Customer Engagement Can Drive Revenue Growth and Support Financial Goals

Twilio Releases Research on Personalization, Data Privacy and Trust

Customer engagement research

Even with challenging economic conditions, new Twilio research shows that companies that invested in customer engagement reaped rewards, with 80% meeting financial goals. Data from Twilio’s fourth annual State of Customer Engagement Report reveals that investment in digital customer engagement increased brands’ revenue by 90% on average, up from 70% last year.

Amid the now heavily repeated theme of companies needing to do more with less this upcoming year, customer engagement platforms that can support real-time personalization will be important as consumers spend on average 21% more on brands that personalize, and 86% of respondents report personalized experiences increase their loyalty to brands. It is not something companies can afford to let languish, as 66% of consumers claim they will stop using a brand if their experience is not personalized.

“In this macroeconomic climate, every business is looking to do more with less budget,” says Joyce Kim, chief marketing officer at Twilio. “This research reflects what we’re hearing across our customer base, which is that when brands use first-hand data to personalize engagement with customers, it saves companies meaningful marketing spend and increases lifetime value. For brands facing growing headwinds, this means ROI today.”

The survey is based on data from more than 4,700 B2C leaders in different business sectors around the world, plus a parallel survey of over 6,000 global consumers. There is also data from Twilio’s own customer engagement platform, including Twilio Segment.

Related article: Twilio-Qualtrics Integration Supports Enriched Customer Profiles

Other points of interest include:

  • Six out of 10 companies report that investment in digital customer engagement improved their ability to meet changing customer needs.
  • 51% of consumers report being frustrated with their interactions over the past year, rising from 46% the year before.
  • 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.
  • 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 were not met.

Those companies identified by Twilio as engagement leaders, meaning they have the most mature use of personalization and first-party data as well as high level of digital engagement, had higher revenue growth compared to those who have less advanced customer engagement strategies. Customer retention statistics and customer conversion rates were also more favorable in comparison to companies with less advanced strategies.

Delivering relevant content, product offers, and support resources can improve targeting and reduce costs involved with traditional sales and marketing. Leveraging experience technologies and solutions is an important strategy for managing economic downturns. If chosen and implemented well, personalization & optimization technologies can result in deeper loyalty, higher retention, and more seamless customer acquisition.

Author Information

As a detail-oriented researcher, Sherril is expert at discovering, gathering and compiling industry and market data to create clear, actionable market and competitive intelligence. With deep experience in market analysis and segmentation she is a consummate collaborator with strong communication skills adept at supporting and forming relationships with cross-functional teams in all levels of organizations.

She brings more than 20 years of experience in technology research and marketing; prior to her current role, she was a Research Analyst at Omdia, authoring market and ecosystem reports on Artificial Intelligence, Robotics, and User Interface technologies. Sherril was previously Manager of Market Research at Intrado Life and Safety, providing competitive analysis and intelligence, business development support, and analyst relations.

Sherril holds a Master of Business Administration in Marketing from University of Colorado, Boulder and a Bachelor of Arts in Psychology from Rutgers University.

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