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.

The revenue of small and medium-sized enterprises (SMEs) increased by 8.6% in the third quarter of 2024 compared to the previous year, according to the Omie Index of SME Economic Performance (IODE-SMEs). The result represents an acceleration compared to the market performance in the first half of the year (+4.3% YoY), and as a result, the growth totals 5.8% compared to the same period of the previous year.

IODE-PMEs works as an economic thermometer for companies with annual revenues of up to R$50 million, divided into 701 economic activities that make up four major sectors: Commerce, Industry, Infrastructure and Services.

Figure 1: IODE-SMEs
(Index number – base: average 2021=100)

Fonte: IODE-PMEs (Omie)

Felipe Beraldi, economist and manager of Indicators and Economic Studies at Omie, a cloud management (ERP) platform, explains that the expansion of the SME market reflects the favorable moment of the country's economic activity, driven by the sustained strong consumption of families. The heated labor market – with unemployment below 7% and real incomes at higher levels – along with expansionary fiscal policy, especially with the increase in income transfer programs, has been producing significant effects on domestic consumption. "Additionally, although the Central Bank has raised interest rates again due to increased concerns about inflation, the modest cycle of decreases between August 2023 and May 2024 may have benefited some market segments, even if marginally," he adds.

SMEs in Commerce were the main contributors to the overall market improvement, advancing 15.7% YoY in the third quarter of the year, consolidating the recovery trend started in the previous quarter (+4.6% YoY). The results were positive in both retail SMEs (+10.9% YoY) and wholesale (+17.4% YoY), with highlights in 'Packaging', 'Food', and 'Industrial machinery and equipment'. Among the activities with the best performance in retail are 'Pharmaceutical products with formula compounding', 'Paints and painting materials', and 'Electrical materials'.

SMEs in the industry follow the positive trend of the first half of the year (+11.5% YoY), with an additional 9% increase in the third quarter compared to the previous year. "In general terms, the expansion of the sector continues to be widespread among most activities, considering that, of the 22 sub-sectors of the manufacturing industry monitored by IODE-PMEs, 16 showed progress during the period," comments Beraldi. The most relevant activities were 'Transport equipment', 'Furniture', 'Printing and reproduction of recordings', and 'Electrical machinery, appliances, and materials'.

In the Services sector, after a slight slowdown in the second quarter (a 0.6% YoY increase), small and medium-sized businesses resumed showing positive results in the third quarter (+4.0% YoY). The economist explains that, despite the increase in inflation expectations and the return of rising interest rates, the growth of family income ensures the dynamism of various activities in the sector. 'Transport and storage', 'Administrative activities and supplementary services', and 'Building services and landscaping activities' were the activities with the greatest development.

Infrastructure SMEs, in turn, after two quarters of decline, showed growth again in the third quarter of 2024 (+6.5% YoY). The result reflects the progress observed in segments such as 'Waste collection, treatment, and disposal,' 'Electricity,' and 'Specialized construction services.' On the other hand, they limited more positive sector results in recent months to the maintenance of weak performance in some segments of civil construction, such as 'Infrastructure works' and 'Building construction'.

The IODE-PMEs also allows regional analysis. During the period, SMEs in the Southeast and Northeast regions experienced a 7.9% increase compared to Q3 2023. The Southern region advanced by +8.8%. Conversely, the Central-West and North regions showed a decline during the period (-3.1% and -1.6% compared to Q3 2023, respectively).

SMEs must maintain good performance in the short term

SMEs maintain a robust growth trajectory, reflecting the continuation of short-term economic recovery. Based on recent results, the growth expectation for small and medium-sized businesses is +6.4% compared to the previous year. For the last quarter of the year, it is expected that the commercial dates, such asBlack Fridayand end-of-year festivities, further boost the sector.

For 2025, the projection is for a more moderate growth (+2.2% YoY), aligned with the expectation of a slowdown in the Brazilian GDP (+1.9%). According to Beraldi, the increase in inflation and the resumption of interest rate hikes may slow down consumption and investments, especially impacting SMEs from the second quarter of 2025. The stabilization of the labor market and the reduction of fiscal stimuli should also contribute to a slower pace of expansion.

“In terms of sectors, the growth of SMEs is expected to continue to be concentrated in the Services and Commerce sectors, driven by household consumption. The Industry and Infrastructure sectors, which are more dependent on credit, tend to be affected by high interest rates in the short term,” concludes the economist.

Much is said and written about Generation Z. Born from 1997 onwards, raised with the popularization of the internet, advocates of diversity and inclusion, committed to social and environmental sustainability, this segment of the population, which adds numerous other peculiarities in their way of living and relating, will reach the next year representing 27% of the global workforce. In some companies, it already surpasses numerically thebaby boomersborn between 1945 and 1964 To understand the behavior of Generation Z, who aspire to leadership positions in organizations, the Top Employers Institute, a global authority on HR practices excellence, releases the report "Generation Z: Redefining the Future of Work."

The Top Employers Institute brings together over 2,300 certified companies in 121 countries, including Brazil. The unprecedented survey, which interviewed 1,700 people aged 18 to 27 across 9 countries and 4 continents, reveals behaviors, aspirations, and perspectives of a generation of professionals on issues such as leadership, well-being, organizational culture, and artificial intelligence.

“Top Employers organizations in Brazil have many points of identification with the reality presented in the report. Certification contributes greatly to this, as it is a reference in the implementation of these practices, which are considered trends,” says Raphael Henrique, regional manager for Latin America at the Top Employers Institute.

The survey results reveal that Generation Z values work-life balance, purpose-driven employment, growth opportunities, and financially stable companies. Based on these three indicators, Raphael Henrique observes that organizations that adopt these priorities are better positioned not only to attract and retain younger talent but also to ensure the best experience for employees.

More than any other generation, Generation Z wants to reach the position of CEO. In America, there are already over 6,000 professionals aged up to 27 in high leadership positions. But while the long-awaited promotion does not arrive, the global Top Employers survey reveals particularities that also serve as guiding principles for Brazilian organizations.

Among the maininsightsThe research shows that Generation Z primarily wants to be heard in organizations. When asked if they would accept a higher salary if it meant a better work-life balance, 62% of participants responded yes. Of the 1,700 respondents, 82% consider it important to have flexibility to manage their working hours, while also confirming the relevance of choosing the well-being offers provided by the company. Most (80%) say that employers are responsible for the continuous qualification of employees. While 81% said employers should support physical well-being, 83% add that the responsibility also lies in employees' psychological balance.

Regarding "connection and leadership," 78% of respondents believe that work is a place to build communities, social connections, and belonging. The most valued quality in a leader, according to the research, is emotional intelligence. Still regarding leadership, Generation Z believes that a leader must necessarily be motivating, inspiring, and empathetic.

For a hyperconnected generation, artificial intelligence has immediate benefits, such as learning new skills. However, the respondents also express anxiety about how AI would impact their personal and professional lives in the long term.

Generation Z, in Raphael Henrique's view, brings new and challenging perspectives. "But regardless of the generation of professionals, a realignment of values is already necessary. As we embrace the transformations so desired by Generation Z, we move forward to build more inclusive, diverse, empowered, and sustainable corporations," concludes the regional manager for Latin America at the Top Employers Institute.

Access the report “Generation Z: Redefining the Future of Work” athttps://bit.ly/prgenzreport .