AdminMalaysian businesses are rapidly embracing conversational commerce as a powerful tool to enhance customer experience and engagement. This trend is part of a broader movement across the Asia Pacific region, with digital-native customers setting higher expectations for seamless and personalized interactions with brands.
A recent IDC InfoBrief titled “Revolutionizing Customer Experience through the Power of Conversational Commerce,” commissioned by global cloud communications platform Infobip, sheds light on the growing significance of AI-powered conversational commerce and omnichannel communication platforms in the region. The report not only underscores the importance of customer-centric strategies but also provides a roadmap for brands looking to adopt and leverage conversational commerce effectively.
As customer preferences shift towards more conversational interactions, Malaysian businesses are recognizing the potential of Communication Platform as a Service (CPaaS) and Software as a Service (SaaS) solutions. These technologies allow organizations to integrate real-time communication features such as voice, text, video, instant messaging, and social media into their operations, using developer-friendly APIs as building blocks.
Conversational commerce flourishes during Singles’ Day
One of the key indicators of this shift is the substantial increase in communication interactions, especially during major events like Singles’ Day in 2022. Infobip’s platform witnessed over 70 million communication interactions in the Asia-Pacific region during Singles’ Day, reflecting a 21% increase compared to 2021 and a remarkable 46% surge compared to other days in November. WhatsApp interactions alone grew by 29% in 2022 compared to the previous year.
Conversational commerce’s power lies in its ability to provide a seamless customer journey across multiple touchpoints, leading to increased return on investment (ROI) and improved customer engagement. Moreover, it enables local businesses to expand their reach globally through automated messaging and cloud customer support. A study by Facebook and Boston Consulting revealed that Malaysians are among the highest respondents (26%) who have engaged in conversational commerce transactions.
Velid Begovic, Vice President of Revenue at Infobip, highlighted the transformative potential of conversational commerce, saying, “As businesses embrace the potential of conversational commerce, they position themselves to forge ahead, leveraging AI technology to create meaningful connections and unlock new growth opportunities.”
Continued growth in CPaaS and SaaS solutions
The adoption of CPaaS and SaaS-based solutions is expected to continue rising across the Asia Pacific region. The IDC report indicates that 70% of organizations in the region plan to increase communication platform spending in the coming years. These investments are driven by various motivations, including enhancing customer experiences, creating new revenue streams, improving business processes, and expanding both domestically and internationally.
Nikhil Batra, Research Director, Telecommunication, IDC Asia/Pacific, emphasized the importance of CPaaS in meeting customer demands and achieving business success, stating, “CPaaS solutions are increasingly recognized as crucial catalysts for enabling conversational commerce experiences.”
For businesses embarking on their conversational commerce journey, selecting the right partner is essential. Platforms with omnichannel capabilities and easy integration are recommended to ensure a high-quality customer experience while complying with security and audit policies. Infobip stands ready to assist businesses in Malaysia and across the Asia Pacific region in leveraging the power of conversational commerce to stay ahead in today’s dynamic marketplace.
The adoption of conversational commerce is transforming the way Malaysian businesses interact with their customers, paving the way for enhanced customer experiences and increased customer engagement. This trend aligns with the broader shift towards customer-centric strategies in the Asia Pacific region, positioning businesses to thrive in the digital age.
To gain further insights into the benefits of conversational commerce and its impact on industries in the Asia Pacific region, interested parties can download the IDC Infobrief: “Revolutionizing CX with the Power of Conversational Commerce.”
