Q] WebEngage has seen impressive growth with 4X ARR between 2020 and 2023. What were the key drivers behind this rapid expansion, and how have you managed to sustain this momentum?
WebEngage, a 13-year-old marketing automation company, builds tools to enhance user retention and drive repeat transactions for marketing teams and consumer enterprises. Our focus is on leveraging existing customers to drive growth rather than solely acquiring new ones. Our tools integrate data analytics with various campaigns, powering push notifications and emails for companies like Myntra, Goibibo, and Eureka Forbes. The shift in business models, especially for traditional enterprises, is a key growth driver for us. Companies like Unilever, Marico, and Colgate-Palmolive are increasingly focusing on user experience, a change from their historical distribution-centric approaches. This transition has led to significant adoption of WebEngage by major clients like Unilever, Adani, Portronics, IKEA, Cipla, and Pidilite.
Q] Who are your top clients, and who are the top spenders in terms of consumer engagement?
WebEngage serves customers across India, the Middle East, Asia Pacific and Latin America. India makes up nearly half of our business, with 30% from the Middle East and Africa. Our clients fall into two categories: consumer tech companies and traditional enterprises. Notable consumer tech clients include Groww, Goibibo, Myntra, Spinny, Sugar Cosmetics, and MyGlamm. We also work with traditional enterprises like Unilever, Adani Group, Eureka Forbes, Cipla, and Pidilite.
Q] WebEngage has taken a unique approach by building a team of ‘Retention Consultants.’ Could you tell us how this consulting model works, what are your expectations from it, and what impact it has had on your clients?
WebEngage distinguishes itself with a comprehensive approach to the complex field of marketing automation. We not only empower customers to use our tools effectively but also guide them in understanding their specific goals, ensuring they don’t just view us as a basic campaign tool but as a strategic partner in increasing their revenues and margins. Retention is a new category in marketing, and there’s a shortage of skilled professionals. To address this, we bring in highly skilled Retention Consultants to the table, who assist customers in strategising and executing effective campaigns. For example, we help clients set specific KPIs and break down broad goals like increasing sales into actionable steps, such as boosting the basket size of premium customers. Our Retention Consultants (RCs) guide customers by developing hypotheses, running experiments, and measuring success. They also conduct detailed quarterly reviews to explore what’s working, identify opportunities, and plan the next steps. A common challenge in MarTech is proving ROI and demonstrating ROI. We address this by clearly defining and achieving ROI metrics - with some clients experiencing improvements in Average Customer Lifetime (ACL) or ROI in as less as three months.
Q] With a significant portion of your business coming from the Middle East and Africa, how do you plan to further penetrate these markets, and what unique challenges do you face in these regions?
The Middle East and Africa account for about 30% of our business, and we are optimistic about growth in these regions. Airtel Africa is a major customer, utilising WebEngage for consumer engagement across 13 countries. In Saudi Arabia, the Sultan Centre is a key client. Despite challenges like a severe talent shortage and complex market conditions, the UAE and Saudi Arabia offer significant opportunities. We have a strong partner ecosystem and a large team in Dubai to support growth. We have a long standing commitment towards these markets. We also established a Data Residency in the KSA region in alignment with the local policies and in the interest of security & privacy.
Among WebEngage’s 70 onboarded clients last year, about 35 are SMEs and mid-market companies — a segment contributing up to 40% to the GDP of emerging economies like KSA. So, the segment’s growing affinity for automation and insights-led customer engagement in Saudi is a promising sign of greater value creation.
WebEngage has already set the ball rolling on its new plans, with recruitment for client-facing roles and a physical office setup underway. The operational expansion will help better serve 100+ clients in Saudi, most of whom lead their respective categories: Conglomerates, family offices, omnichannel retailers, ecommerce, perfumery, consumer electronics, public sector, healthcare providers, travel and hospitality, and professional services.
Q] What strategic steps are you taking to differentiate WebEngage from other players in the market?
We differentiate ourselves through our product and support ecosystem. Our Customer Data Platform (CDP) integrates all user data, addressing the challenge of - data-rich yet insights-poor; especially for large enterprises with scattered data. WebEngage offers a globally leading CDP, and we continually enhance it. Additionally, our support ecosystem sets us apart. We provide unique onboarding and support through retention consultants and educational initiatives, including university courses and our certification and academy. Our focus on both product and service ensures our customers’ success, which drives our success.
Q] With the increasing importance of first-party data, WebEngage has made significant investments in this area, including setting up data residency in Saudi Arabia. How do you see the role of first-party data evolving in the coming years, and what are the implications for your business?
A Customer Data Platform (CDP) collates and makes sense of first-party data, providing a 360-degree view of customers. For example, in fintech, a CDP integrates data on income, spending, and investments into a single profile. We have excelled in solving this integration challenge. While first-party data has been important, many businesses previously focused elsewhere. Transitioning to a data-first approach is challenging, especially for companies with a distribution-centric history. However, as digitisation accelerates, WebEngage is well-positioned to benefit from the shift towards a first-party data mindset.
Q] With advancements in AI and machine learning, how is WebEngage leveraging these technologies to stay competitive and enhance customer engagement?
Marketing tech evolves faster than other software categories. Unlike HR, payroll, or accounting software, which remain relatively static, marketing tech constantly updates. What was cutting-edge five years ago is outdated today, and new innovations are always emerging. Marketing tech focuses on solving consistent problems—improving retention, repeat transactions, and revenue quality—while the methods evolve. AI has become crucial in our field, enhancing user segmentation and campaign performance. It provides more accurate insights and improves campaign effectiveness, allowing marketers to achieve 80% of their goals more easily. We’re advancing steadily with AI integration, making significant progress.
Q] WebEngage’s CBC RISE program and partnerships with institutions like MICA and IIDE reflect a strong commitment to education and talent development. How do these initiatives fit into your broader strategy for building a talent pool of Retention-first marketers?
Talent development is a long-term issue, not a quick fix. India’s engineering talent pool exists due to a structural foundation, with many graduates entering the field annually. At WebEngage, we’re addressing this by not only upskilling current professionals but also developing new talent. We aim to make Retention marketing a recognised career path, as it’s not yet widely known. Our approach is long-term, focusing on building a Retention-aware talent pool over the next five years.
Q] Looking ahead, how do you envision the Martech industry evolving over the next few years, and what role do you see WebEngage playing in that future?
First-party data and first-party marketing have become almost like a boardroom war cry. They are now key priorities for many, though not everyone understands how to implement them. There’s a growing push to become more first-party data aware and oriented. And this is where high-quality MarTech platforms like WebEngage come in. CMOs are beginning to focus on this shift, but it will take time for teams and processes to adapt. In three years, the landscape will look very different, and WebEngage will be well-positioned to benefit from this evolution.
