Twilio has released its annual State of Personalisation Report, which highlights perspectives and predictions from business leaders across twelve countries and a diverse range of industries. The report, now in its fifth year, underscores how evolving consumer demands are driving business leaders to focus on delivering predictive, emotionally intelligent, and highly personalised customer experiences. AI is central to this shift, with businesses utilising more dynamic models and metrics, enhancing interoperability between tools such as customer datapPlatforms (CDPs) and data warehouses, and prioritising data privacy and the ethical use of AI.
With AI becoming ubiquitous across industries, Twilio’s research shows that 89 per cent of respondents believe ethical use of AI can be a competitive business advantage, and over half (54 per cent) of business leaders said they are addressing consumer concerns around data privacy and ethical considerations in AI by implementing robust privacy controls. Twilio’s recent State of Customer Engagement Report found that almost half (49 per cent) of respondents said they would trust brands more if they openly disclose the use of customer data and AI-powered interactions. With a careful balance of innovation, transparency, data privacy, and ethical best practices, organisations can maintain consumer trust as they leverage AI to deliver better customer experiences.
“Personalisation is table stakes in the world of marketing. Today’s consumer not only expects brands to understand them, but they want brands to anticipate their needs and AI is making that a reality,” said Robin Grochol, VP product management, Twilio. “In our latest State of Personalisation Report, we found the majority of business leaders are making the shift from reactive to predictive personalisation to help them deliver on increasingly sophisticated and dynamic consumer demands.”
The report also found Gen Z (18-27-year olds) are setting the trends that will shape the future of engagement. A generation of digital natives that grew up immersed in tech, Gen Z hold massive buying power and are breaking the traditional marketing funnel with their unique preferences, including higher expectations for authenticity, transparency, and engagement on their terms. It’s clear that businesses are receiving the message, as 85 per cent of companies currently plan to adjust or optimise their marketing strategy to accommodate the unique needs and preferences of Gen Z consumers.
In alignment with the demands of the Gen Z consumer, 86 per cent of business leaders expect a significant shift from reactive to predictive personalisation across the industry. Brands are pivoting to anticipate what’s next from consumers, using AI/ML to craft experiences tailored to individual needs and preferences. This proactive approach allows brands to actively engage customers with the right messages at the right time.
Artificial intelligence equips businesses with the ability to process massive amounts of data in real-time, providing the needed insights to craft dynamic engagement with customers. This is fundamentally changing the way brands can and will interact with customers. As part of this shift, 82 per cent of leaders emphasise the importance of embedding emotional intelligence, or the ability to respond to human emotions, into AI systems. Additionally,80 per cent of marketers plan to adopt more sophisticated metrics (customer lifetime value, emotional engagement, and brand affinity) to measure the effectiveness of personalisation beyond traditional engagement and conversion rates.
From marketing to customer service, the report found AI will become the silent partner helping companies address consumer expectations and harness data-driven insights to deliver targeted personalization. Additional findings include:
- 73 per cent of business leaders agree that AI will change personalisation and marketing strategies.
- 58 per cent of business leaders believe that AI chatbots will be the most impactful AI-driven personalisation technology over the next 5 years.
- By 2025, 59 per cent of businesses surveyed expect their teams to be using AI daily.
- 72 per cent of companies are using a customer data platform (CDP) for personalisation while 48 per cent are using a data warehouse. A CDP’s strength in handling real-time, customer data meshes seamlessly with the robust, scalable environment of a data warehouse providing a dynamic approach to personalisation.
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