Twilio’s 2024 State of Customer Engagement Report provides valuable insights into the current landscape of customer engagement and satisfaction, highlighting the increasing importance of AI in shaping consumer experiences. The report surveyed both business leaders and consumers across different age groups and countries, revealing a growing demand for better digital experiences across the board. While most brands believe they understand their customers deeply, less than half of consumers agree, indicating a significant gap that AI and generative AI could help close in the coming year.
One of the key findings of the report is the significant impact that AI can have on customer engagement and business growth. Companies that were deemed Engagement Leaders saw an average revenue increase of 123%, attributed to investments in customer engagement. AI-driven strategies such as personalized content and marketing have led to higher customer satisfaction scores and improved decision-making for many businesses. Consumers are also willing to spend more on brands that offer customized experiences, highlighting the potential for AI to enhance customer connections and drive business success.
Consumer data and trust are closely linked in the digital age, with the majority of consumers prioritizing data protection as a key factor in building trust with brands. However, there remains a gap between consumer expectations and brand transparency regarding the use of personal information. AI can play a crucial role in managing security risks and building consumer trust through more transparent data practices. As brands shift towards first-party data collection to navigate a cookie-less future, there is a growing need for AI tools to analyze and leverage this data effectively for personalized customer experiences.
Younger consumers, including Gen Z and Millennials, are driving the demand for digital experiences, with nearly 70% of interactions expected to be digital. This shift towards digital engagement is evident across all age groups, emphasizing the need for brands to prioritize personalized experiences to retain customers. The gap between brand perceptions of customer engagement and consumer experiences highlights a significant challenge for businesses, with the potential for lost customers when expectations are not met in real time.
As brands navigate the complexities of AI and customer engagement, there is a growing need for transparency and alignment between brand offerings and consumer expectations. The report suggests that while AI can enhance customer experiences, brands must be prepared to collect and analyze data effectively to deliver seamless omnichannel interactions. The coming year may present challenges as third-party cookies are phased out, requiring brands to adapt quickly to first-party data collection to maintain personalized experiences for customers. Overall, AI is expected to play a central role in bridging the gap between brand perceptions and consumer needs in the evolving landscape of customer engagement.
