It is that time of year when increased spending and purchasing present opportunities for businesses. With the festive season already in full swing, companies are working to attract consumers eager to shop. However, the digital age brings unique challenges, including managing high online traffic and ensuring seamless communication across multiple channels. “In today’s world, consumers expect constant communication from brands—whether it’s about deliveries, returns, or defective products. AI and human interaction are coming together to advance customer engagement technologies. Companies are emphasising profitability over growth, with 53% of CXOs shifting their focus towards better customer engagement rather than solely on sales revenue,” Udit Agarwal, VP and global head of marketing, Exotel, told BrandWagon Online.
Brands increasingly recognise the importance of omnichannel communication in fostering meaningful interactions, according to Exotel’s festive survey. With 29% of CXOs expecting their omnichannel platforms to deliver tailored communications, the focus on conversational engagement is evident. Popular channels like WhatsApp, voice calls, and social media are at the forefront, with 24.23% of leaders identifying them as key tools in their communication arsenal.
As per the report, generative AI plays a key role in predictive analytics and personalised customer experiences, particularly in customer experience (CX). AI-driven conversation bots are analysing interactions with agents in real-time, enabling organisations to scale quickly and improve CX. “Despite this, companies are proceeding cautiously with adoption, implementing it project by project. When they see success, they accelerate adoption across the organisation. From a tech investment standpoint, 70% of CXOs are increasing their spending on cloud communication technologies, especially during the festive season. These investments are focused on enhancing customer engagement, automating sales, resolving customer queries faster, and improving delivery times,” Agarwal noted.
Data security takes priority
With the increase in online transactions, protecting customer data emerges as a top concern. The survey indicates that 39.72% of CXOs focus on securing payment gateways and ensuring encryption, while 36.34% prioritise fraud detection. Businesses implement multi-factor authentication, encryption, and regular software updates to safeguard sensitive information. “We’re also in the age of digital payments, and ensuring secure transactions is crucial. Consumers need to feel safe when sharing their financial details online. This means that businesses need secure payment gateways and systems to prevent fraud. Another critical aspect is ensuring privacy, especially in delivery services. For instance, Exotel provides solutions like masking phone numbers to ensure that customers’ identities aren’t misused,” Agarwal said.
Scalability challenges for festive traffic
The festive season brings a spike in customer interactions, which makes scalability a critical issue. According to the survey, 35.03% of CXOs report difficulties in integrating systems without compromising speed or quality. In response, 47.89% of businesses invest in cloud solutions and additional server capacity to handle peak traffic.
However, 34.37% of CXOs still find it challenging to scale operations to meet the evolving demands of customers. The combination of increased traffic and rising expectations puts pressure on brands to optimise their operations and ensure their systems can manage the festive surge.
Agarwal highlights that a company’s technology needs are closely tied to its stage of growth. For startups and direct-to-consumer (D2C) brands, the priority often lies in adopting small, agile solutions that can efficiently handle basic ticketing and manage high call volumes in specific regions. These foundational systems enable rapid response to customer inquiries while maintaining operational efficiency.
As brands progress to the mid-level stage, the focus shifts toward making incremental improvements rather than overhauling existing systems. Instead of completely replacing their current technology stack, mid-level brands should seek out new customer experience (CX) technologies that seamlessly integrate with their existing infrastructure. This approach allows for scalability, enabling brands to enhance their CX capabilities without incurring the high costs associated with full system replacements.
For example, on a big sales day like those run by major e-commerce companies, call volumes can spike dramatically—up to 75 million in one day, compared to an average of 10-12 million. Brands need modular, scalable technology that can handle these spikes without incurring the costs of running at peak capacity every day. It is believed this technology needs to be flexible enough to integrate with cloud services, existing servers, or applications while maintaining security. “D2C brands that operate on platforms like Instagram need high responsiveness and efficient order management. Companies like Shiprocket help these brands by providing last-mile logistics solutions, ensuring safe and fast shipping. For such businesses, technology needs to handle notifications, order tracking, and secure deliveries—like OTP-based systems for high-value products,” Agarwal highlighted.
Influencer marketing ROI
Regarding influencer marketing, it is believed that brands now allocate significant portions of their budgets to this strategy. Influencers help build trust in a brand, especially when they come across as subject matter experts rather than just product endorsers. There’s a difference between a celebrity endorsing a product they’ve never used and an influencer who has expertise in a certain field. “The workflow for influencer-driven purchases involves several integrated systems. For example, a consumer might click on a product link within Instagram, make a purchase, and complete the payment without ever leaving the platform. The technology behind this process—CX platforms—ensures a seamless experience. These platforms integrate with payment gateways, CRMs, ticketing systems, and communication tools, allowing brands to provide contextual engagement and personalised service,” Agarwal said.
It is believed that automated systems and bots also play a significant role, especially during peak seasons. As Agarwal noted, they handle routine inquiries, like price checks, allowing businesses to provide quick responses without the need for human agents. This not only saves time and resources but also ensures that consumers get the information they need without delay. The CX platform records all interactions, allowing businesses to tailor future ads and offers based on past behaviour.