What is Generation Alpha, and why is it the most influential generation in CX?

James Stokes (enterprise team lead, Infobip UK&I) discusses the latest insights from Infobip’s Generation Alpha research and shares how brands need to adjust to meet the CX expectations of these emerging customers

Generation Alpha are kids born after 2010, ranging from 0 to 12 years old. They are the largest generation of future consumers and are expected to have the greatest spending power in history.

Growing up in a world where smart devices and high-speed data have blurred the line between physical and digital experiences, Gen Alpha significantly influences family purchases. Businesses should start paying attention to this generation now, as they will have high expectations of the products, services, and brands they choose.

I am going to share how businesses can better position themselves to prepare for the future consumer of 2030 and the current trends in customer communication to help brands evolve and grow alongside this generation.

How are Generation Alpha different from their parents?

Gen Alpha has grown up in a world of technology, a radically different upbringing to their parents and other generations. They are the first truly digitally immersed humans born into an environment dominated by smartphones, tablets, and other electronic devices. They can’t even imagine how life was without these gadgets. Thanks to their Millennial parents, a marketing buzz has erupted upon their arrival.

These kids have already had a significant impact on the market. For example, Alpha's Millennial parents are pouring money into toys and technology for their children, with $2 billion invested in K-12 ed-tech businesses. Their technological advancements make them the most globally connected generation in history. They are classified as social, global, and mobile since everything they do involves interacting over multiple digital channels.

According to our research, Gen Alpha began using smart gadgets at the age of six and could use a tablet before the age of four: 61% of these youngsters own a tablet, and 49% have a smartphone.

Influencing change in CX and purchasing behavior

The internet easily influences Gen Alpha, and they’re already impacting their parents’ purchasing behavior. Our research found that 81% of Millennial parents around the world said their children influenced their most recent purchase. As a digital-first and tech-driven generation, it's no surprise that digital channels and social media will be their gateway for inspiration and external communication.

This cohort expects instant, frictionless, and personalized digital experiences using the same channels they use to communicate with grandparents and classmates. As they grow older, they will demand more from businesses, including:

• personalized digital customer experiences
• improved customer journeys
• enhanced services and products

They will expect to be given the right information at the right time and over their preferred channels, even when they are on the go.

Alphas' shopping habits are likely to continue to favor value-driven purchases. This means that in order to develop a transparent and ethical supply chain, businesses must consider both production and marketing. Gen Alpha is more diverse than any other generation before, thus businesses that embrace inclusivity are important to them. Ignoring this generation means ignoring the future. They will continue to influence our global culture and physical environment.

How to prepare for the future customer of 2030

By 2030, the first members of Gen Alpha will begin to have more direct customer interactions with businesses and ultimately become the primary decision-makers. However, engaging Alphas will not be a generational issue but rather a technological challenge. Businesses should have the proper tools and channels to capture this generation’s attention and succeed in the coming decade.

Start preparing for the future customer of 2030 by:

• Delivering personalized experiences through the best channels, timing, tone of voice, and message for every interaction.
• Automating processes with an AI chatbot to answer customers’ frequently asked questions – and connect it to a cloud contact center to enable agents to access conversations across channels, alongside conversation history, purchase history, and more.
• Investing in a customer engagement solution that enables marketing automation and gives you real-time insight into how your communication is performing.
• Leveraging data to improve future communication, provide insights into customers’ interests and behaviors, and predict their future needs.

Prepare to make a difference

Generation Alpha members are not distinctively different from Millennials or Generation Z, but their surroundings will influence their preferences, aspirations, and perspectives. They've arrived wise beyond their years, hesitant but hopeful despite the parental controls, social media age restrictions, and a global pandemic.

Brands that want to make it through this transformation must accept that it is now their world, by invitation only. If done right, they can quickly adapt to the needs and behaviors of Gen Alpha, appealing to their connected world with personalized, real experiences that blend effortlessly into daily life.

To find out more about how you can prepare your brand for Generation Alpha, join me an expert from Philips at the Digital Transformation festival where we will be discussing Customer of 2030 in more detail. Register here today.