Twilio’s latest State of Customer Engagement Report highlights a growing disconnect between Singaporean brands and their consumers, despite increased AI adoption. The report, based on a survey of over 7,600 global consumers and 637 business leaders, reveals that whilst 90% of local organisations rate their customer engagement as good, only 57% of Singapore customers agree. This gap has widened from 20% to 33% since last year.
The report shows that Singaporean businesses have significantly increased their use of AI to personalise customer experiences, with 94% now analysing customer data for insights, up from 66% in 2024. However, these efforts have not translated into higher customer satisfaction. Only 33% of consumers feel that brands often personalise their engagement, falling below the regional average of 41%.
This disconnect has tangible consequences, with 38% of consumers considering abandoning brands and 70% likely to abandon purchases if engagements feel impersonal. Conversely, 94% of consumers are more inclined to make purchases when engagements are personalised in real time.
Robert Woolfrey, Vice President of APJ Communications at Twilio, emphasised the need for brands to adopt a more transparent and human-like approach to AI interactions. “When brands focus on delivering individualised experiences that feel human and relevant, they will be better positioned to build deeper, more meaningful relationships with their customers,” he stated.
The report also underscores the importance of human involvement, with 75% of consumers valuing human-like AI interactions and 50% preferring to speak to a person if AI fails. Transparency remains crucial, as 52% of consumers want to know when they are communicating with AI.
The future of customer engagement, according to Twilio, lies in individualisation—creating relevant, timely, and trustworthy interactions. Brands that invest in transparent, data-driven, and AI-powered strategies will be best positioned to earn trust and deepen customer relationships.
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