Majority of Philippine businesses, or 80%, expect messaging-based commerce to be “strategic or transformational for revenue” in the following two years, yet “fragmented” messaging stays a barrier that stifles customer engagement and growth, in keeping with a study commissioned by Rakuten Viber.
The study, released Thursday, surveyed 271 decision-makers from Germany, Greece, Bulgaria, and the Philippines, and was conducted by analysts at Omdia, a technology research group.
The research covers sectors reminiscent of retail, banking, and logistics, aiming to discover key business messaging trends to guide brands on find out how to stay competitive over the following three years.
The optimistic 80% outlook is driven by messaging now being a critical business capability within the local market.
Greater than two-thirds of local organizations, or 68%, already use messaging for transactional notifications, while 67% put it to use for promotional campaigns and 36% for customer support and feedback, the study said.
Nonetheless, this growth is being hampered by a “fragmentation tax,” as businesses struggle to operate seamlessly across Short Message Service (SMS), Over-the-Top (OTT) apps, and email.
The study found that 38% of Philippine respondents discover fragmented communication as a serious roadblock for engagement, while 42% report difficulty reaching customers on their preferred channels.
This fragmentation results in missed conversion opportunities, with 41% of respondents citing low engagement and open rates as a primary challenge and 28% reporting difficulty in converting campaigns into sales.
“The information is evident: the companies that win in the following three years won’t necessarily be those with essentially the most channels, however the ones that remove essentially the most friction,” Cristina Constandache, chief revenue officer at Rakuten Viber, said in a press release.
“By treating messaging as an element of business operations, brands within the Philippines can turn fragmented conversations into consistent growth,” she added.
In response, Philippine organizations are prioritizing platforms that provide seamless integration with Customer Relationship Management (CRM) and core business systems, a feature 46% of organizations deem essential for driving engagement.
To extend the worth of their messaging efforts, 49% of companies are looking toward Artificial Intelligence (AI)-driven personalization.
Security has also change into a top priority, with 65% of local businesses citing strong data protection as a primary driver when selecting a messaging platform.
The research suggests that the longer term points toward a “super app” approach to business messaging that connects workflows, delivers intelligence, and builds trusted, continuous experiences.
This shift is supported by the 43% of surveyed business leaders within the Philippines who consider that consolidating communication channels right into a single platform will help meet business goals over the following two years.
“The following phase of messaging growth will belong to brands that simplify and coordinate – not those who simply add channels,” Adam Holtby, principal analyst at Omdia, said in a press release. — Edg Adrian A. Eva