Thirty-eight percent of Gen Z and millennial customers say they are likely to give up on a customer service issue if they can’t resolve it in self-service, according to a survey by Gartner. This is a shift in customer behavior compared to that of Gen X and baby boomers, who are likely to contact an agent if self-service fails.
We spoke with Michael Rendelman, Senior Specialist, Research, in the Gartner Customer Service & Support practice, to discuss the key shifts between younger and older generations when it comes to customer service expectations, and how customer service and support leaders should respond.
Journalists who would like to speak with Michael regarding this topic can contact Jordan.Brackenbury@Gartner.com. Members of the media can reference this material in articles with proper attribution to Gartner.
Q: How do Gen Z and millennials differ from Gen X and baby boomers when it comes to their expectations of customer service?
A: The biggest shift we’re seeing when it comes to Gen Z and millennials is a strong preference for self-service. A Gartner survey of 6,138 customers conducted in December 2022 found that 38% of Gen Z and millennial customers say they’re likely to give up on resolving a customer service issue if it can’t be resolved in self-service. This indicates a preference for solving issues themselves, but it could also mean a reluctance to speak to a customer service rep. Generative AI is expected to make search results easier to access and offer more complex capabilities, which will accelerate reliance on self-service knowledge-seeking.
Furthermore, this marks a shift from the preferences of Gen X and baby boomer customers, who are more likely to contact an agent if their issue can’t be resolved in self-service: just 11% of baby boomers will give up if they can’t resolve their issue in self-service. In contrast, over half (55%) of baby boomers said they’d give up only when they couldn’t find the answer after contacting multiple people, compared with just 31% of Gen Z.
Q: With many Gen Z and millennial customers expressing a “self-service or no-service” mindset, what does this mean for customer service and support organizations?
A: The “self-service or no-service” mindset of younger generations has far-reaching implications for not only customer service and support organizations, but the larger business organization. Gen Z and millennial customers identified that if their issue could not be resolved in self-service they:
- Would use the service or product less (55%)
- Wouldn’t buy from that company again in the future (52%)
- Would say negative things about the company or product (44%)
Younger customers’ preference for self-service resolution could, therefore, have significant consequences for customer loyalty and brand reputation. As younger generations make up an increasingly larger proportion of the customer base, the impact of failing to address their preferences and expectations of customer service interactions could directly affect a company's bottom line.
Q: How can customer service and support leaders adapt in order to meet the expectations of younger generations?
A: Customer service and support leaders must work to identify the most common customer issues that customers want to resolve themselves and allow customers to provide feedback when they can’t find what they’re looking for. Tactics for identifying these issues include identifying common search terms used by customers navigating self-service and using product telemetry to identify the most common error messages.
According to our survey, 88% of customer service journeys starting in self-service touch multiple channels, including phone, live chat and email. Enabling customers to resolve their issues in self-service is ideal, but if it fails, it’s far better to help customers switch to assisted service than to let them give up entirely. Many younger customers won’t make that switch on their own, so service leaders should look for ways to promote the switch for key issue types.
For example, if a customer appears to be struggling in self-service, the options to begin a live chat or call an agent might pop up. This proactive approach prevents the customer from abandoning the issue, helping to improve customer satisfaction.
For issues that customers are more likely to escalate to an agent when self-service fails, such as a broken product or a billing issue, customer service and support leaders should make the switch between channels as seamless as possible.
The survey found that customers who experienced a seamless transition report they are 74% more likely to start in self-service next time they have an issue. By ensuring reps are provided with context gathered from self-service channels, customer service leaders can avoid customers repeating information and creating unwanted friction.
Gartner clients can read more in “Evolve Self-Service for the Next Generation of Customers.”
About Gartner for Customer Service & Support Leaders
The customer service and support function is vital to maintaining customer loyalty and influencing brand perceptions. Gartner for Customer Service & Support Leaders provides indispensable insights, advice and tools needed to achieve service and support leaders’ mission-critical priorities, specifically improving the customer experience while managing costs; designing an optimal service channel strategy; measuring and reducing customer effort; and how to hire, develop and retain high-potential frontline talent.
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