Investment in Digital Customer Engagement Generated 70% Revenue Growth for Companies Last Year, Twilio Data Shows
Twilio's latest report shows a significant shift in digital customer engagement, with strategies advancing an average of 6.5 years during the pandemic. Companies investing in digital engagement have seen a 70% revenue boost. However, 55% of businesses are unprepared for a cookieless future, with a reliance on third-party data causing concern. Despite 75% of companies claiming to provide excellent personalization, over half of consumers disagree. The report highlights the gap between consumer expectations and company offerings, emphasizing the necessity of first-party data and effective personalization for survival.
- 70% average revenue increase for companies investing in digital customer engagement.
- Companies' digital strategies advanced by an average of 6.5 years during the pandemic.
- 95% of B2C companies recognize the importance of owning and utilizing customer data for future growth.
- 55% of companies are not fully prepared for a cookieless world.
- 42% of companies expect lower ROI on marketing spend due to impending changes.
- More than half of consumers disagree with companies' claims of providing excellent personalization.
Digital transformation sped up by 6.5 years during the pandemic with no signs of slowing, global survey of 3,450 business leaders and 4,500 consumers shows
That’s according to research released today by
The cookie clock is ticking
Third-party cookies, which are now blocked by Firefox and Safari, will also be blocked by Google Chrome by the end of 2023. Companies need to prepare quickly for these upcoming changes. When asked what kind of customer data their marketing strategy currently relies on, a total of
The deprecation of cookies will cause even more difficulty for brands who rely on such cookies to identify and track visitors to their websites. More than half (
This means that when a key pillar of the advertising- and social media-driven internet disappears, collecting and relying on first-party data won’t just be a competitive advantage anymore – it will be table stakes for survival. Business leaders recognize this –
Personalization: expectations vs. reality
Personalization has emerged as one of the most important aspects of delivering a competitive brand experience that will attract customers and create brand loyalty. In fact, the consequences of not providing personalized experiences to customers can be severe, with nearly two-thirds of consumers saying they’ll stop using a brand if it doesn’t personalize their experience.
However, while both brands and consumers agree that personalization is important, the report uncovered some startling gaps between the two groups.
For instance, most companies (
Five fundamentals to ensure digital survival and success
“The research clearly shows that companies that prioritize digital customer engagement reap the biggest rewards,” said
Key findings from the
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70% is the average top-line revenue increase among companies that invested in digital customer engagement over the past two years. For7% of responding companies, revenues tripled after investing in digital customer engagement. -
B2C companies say that the past two years accelerated their digital transformation strategies by an average of 6.5 years. Among the respondents,
17% of companies say they’ve leaped forward 10 to 14 years. -
75% of companies think they’re providing good or excellent personalized experiences. But more than half of consumers disagree. -
95% of B2C companies believe consumers trust their ability to protect data, but only65% of consumers actually do trust these companies. - Gen Zs and Millennials are more than twice as likely as Baby Boomers to have experienced digital fatigue in the past 30 days.
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The report also provides insights and examples of world-class digital customer engagement from five different leading global organizations – Allianz Direct, Intuit,
Nubank ,The Trevor Project and Electrolux.
The report is based on two surveys conducted by
Twilio’s State of Customer Engagement Report 2022 is available as an interactive experience, letting web users explore the data by region and by country, as well as a 39-page report, at the following link: https://socer.twilio.com/.
About
Today’s leading companies trust Twilio’s Customer Engagement Platform (CEP) to build direct, personalized relationships with their customers everywhere in the world. Twilio’s leading communications APIs enable companies to engage with their customers across voice, conversations, messaging, video and email. Twilio Segment, the leading Customer Data Platform, allows companies to create highly personalized interactions and automated customer profiles based on first-party data from multiple channels.
Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements regarding Twilio’s expectations regarding our platform and solutions, and expectations regarding the impact of recent and future privacy changes, including the deprecation of cookies, on third-party platforms. These forward-looking statements are based on Twilio’s current expectations and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include those described in Twilio’s filings with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20220407005290/en/
press@twilio.com
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FAQ
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