79% of Indian consumers spend more with brands that personalise: Report
Twilio has released its sixth annual State of Customer Engagement Report, revealing a persistent disconnect between how businesses perceive the effectiveness of their AI-powered personalisation efforts and how customers experience them.
The findings show that while Indian brands are adopting AI tools to personalise customer engagement, consumer sentiment remains mixed. Although 80% of Indian consumers rate brand personalisation as good or excellent, only 30% feel that engagement happens consistently.
India is witnessing rapid uptake of AI to analyse consumer data, maintain consistent communication, and meet changing expectations. These efforts appear to be influencing behaviour, 79% of Indian consumers report spending more with brands that personalise interactions, and 98% say they are more likely to make a purchase when engagement is personalised in real time.
The report notes that Indian consumers expect personalisation to go beyond convenience. A majority expect it to provide relevant recommendations (71%), make shopping easier (66%), and instil confidence in brand legitimacy (65%). However, the lack of consistency in personalised engagement suggests brands are yet to fully meet expectations.
This gap has tangible business implications. While 70% of Indian consumers say they are “much more likely” to make a purchase when engagement is personalised, 88% would abandon a transaction if the experience feels impersonal.
Indian consumers also express a strong preference for transparency and human interaction in brand engagement. While AI usage is on the rise, 91% say AI-powered interactions should feel human-like, and 55% expect a human fallback when automation fails to resolve their issue.
Transparency remains a key concern, 72% of consumers want to know when they are interacting with AI. Additionally, 87% of Indian consumers want the ability to choose how brands communicate with them, rather than having AI decide automatically.
“Indian consumers are increasingly aware that while AI-powered personalisation influences buying behaviour, it is not a substitute for relevance, trust and human connection,” said Nicholas Kontopoulos, VP of Marketing, Asia Pacific & Japan at Twilio. “Indian brands are already leading the way, demonstrating a deep understanding of the importance of AI and excelling at delivering personalised experiences. As they continue to scale their use of AI, the next step is to move beyond basic personalisation to true individualisation, where every interaction feels timely, contextual, and humanised. This means putting transparency at the centre, respecting customer preferences, and using data to serve, not just sell. The brands that will lead in India’s next wave of growth are those that get this balance right by blending intelligent automation with authentic engagement to earn loyalty and drive long-term impact.”
The report concludes that the future of customer engagement in India will be shaped by individualisation and trust. As customer loyalty becomes more difficult to secure, businesses are encouraged to invest in transparent, data-driven strategies that blend AI with human-centric engagement to meet rising expectations and build stronger relationships.
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