Singapore businesses and consumers mixed on CX rate: survey

Whilst 90% of local businesses rate their customer engagement as 'good' or 'excellent,' only 57% of Singapore consumers agree.

Singapore businesses believe they are delivering strong customer experiences, but their customers don’t feel the same way.

According to Twilio’s 2025 State of Customer Engagement Report, whilst 90% of local businesses rate their customer engagement as 'good' or 'excellent,' only 57% of Singapore consumers agree, widening the perception gap to 33%, up from 20% in 2024.

The findings highlighted a growing disconnect as companies invest heavily in artificial intelligence (AI) to personalise customer experiences. According to the report, AI adoption in Singapore has accelerated, with 94% of businesses now using AI to analyse customer data, up from 66% in 2024.

AI is also increasingly used to ensure brand consistency across channels (77%) and to manage data privacy and compliance (77%).

Despite these investments, many customers remain unconvinced. Only 33% of Singapore consumers feel that brands personalise engagement often, which is below the Asia-Pacific regional average of 41%.

The report warned that this disconnect has real business consequences: 38% of consumers say they may stop using a brand due to impersonal experiences, and 70% would abandon purchases altogether if engagement feels generic.

The report also showed that whilst consumers are increasingly comfortable with AI, human interaction remains important. 75% of Singapore consumers say AI-powered interactions should feel human-like, and 50% still prefer to speak to a person if AI fails to resolve their issue.

In addition, 52% want transparency on when they are speaking to AI, and 86% want to control how brands communicate with them rather than have AI make assumptions.