New Twilio Study Points to Lack of Customer Data as Major Obstacle to Reaping AI Rewards
09 Aprile 2024 - 3:00PM
Business Wire
Twilio’s fifth annual State of Customer
Engagement Report shows consumers spend an average 54% more on
brands that personalize experiences, yet only 16% of brands have
the customer data they need to do so
49% of consumers say they would trust a brand
more if it disclosed how customer data is used in AI-powered
interactions
Businesses are successfully using artificial intelligence (AI)
to power more personalized, intelligent interactions with their
customers, but face challenges around transparency and lack of
customer data, according to new research from Twilio (NYSE: TWLO).
The customer engagement platform that drives real-time,
personalized experiences for today’s leading brands, released its
fifth annual State of Customer Engagement Report today. The report,
based on a global survey across 18 countries of more than 4,750 B2C
executives and 6,300 consumers, explores how brands are
implementing AI to build better relationships with their customers,
where AI is yielding the most return on investment for brands, and
what engagement trends are most important to consumers.
The report reveals the growing importance of brands disclosing
how they use customer data to deliver AI-powered experiences. It
also issues a clear warning about the risks of underestimating
consumers’ demand for transparency: While 91% of brands say they’re
transparent with customers about how AI uses their data, only 48%
of customers agree.
“Customers today expect personalized experiences and want to
understand how businesses use their data to shape those
experiences,” said Kathryn Murphy, SVP Product at Twilio. “It’s
imperative for brands to be clear about how they use AI, ensuring
that they balance how they deploy it with equally robust measures
to protect customer privacy. Transparency is not optional — it's a
critical component of building and maintaining customer trust and
loyalty.”
Protecting consumer data is the most effective way to
maintain trust
As businesses embrace AI to drive personalized customer
engagement, they gather every customer's click, share, follow,
like, and purchase to understand their preferences and needs. More
than ever, businesses must keep their customers’ data safe to
maintain their trust. This year’s report found that six in 10
consumers say protecting their data is the top way for brands to
earn their trust. Almost half (49%) say they would trust a brand
more if it disclosed how customer data is used in AI-powered
interactions.
Consumers aren’t the only ones worried about data privacy. Forty
percent of businesses surveyed report that finding a balance
between security and customer experience is one of their most
pressing challenges this year. One particular area of focus for
brands is reducing friction during the account signup process,
while keeping customer data safe. In 2024, 40% of brands say
they’re prioritizing simplifying the signup and login process to
improve customer engagement. In 2023, we saw billions of
verifications through Twilio's platform. When a company is
intentional about safeguarding information while maintaining the
right amount of friction to keep out bad actors, whether through
user or two-factor authentication, it fosters mutual trust.
AI bridges the disconnect between brands and customers, but
activating data remains a challenge
The report uncovered a wide customer experience gap: 84% of
businesses say they provide ‘good’ or ‘excellent’ customer
engagement, yet only 54% of consumers agree.
The report found AI is helping businesses close this gap and
improve their customer engagement. For example, seven in 10
companies already leverage AI to personalize content and marketing.
As a result, these forward-thinking brands are realizing a number
of benefits, including higher customer satisfaction scores (45% of
companies), better data-driven decision-making (41%) and improved
market segmentation and targeting (41%).
Although more businesses are embracing AI, the majority struggle
to activate customer data. Only 16% of brands strongly agree that
they have the data they need to understand their customers, and
just 19% of businesses strongly agree they have a comprehensive
profile of their customers.
AI-driven personalization boosts the bottom line
When companies embrace AI-powered personalization, consumers
reward them by spending an average of 54% more with them compared
to brands that do not. Additionally, 55% are willing to spend more
money for a customized experience, while 48% say they’ve made a
repeat purchase from a company based on the level of
personalization they received.
Consumers expect brands to deliver highly individualized
experiences and have little patience for those that don’t: 64% of
consumers surveyed would quit a brand if their experiences aren’t
personalized, while 31% say it’s pushed them to purchase from a
different brand entirely.
That is especially true among younger generations: Almost seven
in 10 Gen Zers and Millennials would stop using a brand that
doesn’t deliver personalized experiences on their preferred
channels. Additionally, more than one-third of them will abandon a
brand that doesn’t engage with them directly in real-time.
The full 2024 State of Customer Engagement Report is available
here.
Report Methodology
Twilio’s State of Customer Engagement Report is based on a
survey of more than 4,750 B2C executives in key sectors and a
parallel survey of over 6,300 consumers in 18 different countries.
It also incorporates data from Twilio’s Customer Engagement
Platform.
About Twilio
Today's leading companies trust Twilio's Customer Engagement
Platform (CEP) to build direct, personalized relationships with
their customers everywhere in the world. Twilio enables companies
to use communications and data to add intelligence and security to
every step of the customer journey, from sales to marketing to
growth, customer service and many more engagement use cases in a
flexible, programmatic way. Across 180 countries, millions of
developers and hundreds of thousands of businesses use Twilio to
create magical experiences for their customers. For more
information about Twilio (NYSE: TWLO), visit: www.twilio.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240409112175/en/
press@twilio.com
Grafico Azioni Twilio (NYSE:TWLO)
Storico
Da Mar 2025 a Apr 2025
Grafico Azioni Twilio (NYSE:TWLO)
Storico
Da Apr 2024 a Apr 2025
