Brand trust is becoming a key determinant in whether consumers engage with a brand, but equally critical is how quickly and effectively businesses connect with them on the right channel. This is according to the 2024 Consumer Preferences Report from Twilio, the customer engagement platform that drives real-time, personalised experiences for today’s leading brands.
The report was based on a global survey of 3,900 consumers, including 300 individuals from Australia. The report explores current communication preferences, including the channels consumers prefer, how branded communications influence consumer trust and how brands’ response times impact their experience.
Consumers in Australia value trust in their relationships with businesses and this can be strengthened with branded communication
Trust has become a pivotal factor in consumer decision-making when interacting with businesses. Twilio’s research reveals that 68 per cent of consumers in Australia will not purchase from a brand due to a lack of trust.
To meet the rising demand for trust, brands looking to gain customer confidence must ensure their interactions are easily recognisable and secure, be it by including a verification badge or incorporating branding into their communications to consumers. In fact, 74 per cent of Australian consumers say they will trust a brand’s communication more if it includes a verification badge, while 65 per cent report that receiving a branded text message will make a brand more trustworthy.
“As Australian consumers navigate the cost of living pressures and declining trust towards the conduct of brands, it is more important than ever for businesses to actively demonstrate their trustworthiness and reliability. With tools like branded communications at their fingertips, Australian businesses now have the unprecedented opportunity to build trust, strengthen brand recognition and deliver personalised experiences at scale. As richer communication channels emerge, the opportunities for deeper customer engagement will only grow,” said Robert Woolfrey, vice president, APJ, Communications, Twilio.
To strengthen brand identity and foster customer trust, Twilio recently announced the global availability of Rich Communication Services (RCS) messaging via its Programmable Messaging and Verify APIs.
Securing messages to drive revenue
Beyond using branded communications, brands now have an added responsibility of ensuring that their communications are compliant, transparent and secure to win and build trust. Australian consumers indicated they would trust a brand more if they used trust-building measures such as two-factor authentication (2FA) for secure account access or changes (62 per cent) and having a quick response time (63 per cent). Using a recognisable phone number (53 per cent) can also enhance trust. When trust is strengthened between the brand and the consumer, it leads to significant business outcomes, including improved customer retention and more word-of-mouth referrals.
Channel selection is part of the formula for creating lasting customer relationships
Apart from building trust, reaching consumers on a channel they prefer is equally important in keeping customers happy. While 94 per cent of Australian consumers expect brands to use their preferred communication channels, brands only manage to do so 66 per cent of the time, presenting a significant opportunity for businesses to improve and measure up to consumer expectations. Some of the top channels that consumers prefer to receive communications from businesses include email (87 per cent), text messaging (SMS/MMS) (59 per cent) and social messaging apps such as Facebook Messenger and Instagram (35 per cent). General messaging apps (LINE, Telegram, Viber, WeChat – excluding WhatsApp) were the least valued (11 per cent) channels. Connecting with consumers on the wrong channels can have serious consequences: 23 per cent of consumers say they would switch to another business if their preferred channel isn’t used.
Response time is increasingly critical
In this age of digital engagements, consumers are paying greater attention to how quickly brands respond to their inquiries. Unfortunately, the majority of brands are missing the mark, with just 42 per cent of Australian consumers reporting that brands meet their response time expectations. 31 per cent of consumers expect brands to respond within an hour, but the average expected response time can extend up to 30 hours. Delayed responses can lead to customer churn, with 59 per cent of consumers choosing to purchase from another brand due to slow response times. Conversely, 47 per cent of Australian brands that prioritise rapid communication have seen higher customer retention rates, demonstrating the importance of responsiveness in business success.
When executed effectively, customer communications can enhance engagement, drive conversions, and strengthen relationships at every stage of the customer journey. As consumer expectations continue to evolve, Twilio remains dedicated to empowering businesses with the tools they need to communicate effectively with their customers.
