TP report shows Gen Z prefer interactive communication

The latest report from TP's Business Insights highlights the unique challenges businesses face when interacting with Generation Z, due to their distinct communication preferences.

According to TP's comprehensive study, which surveyed over 57,000 respondents across 19 sectors, significant variations exist in how different generations prefer to engage with brands and service providers.

Vice President of TP Australia, Maurice Zicman, explained that Gen Z, the cohort aged 18 to 25 years, tends to reach out to brands more than other age groups. However, the nature of these interactions has been evolving, influenced by their extensive exposure to digital platforms from a young age.

"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," Mr Zicman stated.

He went on to say, "While AI can assist with basic tasks, customers overwhelmingly agree that human oversight is essential for delivering quality support." This highlights a key finding of the report that, despite increasing digitalisation, there remains a substantial demand for human interaction.

The report provides deeper insights into generational interaction preferences, noting that while Millennials favour email and digital messaging platforms, Baby Boomers continue to prefer phone calls. Gen Z, on the other hand, frequently chooses email and interactive options such as 'Chat with Live Agent' through mobile applications for their customer service needs.

"Gen Z are proving to be the most challenging consumer to support, they are digital natives and well researched on service providers' products and services," Mr Zicman added, emphasising the unique position brands find themselves in when catering to this tech-savvy generation.

The report details further shifts, indicating that traditional voice calls have decreased in popularity since 2019, with channels like video, SMS, and Instant Messaging growing in usage. This change is particularly evident in sectors such as food delivery, online education, and travel, which have seen a rise in app-based and instant messaging contacts.

While a significant percentage of consumers still prefer talking to a live agent, the decline in voice calls is noteworthy. Furthermore, social media plays a role for 12 percent of respondents who utilize these platforms to communicate with brands. Among these, Facebook is the go-to platform for Baby Boomers, while Instagram has gained prominence among Gen Z users.

Zicman underscored the importance for businesses to adopt an omnichannel approach to customer support that combines the efficiency of AI with essential human oversight to foster trust and customer loyalty. "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," he noted.

He also highlighted the critical importance of easily accessible contact information for consumers, suggesting its role in either affirming or deterring brand loyalty.

"A good range of contact options can serve as a loyalty catalyst or detractor," Zicman warned. "Brands that offer a range of contact options which are easily accessible create a more trustworthy and reliable customer experience, with data showing consumers were 41 percent more likely to stay loyal. When customers struggle to find those contact details, their loyalty tends to diminish."