70% of Consumers Demand Enhanced Experience, Gen Z Leads the Charge

The reliance on technology for customer service has heightened with the current economic instability, leading to a significant drop in consumer patience. The latest survey by Broadridge Financial Solutions reveals that the percentage of consumers feeling companies need to enhance their customer experience has doubled to 70% since 2019. This underscores the urgency for companies to elevate their customer experience, emphasizing the pivotal role of personalization and empathy, especially in the era of AI.  

"While we've seen significant excitement around the potential for generative AI to enhance business processes, the research underscores the importance of trust, personalization, and human interaction in shaping consumer perception when it comes to this technology. While there's no doubt that AI can improve customer experience, it's critical to identify the right use cases and regularly gather voice of customer feedback to ensure it is working for and not against you," said Matt Swain, Head of Communications Insights and Experience at Broadridge.

Broadridge's survey last year also revealed the importance of meeting consumer expectations, showing that 65% of consumers were reducing their spending with companies that failed to meet their CX standards.

Despite economic challenges, there is an opportunity for businesses to reverse this trend. The survey indicates that 47% of consumers are willing to spend more for an improved customer experience. Interestingly, Gen Z (53%) and Millennials (57%) show a greater inclination to invest in superior CX compared to Baby Boomers (34%).

The importance of careful genAI implementation  

While emerging technologies like generative AI (GenAI) hold promise for improving CX, the data stresses the importance of careful implementation. Although 76% of Gen Z have used GenAI in the last year, and 46% claim it improved their experience, sentiments shift when support is needed. As many as 65% of consumers feel that AI lacks empathy, with 82% preferring human communication when issues arise, highlighting the necessity for a balanced approach that incorporates both AI and human interaction.

The concerns about data privacy  

Two-thirds of respondents express concerns about data compromise due to AI, particularly among Baby Boomers (74%). While 54% of consumers are open to sharing personal information for a more customized experience, they stress the need for enhanced data security through advanced technologies. A majority (77%) believe there should be more legislation in place to protect personal data.

Gen Z and millennials expect proper personalization 

The survey reveals the impact of poor personalization, with 45% of consumers discontinuing business with a company due to a poorly customized experience, rising to 55% for Gen Z and Millennials. Communicating through preferred channels is equally vital, with 90% emphasizing the importance of honoring preferred communication channels, while only 31% believe companies are currently doing it right.

"The survey's message is clear: companies need to ensure their technology and communications strategies go hand in hand. It is mission critical for companies to transform their digital communications with best-in-class security and omni-channel platform modernization to meet market demands," stated Dave Zamorski, General Manager of Digital Solutions for Broadridge Customer Communications.