3 ways engagement leaders are closing the customer expectation gap

3 days engagement leaders are closing the customer expectation gap

In the age of individualisation, can you satisfy customers demanding high levels of personalisation at every touchpoint? 

Our 2024 State of Customer Engagement Report reveals a disconnect between the two. While 84% of businesses say they provide ‘good’ or ‘excellent’ customer engagement, only 54% of consumers agree. 

However, there are several brands getting customer engagement right. With top tools in their tech stack and the help of AI, these engagement leaders saw an average revenue increase of 123% in 2023 - compared to only 30% for low-maturity brands. 

Here are three ways to follow their lead, close the expectation gap and deliver the tailored solutions your customers need, in the perfect time and place. 

3 customer engagement highlights

With responses from 4,700 business leaders and 6,300 consumers, the report provides a deep dig into the strategies, tools and tactics you need to futureproof your customer engagement. 

And these highlights clarify three ways engagement leaders are staying ahead of the pack: 

1. Activate customer data

Just 16% of brands strongly agree they have the data they need to understand their customers and only 19% of businesses strongly agree they have a comprehensive profile of their customers. But the problem usually isn’t a lack of volume of data. It’s consolidating the data you do have to build a holistic view of customers, then sending it downstream to tools activating hyper-personalised experiences. 

Engagement leaders activate customer data in several ways, including:

• Centralising data in a CDP (Customer Data Platform), to establish a ‘single source of truth’, build smoother customer experiences, and deliver real-time customer personalisation. 

• Creating Golden Customer Profiles for a comprehensive view of each customer’s preferences, behaviour and history. Matching this information with their favourite communications channels delivers deep personalisation and allows customers to skip seamlessly between channels.  

2. Integrate AI tools

Marketing is emerging as one of the best use cases for AI, with 7 out of 10 companies already using it to personalise content and marketing. And the business impact for early adopters is significant, with 45% seeing improved customer satisfaction scores and 41% experiencing improved market segmentation and targeting. 

17% of the business leaders surveyed globally qualify as engagement leaders, forging ahead with omnichannel engagement, personalised CX and embracing first party data. And these trailblazers are more likely to leverage AI in every platform than lower-maturity brands – expecting their investment in digital customer engagement to increase 133% by 2027. 

There are several underutilised ways ambitious brands can make the most of AI, including: 

• AI-powered fraud detection and prevention tools which protect their assets, mitigate reputational damage and enhance customer trust. 

• Incorporating AI into existing tools, like CDPs and CEPs (Customer Engagement Platforms)  – where 47% of brands plan to add AI capability by 2025. This allows businesses to build a unified view of each customer, combining new and historical data from different channels to enhance personalisation, improve customer journeys, predict future behaviour, and drive sales. 

3. Increase personalisation

How much of a difference does increasing personalisation make to your bottom line? 

The survey says it’s a big one. In fact, 55% of consumers are willing to spend more money for a personalised experience, with 48% of consumers saying a high level of personalisation made them purchase repeatedly from a company. 

Every generation appreciates personalisation on its preferred channel. But it’s practically mandatory for younger customers – almost 7 in 10 Gen Z and Millennial consumers say they’ll stop using a brand if it doesn’t deliver personalised experiences. 

With brands clamouring for the attention of their audience, who are already flooded with ads and messages across every platform, personalised communications stand out, making it easier for the right message to reach the right person at the right time. 

Engagement leaders are harnessing personalisation by: 

• Building omnichannel strategies to make it easy for customers to pick up interactions from a brand where they left off – regardless of the channel. 

• Meeting younger customers on their favourite channels, like social media and chat apps like WhatsApp and SMS. 

Catch up with the customer engagement leaders

Closing the customer expectation gap isn’t easy. But by focusing on the sweet spot where AI assistance meets data activation, you’ll deliver the deep personalisation today’s consumers demand.

No matter where you are in your journey, detailed guidance on delivering excellent CX helps you step into customer engagement leadership. 

Get the actionable insights you need in Twilio’s 2024 State of Customer Engagement Report.