Singapore – Only half of consumers in Singapore believe that brands are transparent about how artificial intelligence uses their data. This is according to the recent state of customer engagement report by Twilio, which centred on how brands are leveraging artificial intelligence to enhance better relationships with their customers.
Findings of the study revealed that although 96% of Singaporean brands claim to be transparent with customers regarding how AI utilises their data, only 48% of customers share this perception. The same figure (48%) also said that they would trust a brand more if it disclosed how customer data is used in AI-powered interactions.
The report also highlighted that 6 out of 10 consumers consider customer data protection, along with transparent communications including clear terms and conditions, return policies, and privacy, as a top priority for brands to earn their trust.
Additionally, 47% of surveyed Singaporean businesses expressed difficulty striking a balance between security and customer experience this year.
Meanwhile, a significant 82% of Singapore businesses believe they offer ‘good’ or ‘excellent’ customer engagement; however, only 62% of consumers agree, indicating a notable customer experience gap.
It was also observed that AI is playing a crucial role in bridging this divide and enhancing customer engagement, with 7 out of 10 companies already using AI to personalise content and marketing.
In particular, Singapore brands are now experiencing higher customer satisfaction scores (48% of companies), improved market segmentation and targeting (43%), and increased cross-selling and upselling opportunities (41%).
Over half (51%) of Singapore brands further stated that they have the necessary data to understand their customers, and 64% of local businesses believe they have a comprehensive customer profile.
In addition, more than half (52%) of Singaporean consumers also said they are more inclined to spend more with them compared to brands that don’t.
Interestingly, around 57% of customers in Singapore are willing to pay more for a customised experience, and 50% have made repeat purchases from a company based on the level of personalisation they received.
Consumers now expect highly individualised experiences and are less tolerant of brands that do not deliver.
In fact, 61% of surveyed Singaporeans would switch brands if their experiences were not personalised, while 32% have already purchased from a different brand altogether.
Following this report, Liz Adeniji, Area Vice President, Asia Pacific & Japan, at Twilio Segment, said, “Customers today expect personalised experiences but also want to understand how businesses use their data to shape those experiences. Privacy-first measures have to be baked into every stage of implementation when brands utilise AI.”
“With the growing adoption of AI in this region, transparency around data usage is not optional but a critical component of building customer trust and loyalty,” concluded Liz.
