85% of Brands Surpass Revenue Goals Through First-Party Relationships

Exploring the dynamic landscape of customer engagement trends over the past year, the latest Braze report unveils valuable insights into the rise of new AI tools and the challenges involved in creating seamless experiences across various platforms and channels. The report reveals that 85% of brands embracing customer engagement to fuel first-party relationships exceeded their revenue goals in 2023.

“Today’s marketers are facing growing expectations from an increasingly connected consumer, who expects value in exchange for their attention. Marketers are utilizing the power of AI to ignite creativity and craft personalized experiences that resonate with today’s consumer. And by tapping into valuable first-party data and fostering cross-functional collaboration, marketers can transform this data into captivating campaigns that build loyalty and growth,” said Astha Malik, Chief Business Officer of Braze.

In order to elevate customer engagement, Braze has recently unveiled innovative products to enhance brands' ability to connect with consumers more personalized and effectively. 

AI adoption and creativity challenges 

Almost all surveyed marketers (99%) incorporate AI to varying degrees yet face hurdles in harnessing its full potential for creativity and strategy. A staggering 98% of marketers encounter challenges impeding creativity, primarily stemming from a lack of appropriate technology (41%) and difficulties in demonstrating the impact of return on investment (ROI) (40%).

Despite these challenges, there is notable recognition among 79% of marketers of AI's promise to automate routine tasks and free up time for innovative thinking, underscoring its potential to bridge the gap between creativity and ROI.

First-party data utilization for personalization 

Even in the era of advanced technologies, numerous brands find themselves without a holistic strategy to effectively utilize first-party data for personalized experiences. A mere 24% of brands take the initiative to map customer behavior and sentiment, and an even smaller 6% incorporate customer insights into their product and brand strategies.

However, there is progress, as 54% of marketers aspire to elevate upstream and downstream metrics by harnessing the potential of first-party data. This growing emphasis on leveraging first-party data reflects a positive shift in the industry towards understanding and responding to customer behavior more comprehensively.

Cross-channel consistency for long-term loyalty 

With the global expansion of new communication channels, marketers have a unique opportunity to concentrate on delivering consistent and cohesive brand experiences. However, only 37% prioritize such consistency, and 33% resort to multiple isolated solutions for a multi-channel approach, lacking a seamless cross-channel experience.

Successful brands stand out by diversifying their channel investments and prioritizing personalized, consistent messaging. This strategic focus results in a remarkable 6.5X increase in purchases per user compared to messages delivered solely within products, underscoring the tangible benefits of a unified and personalized cross-channel approach.

The report also provides industry-specific insights across financial services, health and wellness, media and entertainment, QSR and delivery, and retail and e-commerce. Notable findings include the emphasis on collaboration and data agility in top-performing financial services brands and the increased marketing budget allocations for growth in retail and eCommerce.

In other news, Braze has expanded its product grant initiative, formerly Tech for Black Founders, now rebranded as Tech for an Equitable Future