Messaging is strategic for business, a driver for revenue in PHL – study

Majority of Philippine businesses, or 80%, expect messaging-based commerce to be “strategic or transformational for revenue” in the next two years, yet “fragmented” messaging remains a barrier that stifles customer engagement and growth, according to 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 such as retail, banking, and logistics, aiming to identify key business messaging trends to guide brands on how to stay competitive over the next three years.

The optimistic 80% outlook is driven by messaging now being a critical business capability in the local market.

More than two-thirds of local organizations, or 68%, already use messaging for transactional notifications, while 67% utilize it for promotional campaigns and 36% for customer service and feedback, the study said.

However, 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 identify fragmented communication as a major roadblock for engagement, while 42% report difficulty reaching customers on their preferred channels.

This fragmentation leads to 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 data is clear: the businesses that win in the next three years won’t necessarily be the ones with the most channels, but the ones that remove the most friction,” Cristina Constandache, chief revenue officer at Rakuten Viber, said in a statement.

“By treating messaging as a part of business operations, brands in the Philippines can turn fragmented conversations into consistent growth,” she added.

In response, Philippine organizations are prioritizing platforms that offer seamless integration with Customer Relationship Management (CRM) and core business systems, a feature 46% of organizations deem essential for driving engagement.

To increase the value of their messaging efforts, 49% of businesses are looking toward Artificial Intelligence (AI)-driven personalization.

Security has also become a top priority, with 65% of local businesses citing strong data protection as a primary driver when choosing a messaging platform.

The research suggests that the future 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 in the Philippines who believe that consolidating communication channels into a single platform will help meet business goals over the next two years.

“The next phase of messaging growth will belong to brands that simplify and coordinate – not those that simply add channels,” Adam Holtby, principal analyst at Omdia, said in a statement. — Edg Adrian A. Eva