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Generation Y expect communication to be immediate. They have grown up with mobile phones and instant messaging. If they want to find something out, they turn to their online social networks. It therefore comes as no surprise that traditional advertising and marketing are no longer having the effect they used to on consumers.

A recent global study conducted by America’s CMO Council and the Customer Experience Board showed that it is becoming much more difficult to win customer loyalty. Entitled “Service Invention to Increase Retention” the studied results also showed that:

* 47% of survey respondents said that social networks and user-generated content (UGC) are permanently altering the communications marketplace and redefining customer experience

* 84% percent of respondents reported the cost of customer acquisition and retention is increasing for their companies

* Poor customer service was nomiated as a key contributer to customer dissatisfaction by 34% of respondents

* 50% of respondents believed their companies response to customer dissatisfaction needed improvement

* only 27% of marketers are monitoring online customer communities

* 56% of marketers nominated creating brand preference in a crowded market as their biggest challenge

* 55% of respondents bleieved that social networking and new digital communications increased the importance of customer value, retention and satisfaction.

The full report is available from the Customer Experience Board website.