How Does Loyalty Differ Between Generations In The New World Of GenAI?

GenX shows the least brand loyalty, with 65% likely to switch brands after one or two negative experiences, compared to 58% of GenZ.

From contact centres to intelligent messaging, genAI is making valuable contributions to the domain of customer service. The nature of customer interactions is witnessing massive change owing to genAI’s utilisation in the field. However, spanning different generations of customers provides differing attitudes towards this AI-driven future. 

As per a Morning Consult survey, consumer expectations differ across generations. The study found a fascinating divergence in attitudes between GenX and GenZ, providing valuable insights for customer experience (CX) leaders looking to navigate this dynamic environment.

Older generations less loyal toward brands

Customer expectations continue to rise. The number of customers who would leave a brand for a competitor upon facing a single negative experience has increased from 16% in 2022 to 26% in 2024. However, in reacting to poor customer experiences, there are vast differences between generational attitudes. 

GenX shows the least brand loyalty, with 65% likely to switch brands after one or two negative experiences, compared to 58% of GenZ. Older generations, including GenX and Boomers, also have less patience, with 65% expecting issue resolution within 20 minutes or less, versus 42% of GenZ.

Education improves positive sentiment towards AI

As per the report, GenX and Boomers are relatively less enthusiastic about AI as compared to GenZ and Millennials. However, after reviewing information on AI’s potential benefits, Boomers felt better about the technology.

The data illustrates that there is an understanding across generations that AI is used mainly in customer experience to enhance 24/7 self-service or chatbot functionality rather than improve personalization (58% vs 13%). This makes sense, as consumers can’t see how AI is applied behind the scenes.  

Phone support to stay with new channels emerging 

Older generations show leaning towards phone support as a channel for customer service while younger generations are comfortable with newer channels. The study revealed that boomers still prefer phone support (83%) over other channels, while GenZ is more open to using social media and live video for customer service. 

Further, video as a communications method is gaining popularity as customers felt that the use of camera is beneficial in visually sharing the issue they are facing. 

The generational difference in attitudes towards genAI adoption is not surprising, given that social media and chatbots are not a thing of the past. However, the difference persists due to little awareness on how the technology works in the background and what all front services it affects directly for the customer. With suitable education on the matter, and careful consideration of the customers’ common challenges, brands can bring GenX and Boomers around to see the better side of genAI.