Eight Out of 10 Companies That Invested in Customer Engagement Met Their Financial Goals Despite Turbulent Macroeconomic Environment, Twilio Research Shows
Twilio's latest report highlights the critical role of customer engagement investments in enhancing brand resilience, revealing a 90% revenue boost on average amid economic challenges.
66% of consumers are likely to abandon brands failing to provide personalized experiences, showcasing the urgency for companies to utilize first-party data effectively.
Surveying over 4,700 B2C leaders and 6,000 consumers, Twilio emphasizes the growing demand for personalized interactions and the necessity of addressing consumer privacy concerns to foster loyalty and improve financial performance.
- Investment in digital customer engagement increased average revenue by 90%, up from 70% last year.
- 82% of customer engagement leaders met or exceeded financial goals for 2022 vs 62% of beginners.
- 86% of consumers value personalized experiences, spending 21% more on brands that engage them personally.
- 66% of consumers reported dissatisfaction with brands not personalizing experiences.
- 51% of consumers expressed frustration with inconsistent digital interactions, up from 46% last year.
Twilio’s fourth annual State of Customer Engagement Report reveals customer engagement investments increase brands’ resilience by boosting revenue and improving customer loyalty
Consumer patience with poor digital experiences is waning with
Perception gap between consumers and brands highlights challenges businesses face activating customer data effectively
Twilio’s State of Customer Engagement Report is based on a survey of more than 4,700 B2C leaders in key sectors across the world, plus a parallel survey of over 6,000 global consumers. It also incorporates data from Twilio’s own customer engagement platform, including Twilio Segment, the leading customer data platform (CDP) for 2021 market share according to IDC.1
Twilio’s 2023 research explores essential consumer trends around personalization, data privacy and trust. The findings highlight the urgent need for brands to leverage zero- and first-party data, meaning data collected directly from interactions with customers rather than a third party, in order to improve customer experience and increase customer lifetime value. The stakes of using data effectively are high, with
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Consumers want a faster transition to a cookieless future. Nearly one third of consumers always or often reject cookies on websites, while nearly two thirds (
65% ) of consumers would prefer brands use only first-party data to personalize their experiences. Meanwhile, eighty-one percent of brands are still reliant on third-party data. -
Consumer frustration with inconsistent digital experiences is growing.
51% of consumers report being frustrated with their interactions over the past year, rising from46% the year before. -
Real-time personalization boosts customer lifetime value.
86% of consumers say that personalized experiences increase their loyalty to brands, and consumers spend on average21% more on brands that personalize. -
Consumers trust brands less than brands realize.
95% of consumers want more control over their customer data, placing top priority on “identity data.” Four in 10 consumers say they have stopped doing business with a brand after their expectations for trust and privacy weren’t met.
As part of the research,
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82% of customer engagement leaders met or exceeded their company’s financial goals for 2022, compared to62% of customer engagement beginners -
40% of engagement leaders reported much higher customer retention rates than previous years, compared to12% of beginners -
41% of engagement leaders reported much higher customer conversion rates than previous years, versus15% of beginners.
“In this macroeconomic climate, every business is looking to do more with less budget,” said
Twilio’s State of Consumer Engagement Report 2023 is available as a web report with data available from 18 countries worldwide, and as a comprehensive, downloadable white paper. Both can be found at www.twilio.com/state-of-customer-engagement.
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1 IDC Worldwide Customer Data Platform Market Shares, 2021 Stellar CDP Growth Proves Value of Unified Data for CX - 2022,
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