Even though brands believe they're giving customers what they want, consumers aren’t so sure. The last year saw many brands turning to AI to improve their ability to build better relationships with their customers.
Many brands are actively leveraging AI, with marketing emerging as the primary use case. In fact, seven out of 10 companies say they’re already using AI to personalize content and marketing.
Also, organizations are already experiencing a substantial business impact since adopting AI, with:
As brands continue to experiment with and invest in this emerging technology, we expect AI’s business impact to keep intensifying in the coming months and years.
Perfecting personalization boosts a business' bottom line, as 55% of consumers are willing to spend more money for a customized experience. While consumers report spending an average of 36% more on brands that personalize engagement, businesses estimate they actually shell out an average of 54% more.
It can also increase customer loyalty. 48% of consumers say they’ve made a repeat purchase from a company based on the level of personalization they received.
To maximize the potential of their data and unlock these advantages, businesses should seamlessly integrate their data tools and technologies with AI. This presents a significant opportunity, considering that approximately half of businesses have yet to incorporate AI into their tools.
It is worth noting that Engagement Leaders are more likely to leverage AI in every platform than other lower-maturity brands.
Globally, brands are experiencing varying trends in AI adoption and its impact. Brazil, Colombia, India, and Italy are using AI for content and marketing personalization more than any other country—and their brands’ investments are yielding positive results. Businesses in Brazil, France, India, and Indonesia say leveraging AI has directly increased revenue. That comes as no surprise, especially since consumers in Brazil, Hong Kong, India, Indonesia, and Singapore express a greater likelihood to spend more if AI enhances customer engagement.
Moreover, brands in Brazil, Chile, Indonesia, and Italy stand out for already integrating AI within their CEP tools, reflecting a proactive approach to technology utilization.
Consumers on how their spending would change with improved AI-driven engagement
While many companies are already using AI in some capacity, we did identify a few opportunities where the technology is currently underutilized.
If you haven’t already, consider expanding your business’s use of AI to encompass these areas and more, so you can get the most out of your customer data.
How consumers rate how well brands are personalizing engagement
Percent of consumers who would spend more for personalization
As the largest online auction website in New Zealand, Trade Me is the place to go to find a first home, launch a new business, purchase a car, and more for over 650,000 site visitors a day.
Using Twilio Predictions, Trade Me’s marketing team was able to effectively leverage flexible, out-of-the-box predictive AI models to predict buyer and seller behavior. Then, they used those predictions to run more targeted, timely, and personalized campaigns.
in campaign open rates
in campaign click-through rates (CTRs)
ad campaign performance
