The Phone Is The New Millennial Wallet

 

Shep Hyken , CONTRIBUTOR

Opinions expressed by Forbes Contributors are their own.

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With the wide range of capabilities of today’s smartphones, it should come as no surprise that many consumers, especially younger consumers, are opting to leave their wallets at home. When they reach into their back pockets or purses to pay for something, they are more and more likely to emerge with a phone instead of a wallet. New research from LivePerson analyzed the “digital habits” and preferences among 18- to 34-year-olds (Millennials and Gen Z consumers) and learned that a majority (61.8 percent) would rather leave their wallet at home than their phone.

LivePerson surveyed more than 4,000 Millennials and Gen Z’ers in the United States, the United Kingdom, Germany, Australia, Japan and France. In addition, they surveyed 1,016 adults, 35 years or older, in the U.S. to use as a benchmark for the study. The goal of the study was to better understand younger consumers’ digital habits and preferences.

A Digital Transformation: Looking at the numbers, our world is in the midst of a digital transformation. The way our customers are buying from us and expecting customer service and support is changing dramatically. The LivePerson study indicates that 65 percent of younger people communicate more through digital devices than they do in person on any given day. The numbers are even higher in the U.S. at 73.7 percent, and the UK with 74.4 percent.

Hang Up The Phone: The mobile phone, which is hardly used to make phone calls anymore, is becoming the tool of choice for communication between customers and brands – and friends. Messaging is more popular than making phone calls. When asked if they had to choose between the ability to make phone calls or a messaging/SMS app, 69.45 percent would choose the messaging app. I have a vivid memory of walking into a Starbucks and seeing my daughter and her friends sitting around a table. Nobody was talking. They were all texting. And, two of them were texting each other. They were sitting across the table from each other! Why didn’t they just talk to each other?!

Don’t Make Me Wait: Customers, especially young customers, want information fast. LivePerson refers to this as the “Ten Minute Rule.” They want answers when and from wherever they ask. For less expensive purchases (under $20), almost 75 percent of Millennials will give up within 10 minutes if they don’t get the answer they need.

There’s An App For That: Younger consumers are beginning to expect simple automated tasks, such as checking into a hotel or a flight (55.7 percent), making a dinner reservation (65.8 percent), ordering room service (55.9 percent), and more. The key word here is simple. When it comes to more complex interactions, they still go straight for the human-to-human experience.

Self-Service Customer Care: Across the globe, the younger generation would rather get customer support through a self-service solution or by messaging, which could include chatbots or real people communicating with the customer. Their No. 1 choice was to visit the company’s app or website, followed by chat/messaging, social media, and in last place (and it shouldn’t be a surprise), by using the phone.

So, what does this mean to business? If the younger consumer is your customer base, you must have a digital strategy. They want to do business with you on their terms. If you’re not offering these options, you’ll be eating the dust of your competitors, and missing out on the future. Because, as Nelson Mandela said, “The youth of today are the leaders of tomorrow.”