The New Consumer
The Latest in Shopper Behavior A LOOK AT GEN Z’S LOYALTY, BACK-TO-SCHOOL SHOPPING AND THE CONNECTION BETWEEN ‘FUELING’ AND CONSUMER SPENDING. BY JACQU ELI N E BARBA
Recent research from Talkdesk, a global cloud-based contact center and AI software provider, found that 88% of Gen Z consumers are loyal to five or fewer companies in total. Nearly a third (31%) of respondents have become loyal to a new company in the past year — and they’re not afraid to discontinue support of a company based on social stances. Talkdesk’s “Winning Gen Z Through Exceptional Customer Service” report, based primarily on a quantitative online survey of consumers fielded in October 2021, called out some challenges brands face when it comes to connecting with Gen Z, and highlighted two points critical to developing and maintaining customer loyalty with this crucial demographic: 1. Allowing them to easily and conveniently resolve service issues. 2. Speaking to their concerns and priorities beyond the context of customer service alone. “Gen Z consumers are still establishing what brands they will support and trust, leaving an opportunity for companies to strengthen and fortify that relationship,” said David Gardner, vice president of Research and Insights at Talkdesk. “While poor customer service can leave a mark on this cohort, winning their loyalty goes beyond customer service. Gen Z expects a total alignment on core values and social issues from all facets of a brand, including their customer service agents.” When it comes to how younger generations want to engage with customer service, the report found that just 24% of Gen Z respondents said they want to interact with customer service over the phone, compared with 40% of Gen Xers and 56% of Boomers. No one avenue of resolution is taking the place of human-based support for Gen Z, but they are open to engaging with companies through a broad variety of different service channels, per the report. They are more likely to have engaged with AI-enabled channels, such as virtual chat, voice support and social media than older generations.
How the number of companies consumers are loyal to has changed in the past year:
Gen Zers put little premeditated thought into channel preference and expect to be able to engage wherever they are to get what they need. Customer service agents, who the report says are already expected to serve as brand ambassadors at 92% of organizations, should be equipped with the means to not only understand a customer’s past interactions with the company, but also how they have engaged with the company on social media. Beyond the digital experience, the heightened attentiveness Gen Zers have toward a company’s take on social and political issues raises the stakes in terms of loyalty. Forty-six percent of Gen Zers said they stopped buying from a company in the past year due to its stance on social issues. Gen Z and Millennial consumers are significantly more likely than other generations to end their relationships with companies due to their stances on social and sustainability issues.
Back-to-School Shopper Behavior A study of U.S. consumers from global influencer marketing platform LTK found that affordability and convenience are key drivers for this year’s backto-school season as shoppers adjust their behaviors due to rising inflation and inventory shortages. The data is from two surveys conducted in May 2022, both reflective of the U.S. population with 97% confidence, according to the report. Some key takeaways from the report, titled “Back to School and Beyond: Shopping in a Shifting Market,” include: • Shoppers are starting early. The back-to-school (BTS) shopping window is already underway, running from late June through early September
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