New research from TELUS Internationala customer experience (CX) innovator that designs, builds and delivers next-gen digital solutions for global and disruptive brands, found that personalization is a key driver of purchasing decisions and brand loyalty for the majority of Americans—with Generation Z attitudes and behaviors indicating an especially strong interest in more customized experiences.

In the U.S. alone today, there are 65 million Gen Zers, and the size of this cohort will eclipse that of Millennials’ in the near future. With many now entering the workforce, it’s estimated this generation will account for 40 percent of all consumers in the country by 2020, according to the survey, which was conducted online within the U.S. by The Harris Poll among over 2,000 U.S. adults.

“These digital natives, surrounded by technology and interactive devices since they were born, have distinct attitudes, values and lifestyles, and companies must build relationships with them today, recognizing that more so than any other generation, Gen Zers are feeling the pain of an empathy gap between the brands they frequent and the customer experiences they provide,” said Jeffrey Puritt, president and CEO of TELUS International, in a news release. “By providing personalized customer experiences supported by next-gen technologies, such as data analytics and machine learning, brands can deliver a high-tech, high-touch customer journey tailored to understanding and meeting their unique needs.”

TELUS International survey findings show that when a brand provides personalized CX, consumers are more likely to:

Complete a purchase

More than three quarters of Americans (76 percent) are more likely to complete a purchase with a company/brand if that brand provides a personalized experience. And nearly 3 in 10 Gen Z (28 percent) say they would be much more likely to complete a purchase with a company/brand if that brand provides a personalized experience, significantly more than Gen X (19 percent) or Boomers (14 percent).

Pay a little more for that brand’s products/services

More than half of Americans (53 percent) say they are more likely to pay a little more for a company’s/brand’s products/services if that brand provides a personalized experience. And Gen Z, Millennials and Gen X are more likely than Boomers to pay a little more for a company’s/brand’s products/services if that brand provides a personalized experience (62 percent, 61 percent and 54 percent vs. 45 percent respectively).

Choose that brand over others

More than two thirds of Americans (70 percent) say they are more likely to choose a company/brand over others if that brand provides a personalized experience. Roughly 2 in 10 Gen Z (22 percent) and Millennials (19 percent) say they would be much more likely to choose a company/brand over others if that brand provides a personalized experience, compared to just 11 percent among Boomers.

Provide a recommendation (word-of-mouth, online review)

Seven in 10 Americans (70 percent) are more likely to recommend a company/brand that provides a personalized experience. And nearly a third of Gen Z (32 percent) say they are much more likely to recommend a company/brand, compared to 21 percent of Millennials, 19 percent of Gen X and just 12 percent of Boomers.

“The good news is that brands relying on customer insights to deliver more personalized, seamless and anticipatory interactions will typically be in a position to connect with consumers, regardless of generation, to drive increased loyalty and sales,” continued Puritt. “Looking ahead, however, Gen Z’s willingness to proactively personalize their brand interactions, whether responding more frequently to online surveys, accepting cookies or engaging on social media, will continue to shift how companies approach their user experience and interface design in order to meet the next-level hyper-personalization demands of the future.”

The power of personalization—who leads demands for personalized CX?

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Richard Carufel

Richard Carufel

Richard Carufel is editor of Bulldog Reporter and the Daily ’Dog, one of the web’s leading sources of PR and marketing communications news and opinions. He has been reporting on the PR and communications industry for over 12 years, and has interviewed hundreds of journalists and PR industry leaders.

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