SAN FRANCISCO–(BUSINESS WIRE)–The past two years have spurred an unprecedented acceleration of digital transformation for consumer enterprises, advancing their digital strategies by an average of 6.5 years and increasing total revenue by an average of 70% for companies that have invested in digital customer base. commitment.
This is according to a study published today by Twilio (NYSE: TWLO) (LTSE: TWLO), the customer engagement platform that powers real-time, personalized experiences for today’s leading brands. The third annual edition of the company Customer Engagement Status Reportwhich reflects the results of a survey of 3,450 business leaders and 4,500 consumers across 12 countries, found that investing in digital customer engagement and personalization technologies has a significant, measurable and positive on customer retention and trust, as well as revenue.
The cookie clock is ticking
Third-party cookies, now blocked by Firefox and Safari, will also be blocked by Google Chrome by the end of 2023. Businesses need to prepare quickly for these upcoming changes. When asked what kind of customer data their marketing strategy currently relies on, 81% of companies said that at least half of their data comes from third parties. Meanwhile, 85% of consumers want brands to only use first-party data when delivering the kind of personalized experiences they’ve come to expect.
Abandoning cookies will cause even more difficulty for brands that rely on these cookies to identify and track visitors to their websites. More than half (55%) of businesses say they are not fully prepared for a cookie-free world, and 42% of businesses predict that the impending changes will lead to a lower return on investment from their marketing spend.
This means that when a key pillar of the Internet focused on advertising and social media disappears, the collection and use of first-party data will no longer be just a competitive advantage – it will be survival issues. Business leaders recognize this: 95% of them say that fully owning and using customer data will be their main driver of growth over the next three years.
Personalization: expectations vs. reality
Personalization has become 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 delivering 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 brands and consumers agree that personalization is important, the report found some surprising discrepancies between the two groups.
For example, most companies (88%) surveyed believe that personalization is essential to their customer engagement strategy. Yet while 75% of businesses say they provide good or excellent personalized experiences to their customers, more than half of consumers (52%) disagree, reporting poor, poor or average personalization.
Five Fundamentals to Ensure Digital Survival and Success
“Research clearly shows that companies that prioritize digital customer engagement reap the greatest rewards,” said Glenn Weinstein, chief customer officer at Twilio. “Personalization is actually becoming more and more difficult to deliver, with high customer expectations, evolving technologies and the decreasing value of third-party cookies. We have identified five fundamentals to overcome these challenges: Go digital, personalize every interaction, move to first-party data, close the trust gap and avoid engagement fatigue by increasing the quality of your interactions.”
Key findings from the Twilio report include:
70% is the average increase in revenue for companies that have invested in digital customer engagement over the past two years. For 7% of companies surveyed, revenue tripled after investing in digital customer engagement.
B2C companies say the past two years have accelerated their digital transformation strategies by an average of 6.5 years. Among the respondents, 17% of companies say they have leapt forward by 10 to 14 years.
75% of businesses believe they provide good or excellent personalized experiences. But more than half of consumers disagree.
95% of B2C companies think consumers trust their ability to protect their data, but only 65% of consumers actually trust these companies.
Gen Z and Millennials are more than twice as likely as baby boomers to have experienced digital fatigue in the past 30 days.
The report also provides insights and examples of world-class digital customer engagement from five different major global organizations – Allianz Direct, Intuit, Nubank, The Trevor Project and Electrolux.
The report is based on two surveys conducted by Lawless Research in December 2021 and January 2022. The B2C business survey collected responses from 3,450 business leaders, while the consumer survey collected responses from 4,500 consumers. Both surveys included respondents from Australia, Brazil, Colombia, France, Germany, Italy, Japan, Mexico, Singapore, Spain, UK and USA , with 200 to 1,000 responses from each country. Additionally, the report includes an analysis of anonymized aggregate data from over 1.6 trillion interactions that have occurred on Twilio’s platform, including Twilio Segment, over the past few years.
Twilio’s 2022 State of Customer Engagement Report is available as an interactive experience, allowing viewers to explore data by region and country, along with a 39-page report, at the following link: https://socer.twilio.com/.
Today’s large enterprises trust Twilio’s Customer Engagement Platform (CEP) to build direct, one-to-one relationships with their customers anywhere in the world. Twilio’s core communication APIs enable businesses to interact with their customers through voice, chat, messaging, video, and email. Twilio Segment, the leading customer data platform, enables businesses to create highly personalized interactions and automated customer profiles based on first-party data from multiple channels. Twilio enables businesses to use communications and data to add intelligence to every stage of the customer journey, from sales to marketing to growth, customer service and many more engagement use cases in a flexible and programmatic way. In 180 countries, millions of developers and hundreds of thousands of businesses use Twilio to create magical experiences for their customers.
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 these forward-looking statements due to such risks and uncertainties, which include those described in Twilio’s filings with the United States Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release, and Twilio assumes no obligation to update or revise such statements, except as required by law.