They are considered volatile, hard to impress, well-educated, easily bored and the first generation of the so-called digital natives: millennials. For companies, it is challenging to address their individual expectations and needs with a uniform marketing strategy. Additionally, the fragmentation of the target group with unique customer expectations, a growing number of different channels or terminal devices, and the increase in global competition make it more complex to fulfil customer needs.
However, there is already an existing solution to master all these challenges: Conversational AI. With the use of artificial intelligence (AI), personal communication via chatbots or voice assistants with numerous customers is possible at scale, regardless of time and place. This is how millennials want to be informed and advised about products and services. A study by Rocket Fuel confirms that the millenials endorse artificial intelligence and perceive benefits from brands that use Conversational AI to optimise purchasing decisions. Fast, intuitive and smart processes are preferred to simplify everyday life and minimise unnecessary complexity. The young target group is aware of the collection and evaluation of data for this purpose and it tolerates this as long as it adds value to the buying experience.
In this article, we explain what value the use of conversational AI adds for companies and millennials.
Digital-first – the Millennials target group
Millennials, or Generation Y, are all those born between the early 1980s and the late 1990s. Millennials stand for the first digital natives. “Y”, which is also pronounced “why” in English, stands for the characteristic of questioning conditions, which the millennials are known for. Unlike older generations, millennials are better educated, more curious and tech-savvy. 93% own a smartphone and use it to research answers online, document their lives on social media and communicate with the world. For Generation Y, work-life balance plays a significant role. They don’t want to waste time with unnecessary information, time-consuming search queries and unappealing product offers. Instead, communication with brands should be fast, solution-oriented and straightforward. Hence, it’s no wonder why communication via chatbots and Conversational AI is taken for granted by them.
Availability around the clock thanks to Conversational AI
Millennials are used to always being accessible and giving immediate feedback. Accordingly, receiving an immediate response is expected – technical progress has made this possible. When Generation Y needs help, they are not searching for information in the manual or calling the service hotline, but via Google or Alexa. Instead of writing an email, spending hours browsing through a website or making a phone call, interactions with chatbots are the preferred way to receive immediate and solution-oriented answers to their questions. As chatbots fulfil the needs of millennials, it’s no surprise that 60% have already used chatbots and 70% report positive experiences with chatbots. An intelligent chatbot can answer questions automatically around the clock and deliver a consistently high service quality to thousands of customers at the same time. This way, orders can be changed quickly and easily via text message. Moreover, users can check the delivery status. Questions about the product? Individual purchase recommendations? Conversational AI delivers the right information directly to the smartphone within mere seconds.
Conversational AI – simple and convenient communication
Millennials are always online and interacting: whether tweeting, liking on Facebook, commenting on YouTube, viewing product recommendations on Instagram or sending messages via WhatsApp. Conversational AI enables companies to start the conversation with the young target group wherever they are.
Generation Y prefers casual, informal communication, and the use of text messages offers exactly this – regardless of time and place. This is where Conversational AI come into play: chatbots interact with millennials on their familiar and preferred platforms in a casual and easy language, creating a unique customer experience.
Conversational AI has the potential to simplify everyday life for millennials and optimise customer service significantly. Chatbots can support customers with individual holiday bookings, check the delivery status of the last orders, help with technical problems, give purchase recommendations and change passwords – all of this is possible via chat in only a few clicks.
It’s a match: Millennials and Conversational AI
Millennials are digital natives and expect companies to add personal value through technology solutions. The number of products and services available online is increasing every day. Customers are overwhelmed by the variety of offers and information and are looking for personal experiences and individual offers. Moreover, every click on the internet also creates customer data that is evaluated, categorised and analysed thanks to artificial intelligence. Individual customer journeys are then no longer an unsolved mystery but can be recognised through customer analysis. Shopping behaviours, search queries and preferences can be analysed and leveraged by customer service for individual product suggestions.
But intelligent chatbots can do more than assist with transactions: By providing additional context-related recommendations, they can enhance customers’ shopping experience. The chatbot of an e-commerce shop for sneakers, for example, can inform the long-time customer about special edition a few days before the release. With a personal discount code, the customer can buy the sneakers 24 hours in advance and receive them directly the next day through free express shipping. The current shipping status can be checked at any time via chatbot.
Additionally, chatbots can be used to tap unused up- and cross-selling potential. For example, if an insurance policy expires, the customer can be reminded of this via text message, including an option to extend the policy with only a click in the chat. Without additional effort for customers or the company, such potentials can be leveraged by using intelligent chatbots at any time, regardless of location or time.
Millennials also like to share their experiences on the internet. Companies can score points with good customer experiences and benefit from word-of-mouth, positive reviews and loyal customers. Whether it is a car insurance or new sneakers, the new product or service acquired can be recommended to friends or published in stories on Instagram, linking to the company’s e-commerce shop.
Conversational AI and communication via chat for all target groups
Conversational AI is integrated on the right channels, close to the target group Generation Y, an unbeatable digital tool for the communication between customer and company. Intelligent chatbots respond immediately to requests without waiting and offer a unique customer journey. The communication is individually adapted to the customer, and information can be tailored to the wishes and needs of users thanks to artificial intelligence. Through simple interaction and quick support in transactions, Conversational AI enriches the everyday life of millennials.
Conversational AI represents a critical success factor in responding to the dynamic demands and desires of the young target group and building a close and sustainable relationship through the personal communication channel. In Europe, generation Y makes up 20% of the population with more than 100 million millennials expecting fast, uncomplicated solutions to their concerns – Conversational AI is the answer!