Generation Y & Z and Customer Experience

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

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

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

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Generation Y & Z and Customer Experience

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