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5 Things the Entertainment Business Can Learn From Twilio’s Latest Report

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In Partnership with Twilio Segment

In an era where every playlist, stream, and concert ticket purchases can be tailored to individual tastes, the music and entertainment industries face an exciting and challenging turning point. 

More and more, businesses are gathering data to understand trends and behaviours, but the question remains: How can artificial intelligence (AI) be used ethically to create deeper connections with consumers without compromising trust? 

In a 2024 State of Customer Engagement Report, Twilio surveyed 4,750 businesses and 6,300 consumers from around the world. It reveals the latest strategies brands are using to create personalised relationships with their customers and how AI is doing more than just enhancing customer engagement – it’s revolutionising it. 

Ahead of Variety Australia and leading customer data platform, Twilio Segment’s Live Business Breakfast on June 13th, celebrating the individuals and brands shaping the future of entertainment, we’ve teamed up to unpack the best trends from the report and help companies use AI to enhance their customer engagement. Let’s get into it: 

Variety ANZ

Trend 1: Personalisation at Scale

Brands often think they’re doing a great job at engaging their fans, but it turns out their fans don’t always agree. The report shows 84% of brands think their customer engagement is on point, while only 54% of consumers feel the same. 

The good news is that AI now enables brands to bridge this gap by understanding each fan’s unique preferences, and adjusting content delivery in real-time to suit individual tastes. Twilio found that organisations who are experimenting with AI are seeing good results, like a 45% increase in customer satisfaction scores. 

For music and entertainment businesses, using AI could mean delivering personalised album recommendations, tailoring email marketing messages for upcoming shows, or resolving fan questions and issues. 

Trend 2: Trust as a Cornerstone

The number one thing to remember when it comes to customer engagement? With great power comes great responsibility. To personalise experiences, brands gather a lot of data about their customers. But with privacy concerns on the rise, it’s crucial to be transparent about how this data is used and kept secure. 

The report highlights the industry’s need to prioritise transparency and secure handling of data, ensuring fans’ personal details are protected. In fact, six out of ten consumers see protecting their data as key to building trust. 

So, if music and entertainment brands want to keep their fans loyal, they need to implement strong security measures, like two-factor authentication or explicit opt-ins, and communicate data policies clearly. 


Trend 3: Moving Beyond Cookies

Let’s talk tech for a second. Google is set to phase out third-party cookies soon, and according to the report, 53% of brands are still relying on them for marketing. 

But in this new world, entertainment companies will have to rely on first-party data collected directly from their fans, like what concerts they attend or what artists they listen to. This kind of data will help brands create a more accurate picture of their fans’ preferences and deliver more targeted and ethical marketing. 

With the right tools, like Twilio Segment, brands can use this data to create better customer profiles and personalise their engagement – even when cookies are gone. 

Trend 4: Catering to the Digital Native

There’s no doubt that Gen Z and millennials are digital natives, and they expect most of their interactions with brands to happen on the channels of their choice. According to Twilio, they want almost 70% of their interactions to be digital, compared to 59% for baby boomers. 

So, how should entertainment businesses engage these fans? 

As a first step, they can leverage AI to enhance their digital platforms, ensuring everything is intuitive, engaging, and capable of delivering one-to-one personalised content that’s super convenient to interact with. 


Trend 5: Bridging the Experience Gap

Brands think they know what their customers want, but according to Twilio’s report, only 46% of consumers feel understood. That’s a big gap! 

In music and entertainment, it’s crucial to understand and meet fan expectations. Brands should look at each step of the customer journey to see where fans may be frustrated or confused and make adjustments to ensure the entire experience – from searching for tickets to seeing the show – every step of the journey should be smooth and enjoyable. 

So, there you have it! Twilio’s 2024 State of Customer Engagement Report shows that AI is a game changer for the music and entertainment industries. By cracking it, brands can deliver more personalised and deeper connections with customers.

Read Twilio’s 2024 State of Customer Engagement Report for actionable insights and strategies to elevate your business’s customer engagement. 

Keep an eye out for more insights from the Variety Australia and Twilio Segment Live Business Breakfast, where we’ll be celebrating people and brands doing incredible things in music, comedy and theatre and hosting a panel discussion discussing the future of music festivals in Australia. 

See how Twilio can help your business harness the power of AI here.