Brand Disconnect: How Companies and Customers Disagree On Personalization, AI, And More

It’s vital for a company to know its customers if it, well, wants to remain a company.

Yet, new findings from Twilio and its State of Customer Engagement Report show that while 81% of brands say they have a “deep understanding of their customers,” only 46% of customers agree.

“Companies believe they understand their customers, but there’s a significant disconnect between customer expectations and what brands deliver,” the report says. “Brands also overestimate the frequency and level of personalization they provide. In order to win and keep customer loyalty, businesses must narrow the gap between customer expectations and reality.”

The survey highlights the convenience and relevance that customers like in personalization, with 64% saying they’d leave a brand if their experience wasn’t personalized. When brands didn’t “personalize in real time,” 40% of customers searched for alternative products and services, 31% purchased from a different brand, 29% abandoned an online shopping cart, and 27% decided not to make a purchase.

“The majority of consumers say personalized engagement makes it easier to find what they want online, get relevant recommendations, and get tailored promotions,” the report says. “With so many brands competing for consumer attention, personalizing communications on preferred channels ensures messages cut through the noise and reach the intended audience.”

There were also disagreements between brands and customers regarding AI and its engagement capabilities, with an overwhelming 85% of brands strongly or moderately saying that AI will enhance engagement vs. only 22% of customers who agreed. The report found that 7 out of 10 companies are currently using AI in their personalization efforts, with impactful results that include improved customer satisfaction scores for 45%, better data-driven decisions for 41%, and improved segmentation and targeting for 41%.

(Source: Twilio)

“As brands continue to experiment with and invest in this emerging technology, we expect AI’s business impact to keep intensifying in the coming months and years,” the report says. “To maximize the potential of their data and unlock these advantages, businesses should seamlessly integrate their data tools and technologies with AI.”