Consumer engagement platforms are evolving into the new icons for brand marketing across the Mena region, with their market size projected to peak at $6 billion by 2030 from an estimated $1.5 billion currently, according to RedSeer research.
Popular platforms such as WhatsApp and conversational AI are poised to account for the biggest surge in the consumer engagement market, predicted to garner as much as one-third of the market share.
“In a rapidly evolving business landscape, the focus is shifting from mere short-term profits to long-term and sustainable customer relationships. WhatsApp and conversational AI are at the forefront of this transformative growth, with messaging now taking up a bulk of online time spent by Mena consumers,” the study said.
The market surge is in turn driving transformative cloud-based solutions such as ‘Communications Platform as a Service’ (CPaaS) and ‘Contact Center as a Service (CCaaS) to the forefront for revolutionising businesses on how to connect and engage with their customers.
“CPaaS and CCaaS platforms are redefining how companies connect and engage with their customers, and help them to adapt to the ever-evolving consumer landscape, providing customisable and full-stack solutions to meet cross-industry needs,” the study said.
Mena’s rising daily user-hour digital activities – estimated at close to two billion currently – are revealing the importance of these consumer engagement channels, RedSeer noted.
Engaging digital-first consumer
Regional consumers are dedicating almost half of their daily awake time to personal digital activities, making it essential for retailers to engage with them online, the study said.
This comes at a time when the regional digital economy is transitioning from the acquisition phase to a new era of customer retention, RedSeer finds.
“In this backdrop, industries across sectors must anchor their strategies around delivering superior customer support and engagement across channels.
“Low pricing or occasional discounts might cause an abrupt surge in order volumes, however, consumers now prioritise smooth day-to-day experiences and prompt responses to their concerns and queries which will bear dividends in the medium to long term.”
Fostering direct connections
The tremendous growth projected for consumer engagement platforms drives home the importance of effective customer engagement in driving success and customer loyalty.
“While the usage of such solutions was concentrated among the large BFSI sector and the digital economy in the early days, we see a much more widespread adoption across numerous sectors, such as retail, healthcare, education and even government, in recent times,” RedSeer said.
Brands do not view customer engagement platforms as an additional cost as they have come to realise the revenue upside that can be generated through seamless and direct customer engagement regardless of their locations, the report discovered.
