Generation Z challenges brands with digital preferences

A recent report by TP Business Insights identifies Generation Z as the most challenging customer demographic for brands to support, due to their erratic online communication habits shaped by early exposure to technology.

The TP Business Insights report utilised feedback from over 57,000 respondents across 19 sectors, revealing notable shifts in consumer behaviours and preferences in the context of an AI-enabled support era. The report emphasised the evolving channel preferences that are influencing the customer experience landscape.

Maurice Zicman, Vice President of TP Australia, stated that there is a marked preference for human interaction across a wide spectrum of consumers, although younger generations show increasing interest in digital communication methods. "Overall, 62 percent of all consumers surveyed showed a clear preference for interaction with a person when dealing directly with a business or organisation, especially for complex or sensitive issues," said Mr Zicman.

Mr Zicman highlighted a shift towards digital communication, particularly among younger consumers, with emerging trends also noted in older generations adopting digital channels. "While AI can assist with basic tasks, customers overwhelmingly agree that human oversight is essential for delivering quality support," he added.

The report underscores Generation Z's propensity for contacting brands, while also noting a change in the nature of these interactions. "Gen Z showed a higher percentage of respondents contacting through email in the last 12 months, while 'Chat with Live Agent' was the most utilised option across the younger generations seeking support through the Mobile App," Mr Zicman noted.

According to Mr Zicman, Generation Z poses particular challenges for brands due to their status as digital natives and their thorough research on products and services. "Millennials prefer email and digital messaging platforms, while Baby Boomers continue to favor a phone call as their primary contact method," he explained.

The report detailed the use of social media platforms, with Facebook being the preferred option among Baby Boomers, Gen Xers, and Millennials; however, for Generation Z, Instagram takes the lead. "Speaking directly to a person remains the primary channel for most consumers, though its usage has declined since 2019," Mr Zicman said.

Alternative communication methods such as video, SMS, and instant messaging have seen significant growth in use, sometimes surging fourfold. Food delivery services topped the list for mobile app contacts, while online education and travel agencies saw a predominance of instant messaging inquiries.

Traditional voice calls remain most popular among automotive, electric utility customers, and auto insurance policy owners. Furthermore, 12 percent of the surveyed individuals resorted to social media for brand contact.

Mr Zicman advised businesses to adapt to these shifting consumer behaviours by adopting a flexible and omnichannel approach to customer support. He emphasised that "Brands that integrate AI tools for efficiency, while ensuring human oversight, will be better positioned to build trust and maintain loyalty in the long term."

Additionally, Mr Zicman stressed the importance of easy access to contact information, noting its critical role in shaping customer perceptions. "Brands that offer a range of contact options which are easily accessible create a more trustworthy and reliable customer experience," he said, citing data showing a 41 percent higher likelihood of consumer loyalty when contact details are easy to find.