X… Y… and now Z.
 
It may sound like the closing cadence of the alphabet, but it’s actually a reference to the successive generations of consumers that have challenged companies since the glory days of the baby boomers. First came Generation X (latch-key kids), then Generation Y (Millennials), and, according to a new report, we’re now witnessing the birth of Generation Z (Digital Natives), consumers born between the mid-1990s and 2010.
 
According to Grail Research’s new report, Consumers of Tomorrow, “Generation Z” is the first true 21st Century generation, born into a world filled with mobile technology and Internet accessibility, as well as social networking and on-demand video, games, content, and entertainment of every variety. They expect limitless channels, ease of use, and maximum value for their money.

These youngsters exercise tremendous market clout over household technology and telecommunications purchases simply because they understand the bits and bytes of complex products and services much better than Mom and Dad. Z-ers’ influence isn’t confined to tech, though. They have strong preferences on the full spectrum of consumer goods, forcing companies to look for the edge to attract and retain these hard-to-please consumers.
 
Post-SpeechTEK 2010, that edge is speech technology coupled with intelligent interaction solutions.Advances in speech technology, including real-time intelligence that elevates self-service, notification, analytics, and voice authentication to new levels, are tailor-made to spur growth among Generation Z consumers.

The saying “knowledge is power” has never been more true than with Generation Z. These youngsters expect the companies with which they do business to know them, their buying history, preferences, and past behavior, and to use that information to deliver interactions that are personalized and relevant—every time. Fortunately, intelligent interaction solutions are now available to help companies meet, and even exceed, this expectation by providing the perfect blend of live agent, self-service, and proactive service across all channels of interaction, backed by the security of voice authentication.
 
When implemented effectively, these solutions can help companies meet the needs of every demographic, including Generation Z, while also achieving their own business objectives: increased revenue, reduced attrition, enhanced customer loyalty, and greater cost savings.
 
In the “Land of Z,” decisions move at light speed. The next next generation has no patience for hold times, clumsy IVRs, or, one-size-fits-all service. To keep pace, companies must match or exceed the momentum of this rising marketplace.
 
One thing is clear: anything less than real-time, intelligent, personalized service will give tomorrow’s most valuable group of customers a bad case of the Zzzzzs.

Mike Betzer is president of relationship technology management at Convergys. He can be reached at mike.betzer@convergys.com.