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How Gen Alpha is Driving Change in CX

How Gen Alpha is Driving Change in CX

Although it may be hard to envision the future of CX, Generation Alpha is already shaping it. Discover how Philips and Infobip are preparing for the customer of 2030.

Companies have tailored business strategies in the past decade based on various generations’ attitudes and behaviors. And since these generations, like Millennials and Gen Z, have different traits, businesses were aiming towards improving their engagement strategies and CX to match the customers’ needs and expectations.

However, companies are now turning their attention towards Generation Alpha, the youngest age group ranging from 0 to 12 years old, who are redefining customer experience expectations. That means understanding their unique wants and needs and looking ahead to imagine what the CX of 2030 (and beyond) will look like.

In partnership with Infobip, the Drum hosted a panel with Katja Sizova, global tribe leader, digital marketing and e-commerce, direct-to-consumer at Philips, and our enterprise team leader for the UK and Ireland, James Stokes to discuss how Gen Alpha is driving change in CX and what businesses can do to start preparing for the customer of 2030.

Gen Alpha’s characteristics and how they interact with the world

Gen Alpha has grown up in a world of technology, a radically different upbringing to their parents and other generations. They are considered the most globally connected generation that won’t settle for the status quo. 

Their physical maturity is on the rise earlier, which means that adolescence for Gen Alpha will also start earlier. And because of that, they’re expected to live longer and have a broader range of cultural backgrounds. Beyond the physical, however, social and psychological development, educational sophistication, and commercial sophistication will start earlier.

How we connect with businesses today has changed incredibly quickly, and Gen Alpha will push this digitization even further very soon. So when we talk about 2030, these kids will become your customers and primary decision-makers. They’ll have new purchasing habits and higher customer experience expectations.

Weighing in on the topic, James Stokes said: “Having grown up in an entirely digital world, accessing information and entertainment has only really been a touch away or a voice away for Gen Alpha. Their impatience Will probably be a virtue, and they’ll have zero tolerance for bad customer experience.”

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Capturing their attention at a young age

To captivate the attention span of Gen Alpha early on, brands will need to adjust their communication strategies and speak to them directly through personalized and frictionless interactions. In the panel, Katja Sizova highlights how Philips is already working on propositions that target the needs of this young generation.

“Gen Alpha is a fascinating audience to work with,” says Katja Sizova. “Connecting with them from a young age means we can aspire to journey together through their different life phases.”

This generation is more diverse than any other generation before, so businesses that embrace inclusivity and flexibility will thrive in capturing their attention. Ignoring these kids means ignoring your future.

Philips has already made improvements to its product line and made adjustments to capture the attention of this generation by developing products that are not gender-specific.

“The new generation doesn’t look at things as such,” Sizova adds. “For them, it’s more about who needs to deal with body or hair care. In fact, we’re considering how to redefine categories and co-create with our customers.”

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What communication methods does Gen Alpha expect from businesses?

Communicating to Gen Alpha is nearly inevitable, given their constant exposure to screens and technology. However, businesses need to ensure their marketing approach is authentic, personal, transparent, and ethical.

What works for one generation doesn’t always work for another,” according to Stokes, so brands that want to connect with Gen Alpha and stay current must embrace flexibility and authenticity.

As e-commerce grows on smartphones, he predicts businesses will be forced to continue innovating and pivoting because “new consumers will expect instant, seamless digital experiences across the same channels they use to communicate with friends, family, and teammates.”

When looking for ways to connect with Gen Alpha, consider the following tips:  

  • Establish authentic connections using digital channels
  • Develop targeted, personalized, and actional marketing initiatives
  • Utilize use data to understand them thoroughly and use generalization to prove a point
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Redefine Your Customer Experience

By 2024, this generation will be more than 2 billion people worldwide, according to a study by Mailchimp in 2021.

And while they’re growing under unique circumstances, their expectations for superior customer experiences will continue to evolve and force businesses to adjust their communication to become more ethical and transparent.

“They will make up a large part of the population in most countries, so their purchasing power by 2030 is expected to be huge,” Sizova says.

And to succeed in the next decade, businesses should redefine their customer experience.

A connected cloud communication platform will help you capture this generation’s attention and deliver personalized, authentic, and secure customer communication at scale.

Key features you can access with a cloud communication platform include:

  • Omnichannel Communication:  Engage customers on the same channels they use to connect with family and friends, such as WhatsApp, Messenger, RCS, Apple Messages for Business, Instagram Business, and many others. 
  • Always on Support: Support customers with a conversational AI chatbot that can recognize the customer’s intent and instantly provide information on any channel around the clock.
  • Agent empowerment and support: Improve agent experience and performance with a cloud contact center designed to deliver seamless omnichannel interactions in a unified and simple workspace.
  • Marketing Automation: Deliver personalized experiences by using a customer engagement solution that enables marketing automation and provides real-time insights about customers’ shopping habits
  • Data Protection: Leverage a customer data platform to unify and store data securely, target with more relevance, and provide a personalized experience across the customer journey.

Work like it’s 2030

The clock is ticking, and the end of the decade is quickly approaching. Sizova advises marketers to use their time wisely and “learn, engage, and understand this generation now to adapt accordingly.”

Stokes agrees: “Work like it’s 2030, your future consumers will demand better communication from you on their terms and on their preferred channels. Brands need to prepare for that shift. 2030 is not as far away as it might seem, so marketers need to get organized today to provide customers experiences that live up to expectations set by Gen Alpha.”

Upgrade your CX and start engaging with Gen Alpha today