Four trends business leaders in Asia need to prioritise in 2024

In 2023, businesses in Asia faced significant challenges, including rising costs, economic uncertainties, and persistent inflation. As we ring in 2024, C-suite leaders are now being confronted with the responsibility of driving growth amid tight marketing budgets and increasing cost pressures.

With a cautiously optimistic outlook for 2024, what should be the top priorities for CEOs and CMOs in Asia to enhance customer relevance and foster business growth?

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There are four crucial levers to unlock uncommon growth in the coming year:

First, optimise your investment allocation across the brand funnel with a focus on generating demand to continually drive conversion and loyalty.

Second, be hyper-focused on your customers. Leaders need to shift from a product-centric mindset towards a customer experience-led proposition to capture a larger total addressable market size and customer share of wallet, and shape perception as a market leader.

Third, adopt a unified marketing operating model to foster effective collaboration and integrated decision-making across business units. This will not only drive synergies but also uncover untapped areas of growth.

Lastly, harness the power of AI to supercharge your growth – from uncovering customer insights for strategic investment decisions, to enabling personalised and engaging experiences for customers.

In this article, we delve into these top strategic priorities, providing insights on how to navigate the evolving market with agility and foresight.

1. Stepping up demand generation as the catalyst to ignite growth

In the post-pandemic era, consumer behaviours have become more intricate and diverse, posing a challenge to the traditional marketing funnel's ability to capture the dynamic nature of these customer journeys. C-suite leaders in 2024 must therefore prioritise a shift towards an agile growth strategy, with a strong emphasis on demand generation.

It is now crucial for C-suite leaders to concentrate on demand-driven strategies for engagement, leads, and conversions throughout the entire customer journey. This involves creating an efficient channel mix using an agile approach for data strategies and crafting unique experiences to promote loyalty, advocacy, and repeat purchases. Most importantly, this requires a human-centric growth strategy rooted in consumer insights.

For instance, AB InBev Korea recently collaborated with Prophet to gain a comprehensive understanding of the Korean beverage market, aligning with consumer needs to identify growth opportunities. This insight-driven approach guided targeted investments in channels and brand activations, stimulating growth within their portfolio.

2024 Priority: Leaders must strategically allocate resources to strengthen demand generation, steering growth strategies based on iterative consumer and market insights throughout the customer journey. This shift will enable marketing efforts to be more effectively aligned to generate demand and propel conversion and loyalty.

2. Strengthening full-funnel customer experience to accelerate conversion

Amid economic uncertainties, 68% of leaders in APAC prioritise business resilience by emphasising on customer service. The Asian Banker reported that 77% of satisfied customers actively advocate for the brand, underscoring the pivotal role of customer satisfaction in retaining the existing customer base and fostering sustainable growth.

As CMOs now assume a more influential role in strategic decision-making, a unique opportunity arises to integrate customer experience (CX) into the organisation's DNA, shifting from a product-centric to an experience-led strategy. At the core of this transformative shift, three key principles should be considered:

First, be more user-driven: Instead of prioritising experience efforts based on operational objectives, leaders should always create experiences rooted in a profound understanding of consumer needs.

Secondly, adopt a holistic perspective: Instead of launching individual experiences as standalone initiatives, businesses should define robust experience strategies to manage signature experiences across various touchpoints as a holistic portfolio, in order to elevate brand equity and optimise customer lifetime value.

Lastly, strive for 'always-on' operational excellence: This involves building, scaling and operating new experiences aligned with clear strategic priorities for continual results, a shift away from the mindset of “innovation pilots” being the end goal.

A compelling example of how an experience-led transformation can drive tangible growth is Singapore Airlines' Kris+. Launched in 2020, Kris+ was conceived as a lifestyle rewards program aimed at engaging users beyond their air travel experiences.

Going beyond traditional mileage rewards, Kris+ consolidates a diverse array of rewards, privileges and payment options into a single app. This innovative approach not only provides users with additional opportunities to enhance their shopping experiences both during flights and on the ground, but also adds substantial value. Singapore Airlines’ potential customer base has expanded and Kris+ currently stands as a significant revenue driver for the airline, boasting over 2.1 million downloads globally since inception.

2024 Priority: An experience-led growth strategy extends beyond the realm of bolstering engagement and loyalty. When executed adeptly, it serves as a catalyst for broadening the total addressable market, augmenting customer share of the wallet, and solidifying the brand's standing as a market leader.

3. Achieving more with less through a collaborative operational model

The role of CMOs has undergone rapid evolution, with an escalating demand for them to demonstrate Return on Investment (ROI) and contribute significantly to overall revenue. Consequently, CMOs are now more intricately involved in decision-making processes that span various facets of business strategy, including CX, product, sales, and, in some instances, directly managing these areas.

For CEOs, establishing robust connections between diverse channels, disciplines, and departments within their organisations is paramount. This not only fosters effective collaboration but also ensures seamless decision-making across different business functions.

A noteworthy case is Luckin Coffee, one of the fastest growing retail coffee chains in Asia. The brand, once on the brink of bankruptcy, was committed to optimising its operational efficiency and quickly turned itself around within just two years, reporting a 7.2 billion RMB revenue in Q3 2023 and an 84.9% YoY growth.

One of the key shifts Luckin took was to evolve CMO Fei Yang’s role to CGO, chief growth officer, to oversee revenue growth, demand generation and customer experience on top of marketing. By integrating user operations and brand marketing, Luckin was able to increase its agility in identifying customer needs, innovating products, launching marketing campaigns and accelerating demand.

2024 Priority: This strategic approach lies in not only the optimisation of resource utilisation but also the revelation of untapped avenues for growth across the entire business. By breaking down silos and fostering collaboration among different functions, businesses can achieve a holistic and streamlined approach to decision-making, ultimately contributing to business success and resilience.

4. Harnessing the power of AI as a transformative force

Generative AI (GenAI) technology has swiftly emerged as a transformative force on a global scale, particularly within the APAC region. An IDC study reveals that 70% of C-suite leaders in the APAC region are actively exploring or have already invested in GenAI. Although the capabilities of GenAI can be harnessed for marketing effectiveness, the stewardship of human insights and brand strategy remains key.

While AI technologies are still in their early stages, capitalising on this momentum requires cultivating a culture of innovation within organisations. This involves not only upskilling teams to adeptly harness AI but also addressing prevailing apprehensions and skepticism surrounding its integration.

Beyond utilising GenAI for productivity, equipping the workforce with essential AI skills positions them to unlock its potential, extracting valuable insights from extensive customer and market data. C-suite leaders, in particular, are encouraged to strategically implement AI to enhance customer experiences and customise offerings based on the dynamic and evolving needs and behaviors of their customers.

An illustrative example of embracing AI integration is 7-Eleven Japan’s plan to leverage AI in 2024 for generating textual and visual content for new products. Grounded in the analysis of store sales data and consumer feedback via social media, this approach is expected to significantly reduce the time needed for product planning and align product distribution with emerging trends.

Similarly, Disney has been a trailblazer in incorporating technology, utilising data from wristbands, IoT sensors, and strategically placed cameras around its resorts. This data-driven approach empowers Disney World operators to identify and address overcrowded areas, offering personalised promotions to encourage customers to move to less congested spaces based on their preferences. Looking ahead, the prospect of Disney using GenAI to enhance personalisation, such as anticipating customers’ dietary needs before they enter restaurants, adds an exciting dimension to its growth trajectory.

2024 Priority: As AI technologies continue to advance, it is imperative for organisations to possess a comprehensive understanding of AI, supported by clear guidelines and policies. This ensures the quality and reliability of AI-driven insights, thereby facilitating informed decision-making in an increasingly dynamic business landscape.

Final Thoughts:

In 2024, the key to igniting business growth is to prioritise demand generation and shift towards an experience-led customer journey. Moreover, it is crucial for C-suite leaders to drive integrated decision-making and harness AI as a transformative force to ignite growth in today’s competitive business landscape.

The synthesis of these strategic priorities will be instrumental in defining success and resilience for C-suite leaders who are navigating the complexities of the year ahead.

This article was written by Virginia Ngai, associate partner and Dency Cheng, senior engagement manager at Prophet. 

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