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News Plus 30 Sep 2024 - 9 min read

As Digital Natives edge towards becoming the inevitable majority, experience design needs to catch up

By Andrew Birmingham - Martech | Ecom | CX Editor

The kids are alright, mostly. The percentage of Australians who have only known a digital world is edging inexorably towards a majority, yet the digital experiences of government and business are still anchored in the messy transitional world of those who also remember a world of real things. To ensure they are delivering the best experiences, brands and governments need to take much more account of the changing relationship the community has with technology according to a report from R/GA. It's a world already familiar to executives we spoke to at Kit (part of CommBank's X-15 ventures) and Bendigo and Adelaide's Up Bank.

What you need to know:

  • Brands and governments need to adapt their digital experiences to reflect the expectations of the emerging digital native demographic who cannot imagine a world before Netscape let alone iPhones.
  • And yet most digital experiences are designed for people who have lived in both realities.
  • Failure to rethink design leads to the risk of alienating this new generation, which has higher expectations for seamless and inclusive digital interactions.
  • But of course there are no easy answers because there's also a risk of upsetting digital adopters.
  • Understanding the relationship digital natives have with technology is crucial, say executives from the CommBank and Bendigo and Adelaide ecosystems.

These are kids who are at school and they're exposed to a digital world that is highly gamified. So they're doing Mathletics for Maths, they are using Reading Eggs on the younger end, and they play with Roblox or Minecraft on the weekend.

Yish Koh, MD of Kit, part of Commbank's X-15 Ventures

The principles of digital experience that govern how businesses and governments create experiences for their target audiences remain anchored in a world where users bring their pre-internet views to the table.

However, with Digital Natives gradually moving towards the majority in the community, there needs to be a shift in thinking to reflect the needs of a cohort that has only ever known the internet.

That’s a key finding in the Gen One research released earlier this year by R/GA. “The Gen One Report – How can we create for the future if our digital experiences are stuck in the past” stresses the importance of adapting digital experiences to meet the expectations of this emerging demographic, which is increasingly shaping the landscape of technology and communication.

Largest demographic

According to Victoria Curro, Managing Director of R/GA Australia, "Australia’s largest demographic is the one that’s never known a world without the internet. We have to evolve the user experience to address the expectations of a generation born with technology, and in doing so we’ll create a more inclusive and accessible future for everyone.”

Based on insights from over 1,500 Australians aged 15 and above, the report highlights what R/GA says is a critical flaw in current digital design strategies, which have primarily catered to Digital Adopters, or individuals who adapted to technology later in life. R/GA's contention in the research is that outdated design approaches risk alienating this new generation, which has higher expectations for seamless and inclusive digital interactions.

The kinds of issues raised in the report resonated with executives Mi3 spoke with who are already delivering services based on the kinds of insights the report revealed.

According to Yish Koh, the managing director of Commbank’s Kit which helps to teach young people financial literacy, “Our target market is five to 14. These are kids who are at school and they're exposed to a digital world that is highly gamified. So they're doing Mathletics for Maths, they are using Reading Eggs on the younger end, and they play with Roblox or Minecraft on the weekend.

“The digital world they experience is highly engaging even when it comes to typically more boring things like education. This is where I think gamification, which is about applying gaming principles to sort of more traditional services like banking, will become a bit of an expectation. It's a little bit of a battle for eyeballs, so to speak. We want to teach kids about money, and get them engaged in their finances.”

To succeed, services like Kit need to push back against the lure of online games, and gamification is a big part of that, Koh says.

“We wanted very much to talk to kids at their eye level, and we want to make it relevant to them and fun. One of the core hypotheses we have is that if kids are having fun, they're going to learn better.”

But it is also important the goal is learning, not just fun for fun's sake. “That's the whole thinking behind having Kit as a character. We have baddies, who are trying to eliminate financial knowledge out of the world, and they have to answer questions to make sure they retain financial knowledge," Koh adds.

Optimism with Gen Z characteristics

The R/GA report reveals Digital Natives, or what the agency labels 'Gen One', maintain an optimistic view of technology's potential to enhance their lives. However, they also express concern over screen time and its impact on their well-being. This demographic prefers short-form, easily consumable content but struggles to balance the benefits and drawbacks of technology.

That’s an issue UP Bank has considered carefully in the design of its app, for instance. According to Anson Parker, chief product officer at Bendigo and Adelaide’s Up Bank, it is important rewards and feedback designed to help customers don’t actually trigger anxieties.

“Let’s say if [the customers] set a spending target for restaurants and they fall just short — for instance —a few days before the end of month we don't say, ‘Oh, you failed, forget it.’ [Instead] … ‘that was incredibly well done, you were just two days short. Or if they blow out halfway through the month, we say ‘Maybe think about revising your target.’”

“You are always trying to avoid the idea that ‘I’m failing, I'm going to disengage, it’s too hard,’ but actually trying to find ways to reposition it.”

Parker also described a feature of Up called Hi-Fi as “a place for people to reflect on their relationship with money”.

“It’s not just some high score table of how much money you have. It's really about understanding people's attitudes and anxieties with money, and trying to give them hints and tips for how they can start to have that healthier relationship and healthier mindset," he says. “We use a quantified score we can track over time and revisit with those customers to track their progress. It is something we really put in as a core part of the app.”

Trust issues

Moreover, trust issues surrounding privacy and data handling emerged as significant concerns in the R/GA report. As Digital Natives are accustomed to sharing information online, they demand greater transparency and stronger assurances from both businesses and governments regarding the security of their data.

To effectively engage this new generation, R/GA recommends a radical rethinking of digital design principles. The report outlines several strategies, including:

  1. Multi-generational Design Architecture: Moving from vertical to horizontal service structures that cater to different life stages and preferences.
  2. Hedonic and Emotional Design: Incorporating enjoyable and emotionally impactful elements into digital interactions to create meaningful experiences.
  3. Hyper-personalisation and Gamification: Offering tailored, gamified content that maintains interest and builds trust among users.

Executive Director of R/GA Public Practice, Tish Karunarathna, emphasises the urgency of this shift, saying, “We set out to understand what makes Gen One different, so everyone can benefit from a digital-first world. Persisting with a Digital Adopter-centric design approach risks alienating Gen One and limiting technological adoption".

Digital Natives, having grown up in a world infused with technology, demand fluid and intuitive interactions that seamlessly integrate into their lives, according to the report. Unlike previous generations, who were often digital adopters—learning to navigate technology as it developed—Gen One embraces it as a natural extension of their existence. Their experiences reflect a digital-first mentality, leading to heightened expectations for service personalisation and accessibility.

The study’s findings also reveal organisations must transition from a reactive to a proactive design approach. The outdated practice of retrofitting existing services for digital platforms is no longer viable. Instead, businesses and government entities are urged to adopt a digital-first ethos that prioritises relationship-driven interactions over a one-size-fits-all model.

A targeted digital-first strategy can help unlock streamlined experiences that resonate with Gen One, ultimately delivering services that are as personalised as they are efficient, the report continues. This approach is not just about keeping pace with technology; it’s about staying relevant in a rapidly evolving landscape where innovation is key to survival.

Moreover, inclusivity must be a priority. The R/GA research makes plain organisations must close the digital divide and ensure that all Australians, regardless of their digital proficiency, have equal access to services. This call for inclusivity is particularly crucial as Gen One has demonstrated a willingness to engage with new technologies, yet still shares the same fundamental life concerns as previous generations, such as financial security and education.

And beware of the contradictions. As Gen One becomes increasingly comfortable with technology, they are also more aware of its potential drawbacks. While they report higher screen time and enjoyment from digital interactions, they also express concerns about the emotional toll of distraction. This duality presents a unique challenge for designers who must create experiences that balance engagement with mindfulness.

Finally, R/GA's findings reveal a generational shift in attitudes towards personal data. Gen One is less concerned about data breaches compared to Digital Adopters, yet they demand ethical usage and transparency from both government and private entities regarding their personal data. This highlights the need for trust and security in service design, as organisations must navigate this evolving landscape of data privacy.

On the risk that designing for Digital Natives just creates new issues with Digital Adopters Stephen Naimo, Group Director, Experience Strategy, R/GA Australia, told Mi3, "Most of the time what you're moving from is an experience that is functional, utilitarian, useful. You achieve what you want to achieve when it comes to your first way of digitisation but you're not getting the results that you're looking for.

"By focusing on these newer Gen One principles that we're proposing, then you're and applying those to what you've already got or upgrading to a redesign, or a rethink, then you're not really giving up appeal to those people, you're thinking about the evolution."

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