The State of Customer Experience 2025 Deep Dive #1: How the Younger Generation Is Reshaping CX
June 4, 2025
Customer experience is at a pivotal moment. The recently published State of Customer Experience 2025 found that nearly half of consumers report that brands are falling short of their service expectations—and 74% say they’d switch to a competitor after just one bad experience.
Simply put, businesses can no longer afford to deliver subpar CX.
On the flip side, the benefits of delivering exceptional CX are substantial. In fact, CX is now the second most important factor in driving customer loyalty—just behind product or service quality. A substantial 86% of consumers say they’re likely to make repeat purchases when they receive great service.
So, what defines exceptional CX in 2025? Speed, the ability to self-serve, and seamless access to human agents are all key. But that’s just the tip of the iceberg.
A closer look at the data reveals that the 18-34-year-old demographic is leading the shift toward a predominantly digital, automated CX ecosystem. For contact center leaders, this younger generation offers a glimpse into the future of customer expectations and the direction CX must take to stay ahead of the curve.
Insight 1: The Greatest CX Expectations
What the Data Tells Us
The data clearly shows a generational divide when it comes to customer service expectations. 64% of consumers aged 18-34 report their expectations have increased over the past year, compared with only 33% of those aged 35-54 and just 15% of 55-74-year-olds.
This pressure for better customer experiences from a younger demographic signals a shifting baseline for what constitutes “good CX” both for today and tomorrow.
What It Means for CX Leaders
This presents both a challenge and an opportunity for CX leaders. The challenge: to identify what younger consumers expect (make sure to check out insights 2-4 below). The opportunity: building a strategy that effectively meets those expectations.
This isn’t about ignoring the older generations but using the data from 18–34-year-old respondents to anticipate where CX is headed. The younger generation is leading the way and they’ll soon be followed by even more digitally demanding consumers. The time to adapt is now.
Insight 2: The Digital-First Shift
What the Data Tells Us
The preference for digital channels is accelerating—and the direction is unmistakable. A striking 89% of consumers aged 18-34 say they prefer to engage with brands through digital channels rather than by phone.
The fact that there has been double-digit growth in preference across all age groups indicates this isn’t isolated to the younger generation. However, they are certainly leading the charge. It’s likely a trend that will only strengthen over time as younger digital natives become an even larger proportion of the customer base.
What It Means for CX Leaders
Based on the data, it may seem intuitive to recommend CX leaders build out an entirely digital customer experience ecosystem.
However, the data gives us a more complete picture. While telephony should no longer be the major driving force for all contact center implementations, consumers say the ability to seamlessly transition to a human agent is the third most important factor for exceptional CX.
The future of customer experience lies in a hybrid contact center model, one that combines the speed and efficiency of AI and CX automation with human agents available to handle more nuanced and complex issues.
Insight 3: The Rise of CX Automation
What the Data Tells Us
When it comes to resolving issues or completing tasks, a growing number of younger consumers now prefer automation over speaking with a human agent. Among 18-34-year-olds, 77% express a preference for automated solutions—a sharp contrast to just 40% of those aged 35-44, and only 13% of consumers aged 55-74.
This generational gap underscores a major shift in how consumers expect to engage with brands, favoring speed, simplicity, and self-service capabilities that automation can provide.
What It Means for CX Leaders
The message is clear: automation must be at the core of future service strategies. However, it’s not just about implementing intelligent virtual assistants—it’s about creating intelligent, intuitive systems that truly solve problems.
As automation becomes the default expectation for younger consumers, businesses must invest in scalable, user-friendly technologies while ensuring that human support remains easily accessible when needed.
The winning formula is one that blends automation and human touch, delivering efficiency without sacrificing experience.
Insight 4: Embracing AI in Customer Experience
What the Data Tells Us
Attitudes toward artificial intelligence (AI) in customer experience are overwhelmingly positive among younger consumers. A full 98% of those aged 18-34 see clear benefits to AI in CX—whether through faster service, personalized recommendations, or smarter self-service tools.
In contrast, only 69% of consumers aged 55–74 feel the same, reflecting a generational divide in both comfort with and expectations of emerging technology.
What It Means for CX Leaders
This highlights the growing importance of integrating AI-driven solutions that resonate with younger audiences. The potential to elevate CX through AI is immense; however, trust, transparency, and control are critical.
Success will depend on balancing innovation with reassurance, ensuring AI enhances the experience without alienating consumers.
Final Thoughts: A Generation Defining the Future of CX
The data paints a clear picture: younger consumers are not just influencing the evolution of customer experience—they’re defining it. They have higher expectations, prefer digital and automated self-service, and overwhelmingly embrace the potential of AI.
This generational shift is reshaping the CX landscape, setting a new standard that all businesses must adapt to in order to remain competitive.
For CX leaders, the mandate is urgent but exciting: invest in digital transformation, prioritize automation and AI, and build hybrid experiences that offer both convenience and human empathy.
The future of customer experience isn’t just faster or more efficient—it’s smarter, more intuitive, and increasingly shaped by the demands of a younger, digitally native generation whose spending power will only continue to grow.