Consumer Behavior

Consumers loving AI, more critical of engagement efforts

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February 27, 2023

Consumers are more critical of customer engagement in the past year and not agreeing with high marks some brands are awarding themselves when it comes to personalization and automation.

In addition, consumer sentiment toward AI experiences are at an all-time high, with Gen Z shoppers the most excited about the technology.

Those are top findings of LivePerson's 2023 State of Customer Engagement report examining how consumers view digital experiences, conversational commerce, chatbot and AI.

The report is based on survey results from more than 2,500 consumers and more than 1,000 brand leaders.

The data revealed large gaps between how brands think about and execute customer engagement strategies and what customers actually want, according to a press release on the findings.

Findings include:

• 57% of consumers say long wait times matter more to them now than they did a year ago. Troublingly, 77% of brands believe the opposite.
• 40% of consumers say they'd switch to a competitor if a brand took more than 30 minutes to reply — even if it was their favorite brand.
• Consumers (especially Gen Z) will spend more when they get personalized experiences, but brands' traditional personalization methods turn them off.
• 76% of consumers (81% for ages 18-24) said they are more likely to make a purchase if they feel a personal connection with a brand. However, they don't want to feel like they're being tracked.
• More than half (58%) don't want brands to use cookies to track their activity for better personalization, but 81% of brands say it's highly important that they do. Worse, 50% of brands think consumers prefer cookies over being asked for information directly in a conversation, when in reality, 69% of consumers feel comfortable doing so.

"There's a number of sharp disconnects between brands and consumers when it comes to customer engagement. While brands give themselves high marks, their customers are actually getting more impatient," Rob LoCascio, founder and CEO of LivePerson, said in the release. "Luckily for brands, consumers report they're looking for personalization, conversation and automation — all of which are achievable through smart use of AI."

Consumers, especially Gen Z, continue to embrace automation and messaging with brands. When it comes to preferred channels, 75% (83% for ages 18-24) are more likely to purchase if they can message with a brand rather than call.

"With positive sentiment toward AI at a record high, and generative AI in particular creating a groundswell of excitement, it should trouble brands that less than half of their customers currently find chatbots easy to use," Ruth Zive, CMO at LivePerson, said in the release. "When it comes to using AI to drive better business outcomes, it's clear that there's significant room for improvement. Brands should be mindful of the fast-evolving AI landscape and learn about emerging capabilities that can help them continuously draw insights and elevate customer experiences."