Why Trust and Timing Matter More Than AI for Winning Customer Loyalty

AI Alone Won’t Cut It: Twilio’s 6th Annual Report Finds Trust and Timing Drive Customer Loyalty

According to Twilio’s sixth annual State of Customer Engagement Report, AI is delivering clear returns but isn't enough by itself to win customer loyalty. The report, based on a survey of over 7,600 consumers and 600 business leaders across 18 countries, reveals that brands must earn trust and provide relevant experiences in real time to truly connect with customers.

While 96% of companies say AI improves customer-facing operations like support and marketing, only 45% of consumers feel understood by the brands they engage with—a slight decline from previous years. At the same time, 71% of consumers say they’ll abandon purchases if the experience doesn’t feel relevant.

Why Trust and Timing Matter More Than Ever

AI has expanded the possibilities for personalized experiences, but technology alone won’t secure customer loyalty. Brands must respect customer preferences, be transparent, and engage in ways that feel genuinely human. This is especially critical now, with economic pressures making every purchase count.

Brands that successfully combine AI-powered personalization with transparency and real-time relevance are the ones that will build lasting loyalty and increase revenue.

Key Insights from Twilio’s Report

• AI-powered personalization drives revenue but not trust. Over half of brands use AI to customize content, recommendations, and support, and 75% report increased customer spending. Yet, 61% of consumers don’t believe brands use their data in their best interest, while 55% are fatigued by AI messaging.
• Real-time engagement converts and retains customers. 71% of consumers leave purchases behind when experiences miss the mark. Conversely, 88% are more likely to buy when engagement is personalized in real time, but only 44% of brands are currently executing this level of engagement.
• Trust is growing but remains fragile. While 90% of consumers trust some brands, only 15% fully trust them with their data. Most want control over personalization settings (84%) and want to know when they’re interacting with AI instead of a human (54%).
• Smart investments distinguish leaders. Nearly all businesses plan to build custom customer experiences rather than rely on off-the-shelf solutions. Seventy-five percent plan to adopt Rich Communication Services (RCS) in 2025 to enable richer customer conversations.

What This Means for Customer Support Professionals

For those in customer support roles, this report highlights the importance of balancing AI tools with transparent communication and timely, relevant interactions. AI can enhance efficiency and personalization, but support teams must also focus on building trust and giving customers control over their data and experience.

Emphasizing real-time engagement and clear disclosure when AI is involved can help keep customers loyal and satisfied. Investing in training and tools that enable personalized, transparent communication will be key.

For those interested in expanding their AI skills to better serve customers, exploring practical training courses can provide valuable knowledge on using AI responsibly and effectively in customer engagement. You can find relevant AI courses and certifications at Complete AI Training.

Report Methodology

The report is based on a survey conducted between January 3 and February 17, 2025. It included 7,640 global consumers and 637 business leaders with roles in customer experience, marketing technology, and customer data strategy, spanning 18 countries and various age groups from Gen Z to baby boomers.

About Twilio

Twilio’s Customer Engagement Platform powers personalized, direct relationships with customers worldwide. It integrates communications and data to enhance every step of the customer journey—from sales and marketing to service and growth—across 180 countries. Millions of developers and hundreds of thousands of businesses rely on Twilio to create meaningful customer experiences.

Learn more about Twilio at www.twilio.com.

Access the full 2025 State of Customer Engagement Report here: Twilio Report.