They Dare To Disagree: Brands, Consumers Differ On Privacy, Personalization

Brands and consumers are not exactly seeing eye to eye on the customer experience.  

Eighty-one percent of companies say they have a deep understanding of their customers, but only 46% of consumers agree with this view, according to the State of Customer Engagement Report, a study by Twilio. 

That may be why 76% of businesses say personalized customer engagement is a high priority in 2024. 

Customers demand it. Of those polled, 64% would quit a brand that fails to personalize the experience. Moreover,  40% have sought other products and services, while 31% have purchased from a different brand, 29% have left an item in a shopping cart and 27% have decided not to make a purchase. 

Despite this desire for personalization, consumers say brands must protect their data to maintain trust. That includes 67% of baby boomers, 64% of Gen X, 61% of millennials and 56% of Gen Z. 



And while 91% of brands claim they are transparent about how AI uses their data, only 48% of consumers agree.

Yet brands cite these use cases for AI: 

  • Personalize content and marketing — 70%
  • Resolve customer questions and issues — 69% 
  • Personalize product recommendations — 69%
  • Understand user needs and pain points — 69%

Marketers have improved in one regard: only 14% say they still use third-party data — down from 50% last year.  

Meanwhile, 45% of companies see improved customer satisfaction scores using AI, 45% report better data-driven decision making and 41% are experienced improved market segmentation and targeting.  

Brand leaders say that 82% or more of their customer engagement is digital, and that they personalize these interactions 70% of the time.  

Twilio surveyed 4,750 business leaders and 6,300 consumers across 18 countries between Nov. 16 and Dec. 22, 2023. 

Next story loading loading..