Aida Durmić, Regional cross-Industry enterprise squad lead, at Infobip, has outlined how their Moments platform has transformed customer experiences for a major airline in the GCC, and the best practices businesses need to adopt in order to meet growing customer expectations and demand across the logistics landscape. 
In recent years, the transportation and logistics industry in the GCC has transformed significantly.
The rapid evolution of customer behaviors, especially amid the COVID-19 pandemic had a major impact on logistics operations. As a result, logistics providers have been adapting to meeting the rising customer expectations while maintaining operational efficiency.
Rising customer expectations
The pandemic resulted in a shift in customer expectations, with a recent survey by Invesp indicating that 80% of shoppers want same-day shipping options[1]. This expectation is particularly prominent in the GCC, where e-commerce is booming, fueled by a young, tech-savvy population.
According to a report by Boston Consulting Group and Meta Platforms, e-commerce in Saudi Arabia alone is expected to reach $13.3 billion by 2025. As logistics companies strive to meet these demands, they are prompted to rethink their operational strategies and invest in technologies that enhance their responsiveness.
97% of consumers say contact center interactions impact brand loyalty, according to Calabrio’s State of the Contact Center 2022 report. In the Gulf region, where competition is fierce, delivering a superior customer experience can be a significant differentiator. In the transportation and logistics industry, customer satisfaction is often determined by factors such as on-time delivery, order accuracy, and responsiveness to inquiries.
The importance of omnichannel strategies
As promotions, discounts, and exclusive online deals surge, maintaining customer loyalty has never been more critical. An omnichannel approach, integrating various communication channels such as SMS, email, and social media, enhances customer engagement. This strategy allows logistics companies to provide consistent and cohesive experiences across all platforms, meeting customers where they are.
Staying connected with customers plays a huge role in satisfaction and has proven to be a game-changer for businesses in the region. For example, Infobip has successfully implemented an omnichannel strategy for a major airline in the GCC region, significantly improving customer engagement and satisfaction. By leveraging their Moments platform, Infobip integrated various communication channels, including SMS, email, and social media, allowing the airline to provide real-time updates and personalized communication to its customers.
This approach has enabled the airline to engage with customers at every touchpoint of their journey, ensuring a seamless experience. A recent study by McKinsey indicates that 71% of customers now expect personalization in their experiences, and 76% become frustrated when they do not receive it[2]. Infobip’s strategy aligns with this expectation, providing tailored interactions that resonate with the modern customer.
Infobip’s platform has enabled the airline to automate customer interactions, resulting in more efficient service delivery. By analyzing customer data and behavior, the airline can optimize its communications, ensuring that messages are not only timely but also relevant to each individual customer. This level of personalization is essential for building long-term loyalty and trust among customers.
The role of logistics infrastructure
The Gulf region is witnessing significant investments in the logistics infrastructure, including major rail projects aimed at enhancing intra-regional trade. These developments, along with advanced logistics solutions, can help businesses optimize their operations and respond more effectively to customer demands.
Etihad Rail, the UAE’s National Rail Project, aims to connect the UAE’s major cities and ports, providing a more efficient and sustainable alternative to road transportation. By leveraging this new infrastructure, logistics providers can reduce transit times, lower costs, and minimize their environmental impact.
Aside from this, the integration of technologies such as artificial intelligence, blockchain, and the Internet of Things (IoT) can further streamline logistics operations and enhance visibility across the supply chain.
Embracing sustainability
Logistics infrastructure plays a major role in reducing carbon emissions and driving sustainability, which comes in line with the increasing consciousness of customers about environmental issues. As such, in the GCC, where the impact of climate change is particularly critical, companies are under pressure to reduce their carbon footprint and adopt more eco-friendly practices.
This includes optimizing routes, investing in fuel-efficient vehicles, and exploring alternative energy sources such as biofuels and electric vehicles. The future of logistics lies in agility, innovation, and a steadfast commitment to delivering exceptional service.
According to the 2024 Global Transportation & Logistics Industry Report by Benchmark International, the global logistics market is expected to reach $6.55 trillion by 2027, growing at a CAGR of (4.7%) from 2022 to 2027, driven by the demand for sustainable practices and the rise of e-commerce, which has made efficient logistics services more critical than ever[3].
Infobip has actively embraced sustainability by measuring its carbon footprint, setting reduction targets aligned with global standards, and investing in renewable energy solutions, such as installing solar panels to generate clean energy. In addition, Infobip’s Moments platform enables logistics companies to integrate various communication channels, providing real-time updates and personalized interactions that enhance customer engagement while promoting sustainable practices.
For example, one of the challenges within the industry is the inability to deliver packages when the person who ordered the package is not at the address at the specific time. Infobip’s solution directly contributes to solving this problem and, in doing so, also contributes to sustainability and cost efficiency.
As the global logistics market grows, driven by sustainable practices and e-commerce, the future of logistics in the GCC hinges on agility, innovation, and exceptional service delivery.
[1] https://www.invespcro.com/blog/same-day-delivery/
[2] https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-personalization
[3] https://www.benchmarkintl.com/insights/2024-global-transportation-logistics-industry-report/
