Heaptalk, Jakarta — Entering 2025, brands are expected to adapt to the new era of hyper-personalization while still focusing on building consumer trust. Technological advancements and shifting consumer expectations have rapidly evolved the brand marketing landscape.
Simultaneously, consumer trust is eroding due to increasing risks associated with data usage. Twilio, a customer interaction platform, unveiled several trends predicted to influence brand experience strategies in the Asia Pacific and Japan (APJ) in the coming year.
Building brand-consumer relationships on a trusted ecosystem
Trust is the foundation of consumer loyalty to a brand, but in 2025, consumer trust is projected to hit an all-time low. According to Twilio‘s 2024 Consumer Preferences Report, 56% of consumers in the Asia Pacific said they would not buy products from a brand they do not trust. With consumers becoming more critical and meticulous, brands must show tremendous respect by putting themselves in their customers’ shoes.
Data will be the cornerstone of this trust ecosystem, while AI will serve as the main driver. Brands will increasingly rely on predictive AI to move away from merely guessing consumer desires, refining recommendations for consumers, and enhancing communication, ultimately strengthening interactions between brands and customers.
According to Robert Woolfrey, Twilio’s Vice President of Communications for APJ, it is time for brands to return to the basic principles of loyalty, such as keeping promises, addressing every consumer complaint, and providing reliable service to customers. “We will see more brands relying on the role of a Chief Trust Officer to help redefine customer experience, marketing, and technology strategies to build lasting customer relationships,” stated Woolfrey.
The future of inclusive verification and authentication
Simplifying the registration and login process and transitioning from password usage to digital verification and/or authentication systems can also help enhance security while improving the customer experience. So far, SMS-based OTP has been the primary method for two-factor authentication (2FA) due to its ease of use and business adoption.
Unfortunately, this method has some limitations, such as the risk of leakage when SIM cards are swapped and the lack of message encryption features that can pose security issues. Brands are expected to utilize new messaging protocols such as Rich Communication Services (RCS) and Silent Network Authentication (SNA).
Discounts and cashback become less effective
A few years ago, discounts and cashback were among the most effective ways to keep customers loyal, but this will not happen in 2025. Brands will shift to creating delightful surprise experiences for customers, making them feel valued as brands pay attention to and consider their individual preferences and behaviors.
For instance, brands can surprise loyal customers instead of offering financial incentives with special access to new products or exclusive preview invitations. This approach requires little cost but provides real value to loyal customers.
This shift is also reflected in the results of a survey conducted by Twilio at the 2024 Retail’s Big Show Asia Pacific, with 36% of retailers in Indonesia stating that they prefer to use customer data to personalize interactions and reach customers strategically through their preferred or most frequently used channels, compared to 27% of retailers who offer incentives such as discount codes and limited-time offers as their customer retention strategy. These findings exhibit data and hyper-personalization are needed in the retail industry.
