How consumer businesses can achieve it with digital transformation

The kingdom is bringing in a new era of digitalisation, steered by the ambitious goals outlined in Vision 2030 to drive modernization, diversification, and a brighter future.

With Vision 2030 aiming to increase non-oil GDP to 50 per cent this decade, the nation has been making significant investments to improve its digital landscape and create a conducive environment for business growth.

Large-scale projects such as NEOM Smart City, Red Sea Resort Project, and Qiddiya Entertainment City provide evidence of the kingdom’s investment in its future.

However, to power this vehicle of accelerated growth, two wheels need to move forward and do so in perfect harmony.

One is technology, and the other is a commitment from consumer brands to crafting tailor-made experiences to suit the nation’s customers.

As creating a vibrant society is a key pillar of Saudi Arabia’s Vision 2030, the kingdom has a rich opportunity to create a blueprint and define what ‘excellent’ looks like in terms of customer experience (CX) that fosters brand growth.

According to a report by Martech, 96 per cent of brands in Saudi Arabia list customer experience as a top priority.

In the new experience-centric, digital transformation era that the country is on the cusp of, we believe three factors are crucial in unlocking the kingdom’s true potential and creating a more connected and prosperous future.

Vision 2030 and other programmes are pushing the pace

The Saudi Arabian government has launched several key initiatives that push the digital transformation envelope forward and promote the need for path-breaking CX strategies. Some of these include:

1. Vision 2030:An ambitious blueprint where the kingdom is preparing its people for a connected and technology-forward world. The framework aims to diversify the economy and reduce dependence on oil by developing sectors such as health, education, infrastructure, recreation, and tourism. This shift presents new opportunities for businesses to innovate and enhance CX.
2. National Transformation Program: This programme aims to establish infrastructure and the conditions necessary for achieving Vision 2030’s goals.
3. Saudi Data and Artificial Intelligence Authority (SDAIA):SDAIA is a government agency established to oversee the use of data and AI to drive innovation and improve services across various sectors.

Consumer behaviour in the kingdom

Saudi consumers are becoming increasingly digital and mobile-first. They truly value convenience and have come to expect seamless experiences across online and offline touchpoints.

Understanding consumer behaviour nuances as they rapidly change is vital for a brand to scale in the region.

Balancing the unique duality of tradition and modernity

Unlike any other country, the kingdom boasts a culture that is the perfect mix of rapid technological advancement and traditional cultural norms that value personal relationships and top-notch hospitality.

This unique blend of personal, traditional, and modern requires brands to carefully craft customer experiences that seamlessly integrate touchpoints and channels that respectfully navigate these values.

The CX framework that guarantees success

1. Un-silo customer data: Most brands have customer data regarding purchase patterns, preferences, behaviours, and more across different POS platforms, CRM, and order management systems. This results in unstructured data that hinders brands from getting a 360-unified view of their customers and understanding them completely.
2. Enhance customer analytics: Once you have a unified customer profile that gathers data from online and offline touchpoints and channels, brands can use data analytics to better understand their customer’s needs and preferences to build highly customized experiences for each customer.
3. Enable seamless online-to-offline journeys:Disjointed tools often limit a brand’s ability to leverage real-time data and stitch consistent omnichannel journeys across online and offline channels.
4. Personalise or perish:Well-informed customers, such as the ones in the kingdom, expect personalised recommendations and are more likely to consider it a bad experience if they receive impersonal and generalised communication that they feel isn’t relevant to them.
5. Drive market leadership with AI:AI is being used to enhance personalisation, predictive analytics, and customer service through chatbots and virtual assistants worldwide. One of AI’s most significant use cases in the B2C paradigm is that it has dramatically impacted businesses’ ability to understand their customers deeply.

AI’s predictive analysis capabilities analyse each customer’s past behaviour, preferences, and purchase history to predict the shifts in customer trends, explore current needs, and how they will behave.

Transforming customer experiences in Saudi Arabia requires a holistic approach combining technological innovation, cultural understanding, and customer-centricity.

By embracing these elements, brands can create exceptionally personalised customer experiences that drive loyalty, retention and growth in the Saudi market.

As the country steadily gears toward digital transformation and economic diversification, enhancing CX will be a key factor in achieving sustained success.

Brands that prioritise customer engagement and adapt to the unique characteristics of the Saudi market will not only thrive but also contribute to the broader national goals outlined in Vision 2030.

The writer is the regional VP – Middle East, Africa, and Turkey at MoEngage.