Winning over Generation Alpha with cutting-edge customer experiences

The future of business is not determined by CEOs, software engineers, or marketing executives, but by customers. Customers will be as right in 2030 as they were in 2000, necessitating businesses to effectively respond to a consumer base increasingly seeking better experiences.

By 2025, Generation Z will constitute a quarter of the Asia-Pacific (APAC) region’s population. Alongside millennials, these two groups will make up half of APAC consumers. Asian Gen Zs have already popularized online shopping over brick-and-mortar stores. They hold progressive views, believe in individual worldviews, trust influencers, and rely on social media, albeit with varied opinions and engagement.

What are the key Generation Z statistics marketers need to know to connect meaningfully with the next generation of buyers and decision-makers? Tech Wire Asia interviewed Ivan Ostojic, Chief Business Officer at Infobip, to discuss Generation Alpha’s impact on the future of CX.

Ostojic explained that as a relatively new and young generation, Generation Alpha’s defining characteristics are still emerging, making definitive statements about them somewhat premature. However, considering the company’s study and their birth coinciding with the iPad’s launch, Generation Alpha is arguably the most tech-savvy cohort.

He noted, “We are familiar with Millennials, Generation Z, and digital natives. However, Generation Alpha is distinguished as the first truly digitally immersed group, born into a world of smartphones, tablets, and various gadgets.” Ostojic added that their research showed 61% have tablets, and 49% own smartphones. Generation Alpha began interacting with smart devices at six and could operate a tablet before they were four years old.

The influence of Generation Alpha on the future of CX

Generation Alpha customers expect seamless experiences and instant gratification, driven by their early adoption of smart technology that provides convenient access to information and communication tools. They prefer visual and interactive content and value the efficiency of messaging apps.

As a generation raised amidst climate change and environmental issues, they are predicted to be more environmentally conscious, holding businesses accountable for sustainability efforts due to their easy access to information.

The significance of Generation Alpha for businesses is their potential influence on customer experience and their increasing purchasing power. As they mature into a substantial consumer group, they will number almost 2 billion by 2025, with their enormous purchasing power expected by 2030.

To cater to Generation Alpha, Ostojic advises businesses to ensure a presence at all touchpoints, as they seek seamless, consistent, and personalized experiences. They expect to engage with brands through various channels, such as chatbots and phones, and may become frustrated if they cannot connect on their preferred channel.

Furthermore, Genaration Alpha anticipates heightened personalization. Omnichannel strategies enable companies to utilize data from various sources, including social media, email, chatbots, and ChatGPT, to better understand their customers.

Ostojic mentioned that many businesses are interested in connecting WhatsApp to ChatGPT, allowing customers to interact directly with AI to learn about their products and services. “As we work towards exciting integration options and ground-breaking use cases, this possibility is on the horizon. Advancements like these can foster deeper, more meaningful relationships with Genaration Alpha, ultimately increasing loyalty and satisfaction,” he explained.

He emphasized that as digital natives born entirely in the 21st century, Generation Alpha significantly influences key CX trends, such as:

• Conversational engagement: They prefer two-way conversations with businesses on their favorite chat channels. Brands should expand customer support and chatbot use, as seen with the 221% increase in contact center interactions in 2022, primarily on WhatsApp.
• Hyper-personalization: They expect highly individualized interactions with brands, going beyond traditional cohort or segment personalization.
• Seamless journeys: Accustomed to moving between digital and physical environments, they expect brands to offer consistent, gap-free experiences across channels like websites, mobile apps, or physical stores.
• Gamification: Engaging game-like elements in non-game contexts appeal to this generation, so brands should leverage gamification to capture their attention.
• Secure authentication: Generation Alpha values security and ease, making authentication methods like biometrics, smart cards, or voice recognition popular for seamless digital experiences.
• Social responsibility: Aware of social and environmental issues, they expect brands to demonstrate commitment to sustainability and social responsibility.

Connecting with Generation Alpha’s digital-first nature

For businesses to stay ahead of the curve and prepare for shifts in consumer behavior, especially as Generation Alpha becomes the primary consumer group, it’s essential to engage with them now. This generation has high expectations of the brands they interact with, so businesses must focus on creating a customer experience that meets their needs.

Ostojic mentioned, “Our research shows that over a third of 6-11-year-olds surveyed are on WhatsApp, with a staggering 73% of 11-year-olds proficient in using this channel.” He added that businesses should pay attention and invest in conversational experiences tailored to this platform.

By collecting and analyzing data from customer interactions, businesses can gain valuable insights into customer preferences, struggles, and communication methods. This information can inform future marketing and sales strategies and highlight areas for improving customer experience.

Ostojic stressed that businesses can naturally future-proof their customer experience by observing and addressing Generation Alpha’s needs. Staying ahead of demographic, technological, and societal shifts ensures that customer experiences remain relevant and attractive to future consumers.

To effectively connect with the digital-first nature of Generation Alpha, businesses should consider targeted, personalized, and actionable marketing initiatives. These strategies can create customer experiences that are relevant and appealing to this demographic.

• Engage Gen Alpha on their preferred platforms, such as Minecraft, Roblox, TikTok, and YouTube.
• Provide a seamless experience across channels with a “memory of all interactions,” making it feel like conversing with a friend over time.
• Design authentic and humanized conversational flows catered to individual customers’ needs and preferences.
• Building a sense of community through social media and other digital channels will amplify engagement. Encourage customers to share their experiences and connect with other community members.

Connecting with Generation Alpha through authentic omnichannel engagement and sustainability

Generation Alpha has high expectations regarding user experiences and values authenticity over corporate advertising. To stay ahead of the game, businesses should also prioritize transforming their communication strategies to harness the power of omnichannel communication. These new-generation channels will allow businesses to capture their attention and build meaningful, long-term relationships.

Furthermore, businesses must prioritize sustainability and social responsibility to align with Generation Alpha’s values. This means offering environmentally sustainable and socially responsible products and services that resonate with this generation’s focus on environmentalism and sustainability. By prioritizing these values, businesses can attract and retain Generation Alpha customers while contributing to a better world.

Businesses that focus on providing authentic omnichannel engagement and prioritize sustainability and social responsibility while delivering exceptional user experiences will have tremendous success in capturing Generation Alpha’s attention and building long-term relationships with this critical customer segment.

Infobip’s role in connecting businesses with the new generation

Infobip democratizes the future of digital interaction through breakthrough innovation, enabling businesses to transform customer relationships, increase loyalty, and grow. They are closely watching for Generation Alpha’s next wave of trends. The most important thing will be to create a rich conversational experience on their channel of preference and seamless data-rich communication across channels.

“We are also committed to providing businesses with the tools and knowledge they need to keep up with the evolving CX trends and meet the demands of Generation Alpha. With our comprehensive solutions, we can help businesses create seamless and personalized customer experiences that build brand loyalty and drive growth,” Ostojic concluded.

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