribute 66
  • Full Customer Experience Life Need Activity Need Feature Need Basic Performance Delight Attribute Attribute Attribute 67
  • One Last Example 68
  • Learn More About CustomerExperience Keynote: Tony Hsieh, Zappos CEO www.vocfusion.com @allegiancetweet for copy of sxsw slides 69
  • Thank You Adam Edmunds Al Nevarezadam.edmunds@allegiance.com Al.nevarez@allegiance.com @adamedmunds @imusicmash