Twilio, the customer engagement platform that provides personalized and real-time experiences for companies worldwide, has just released the first edition of the Consumer Preferences report, which offers relevant insights to understand today's consumer. According to the report, 91% of consumers worldwide expect engagement through their preferred channels and are willing to spend 32% (up to 45% in Latin America) more with brands that allow them to communicate through these channels. Conversely, only 54% of brands consistently meet this expectation worldwide.
The document, which analyzes the responses of 3,900 consumers worldwide, including Brazil, provides an in-depth analysis of the main digital communication channels used by consumers, including regional and generational data, in addition to presenting insights to explain changes in consumer behavior and practical tips to improve communication with them, promoting engagement.
“Consumers are being bombarded with messages from companies across all communication channels: WhatsApp, email, voice, SMS, etc. It is imperative that brands reach customers not only on the right channels, but also with the right message and at the right time. Companies have access to data about these preferences of their customers, but they do not use it to improve their campaigns. Those who do this will win the hearts and minds of customers,” says Vivian Jones, VP LATAM at Twilio.
The report highlights consumers' preferred communication channels, how branded communications influence consumer trust, and how quickly consumers expect a company to respond to communications.
In general, consumers prefer digital contact. Email and SMS/MMS remain the most popular communication channels worldwide, preferred by 79% and 49% of consumers, respectively. WhatsApp is very popular in countries like Brazil, where it is the preferred communication channel (77%), tied with email. Adapting the communication strategy to preferences significantly improves engagement, ensuring public service where they are most active.
When choosing the best channels to boost engagement, a revenue increase can be observed. Furthermore, there is greater customer retention, as 40% of consumers state that they are more likely to make repeat purchases when brands use their preferred channels. Finally, there is better customer acquisition, as when brands use preferred channels, 30% of consumers are more likely to make a purchase for the first time.
Ignoring these consumer preferences, on the other hand, can be detrimental, as ineffective communications drain resources and lead to sales and customer losses. 57% of consumers report feeling "sometimes, frequently, or always" frustrated when brands use the wrong channels to communicate with them.
When we talk about generational preferences, the report points out that each generation has distinct preferences, shaped by their experiences with technology. That's why 87% of baby boomers and 83% of Generation X members listed email as their preferred channel, compared to only 77% of Millennials and 70% of Generation Z members. Younger users prefer social media and messaging more. An interesting fact is that Generation Z wants to talk on the phone. 34% of them are open to calls from companies, and they are the generation most likely to actually answer the phone. Millennials prefer WhatsApp, as two in five Millennials listed the messaging app as their preferred channel.
Another important factor is that consumers often prefer different channels for different types of communication, in addition to considering the urgency factor of a notification or contact. Understanding this allows companies to develop an omnichannel communication strategy that aligns with what their audience wants and needs.
Trust and response time
Consumer Preferences also looks at the issue of consumer trust, pointing out that 66% of consumers did not buy from any brand last year due to a lack of trust in brand communication and 49% of them say they would trust brands significantly more if their messages or channels displayed some type of marking, such as the company logo.
Despite this, that reality is already changing, as many companies are already using messages that identify the brand. Last year, 56% of consumers received text messages with the brand highlighted, and of these consumers, 75% stated that this increased their confidence in communication. This number was even higher among Latin American consumers, reaching an impressive 88%.
Additionally, 88% of consumers who received communication with a brand identification reported increased confidence, with this number rising to 95% in Latin America. And finally, 42% of consumers made repeat purchases from brands they trusted through reliable communication methods, with this number reaching 53% in Latin America.
Finally, we arrive at the issue of response time. The report indicates that 86% of consumers say that the ability to send messages to a brand in real time increases the likelihood of completing a purchase, but only 41% of them feel that brands often or always meet their response time expectations. Slow responses left 65% of consumers feeling frustrated and/or irritated, and 72% believing that their time is being wasted by a brand.
The ideal response window, called the Golden Hour, is one hour or more for over half (51%) of consumers. This is reflected in 40% of consumers making a new purchase and 25% making a first purchase thanks to a quick response.
The report also contains many other data and insights, and can be found atlink.
