Enterprises are embracing artificial intelligence for its ability to provide personalized customer experiences, according to new findings.
The fourth annual State of Personalization Report from Twilio, developer of a customer engagement platform, demonstrates the value of an AI-driven personalization strategy for brands looking to both retain existing customers and acquire new ones. It revealed that 62% of business leaders cite customer retention as a top benefit of personalization, while nearly 60% say personalization is an effective strategy for acquiring new customers. Consumers also increasingly confirm the value of personalization, with 56% saying they will become repeat buyers after a personalized experience, a 7% lift from last year’s report. Twilio said the findings point to a growing opportunity to build customer loyalty and lifetime value by engaging consumers with tailored experiences.
The report also shines a light on how some businesses are experimenting with AI to differentiate and drive business growth. To power more sophisticated real-time customer experiences, the vast majority of businesses are turning to AI to harness high volumes of real-time data and power their personalization efforts. According to the report, 92% of businesses are now using AI-driven personalization to drive business growth. However, a disconnect exists between this enthusiasm and the comfort level of consumers: only 41% of consumers are comfortable with companies using AI to personalize their experiences, and only half (51%) of consumers trust brands to keep their personal data secure and use it responsibly.
To effectively leverage intelligence technology in a way that strikes a balance with the current comfort level of consumers, businesses must first establish a baseline of trust about the data used to deliver that personalization, said Twilio.
“Today’s consumers are savvier than ever, and their demand for real-time, personalized experiences is growing by the day,” said Katrina Wong, VP of Marketing at Twilio. “More than ever before, we’re hearing and seeing that customer loyalty hinges on effective personalization. While our report shows that businesses are racing to implement AI-powered personalization, and reaping benefits like boosting customer lifetime value as a result, it’s crucial they don’t overlook the importance of trust and transparency. Informed by real-time, first-party data that’s utilized thoughtfully and responsibly, AI has the potential to augment and enhance the toolkit of every marketer and CX professional in the industry, and to usher in a category of next generation, fine-tuned, customer experiences that drive sustainable growth.”
This recent event explored the issue of technology and the customer experience in detail:
Improving the customer experience with technology innovation – NetEvents
