Twilio predicts Australian 2025 customer experience trends

Twilio has released several predictions for 2025 that are expected to influence customer experience strategies in Australia.

Robert Woolfrey, Vice President for Communications in APJ, discussed consumer trust and its impact on brand relationships. He stated, "The future of brand relationships will be built on an 'Ecosystem of Trust'. Trust has always been the cornerstone of brand loyalty, but in 2025, consumer trust is poised to hit an all-time low. According to Twilio's 2024 Consumer Preferences Report, 68% of consumers in Australia say they will not purchase from a brand they don't trust."

He added, "With consumers growing increasingly cynical and scrutinising every interaction, brands must demonstrate greater respect by putting themselves in their customers' shoes. It's time to return to the basics in 2025—keeping promises, following through, and delivering reliable and supportive experiences, during key moments of truth. As the focus shifts towards cultivating an 'Ecosystem of Trust', more brands will turn to Chief Trust Officers, to help redefine customer experience, marketing, and technology strategies for building lasting customer relationships."

On the application of AI, Woolfrey noted, "AI will continue to be a key driver in solidifying this 'Ecosystem of Trust'. Brands will increasingly bet on predictive AI as they strive to eliminate guesswork, refine recommendations and improve communications ultimately strengthening brand-customer interactions."

Ben Chamlet, Senior Director for Solutions Engineering in APJ, addressed shifts in customer loyalty strategies. "Consumers are giving retailers a run for their loyalty. More brands will turn away from traditional "earn-and-burn" models," he said. Chamlet explained that brands will focus on experiences that "surprise and delight customers, making them feel valued."

He further commented on loyalty programme opportunities, "A key priority will be around strengthening 'phygital' loyalty programmes, combining in-store activations with special offers for loyalty members. Brands will become more intentional about leveraging data to test, iterate, and quickly refine their loyalty strategies."

Chris Connolly, Solutions Engineering Lead for Communications, APJ, discussed advancements in chatbot technology. "2025 will mark a turning point in front-line communications as the focus shifts towards eliminating friction in such chatbot engagements," he stated.

Connolly added, "Beyond conversational AI, brands are also realising the potential of intelligent AI agents that can offer/upsell products and services, take action on customer issues, make decisions within constraints, and operate across communication channels."

Discussing changes in verification and authentication methods, Connolly remarked, "In 2025, we can expect a significant shift in how brands approach user authentication, driven by the emergence of new messaging protocols like RCS, Silent Network Authentication (SNA) and Passkeys."

Liz Adeniji, Area Vice President, Asia Pacific & Japan, at Twilio Segment, highlighted the role of data as a competitive advantage. "Data will become the X factor as LLMs level the playing field," she said, speaking on the importance of intelligent data management.

She also mentioned a trend towards data expiration, "One emerging trend is the shift towards data expiration, as brands recognise the risks of holding excess data while customers grow more protective of their information."

Adeniji further observed, "In 2025, more organisations will move away from isolated, point solutions as they realise the value of breaking down silos. Emerging technologies like CDPs and data warehouses will continue to gain traction, serving as unifying forces that dissolve the traditional silos that exist within business divisions and teams."