Tuesday, June 18, 2024

Report says customer patience in Asia remains ‘low’

A recent research report said consumer patience in Asia and Pacific — including the Philippines — remains low, with 73% of customers saying they will stop using brands if their experience is not personalized.

Twilio’s Fourth Annual State of Customer Engagement Report also said brands continue to overestimate how well they are meeting those expectations, with a personalization experience gap of 27 percentage points between B2C and consumer perceptions.

The report includes findings from Hong Kong, India, Indonesia, Malaysia, the Philippines, and Singapore.

The report revealed that amid constrained resources and economic uncertainty, investment in digital customer engagement increased brands’ revenue by 90% on average, up from 70% last year, globally.

The data also illustrates how customer engagement contributes to business resilience — globally, six out of 10 companies report that investment in digital customer engagement improved their ability to meet changing customer needs, and helped increase customer retention, conversion, and long-term loyalty.

The report is based on a survey of more than 4,700 B2C leaders in key sectors across the world, plus a parallel survey of over 6,000 global consumers.

Twilio’s 2023 research explores essential consumer trends around personalization, data privacy, and trust, which highlight opportunities for brands to directly increase customer lifetime value.

For example, the research found that consumer patience in APJ is low — 73% will stop using brands if their experience is not personalized — and brands continue to overestimate how well they are meeting those expectations, with a personalization experience gap of 27 percentage points between B2C and consumer perceptions.

Key consumer insights in Asia Pacific & Japan (APJ) include:

  • Consumer frustration with inconsistent digital experiences is growing. 53% of consumers in APJ report being frustrated with their interactions over the past year, up from 51% the year before.
  • Precise, real-time personalization improves customer lifetime value. 91% of consumers in the region say that personalized experiences increase their loyalty to brands. Consumers in APJ also spend 24% more on brands that personalize –  higher than the global average of 21%.
  • Consumer trust is lower than brands realize. Consumers in APJ want more control over their customer data, with “identity data” being the top priority. Meanwhile, 44% of consumers in APJ have stopped purchasing from a brand after their expectations for data privacy and transparency weren’t met, exceeding the global average of 41%.

As part of the research, Twilio divided B2C companies into three categories based on their customer engagement maturity: customer engagement leaders, framers, and laggards.

The customer engagement leaders — companies that have the most mature use of personalization, first-party data, and highest level of digital engagement — reported enormous benefits compared to those who have less advanced customer engagement strategies.

These include substantially increased revenue growth, customer retention, and customer conversion rates, along with a greater likelihood of meeting the company’s financial goals.

Globally, 82% of customer engagement leaders met or exceeded their company’s financial goals for 2022, compared to 62% of customer engagement laggards.

Forty percent of engagement leaders reported much higher customer retention rates than previous years, compared to 12% of laggards, and 41% of engagement leaders also reported much higher customer conversion rates than previous years, versus 15% of laggards.

“In this macroeconomic climate, every business is looking to do more with less budget,” Joyce Kim, chief marketing officer at Twilio, said.

“This research reflects what we’re hearing across our customer base, which is that when brands use first-hand data to personalize engagement with customers, it saves companies meaningful marketing spend and increases lifetime value. For brands facing growing headwinds, this means ROI today.”

The report can be found at www.twilio.com/state-of-customer-engagement.



- Advertisement -spot_img




- Advertisement -spot_img