Slides from our talk at 2012 SXSW Tues March 13 on the subject of Generation Y and Z and how to think about a complex customer experience to address those generations' needs and feature requirements. Characteristics of Generation Y and Z described. Best practices the most admired companies perform to listen to the voice of customer were reviewed.
3. 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
4. We Are Formed by the Events of Our Time
Source: Graphic and some content from Grail Research Consumers of Tomorrow, November 2011
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5. 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
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6. Gen X Traits
• Individualistic
• Technical
• Flexible
• Work/life balance
• Creative
• Low key
• Innovative
• Flexible
• Independent and adaptable
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7. 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."
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8. 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
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9. 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%)1
Source1: „Kids to Santa: we want an iPad for Christmas‟, Neilsen, Oct 2010
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10. Gen Z Traits
• Collectors
• Not brand loyal
• Social, collaborative
• Friends connected
for life
• Self publishers
10
11. Important Traits of Both Generations
• Care deeply about
social causes
• Immediacy
• Connected
• Curious
• Interactive
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12. Remaining Relevant for Each Generation
Brand Gen X Gen Y Gen Z
Kodak/Polariod Yes No No
AOL Yes No No
McDonalds Yes Yes Yes
Apple No Yes Yes
Disney No Yes Yes
Levi’s Yes Yes ?
Jeep/VW Yes Yes ?
Nintendo Yes Yes ?
JetBlue Yes Yes ?
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20. System Logics – Customer Experience
Needs
Life Need
Activity Need
Feature Need
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21. Important Because
1. Mostly only observe & listen for the feature
needs
2. Feature lead only to incremental
improvements
3. New technologies will replace features
4. Addressing Activity Needs and Life needs
will lead to more valuable, profitable, long
term, and strategically powerful solutions
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23. A New Model – a Combination of 2
Life
Need
Activity
Need
Feature
Need
Basic Performance Delight
Attribute Attribute Attribute
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24. My Nikon on This Model
Life
Need
Activity
Need
Feature
Need
Basic Performance Delight
Attribute Attribute Attribute
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25. A New Model – a Combination of 2
Life
Need
Activity
Need
Feature
Need
Basic Performance Delight
Attribute Attribute Attribute
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26. 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
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27. 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
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28. New Model – Multi Levels
Generation Z
Generation Y
Segment A
Generation X
Segment B
Segment C
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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 entitlement
1975 Digital camera 1985 MS Windows 1990 WWW, hypert
1977 Personal computer 1986 Smoking ban 1991 AOL for DOS
1987 Disp contact lens 1993 Pentium 1995 DVD
1978 Space Invaders
1987 SMS 1994 Netscape 1996 Hotmail
1979 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 Napster
Year 1975 1980 1985 1990 1995
Age
37 32 27 22 17
Today Y 29
30. 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 entitlement
1975 Digital camera 1985 MS Windows 1990 WWW, hypert
1977 Personal computer 1986 Smoking ban 1991 AOL for DOS
1987 Disp contact lens 1993 Pentium 1995 DVD
1978 Space Invaders
1987 SMS 1994 Netscape 1996 Hotmail
1979 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 Napster
Year 1975 1980 1985 1990 1995
Age
37 32 27 22 17
Today Y 30
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 Napster
Year 1995 2000 2005 2010
Age 17 12 7 2
Today Z
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32. 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 Napster
Year 1995 2000 2005 2010
Age 17 12 7 2
Today Z
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41. Social Media Monitoring
1. Listen
2. Discover
3. Engage
Free feedback
Have the decision makers start using Twitter
themselves
But think about actionability
There‟s a gap with what social media can do alone
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42. Listen Near the Transaction
1. Post Purchase transaction (brick & mortar or
ecommerce)
2. Post Flight
3. Post check out of the hotel
4. Call center call / post service
5. During regular use
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46. Facebook – Inline Surveys
Insert surveys,
polls directly into
social media
46
47. 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 Survey
Record
Survey data Operational data
Segment data Financial data
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48. 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 ?
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51. 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
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69. Learn More About Customer
Experience
Keynote: Tony Hsieh,
Zappos CEO
www.vocfusion.com
@allegiancetweet
for copy of sxsw slides
69
70. Thank You
Adam Edmunds Al Nevarez
adam.edmunds@allegiance.com Al.nevarez@allegiance.com
@adamedmunds @imusicmash
Notes de l'éditeur
What’s your roll. Raise your hand if you are… Experience or usability designerCustomer loyalty managerMarketingOther (ask)
What should we do about these generations and their characteristics?I’m going to cover 3 areasThe inventions of the past 30 years and how they feed or respond to the needs of gen y and zI’m going to propose a new model for ensuring you’ve got all the bases covered in regards to customer experienceAnd wrap up with some of the best practices we’ve seen and have been involved with in our work helping large enterprise maintain great customer experience
“Generation Y is slowly growing up. Brigham Young University labeled Generation Y as ‘80s babies’ or more broadly the ‘net generation.’ Some Gen. Y’s have kids, yet some are still considered kids. Their grandparents were a part of the greatest generation and stormed across Europe. Their parents indulged in the 60’s and 70’s and birthed this generation during the excess of the 80s.” (Tampa Bay Examiner, March 2012 Blog)
From a business week article on Gen-Y… “Asked what brands are cool, [Gen-Y’ers] rattle off a list their parents blank on. Mudd. Paris Blues. In Vitro. Cement. What's over? Now, the names are familiar: Levi's. Converse. Nike. ''They just went out of style,'' shrugs Lori Silverman, of Oyster Bay, N.Y.“Some of the biggest brands on the market are meeting with a shrug of indifference from Gen-Y. A host of labels that have prospered by predicting--and shaping--popular tastes since the baby boomers were young simply aren't kindling the same excitement with today's Gen-Y-age youth. Already, the list includes some major names: PepsiCo Inc. (PEP) has struggled to build loyalty among teens. Nike Inc.'s sneaker sales are tumbling as the brand sinks in teen popularity polls. Levi Strauss & Co., no longer the hippest jeanmaker on the shelf, is battling market share erosion. Meanwhile, newcomers in entertainment, sports equipment, and fashion have become hot names.What's the problem? These kids aren't baby boomers. They're part of a generation that rivals the baby boom in size--and will soon rival it in buying clout. These are the sons and daughters of boomers.”http://www.businessweek.com/1999/99_07/b3616001.htm [Favorite Gen-Y brands are shown above]
Don’t understand the concept of live television
Don’t understand the concept of live television
The future is shaping differently than other generations, and the product and experiences must too evolve. Top firms have struggled to remain relevant over time. It’s not about being fresh, cool, or even social. It’s about being relevant. And not just your product, the entire experience needs to be relevant.
Thanks Adam.As for my favorite recent customer experience. It has to be my new camera. Beginner level Nikon D3100.With the little photography skill I have, this thing turns out pictures like I could never capture with my phone.Full of features, too many features maybeBut this camera addresses my needs on many levels. We’ll get into why that’s important later
What should we do about these generations and their characteristics?I’m going to cover 3 areasThe inventions of the past 30 years and how they feed or respond to the needs of gen y and zI’m going to propose a new model for ensuring you’ve got all the bases covered in regards to customer experienceAnd wrap up with some of the best practices we’ve seen and have been involved with in our work helping large enterprise maintain great customer experience
First let’s review a couple of traditional modelsThe Kana model is a popular way to balance features and engineering effortIt suggests there are 3 types of features.Basic features are those that have come to be Must-HaveFor example, seatbelts in cars. Auto manufactures and standards have done all they can in this regard. Any more effort would not improve customer satisfaction about the carPerformance attributes are those which you can compete on. Customers will use these to compare you with others.For example, the cars roominess, the engine’s power, or the beauty of the car’s design.Delight features are those where innovation and additional engineering effort can indeed increase customer satisfaction.Sticking with the automobile example, adding more connected services in the car may do this. DVD players for the kids already embedded in the back of the front seats, one tap open all windows to let the heat out feature,
We all know about Maslow’s Hierarchy of NeedsThis model is designed to address our motivations in life.
I propose a similar model to address the needs of your customer.This is in-part based on a model called System Logics, which some old friends of mine from Ford Motor Company, developed at their design firm in the bay area called Jump Associates. They had 4 tiers. I propose a simpler 3 tier model here. I also renamed them a bit.The premise is that all needs are not created equal.Features needs are there simply because you’re doing something with a product. e.g. I need for my laptop power to remain healthy during this presentation. I need a comfortable seat on my flight to sxsw.. I need my coffee cup to keep me from getting stained and burned.Important: feature needs may disappear if the currently available solutions are redesigned or replace.Activity needs are about your immediate goals or activities. They are about the situation in which you live, work, and operate.E.g. need to deliver a new product design. I need to visit a customer in a city across the country. I need to get some customer supportLife needs are the most fundamental and universal of all. The need to build a relationship with that customer, the need to feel informed, The need to make a difference
Read the bullets
What if we were to lay the 2 models out as shownKana on the horizontalThe need levels on the vertical
What if we were to lay the 2 models out as shownKana on the horizontalThe need levels on the vertical
What if we were to lay the 2 models out as shownKana on the horizontalThe need levels on the vertical
Let’s think about how your trip to SXSW falls into these areas.Helpful for sales team!
So now we have a framework to consider the generations.Gen Y may consider something a delight at feature need level or even life need levelBut Gen Z might consider it just a basic attribute and feature need“Of course it’s connected to the internet, why wouldn’t it be”
Perhaps we need a new version of the needs and attributes grid per each generation, or each customer segment
Theres a lot here, but trust me.. This is one Tufte would like because it has a high data to ink ratioWhat should we do about these generations and their characteristics?I’m going to cover 3 areasThe inventions of the past 30 years and how they feed or respond to the needs of gen y and zI’m going to propose a new model for ensuring you’ve got all the bases covered in regards to customer experienceAnd wrap up with some of the best practices we’ve seen and have been involved with in our work helping large enterprise maintain great customer experience
Mapping some life needs to products which were invented
We’d like to propose a new model for thinking about customer experience
Mapping some life needs to products which were invented
There are many social networksThese are their #s end of summer 2011Facebook is now at 1bilI just read this weekend that Twitter will be at 500mil in Feb.Stat: 100 mil tweets per dayCustomers are talking about products and services here.
Leading companies review what customers say about them and their competitors on the new tools like TwitterTwitter, Facebook, and all social networking services have an inherent interest in growing their user base. Hence, they continuously innovate and build new tools and services to foster easy sign-up, discovery and broadcasting of users’ experiences
Survey data remains one of the most powerful ways to drive action and accountability of your studyGood companies keep them short, design them well, and augment the heck out of the data with hidden informationSolicited and unsolicited feedback
Survey data remains one of the most powerful ways to drive action and accountability of your studyGood companies keep them short, design them well, and augment the heck out of the data with hidden informationSolicited and unsolicited feedback
We’ve built prototypes that embed surveys directly into facebook.Many of our clients are particular about their data sample so there hasn’t been a huge request for this,At least not yetWe think it’s a good mechanism for unsolicited feedback.
Read slide
Leading companies use simple and enterprise class tools to manager their VOC programs
Leading companies use design thinking to listen, plan, test, and and build products
Great way to create advocacy. If someone just said they’d recommend you on the survey, why not ask them to tweet it at end of the survey.
Leading companies build processes that scale.More and more social media monitoring will need to become automated to make it scale.Today it’s just like another phone that’s ringing.
At the end of the day, it’s about understanding the full customer experience and knowing which one of these 9 points you should focus on
Could be 2 of them
Could be 3 of them.
Or could be all of them.
Companies that don’t adapt will be brutally punished. Kodak/Polaroid.For entrepreneurs, find an industry that is not adapting: Skullcandy/Beats have taken over headphones because they figured out Gen Y.