'Gen C' – Connected Customers – Expects Personalized Experiences

For all the talk of various generations defined by birth year – baby boomers, Gens X and Y, and millennials – Brian Solis says there is a new generation for businesses of all types to focus on: Generation C, the Connected Customer.

Credit union professionals sometimes cringe at the word "customer," but Solis, principal analyst at Altimeter Group, a Prophet company, made clear it is more than just CUs – or just financial institutions for that matter – that need to be aware of Gen C. He told an audience at CUNA Mutual Group's annual online Discovery Conference that "connected customers" have different expectations because technology has fundamentally changed the customer/employee experience.

"Technology needs to be made more engaging, more experiential," Solis said. "We need to think about how we change and innovate. The number of traditional customers is getting smaller as the number of connected customers increases."

Solis highlighted "Digital Darwinism," defined as the evolution of society and technology and its impact on behavior, expectations and customs. He predicted in the years ahead robots will replace a number of employees in a large number of positions across many industries.

As these changes take place, he said the key question to be asked is: How to get in front, not just react?

"It is important to understand we are building the future, and it needs to be bold. If companies always go safe, then they cannot innovate. If you do not disrupt yourself, the 'gift' of disruption will be given to you by someone else," he warned.

CX – Customer Experience

Credit unions certainly have more than their fair share of acronyms, but Solis discussed another: CX, which stands for the customer experience – the sum of all engagements a customer has with a company during the customer life cycle.

Because many legacy systems were designed prior to the explosion of the public Internet in the 1990s, Solis said there are a number of changes that need to be implemented to address the needs of today's connected customers. This includes designing personalized, individual experiences that are focused and faster.

"Learning is the biggest first step, and the smallest," he said. "We have to stay ahead of innovations by learning and unlearning, by realizing there are new ways. The challenges are not digital, they are human."

Solis called for a realignment of business models and processes. He said all types of companies need to look inside their organizations for ways to improve employee engagement. This is necessary because technology, and the accompanying social media boom, has convinced many people they are the center of the universe.

"I lovingly refer to customers as 'accidental narcissists," he said with a laugh. "They also have become 'digital introverts.' No one wants to call for support, they want to solve problems on their devices. The line is starting to blur between reality and virtual reality. Companies must design experiences that span online and offline."

Iteration, Innovation, Disruption

Innovation, Solis said, is the work done to conform to expectations and aspirations as customers evolve, rather than making customers conform to what a business is able to offer. He noted the example of automobile pioneer Henry Ford, who once said, "If I had asked the customers what they wanted, they would have asked for a faster horse."

"If you are waiting for someone to tell you what to do, you are on the wrong side of innovation," Solis said. "Asking 'what if?' is the most important question in driving innovation."

Iteration, Solis explained, is doing the same things better. Innovation is doing new things. Disruption is doing new things that make the old things obsolete.

"There is no one way to succeed in the future," he said. "Success is dependent on a mixture of iteration, innovation and disruption."

With that said, Solis added: "The best innovation is accomplished by seeing the world through the perspective of another. Relevance has to be earned, it is not a right. Successful companies must think like a customer and act like a start-up."

Solis offered three elements of digital transformation:

  1. Vision and leadership
  2. Forming a digital transformation team3.
  3. Creating a digital customer experience.

"Innovation begins with us," he said.

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