Catering to ‘Generation Now’:
Making Digital Connections
Intelligent, Personal and Always-On

October 2020

Contents
Introducing
Generation NOW…
Comprising:
Digital-Native Gen Y (aka Millennials, born 1981-1996)
And Mobile-Native Gen Z (born 1997-2012)

Click a link below to jump to that section.

3

Introduction

4

Connected life

10

Future of content and apps

13

Making purchasing decisions

16

Personal data, privacy & trust

18

Study methodology

19	Next Steps: Recommendations for
Consideration

2/ Catering to ‘Generation Now’: Making Digital Connections Intelligent, Personal and Always-On< Back to Contents

Introduction
The collective attitudes of Gen Y and Gen Z toward connectivity, content and commerce over the past several
years have significantly altered how brands attract and retain this demographic. COVID-19 has only served toaccelerate the need to meet fast-changing demands in real time or risk irrelevance.
Countless studies show that those born digital (Gen Y, or millennials) andborn mobile (Gen Z) – which together we are terming Generation Now –bring massive expectations to companies created in the internet era, as wellas established brands with decades of service under their belts.
In February 2020 – just as the coronavirus was beginning to gain speed but
was not yet declared a global pandemic – we conducted a follow-up study to
our 2018 research tracking attitudes, interests and expectations concerning
connectivity, content and commerce among different generations. (Seestudy methodology, page 18.)
Just a few short months later, COVID-19 proved to be a generational
watershed moment. What September 11th was to Gen X (born 1965 to1980) and the Great Recession was to millennials, COVID-19 is to Gen Z:
A period of time that fundamentally upended the world as they knew it,
and ushered in a new – or next – normal.

3/ Catering to ‘Generation Now’: Making Digital Connections Intelligent, Personal and Always-On

So disruptive has COVID-19 been that it has thrust even die-hard Luddites
into the digital age. While our new generational research shows that
reliance on technology continues its rapid rise, the coronavirus accelerated
its adoption, with “___ from home” (work, school, entertainment, exercise,graduations, birthdays, happy hours and more) going mainstream – literally
overnight.
Now more than ever, end users demand that technology anticipates theirevery want and need, and provides personalized experiences through highspeed connections anytime, anywhere. But beware, our data shows that
digital fatigue has been on the rise, even before COVID-19 entered
the picture.

< Back to Contents

Connected life4

/ Catering to ‘Generation Now’: Making Digital Connections Intelligent, Personal and Always-On< Back to Contents

71%

Ability to call

76%
81%

According to our survey, 78% of Gen Z and 79% of millennials say that connected technology makes
Ability to find immediate
their lives easier, and 42% of Gen Z and 48% of millennials talkwith a connected device (Siri, Alexa,
answers to your questions
Google Assistant, etc.) in some way every day.

64%
69%
65%

Streaming video platforms
All generations depend on a wide variety of specific technologies in their daily
lives. Gen Z and millennials depend the most on
texting and instant messaging, while Gen X depends the most on their ability to call.
Navigation

73%
70%
57%
56%
66%

52%

Dependence upon in current daily life

58%
59%

Social mediadepend on.”
Percentage of people who responded “depend on” or “completely
75%
Text, instant message

81%
77%
71%

Ability to call

60%
56%

Digital streaming
music platforms

33%
34%
36%

Online gaming

76%

24%

81%
64%

Ability to find immediate

69%
65%

answers to your questions

73%
70%

Streaming video platforms

22%

Digital assistants

35%
27%
22%

Smart home devices

35%
22%

57%
56%

Navigation

66%

20%

Ride sharing

28%
16%

52%
58%
59%

Social media

50%

Gen Z

Millennials

Gen X

50%
60%

streaming
Source:Digital
Cognizant/The
Center for Generational Kinetics survey, February
2020
56%

Figure 1

music platforms

33%
34%
36%

Online gaming
24%
5/ Catering to ‘Generation Now’: Making 22%
Digital Connections Intelligent, Personal and Always-On
Digital assistants
35%
27%
22%

< Back to Contents

77%
79%
83%

Ability to callEven before the pandemic, respondents from all surveyed generations said they foresee an increase
Ability to find immediate
in technology dependence in almost every category in the near
future.
answers to your questions

70%

Consumer reliance on digital connections or tools stays strong across all categories. In fact, technology dependence isStreaming video platforms
expected to increase, as summarized on the following page.

71%
74%

82%
78%

61%
70%
70%

Navigation
63%

Projected dependence in daily life in two to four years

56%

Social mediadepend on.”
Percentage of people who responded “depend on” or “completely
77%
82%
78%

Text, instant message

77%
79%
83%

Ability to call70%

Ability to find immediate

82%
78%

answers to your questions

71%
74%

Streaming video platforms

62%
55%
62%
59%

Digital streaming
music platforms

40%
37%
39%

Online gaming
26%

37%

Digital assistants

45%
37%
33%

Smart home devices

46%
35%

61%
70%
70%

Navigation

32%
36%

Ride sharing
23%

63%
56%

Social media

62%

Gen Z

Millennials

Gen X

55%
62%

streaming Center for Generational Kinetics survey, February 2020
Source:Digital
Cognizant/The
59%

Figure 2

music platforms

40%
37%
39%

Online gaming
26%
6

37% Intelligent, Personal and Always-On/ Catering to ‘Generation Now’: Making Digital Connections
Digital assistants
45%
37%
33%

< Back to Contents

+6%
+3%
+2%

Ability to call

Double-digit growth is foreseen in technology dependence for multiple
Abilitycategories
to find immediatein the near future (two to four years).

+6%

answers to your questions

One example is smart homes. While today digital dependence on apps and devices that run homes doesn’t rank high on the list of technologicalpriorities, in coming years respondents predict sharp increases (double digits in many cases). The same can be said for navigation apps and virtual
video
digital assistants. Add the “___ from home” shift brought on by COVID-19 and we Streaming
now have
theplatforms
need for very smart homes – ones designed for+4%school, work, entertainment and more. The dependence on technology has only increased in our current era of doing virtually everything at home.
Navigation+11%

Difference between dependence now and in two-four years
+2%
+1%
+1%

Digital streaming
music platforms

Ability to call

+6%
+3%
+2%

Online gaming+6%

Ability to find immediateanswers to your questions

+13%
+12%

-2%
+4%

Streaming video platforms

Navigation

+11%

+2%

+3%
+3%
+15%

Digital assistants

+10%
+11%

Smart home devices

Ride sharing

+14%
+4%

+2%
+3%

+7%

+12%

+4%
+14%
+4%

-2%
+4%

-2%
+3%
+5%

Socialmedia on.”
Percentage of people who responded “depend on” or “completelydependText, instant message

+13%
+12%

+7%

+12%
+8%

CURRENTLY DEPEND ON
Gen Z

+10%

Millennials
Gen X+11% THINK YOU’LL DEPEND ON
IN 2-4 YEARSGen ZMillennials
Gen X

-2%
+3%
+5%

Social media+2%

Digital streaming
Source: Cognizant/The
Center for Generational Kinetics survey, February 2020
+3%
music platforms+7%

Figure 3

+3%

7

+3%
Online gaming
CURRENTLY
DEPEND ON/ Catering to ‘Generation Now’: Making Digital Connections
Always-On+2% Intelligent, Personal and
Gen Z
+15%

Digital assistants+10%

Millennials< Back to Contents

The dependence on technology has
only increased in our current era ofdoing virtually everything at home.

8/ Catering to ‘Generation Now’: Making Digital Connections Intelligent, Personal and Always-On< Back to Contents

Even before the coronavirus hit, people in these age groups were suffering from digital overload,
and feeling the need to get away from technology completely.
Respondents now feel more of a need to escape technology than they did two years ago – an increase of 8% among millennials
and 15% among Gen Z respondents, who say they need at least some time to escape technology. As noted, our survey
was completed a month before the pandemic prompted shelter-in-place orders. In that short period of time, technology
has permeated even more of our lives and increased digital exhaustion, as evidenced by a new phenomenon known
as “Zoom fatigue.”

All generations feel more of a need now to escape technology completely* than they did two years ago
2018 STUDY

2020 STUDY

2018 STUDY

16%

22%

Always/Often

Always/Often

24%

16%

Always/Often

26%

19%

19%
45%

36%

Sometimes

Sometimes

35%

46%

34%

47%

Gen X

34%

35%

Rarely/Never41%

Millennials

35%

46%
48%

Gen Z

36%

Sometimes

41%

34%

Rarely/Never

24%

22%

48%

Rarely/Never

41%
47%

32%

Gen Z

Millennials

Gen X

Gen Z

Millennials

Gen X* I.e., find a place where there is nothing connected.
Source: Cognizant/The Center for Generational Kinetics survey, February 2020
Figure 49/ Catering to ‘Generation Now’: Making Digital Connections Intelligent, Personal and Always-On< Back to Contents

Future of content
and apps

10/ Catering to ‘Generation Now’: Making Digital Connections Intelligent, Personal and Always-On< Back to Contents

No one is walking away from technology, of course. In fact, brands will win the hearts, minds andwallets of Gen Now by delivering unique experiences – when and how they want them.
60%
56%
58%

The web/apps will be accessible

These generations have high hopes for what technology will deliver. One example is digital entertainment.
anytime, everywhereWith
at high speeds no network access (Wi-Fi, etc.)
hundreds of streaming services (and the growing cost to consumers of having multiple streaming subscriptions),
Digitalentertainment
subscriptions
will
respondents expressed a desire for the way content is offered to be simplified, with nearly half(48%)
sayingthey hopemerge into a single customizable package
digital entertainment subscriptions will merge into a single customizable package.

50%
49%
45%
43%
43%
40%

digital information will be
High-speed internet accessible everywhere and merged digital entertainment subscriptions are Morethe technology
delivered the way I want it delivered(text, images, videos, AR/VR, etc.)
advances that consumers most want to be true in the near future.

Technology desires for the near future (two to four years)

*

60%
56%
58%

The web/apps will be accessible
anytime, everywhere at high speeds no network access (Wi-Fi, etc.)
50%49%

Digital entertainment subscriptions will
merge into a single customizable package
45%
43%
43%
40%

More digital information will bedelivered the way I want it delivered(text, images, videos, AR/VR, etc.)
Websites will be fully personalized tobetter match my specific interests,
needs, and preferences

36%
36%
34%

The web/apps will be more intelligent

33%*Respondentsand
selected
all thatapply.
predict mywants,
andWebsites will be fully personalized tobetter match my specific interests,
needs, and preferences

36%
36%
34%

The web/apps will be more intelligent
and predict my wants, andautomatically adapt to my changing
needs

33%
38%
30%

Websites will increasingly "talk" toeach other, so everysite/app/appliance will present a
personalized experience
None of these

27%
31%
30%
6%
7%
11%
Gen Z

Millennials

Gen X

38%
automatically adapt to my changing
30%
needs
Source: Cognizant/The Center for Generational Kinetics survey, February 2020
Websites will increasingly "talk" toeach other, so everysite/app/appliance will present a
personalized experience27%

Figure 5

None of these
11

31%
30%
6%
7%

11%
/ Catering to ‘Generation Now’: Making Digital Connections Intelligent, Personal and Always-On
Gen Z
Millennials
Gen X< Back to Contents

64%
67%

Good value

72%

Generation Now embraces the connected life, as long as it’s streamlined and efficient.

50%
55%
54%

Good variety

The survey showed different generations shared strong opinions about what they expect from their digital world: Above all, theywant easiness and simplicity – in content experiences, home/device connectivity and disconnecting when users need a digitalSpecific to my interests
break. Across the generations, “direct-to” subscriptions (content and apps) are increasingly
a part of life, a trend which has
accelerated during COVID-19. Free trials are luring subscribers, but nearly 20% of Gen Now say streaming subscriptions are not
worth it. It will be important to keep a close watch on the value delivered to customersEasy
to minimize
subscriber churn after theto find what I want
free trial period.

50%
43%
45%
43%
43%
45%

all devices
Across generations, good value is the most important element making content worth payingonfor.

43%
43%
41%

Easy to use
platform or format

43%
42%

Easily accessible

What most constitutes content worth paying for?*

27%

64%
67%

Good value

37%
32%

New or innovative
27%

72%
20%

50%
55%
54%

Good variety

50%
43%
45%

Specific to my interests

43%
43%
45%

Easy to find what I wantInteractive (ability todetermine storylines,
plots, endings, etc.)

Easy to use
platform or format

43%
42%

Immersive (augmented
or virtual
reality content)

27%
32%

20%
23%
24%
20%

Classic or nostalgic

43%
43%
41%

*Respondents
selected all that apply.
New or innovative

26%
25%

Makes good
recommendations

Easily accessibleon all devices

37%

29%
28%

Informative/educational

29%
19%
12%
14%
14%

Source: Cognizant/The Center for
Generational Kinetics survey, February 2020

9%
Gen Z

Millennials

Gen X

Figure 6

27%
20%
29%
Informative/educational
12 / Catering to ‘Generation Now’: Making Digital Connections Intelligent, Personal and Always-On
28%

Makes good
recommendations

26%
25%

< Back to Contents

Making purchasing
decisions13/ Catering to ‘Generation Now’: Making Digital Connections Intelligent, Personal and Always-On< Back to Contents

Price and quality remain top considerations for millennial and Gen Z consumers.

21%

25% “highmedia aposts
or ads
Our study showed that the two most important factors for Gen Y and Gen Z whenSocial
makingpurchasing
decision is that it is “reasonably priced” and15%
quality,” with price being decisive to 74% of Gen Z and 82% of millennials, and quality critical to 75% and 81%, respectively. Even amidst the pandemic,
17%
an ongoing Morning Consult study of Gen Z on May 1-3, 2020 found that Gen ZThroughpicks quality(with 75% saying it has a somewhat17%
strong impact on brandfamily and friends
loyalty) and price (with 74%) over other brand characteristics.
23%
9%
But how these consumers learn about new products and services, and ultimately what prompts
them to buy, are very
different among
the generations.
Ads for it on TV
17%
28%

Different generations learn about new products from very different sources.

20%

Gen X typically learns about new products from traditional TV, family and friends, while millennials
Ads for it onlineand Gen Z learn about
12%them from social media posts.
11%
Also, Gen Z, more than any other generation, learns about new products from online ads.

21%

Online influencer/celebrity
recommendation or mention

25%

Social media posts or ads
15%
17%
17%

Through family and friends

Email to you directfrom the company

23%
9%
Ads for it on TV

17%
28%

Ads for it on billboards
or magazines

20%
Ads for it online

12%
11%
8%

Recommended to me
while searching online

8%

Recommended to me
while searching online

How generations typically learn about new products

10%
10%

Promoted at an event

10%
10%
9%
6%
3%
3%
4%
3%
6%
3%
2%
2%
2%
1%
Gen Z

Millennials

Gen X

9%

Online influencer/celebrity
Source:Cognizant/The Center for6%
Generational Kinetics survey, February 2020

recommendation or mention

Figure 7

14

3%

3%
Email to you direct
4%
from thetocompany/ Catering‘Generation Now’:
3% Making Digital Connections Intelligent, Personal and Always-On
Ads for it on billboards
or magazines

6%3%< Back to Contents

Word of mouth is the most important factor influencing all generations to try a product.
Gen Z is more likely than older generations to be swayed by products that are trending on social media or endorsed
by a celebrity.
Word of mouth, product launches and live product demonstrations would most influence consumers to try a
new product.
This is especially true for Gen X, while Gen Z, more than older generations is influenced to try a new product because
it’s trending on social media or it’s endorsed by a celebrity, athlete or influencer.

What factors most influence generations to try a new product*
80%79%

Word of mouth among
friends, family, coworkers or peers

87%
57%

Product launch of a brand’s
new line, product or service

67%
74%
54%

Events or live productdemonstrations on the usesand benefits of the product

62%
68%
65%

Trending on social media

60%
47%

Product endorsed by acelebrity, athlete or influencer

43%
32%
23%

Gen Z

Millennials

Gen X*Respondents selected their top three

Source: Cognizant/The Center for Generational Kinetics survey, February 2020
Figure 815/ Catering to ‘Generation Now’: Making Digital Connections Intelligent, Personal and Always-On< Back to Contents

Personal data, privacy & trust

16/ Catering to ‘Generation Now’: Making Digital Connections Intelligent, Personal and Always-On< Back to Contents

All generations studied are concerned about data privacy and worried their personal information could be
used against them – with older consumers more concerned than their younger counterparts. But millennials and
Gen Z are willing to provide some personal data in exchange for a more rapid online experience.
Our research shows a significant number of people are willing to provide highly sensitive personal data to gain a more customized online
experience. For example, nearly one fourth (23%) of total respondents said they’d be willing to provide their social security number,
40% would provide passport information and 54% said they’d be willing to provide family and friend information. While alarming, it certainly
points to the premium people place on personalized experiences.

All generations are more likely to provide their personal data in order to speed up an online
experience compared to better customizing it
LIKELIHOOD
LIKELIHOODOF
OFPROVIDINGPROVIDINGYOUR
YOURPERSONALPERSONALDATADATATOTOBETTERBETTERCUSTOMIZECUSTOMIZEANANONLINE
ONLINEEXPERIENCE*
EXPERIENCE*

LIKELIHOOD
LIKELIHOODOF
OFPROVIDINGPROVIDINGYOUR
YOURPERSONALPERSONALDATADATATOTO SPEEDSPEEDUPUPAN
ANONLINE
ONLINEEXPERIENCE*
EXPERIENCE*

30%
30%

43%
43%

Very
Verylikely
likelyororlikely
likely

43%
43%
38%
38%

Very
Verylikely
likelyororlikely
likely

48%
48%
42%
42%

40%
40%
NeutralNeutral

36%
36%

33%
33%
NeutralNeutral

33%
33%
35%
35%

38%
38%
30%
30%

Not
Notat
atall
alllikely
likelyorornot
notlikely
likely

24%
24%
Not
Notat
atall
alllikely
likelyorornot
notlikely
likely

21%
21%

19%
19%
23%
23%

24%
24%
Gen
GenZZ

Millennials
Millennials

Gen
GenXX

* E.g., allowing browser cookies to track online behavior.

Gen
GenZZ

Millennials
Millennials

Gen
GenXX

* E.g., accepting cookies to tailor relevant content; use of auto-fill forms
on social platforms; etc.

Source: Cognizant/The Center for Generational Kinetics survey, February 2020
Figure 917/ Catering to ‘Generation Now’: Making Digital Connections Intelligent, Personal and Always-On< Back to Contents

Study methodology❙ Custom 31-question survey (26 new questions, 5 repeat questions from 2018 study)
designed collaboratively by Cognizant and The Center for Generational Kinetics (CGK).
❙ The study was administered to 2,000 U.S. respondents ages 15 to 53.
❙ The sample was weighted to the U.S. Census for age, region, gender and ethnicity.
❙ Survey was conducted online from February 21, 2020 to March 2, 2020.
❙ Figures are statistically significant at the 95% confidence level. Margin of error is +/- 3.1
percentage points.
❙ Note: “Total” in any graph represents the sample as a whole. In an instance that a chart
total for a single select question does not add to 100%, please note that this is due tothe minimal effect of rounding.

18/ Catering to ‘Generation Now’: Making Digital Connections Intelligent, Personal and Always-On< Back to Contents

Next Steps: Recommendations
for Consideration
Tapping the potential of a highly connected group:
Where to begin
Over the next three decades, millennials and Gen Z are expected to drive the U.S. economy. And Gen Now will
increasingly live more connected lives in years to come. Cable and telecommunications, media and entertainment
and internet/over-the-top companies should take a number of actions to capitalize on these trends:❙ Speed up and simplify the online user experience – including digital connections, home networks anddevice maintenance.
❙ Build trust through transparency. While concern over the use (or abuse) of personal data remains high,actual online behaviors haven’t changed much. However, with or without government intervention, brands
must take bold steps to deliver on the value exchange between customer and company so that technology
can intelligently anticipate wants and needs and do so in a simple, transparent way that builds trust.
❙ Focus on value. Answer this question from a customer’s perspective: Is it worth it? This applies toconnectivity, content and commerce. For example, there’s a short “honeymoon” phase with subscription
services at the moment, with the vast majority of respondents saying streaming content adds value. But keep
an eye on the one-fifth who disagree.
❙ Apply technologies that give a more complete view of the customer, predict and improve services
offered, and allow intelligent offerings to be brought to market at an even faster pace.
19/ Catering to ‘Generation Now’: Making Digital Connections Intelligent, Personal and Always-On< Back to Contents

Learn More
Visit Cognizant to learn more about this study andhow we are helping companies create new customer
experiences and offerings that drive profitable growth.
Contact Sara Mihan, and Tara Whitehead Stotland
to discuss further.

About Cognizant Consulting

About Cognizant

Cognizant Consulting combines deep domain expertise with advanced technology thinking to help global 2000 companies
worldwide accelerate their digital journeys. By orchestrating capabilities across strategy, design, IT and industry/functional
knowledge, we help clients solve their toughest business-technology challenges at speed and scale, and lead in today’s
dynamic digital age - while planning for whatever tomorrow brings. We do this by applying a keen understanding of theuniquely human aspirations, behaviors and needs of our clients’ customers and employees to first envision and specify, andthen deliver and extend modern digital solutions that enable leading players to differentiate and ultimately separate fromthe competition. Learn more by visiting us at www.cognizant.com/consulting.

Cognizant (Nasdaq-100: CTSH) is one of the world’s leading professional services companies, transforming clients’business, operating and technology models for the digital era. Our unique industry-based, consultative approach helps
clients envision, build and run more innovative and efficient businesses. Headquartered in the U.S., Cognizant is ranked 194
on the Fortune 500 and is consistently listed among the most admired companies in the world. Learn how Cognizant helps
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