AI Alone Won’t Cut It: Twilio’s 6th Annual Report Finds Trust and Timing Drive Customer Loyalty
71% of consumers abandon irrelevant experiences — brands that personalize in real time and prioritize transparency are winning hearts, trust, and revenue
In a macroeconomic climate where every dollar counts, the stakes are high. While 96% of companies say AI is improving customer-facing operations such as support, marketing, and personalization, and 75% see increased customer spend from personalization efforts, only 45% of consumers feel understood by the brands they interact with, down slightly from 46% in 2024. And despite 83% of business leaders claiming to deeply understand their customers, consumer behavior tells a different story: 71% will walk away from purchases if the experience doesn’t feel relevant.
“AI has opened the door to more personalized customer experiences than ever before — but technology alone isn’t the answer,” said
Key insights from the report show why better CX is the key to AI’s return on investment:
- AI-powered personalization is delivering revenue—but not trust. 56% of brands now use AI to tailor experiences — from personalized content and recommendations to real-time support and dynamic offers — and 75% report increased customer spend. But 61% of consumers don’t believe brands use their data in their best interest, and 55% say they’re tired of hearing about AI.
- Real-time engagement drives conversion—and loyalty. 71% of consumers abandon purchases when experiences fall flat. On the flip side, 88% are more likely to buy when engagement is personalized in real time—but only 44% of brands say they’re executing at that level.
- Trust is rising—but remains fragile. While 90% of consumers trust at least some brands, just 15% “absolutely” trust them with their data. 84% want control over their personalization settings, and 54% want to know when they’re talking to AI—not a human.
- Smart investments are separating leaders from laggards. 96% of businesses plan to build custom CX over buying off-the-shelf—betting on better data, transparency, and automation to stay competitive. 75% also plan to adopt RCS in 2025 to create richer customer conversations.
In a world where customer loyalty is harder to win — and easier to lose — businesses can no longer afford to treat trust and personalization as optional. The 2025 State of Customer Engagement Report makes it clear: brands that build transparent, real-time relationships will be best positioned to drive growth, deepen loyalty, and stand out in an increasingly competitive, AI-driven marketplace.
The full 2025 State of Customer Engagement Report is available here: https://www.twilio.com/en-us/state-of-customer-engagement.
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