#TechTalk 106: New Expectations of Millennial Customers
Saturday (17/03) Qiscus held a monthly event, TechTalk, with the theme “New Expectations of Millennial Customers”. Taking place in CO&CO Space, the event was attended by participants from various professional backgrounds. This TechTalk is the 106th event held by Qiscus. In this event, Rizal Rahman, Founder of Cilsy.id and Distra Vantari, Founder Talkabot.id attended as speakers. Over two hours, they explained about the influence of chat in business and expectation of millennials through chat.
According to recent studies, only 29% of millennials are loyal to the same brand, which is less than Generation X people by 6%. However, this 6% can’t be overlooked, because by 2025, millennials will make up for about a quarter of the world’s population. Thus, it is vital for marketers to comprehend better strategies to reach this generation.
Due to digital transformation, millennials and a small part of the older generation are changing their way of interacting with brands. In this regard, to a certain extent, IT affects how companies can engage their customers using online chat and social media apps. Moreover, the smartphone is considered the most popular device in this era, with 7 of 8 millennials owning one.
On the other hand, millennials also enjoy using social media and chat platforms to contact customer services. They always chit-chat with the customer service before deciding to buy anything. According to Capterra, almost half of millennials are satisfied with communicating using chat platforms and the telephone has become the least-preferred method, only 12.3% millennials choose this method to contact customer services. Humans like to interact in two ways.
Companies that have already done transactions online, either through e-commerce or other forms which can’t rely solely on the website, even when you provide the detailed product descriptions detailed.This is because customers often rely on customer service to find information when compared to find out themselves.
Take for example: E-commerce cases in Indonesia, like Tokopedia and Bukalapak. Not relying only on their website, they also do the selling process on their social media pages. It is because the majority of Indonesian customers ask more questions and would like to know directly through their conversation with the admin. They care about the data less. So nowadays, we do not only focus on e-commerce but also social-commerce. Based on that, speed and accuracy through customer service funneling is a must.
Moreover, other factors besides time and accuracy also affect this process, such as gender. In fact, male customers have higher expectations of getting effective services, efficiency and good experiences compared to female customers. They tend to be more critical on how customer service delivers. Their need for curiosity and criticism is an important note in the customer service process. On the other hand, customer service that only relies on human resources to handle it will be very limited.
Something that Must Be Considered
Through various needs then, the challenge is how we can meet these expectations. By preparing human resources, apps, etc., an effective and efficient process of live chat greatly affects customer relationship.
Another advantage through use live chat, the data entered in the chat can be analyzed. Demographic, geographic, etc. factors can be tracked. Thus, indirectly it will develop the company’s business growth.
On the other hand, this process needs to be combined with the chatbot source. This is because there are basic questions that should be handled quickly. The fact that relying on human resources will chaos when there are more questions than what can be handled by human resources. Based on that, the role of chatbot is to reduce chaos and help customer service process to become more effective and efficient. Thus, the admin will only solve specific customer needs and problems.
In addition, in this process, there needs to be a system that can integrate the social media funnel directed to the company’s admin. This is because in fact millennial customers often use different social media for the chit-chat process.
When this integrated system has been implemented, it will certainly improve the effectiveness of customer service performance to serve customers. The next fact, high conversion tends to increase sales. Quickly responded customers tend to trust more to buy the products. The speed in responding to customers will ultimately impact the credibility of a company as well.
Preparing for This Trend
In fact, using chat to reach millennials has been proven to be a good decision, as 77% of content is shared in messaging apps. Also, reaching customers through private communication lines like chat can provide a better result than using social media. Since millennials are highly active in both social media and messaging apps, companies can use this opportunity to increase brand awareness to a large mass of people.
However, there are some things that should be considered in an effort to build a chat, since it is not easy to fulfill consumer expectations of a product or feature chat. This is because consumers are already accustomed to using chat in everyday activities. So, if they are treated to a product-based or just have a chat feature, their expectations will be very high.
Using chatbot is not bad, but customer expectations often do not fit in the chatbot’s ability. In fact, chatbot can not be removed 100% to handle customers. Besides, humans can not be 100% when it comes to responding to customers who are currently “fussy” too. So it makes companies anxious.
Thus, there needs a combination of both. Example, FAQ, chatbot will handle it but for specific cases such as complaints, humans should handle. Bots won’t replace human work but simplifying the way the customer service works.
On the other hand, companies should set up smart chatbots too. It means, standardizing intelligence of a chatbot is measured by more feedback that can be answered appropriately.
Then, companies should be sensitive to keywords used to meet consumer needs. Plus, companies should be able to direct and limit of answer option to reduce consumers who are not serious.
There are so many challenges that must be prepared by businesses, including the fact that businesses must know their needs and how to provide human resources or capital. For companies that have already had their own IT teams, the capacity in real-time technology development is also one factor to be concerned with. Addition, the tech industry changes so fast.
But one thing must be highlighted: Service providers must create an effective and efficient system with personal experience touch. The reason to build apps must be based on something urgent. Does it increase simplicity and reduce cost or not? The companies must know what customers need, their issues, and other factors to validate first. Then, companies can determine accurately for optimization.
To exploit this opportunity, some might want to develop their own messaging applications, while others choose to rely on an already existing platform. It’s true that building your own chat system is far from simple, but using a third party’s help will greatly lessen the burden. Moreover, the benefit of getting your own app can outweigh the required initial cost, hence, building it from scratch can push you to have a better stand than your competitors.
Always remember, Millennials do not only buy your stuff, but also personal experience. So be aware of it.