Goodbye brand loyalty? How Millennials and Zoomers are forcing companies to transform how they communicate

Media use changes over time, as does the media itself: each generation has its own specific behaviours, values ​​and attitudes. They shape their consumer behavior and their relationship with brands. As a result, companies have to rethink their forms and channels of communication and adapt them to specific target groups.

We are currently experiencing a major change: the majority of the previously influential and affluent generation of baby boomers is retiring. As a result, the Millennials (1981-1995) and the Zoomers (1996-2010) are increasingly becoming the focus of purchasing power. According to forecasts, they will form the largest consumer group by 2030.

Right now, marketers and communicators have to take a close look and adapt their communication offers in order not to lose these young target groups, but to win and keep them. But how do they differ? What distinguishes Millennials and Zoomers?

Both generations grew up in the digital world, are very active on social media and are more tech-savvy than previous generations. They also use digital tools to exchange information and organize their social life. Their demands on companies and brands are more value-driven, they expect more attitude from brands and a better and more individual customer experience. Overall, they are more critical than previous generations when it comes to good customer service.

New forms of communication go hand in hand with new and digital technologies. Millennials and Zoomers are more discerning when it comes to their brand choices. This is largely due to the wide variety of social media platforms and the constant availability of entertainment and information.

Millennials grew up in an era of increasing technological connectivity, and their childhoods were shaped by breakthrough technological advances. In contrast, Zoomers were born digital natives into a world where connectivity and smartphone use were already part of everyday life.

These differences are reflected in their consumer behavior: Zoomers not only use products, but also share their experiences continuously and publicly with their community. For marketers, the situation is more complex as they have to consider the differences between Millennials and Zoomers in communication.

A Zendesk study shows that millennials are less tolerant of bad customer experiences than zoomers. After a single bad experience with a brand, 53 percent of millennials would switch to a competitor. Marketers must therefore ensure that companies keep their promises and offer a positive customer experience in order not to risk losing this target group. Millennials react to an accumulation of bad customer experiences with withdrawal and boycott, which often leads to the end of the business relationship.

In contrast, Zoomers show a higher tolerance for bad customer experiences and tend to tolerate multiple negative experiences with a brand before switching to the competition. This could be due to their lower spending power, as Zoomers are mostly made up of teenagers and young adults who are price sensitive and place less emphasis on customer experience in their purchasing decisions.

Thanks to their digital savvy, both Zoomers and Millennials use tools to do extensive research and research about products before making a purchase decision. According to the cited study, three out of four zoomers value comparing prices, reading product reviews and testing different brands before making a purchase. It is also important for them that companies offer self-service options through different channels.

During the pandemic, Gen Z have particularly valued and embraced these self-service opportunities. Nearly 30 percent of Gen Z members surveyed in the Zendesk study said they’ve increased their use of help centers, knowledge bases, and FAQ sites during the pandemic. Millennials are also expecting self-service options from brands to self-solve issues on the website and have interactive access to customer service.

Companies and brands should therefore offer their customers self-service options. This includes the integration of comprehensive knowledge databases and search options in all relevant communication channels so that customers can find what they are looking for quickly and efficiently. Intelligent search functions, FAQ pages and blog posts can help Zoomers and Millennials better explain products and services to themselves. It is important that companies convey values ​​such as sustainability and diversity in a plausible and authentic manner in order to arouse the interest of the younger generation.

In recent years, chatbots have become more present as a communication channel. Millennials and zoomers in particular appreciate the direct feedback and the opportunity to quickly get answers to frequently asked questions. Chatbots use AI to conduct dialogues with customers and can solve simple problems or forward customer inquiries to the responsible employees: inside. The use of AI-powered chatbots has increased during the pandemic and has been the talk of the town since the launch of ChatGPT. If the data on the website is prepared and structured accordingly, the chatbot draws exclusively from this data source.

In Criteo’s Gen-Z report, more than half of Zoomers and Millennials agree chatbots help with simple problems. However, companies should clearly communicate that the chat partner is a chatbot and not a real person. A good chatbot also offers customers the opportunity to speak to real employees if they have complex questions.

Millennials and Zoomers will soon be the largest group of consumers and thus determine the success or failure of brands and companies. Companies should therefore adapt their products and services to the needs of these target groups and rely on interaction via different channels. A 24/7 availability for customers is of great importance. Self-service options such as intelligent search functions and chatbots are recommended to enable seamless communication and interaction. In addition to traditional communication channels such as telephone and email, an omnichannel strategy can help to reach and satisfy these target groups.