AI's Transformative Impact on Customer Engagement and Closing the Expectation Gap

Explore AI's game-changing role in customer engagement

Exploring AI's game-changing role in customer engagement The recent boom in predictive and generative artificial intelligence (AI) has triggered a new wave of customer engagement. Armed with this novel technology, brands can now move away from one-to-many marketing campaigns and instead focus their efforts on creating hyper-personalised customer experiences. We're calling this shift the age of individualisation. Through surveys of business leaders and consumers alike, we gained valuable insights into how brands are leveraging AI to enhance customer interactions, alongside how customers expect businesses to engage with them in 2024 and beyond. From our research results, we uncovered a number of key priorities for brands. here are three key findings. Putting customer engagement at the forefront It's official: AI is redefining customer engagement. 70% of businesses say they're already using AI to customise content and marketing, suggesting that those who haven't yet turned to AI-powered solutions are potentially missing out. By harnessing the power of AI, companies can gain deeper insights into customer behaviour, preferences, and needs, allowing them to adapt their offerings and communications accordingly for greater engagement. For example, Banking app Chime connected their AI-powered interactive voice (IVR) solution to the customer data pipeline, enabling deeper analysis of customer trends that led to a 12% increase in customer satisfaction. Powering greater personalisation With 76% of businesses saying personalised customer engagement is a high or critical priority in 2024, it's clear that greater personalisation is not just a nice-to-have; it's now a business imperative. By seamlessly integrating data tools and technologies with AI, businesses can improve the customer experience across multiple touchpoints, from social media interactions to customer service inquiries. Tailoring your marketing can have a significant impact on the bottom line through improving loyalty and retention rates - and can even drive new customer conversions. Using Twilio Segment, IBM Cloud created machine learning models to recommend tailored solutions and use data to proactively reach users with 1:1 product messaging. As a result of these personalisation efforts, the Cloud team increased product adoption by 30% and revenue by 70%. Overcoming the obstacles of AI However, while AI presents exciting opportunities for businesses, it also comes with its own set of hurdles. 40% of businesses said finding a balance between security and customer experience will be one of their most pressing challenges in 2024, with data privacy concerns continuing to be a major issue. Consumers are demanding greater transparency and control over their personal information. As businesses collect and analyse vast amounts of customer data to power their AI systems, they must prioritise data privacy and security to build and maintain trust with their customers. One way to do this is with a customer data platform (CDP). Trustpilot uses Twilio Segment - a leading CDP - to automate the collection and unification of data at scale. The CDP aligns data streams with the company's data privacy and governance standards, enabling the Trustpilot team to proactively respect customer privacy and adhere to all relevant regulations. Embrace AI to build better relationships with your customer Investing in the right data and communications platforms is crucial to harnessing the full potential of AI while mitigating risks associated with data privacy. By doing so, businesses can not only deliver better engagement for their customers, but also achieve stronger results for their bottom line. To take a deep dive into how you can leverage the power of AI, download Twilio's 2024 State of Customer Engagement Report, where you'll uncover actionable insights and recommendations on how to boost customer engagement.

3 ways engagement leaders are closing the customer expectation gap

3 days engagement leaders are closing the customer expectation gap In the age of individualisation, can you satisfy customers demanding high levels of personalisation at every touchpoint? Our 2024 State of Customer Engagement Report reveals a disconnect between the two. While 84% of businesses say they provide 'good' or 'excellent' customer engagement, only 54% of consumers agree. However, there are several brands getting customer engagement right. With top tools in their tech stack and the help of AI, these engagement leaders saw an average revenue increase of 123% in 2023 - compared to only 30% for low-maturity brands. Here are three ways to follow their lead, close the expectation gap and deliver the tailored solutions your customers need, in the perfect time and place. 3 customer engagement highlights With responses from 4,700 business leaders and 6,300 consumers, the report provides a deep dig into the strategies, tools and tactics you need to futureproof your customer engagement. And these highlights clarify three ways engagement leaders are staying ahead of the pack: 1. Activate customer data Just 16% of brands strongly agree they have the data they need to understand their customers and only 19% of businesses strongly agree they have a comprehensive profile of their customers. But the problem usually isn't a lack of volume of data. It's consolidating the data you do have to build a holistic view of customers, then sending it downstream to tools activating hyper-personalised experiences. Engagement leaders activate customer data in several ways, including: 2. Integrate AI tools Marketing is emerging as one of the best use cases for AI, with 7 out of 10 companies already using it to personalise content and marketing. And the business impact for early adopters is significant, with 45% seeing improved customer satisfaction scores and 41% experiencing improved market segmentation and targeting. 17% of the business leaders surveyed globally qualify as engagement leaders, forging ahead with omnichannel engagement, personalised CX and embracing first party data. And these trailblazers are more likely to leverage AI in every platform than lower-maturity brands - expecting their investment in digital customer engagement to increase 133% by 2027. There are several underutilised ways ambitious brands can make the most of AI, including: 3. Increase personalisation How much of a difference does increasing personalisation make to your bottom line? The survey says it's a big one. In fact, 55% of consumers are willing to spend more money for a personalised experience, with 48% of consumers saying a high level of personalisation made them purchase repeatedly from a company. Every generation appreciates personalisation on its preferred channel. But it's practically mandatory for younger customers - almost 7 in 10 Gen Z and Millennial consumers say they'll stop using a brand if it doesn't deliver personalised experiences. With brands clamouring for the attention of their audience, who are already flooded with ads and messages across every platform, personalised communications stand out, making it easier for the right message to reach the right person at the right time. Engagement leaders are harnessing personalisation by: Catch up with the customer engagement leaders Closing the customer expectation gap isn't easy. But by focusing on the sweet spot where AI assistance meets data activation, you'll deliver the deep personalisation today's consumers demand. No matter where you are in your journey, detailed guidance on delivering excellent CX helps you step into customer engagement leadership. Get the actionable insights you need in Twilio's 2024 State of Customer Engagement Report.