CURATED READS FOR GEN Z—AND THEIR Z-CURIOUS COLLEAGUES

first up

Welcome back! This week, we’re ringing Gen Z . . . please hold while we direct your call.

Do Gen Zers long for a world where analog devices reign supreme? Some evidence suggests this might be the case: fatigue with modern-day dating apps is growing, while Gen Zers are taking a greater interest in dumbphones and disposable cameras.

It turns out, the good old-fashioned phone call is just as important as ever, according to new McKinsey research. But it doesn’t totally replace the convenience of digital tools (more on this later).

Our customer care survey, helmed by McKinsey partners Eric Buesing and Julian Raabe and coauthors, found that 71 percent of Gen Z consumers listed live phone conversations as among the most preferred customer service support channels (compared with 81 percent of millennials, 86 percent of Gen Xers, and 94 percent of boomers). One company we surveyed reported that its Gen Z customers are 30 to 40 percent more likely to call ’em up than millennials, using the phone as frequently as baby boomers. And a quarter of Gen Zers say they expect live phone support tools when dealing with premium brands or services.

“Companies that want to cater to Gen Z can think about shifting their emphasis from resolution to engagement . . . and being able to handle increasingly complex problem solving over the telephone, particularly for high-end products and services,” said McKinsey partner Brian Blackader.

Z babies may be inclined to pick up the phone to deal with a customer service issue, but of course, they also use digital tools—such as live messaging and chatbots—to find solutions to their problems. (Gut check: while Gen Zers may use social media platforms to discover new products or keep in touch with their peers, they use social media less frequently for customer service needs, our survey found.)

Brands and services across sectors—including consumer packaged goods, travel, banking, insurance, and more—should augment their personalized, human customer service interactions with technology, particularly AI tools, to keep up with Gen Z customer expectations. Without both easy-to-use digital customer service tools and well-trained customer service agents, businesses risk losing Gen Z customers altogether.

One cautionary tale comes from the telecommunications sector: without AI-enabled customer service tools, a European telecommunications company’s customers who spent long periods on hold (been there), were transferred from agent to agent (heard that), or had to make multiple calls to resolve a single service issue (I’m in this photo and I don’t like it) were likely to remember how negative that experience was, even if their issue was resolved. Those customers who had to make two or more phone calls to fix connectivity issues were almost twice as likely to walk away at the end of their service contract.

Ultimately, the goal for any consumer-facing business is to build digital tools that can help solve customer service issues before their Gen Z customers even realize they need to speak to someone.

“Data and analytics can enable contact center agents to predictively identify opportunities to delight, preemptively solve issues based on personalized needs . . . and determine the right times to reach out when a live interaction is preferred,” noted McKinsey senior partners Jorge Amar and Maurice Obeid and coauthors. “These insights can help create a better-trained, more empathetic workforce to support proactive outreach.”

In the meantime, keep the phone lines open.

VISUALIZE IT

Boosting employee health across six dimensions—social interaction, mindsets and beliefs, productive activity, stress, economic security, and sleep—could create economic value that is equivalent to raising global GDP by up to 12 percent.

WAIT, DON’T SCROLL

Analysis paralysis. If you’re waiting for the perfect opportunity, you’ll be waiting forever.

The bus stops here. Every day, 24 million students take the US student transportation system to school. But the system has its challenges.

Return on talent. There are three reasons employees are unproductive at work—and five actions leaders can take to augment productivity.

NOT US; STILL GREAT

Playing the part. Why is Gen Z obsessed with the “old money aesthetic”? [GQ]

Hierarchy of needs. This is the most influential driver of Gen Z happiness. [Walton Family Foundation]

CROSSWORD

—Edited by Alexandra Mondalek, editor, New York