Twilio’s latest State of Customer Engagement Report highlights a growing disconnect between Singaporean brands’ confidence in AI-powered customer engagement and consumer satisfaction. Despite 90% of local organisations rating their customer engagement as good, only 57% of Singapore consumers agree, marking a 33% gap, up from 20% last year.
The report, based on a survey of over 7,600 global consumers and 637 business leaders, shows that whilst AI adoption has increased, with 94% of businesses using it to analyse customer data, the benefits are not translating into customer satisfaction. Although businesses report higher customer spending and cost savings, only 33% of consumers feel that brands personalise their engagement effectively.
This disconnect has tangible consequences. More than a third of consumers may stop using a brand, and 70% will abandon purchases if interactions feel impersonal. Conversely, 94% are more likely to make purchases when engagements are personalised in real time.
Robert Woolfrey, Vice President, APJ, Communications, at Twilio, emphasised the need for brands to bridge this gap by delivering individualised experiences that feel human and relevant. “When brands take a more deliberate and transparent approach to using data, they will be better positioned to build deeper, more meaningful relationships with their customers,” he stated.
The report also underscores the importance of human interaction, with 75% of consumers valuing human-like AI interactions and 50% preferring to speak to a person if AI fails. Transparency is crucial, as 52% of consumers want to know when they are communicating with AI.
The future of customer engagement lies in individualisation, with brands needing to invest in transparent, data-driven strategies to earn trust and deepen relationships. The full report is available on Twilio’s website.
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