Matija Kapic, Regional Director of Customer Services at Infobip
The world embraced digital means to survive the disruptions caused by COVID-19, mainly on the communications front. After the pandemic, communication platform-as-a-service (CPaaS) grew at a CAGR of over 10 per cent. Infobip, a cloud communication platform-as-a-service company, saw B2C communication grow 80 per cent on WhatsApp, 75 per cent in SMS, and 91 per cent in email in 2022 compared to 2021.
However, a 2022 survey by Workday found that the sudden frenetic pace of digital transformation triggered by the pandemic has started losing steam, and companies started putting off their digital transformation.
What caused the sudden change in things?
We spoke with Matija Kapic, Regional Director of Customer Services at Infobip, a full-stack, cloud communication platform-as-a-service, to understand about this trend.
Edited excerpts:
What caused the sudden slowdown of the pace of digital transformation globally? Why are companies putting off their digitalisation plans? Does it have anything to do with the economic slowdown?
In 2020, Workday reported that 36 per cent of companies expected digital transactions to account for 75 per cent or more of their revenues in the next three years. However, in 2021, only 13 per cent affirmed this, a mere 12 per cent increase from what was reported in 2019.
Additionally, most businesses that initially adopted a “fail fast” experimental mentality went from 77 per cent in 2020 to 53 per cent in 2021. Most (59 per cent) of businesses agree that changing to an automated business practice may take a considerable amount of time to have it properly in place, slowing down the transformation even further.
However, despite the challenges, companies are still keen to enhance their organisations’ capabilities further to meet the changing consumer behaviour.
Also Read: Cloud communication platforms: How to choose one for your business
B2C communication has moved from transaction-based messaging to end-to-end conversational journeys across multiple channels, and businesses will need fast and reliable ways to meet customers’ demands. With a reliable partner, these businesses will be able to acquire a solid omnichannel foundation and build rewarding conversational experiences.
In which specific sectors/industries do you see the trend?
At Infobip, we have seen the use of rich digital channels skyrocket. There have been 107 per cent more WhatsApp interactions, 2x more mobile app messaging interactions in retail and e-commerce, 3x more Messenger interactions in transportation and logistics, and 4x more RCS (rich communication services) interactions in the banking and finance sector that have taken place on our platform in 2022.
Most parts of the world have digitalised themselves in all aspects of their organisation. If the other industries are delaying this practice, there is a high chance they will fall behind in progress and business growth. Board leaders must act fast to get up to speed, overcome digital unfamiliarity, and not decline further.
How does it affect the global communications market in general?
If businesses refrain from adopting digitalisation, they will lose approximately US$145 billion of GDP growth. As mentioned before, the world is now digitalised, and there is a risk that they will lose their most valuable asset – their pool of customers.
It’s important to note that the B2C landscape has drastically changed and is becoming more competitive due to a need for faster one-to-one interactions. This is especially so when customers are engaging with brands that they favour.
The shift in communication preferences has led to industry-wide transformations, and at Infobip, we observe more conversational interactions day by day on various platforms.
If businesses are late to implement digitalisation in their communication channels, they will soon be out of touch with their target audience. They will also lose potential profits as a result of dwindling brand awareness.
When do you expect digitalisation to gain steam again? What factors will contribute to it?
Digital transformation is still complex for businesses to understand and acquires multi-layers of processes, especially after the impact of the pandemic. Even so, more and more brands have moved towards providing conversational experiences now more than ever.
It is vital to remember that digital transformation is beyond just technological implementation but a reformation of business processes and customer experiences. It automates customer communication while maintaining a sense of human touch through every interaction.
Such experiences are set up on various channels, utilising different features, functionalities and technologies to facilitate engagements between the brand and its customers.
Through the opportunities of 5G and cloud-based systems, we can see emerging markets in APAC becoming more driven by a rapid-growth mentality. This is mostly because customers are more than ready to adjust and quickly change their environment.
In effect, we specifically expect to see conversational experiences continuing to expand across sectors, from ride-sharing to healthcare as well as the public sector, as organisations try to become more open to such change and embrace a new conversational landscape through digitalisation. Businesses in Asia Pacific will soon pivot towards digitalisation to keep up and cater to the needs of their consumers.
Given the resumption of brick-and-mortar operations, should businesses maintain investment in customer contact centres (physical or virtual) or explore digital solutions alone?
Brick-and-mortar operations offer an “instant experience” where consumers can experience a “right now-right here” concept. However, it’s important to note that the customer journey will not end there – it will move beyond a customer’s first interaction with the brand and continue even after they have made the first purchase.
Also Read: Unlocking growth and retention: Harnessing the power of omnichannel communication strategies
With a growing e-commerce market, customers seek faster one-to-one engagements with their favourite brands.
In 2022, the average internet penetration in APAC alone was 62 per cent. This surge in digital availability has driven organisations to keep up with their customers’ varying needs and preferences, constantly evolving quickly. Because of this, taking up digital solutions allows businesses to seamlessly engage their target customers without fear of losing loyalty and visibility. Digital technologies also provide access to customer data – helping organisations better understand their customers and how they can offer new or improved services.
Based on a survey we’ve done in 2022, customers expect a uniquely personalised shopping experience. This is where businesses need to step in and reframe their approach to focus on improving and elevating the brand experience for their customers. A better experience can enable customers to make favourable decisions when businesses coordinate the buying journey to tailor fit their needs.
This is echoed by 30 per cent of our respondents that customers will become loyal to a brand thanks to personalised communication content.
Over 448 billion interactions took place on the Infobip platform, and in 2022, we found that the most popular two-channel combination used was SMS and WhatsApp (29 per cent), followed by SMS and email (14 per cent). Businesses can greatly benefit from implementing digital solutions to meet growing demands by identifying the right methods and platforms to contact consumers.
Are SaaS and CPaaS cost-efficient solutions for businesses to improve customer service to drive scalable growth or fear digitalisation?
It is no secret that businesses today are expected to be present on multiple channels to engage with their customers effectively. Implementing SaaS and CPaaS allows businesses to manage these different touchpoints seamlessly and deliver a more consistent and personalised experience to their customers – no matter where they are and what platform they choose to be in.
Providers like Infobip offer a service that covers multiple channels on a single platform – meaning instant access to all the communication methods that are readily available without spending unnecessary time and expense of building the system from scratch. This allows the organisation to focus on its core operations with the peace of mind that it comes with no further costs and resources.
Businesses can unlock unparalleled customer experiences when they work with the right partner. For example, our platform enables brands to kick-start their conversational commerce journey through omnichannel capabilities, an ecosystem-first approach, integration of ICT systems, and speed and agility supported by use cases that drive business growth.
Solutions like these are highly customisable as they can cater to a wide range of business needs resulting in increased customer satisfaction and loyalty. It simplifies communication workflows for businesses that, make the management of internal and external communications easier and smoother.
Adopting CPaaS and SaaS is an effective way for businesses to deliver conversational experiences. For example, about 20 per cent of global organisations today use CPaaS APIs to enhance their digital competitiveness, and by 2023, Gartner foresees that nearly 90 per cent of organisations will use CPaaS. We at Infobip have seen CPaaS traffic double in 2022 compared to 2021.
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