Is faceless customer service affecting premium brand experiences?

Millenials and Gen Z 

By 2026 75% of the luxury market will be composed of Millennials and Gen Z, up from 39% in 2019 (Source: Boston Consulting Group and Altagamma). As digital natives, Millennials and Gen Z are susceptible to digital alternatives when addressing customer service strategies, as it has been an integral part of their lives.

Technology has been formative in how they interact and experience the world, so brands offering faceless communication is a reality they are familiar with and have come to expect. 

Technology is rapidly reshaping how consumers experience brands. So much so that 64% of leading consumer brands are starting to invest in augmented reality, virtual reality, 3D content and 360-degree video (Source: Accenture). This investment and technological advancement is critical to building a rapport with younger consumers who derive value from the digital experience.

Hyper Personalisation

Boston Consulting Group has predicted the future for luxury brands to be “hyper personalisation” of their digital offering.

“Hyper-personalization is the most advanced way brands can tailor their marketing to individual customers. It’s done by creating custom and targeted experiences through the use of data, analytics, AI, and automation.” Connecting meaningfully in the new reality (Deloitte).

Generations who have grown up in the digital era expect so much more.  They not only assume a company knows what they want, they expect it.

Adding to the pressures of CMOs, and as any marketing professional is aware, a brand lives in the hearts and minds of the consumer.  Living up to the high expectations of modern consumerism, companies need to be one step ahead of the curve in technological advancements.

Mature Generations

Different generations seek many common ground values when investing in brands, most importantly personalisation and trust.

Expectations around how this personalisation and trust is generated will differ when considering older generations.

So how can brands strategise their customer service for older generations, who may gravitate towards traditional forms of communication?

When asked what elements they appreciate most when interacting with brands, personalised in-store treatments were most popular with Baby Boomers (Source: Boston Consulting Group and Altagamma).

A cohort of consumers may distinguish the exclusivity in human-oriented experiences, believing that technology cannot replace the connection and trust of human interaction. For them, the familiarity of face-to-face communication implements the emotional luxury they desire when investing in brands.

Key Takeouts

• Communication preferences differ between generations, with some consumers resonating with digital alternatives and others preferring face-to-face interaction.
• Millenials, Gen Z, and younger consumers have grown up with technological service.  They expect an “always on” and immediate service.
• “Hyper personalisation” is the future as predicted by the Boston Consulting Group.
• Trust is of huge importance for Baby Boomers and more mature consumers.  They are still attached to the history of luxury and prefer an in store, personal service.
• If brands position themselves for generational shifts in perceptions and expectations, offering nuanced personalisations of their customer service, the premium brand experience will support its consumers effectively.