A recent poll conducted by the customer engagement platform Twilio has revealed that Australian businesses are still grappling with data security and privacy concerns, hampering their ability to navigate data management amidst the rise of artificial intelligence (AI). The poll, carried out at an event in Melbourne, indicated that over a third of businesses (34%) cited data security as the primary issue preventing them from fully leveraging AI technologies. Additionally, half of the businesses (51%) admitted they do not have a clear strategy for managing data in the era of AI.
Nicholas Kontopoulos, Vice President of Marketing, Asia Pacific & Japan at Twilio, emphasised the need for transparency in using AI. "In an era where brands need to move beyond personalisation to individualising the customer experience across multiple channels, they need to be transparent about how they use AI, balancing privacy with enhancing the quality of interactions between brands and consumers," Kontopoulos stated.
The poll also underscored the ongoing battle businesses face in winning over customers amid persistent cost pressures. Major concerns include staying relevant and keeping up with changing needs (35%), responding to price sensitivity (34%), and handling the cost of operating customer experience (CX) processes (22%). These challenges highlight the delicate balancing act of addressing both operational efficiency and the evolving expectations of consumers.
During his presentations to customer experience and marketing professionals, Kontopoulos showcased how AI has significantly improved customer interactions for clients such as Trade Me and Marks & Spencer. Trade Me, New Zealand's largest online marketplace, has utilised AI for predictive modelling in marketing campaigns, resulting in a 20% increase in campaign open rates and a 10% boost in click-through rates. These enhancements in marketing performance translated into 2-3 times better ad campaign results, demonstrating AI's capacity to transform customer engagement and marketing effectiveness.
Moreover, Trade Me's collaboration with Twilio has reinforced its data security measures by tightening governance processes and controlling access to user data. This partnership illustrates the dual benefits of improved marketing outcomes and enhanced data security, addressing some of the key concerns raised in the poll.
Marks & Spencer has also reaped the benefits of AI implementation, particularly within its contact centre. The deployment of an AI-driven contact centre has led to remarkable efficiencies, achieving a 90% accuracy in call routing. This improvement has not only enhanced customer engagement but also significantly reduced average call times, showcasing the operational benefits of AI
Kontopoulos highlighted that the growing interest and investment in AI for customer experience are creating new opportunities for brands to enhance customer interactions and drive brand advocacy. He stressed the importance of a robust privacy framework in optimising human interactions and reducing redundant manual processes. "As businesses face growing pressures to address data security and operational costs, AI, when used within the confines of a robust privacy framework, can optimise human interactions and reduce redundant manual processes, resulting in better resource utilisation and increased cost efficiency," he said.
