To understand what the next generation of our customers might be thinking, Alinement interviewed Rocky Scopelliti, who has done an extensive study on differences in generational experience of ICT service improvement. Rocky, as the General Manager, Industry Development for Financial Services at Telstra Enterprise & Government, is acutely aware of where future business will come from.The importance of Gen Y as a future market is clear: today's 15 to 29 year olds make up 21% of the population and 18 % of the workforce, but will make up 42% of the workforce by 2020. 

Understanding what motivates Gen Y applies equally to the provision of IT services across many industry sectors as their common behaviours can drive website design, equipment support and call centre enquiries (as well as all the underlying capabilities), even though specific business processes and applications may differ. We raised some questions on generational specifics for the IT environment, starting with the customer, then moving back into the internal processes, and then onto the employee:

How does selling to Gen Y cause us to shift our approach? I was wondering how the need for flexibilit and adaptability impacted the sales process and customer reach? In ITIL terms, we refer to IT request fulfilment and transition of new or changed services. Rocky’s response was enlightening:

There are different behaviours by different generations in the buying cycle. For something like a mortgage, Gen Y is happy to search for information online, and then when they want to ask questions, they may commence this process using text via messaging. When the interaction switches to high involvement, they may prefer to have this facilitated via video. Whereas a baby boomer wants a mortgage lender physically present, Gen Y does not mind having a face on screen. Gen Y is more comfortable with interaction through technology. 

Does Gen Y have a different expectation for their relationship managers? I was considering whether channels like private banking would be used differently? In ITIL, we think of the business relationship management process. Rocky provided some clarity:

Ultimately, the key drivers of satisfaction are problem resolution and knowledgeable staff. The relationship/channel models need to consider how those drivers are accommodated via the changing preferences for how a specific customer may prefer to interact with the bank. For example; Private Bankers are generally assigned to high net worth customers who provide a much personalised service. Younger generations still expect problems to be resolved, but don't necessarily require physical contact. E.g. they are happy to have the interaction via video, instant message etc.

Gen Y expects 'instant response' i.e. on-demand skype service and information available on websites and social media for independent decisions? What does this mean to continuous service availability? Rocky indicated a higher bar being set for customer requirements:

Gen Y want problems resolved, but the difference is that they do not need physical presence. So how relationships are formed, managed and maintained is quite different for this generation. Younger generations are happier to see a face on a screen, such as BankInter in Spain using a video channel for their Internet and phone based banking services. 

This provides an interesting interpretation of business continuity. What about 24x7 availability by the business?

Enterprises now need to consider not only how to staff contact centres with highly specialist skills e.g. financial planner, mortgage lender, business banker, but how to communicate via new mediums such as instant message and video for expert-on-demand type services.

Across the generations, do companies have to support different service quality expectations and customer satisfaction goals and measures across the generations? In ITIL terms, we talk about the service reporting process. Rocky’s answer looked beyond age to strategy:

I think that the definition of quality is changing inter-generationally. For example, getting problems solved is the need and driver of service through knowledgeable staff. Quality - to perhaps a baby boomer - may be defined by the tone, efficiency and style of a person in a contact centre or physical point of presence versus a Gen Y’er who may base quality through a text based interaction via a click to chat session online. The challenge here is for enterprises to invest substantially to create a single voice, brand and style for the organisation - so how to achieve that consistency via text, via video or other communication methods.

In ITIL, service levels are measured and monitored. Web 2.0 allows customers to ‘put out there’ good and bad experiences in ways that redefine the meaning of ‘word-of-mouth’. How does this challenge conventional measurements of financial service levels? Rocky presented an interesting opportunity:

As more and more organisations move toward cloud based computing, service will shift away from SLA's based around network availability toward application assured networking which measures the applications performance on the network. Advocacy is quite important to many organisations across many industries and the ability for a generation to put their opinions (good or bad) out there for all to hear can be either perceived as a threat or opportunity.  Those enterprises that are focused on improving service and meeting the expectations of customers, are probably enjoying strong advocacy 

Gen Y needs to be a tribe. How does this contribute to technology companies like google, Apple setting service expectations?Rocky’s response highlighted an interesting twist in the power equation: 

Communities have been accentuated by this generation being equipped with technology. Organisations’ success based on services around communities has shown this. Affinity with communities is not new, but is now technology-enabled. Word-of-mouth and advocacy is tracked and monitored – whereas previously, we would have received recommendations from friends or family, social networks are now being influenced by commentary from strangers. Perhaps the more contemporary advocacy research question should be ‘would you recommend a product or service to a stranger’!

Are service provider’s agility and flexibility constrained by legacy? I was wondering if they can keep up with the change expectations of their customers? Rocky (naturally) highlighted the benefits of being a Telstra customer:

I actually think that many existing Telstra customers are in quite a good position with Next IP™ and Next G™ networks in place. We are now working with them to layer on top of these networks services such as Unified Communications to enable integrated messaging, conference and collaboration based services not only within the enterprise, but federating out to customers as well. Mobility that enables variable workforces such as financial planners, mortgage lenders, business bankers with Next G™ connectivity to computing and smart phones enabling them to deliver services to customers irrespective of location and improving workforce productivity.

There seems to be a dilemma for service strategies to be able to respond to the new generation with some items in the hands of the customer. Rocky highlighted where to address the challenge:

It is the enterprise ability to respond to change that is the issue. For example, organisations that have unified communications are more easily able to respond to change in incorporating new channels than those that do not. The pace and rate of emerging channels is presenting enterprises with major challenges (in the absence of UC) to design and integrate in social networks, video, instant messaging etc.

In a follow-up article, we conclude the interview taking a look at Gen Y’s effect internally at service provision and the view of staff as customers.