Redefining Customer Experience: AI-Powered Logistics in the Middle East

December 20, 2023 | By

The Middle East’s logistics industry has witnessed a significant transformation in its approach to customer engagement through technology adoption, e-commerce growth, data analytics, and adapting to changing customer expectations and regulations.

This shift has created abundant opportunities for brands to interact with customers across every stage of the delivery cycle, from placing the order to receiving the package.

Central to this transformation is the application of machine learning algorithms powered by artificial intelligence (AI), which enables companies to analyse customer data and behaviour to create a highly personalised delivery approach.

The result? A more engaging and customised customer experience that fosters brand loyalty and creates lifelong customers.

The Power of AI for Personalisation

It’s no surprise that AI has seeped its way into people’s everyday lives. Technologies like generative AI, robotics, and machine learning (ML) have become so prominent that people need them for survival. It has become necessary, even if it is something as simple as GPS systems or a cloud system for storage. One of the best parts about AI is that it learns and customises itself to cater to the users’ specific needs through self-learning or based on the information it is fed.

Personalisation has become the cornerstone of customer-centric strategies in the Middle East, regardless of the industry. According to a recent McKinsey & Company study, brands providing personalised solutions and communications are favoured by 76 per cent of consumers when making purchasing decisions.

Although large-scale companies can only provide individualised service to some customers, personalisation in e-commerce and logistics goes beyond individual attention. It requires a streamlined e-commerce logistics system that can adapt to customer preferences for speed, cost, and delivery specifics like location and timing. This approach aims to enhance customer satisfaction, foster brand loyalty, and sets businesses apart. Understanding customer needs and catering to them while keeping the consumers engaged is where AI meets Customer Engagement Platforms.

The Role of Customer Engagement Platforms (CEPs)

Recognising the paramount importance of customer engagement, GCC brands are increasingly adopting CEPs. This shift aligns with the rise of e-commerce, a trend that shows no sign of slowing down, with the UAE’s e-commerce market projected to grow by 60 per cent to more than $8 billion by 2025.

Dhruv Agarwal, COO and Co-Founder, Shipsy


CEPs are pivotal in e-commerce and logistics, serving as the technological backbone for businesses looking to enhance customer interactions and streamline operations. In e-commerce, they enable companies to offer personalised experiences, track consumer behaviours, and tailor marketing strategies.

With the ability to analyse customer data, e-commerce businesses can create targeted marketing campaigns, recommend products based on past purchases, and even optimise website layouts for a smoother shopping journey. These platforms also facilitate effective communication channels, allowing customers to reach out with inquiries or concerns, fostering trust and reliability.

Moreover, CEPs enable logistics providers to gather feedback, continuously improving their services, optimising routes, and adapting to changing customer preferences. CEPs are the linchpin that binds e-commerce and logistics, creating a seamless and customer-centric experience from order placement to delivery.

Enhancing Customer Experiences with AI

To meet these ever-increasing demands and remain competitive in the Middle East, companies are leveraging AI-powered capabilities to enhance customer experiences in several key areas:

Dynamic ETAs and Trigger Alerts: Automated alerts and live status updates can reduce customer inquiries about order whereabouts by up to 40 per cent. By sharing real-time expected order arrival times and critical milestone events, such as pickups and hub movements, businesses can offer a transparent and reassuring experience. This not only improves customer satisfaction but also streamlines operations.

Intelligent Customer Communication: Proactive and automated communication throughout the logistics process enhances customer engagement and trust. Early-stage interventions, such as requesting customers to share their location on a map or enabling online chat based interactions regarding order delivery, significantly improve the overall experience. Customisable instructions, such as “leave at the door” or “do not ring the bell,” provide a level of service that customers appreciate.

Rider and Customer Communication: Establishing secure communication channels between riders and customers is essential for addressing issues like incomplete or incorrect address information. Masked phone calls, rider-app chats, and chatbot alerts enable efficient communication to resolve delivery challenges, ensuring successful outcomes.

Flexible Delivery Options: AI-driven last-mile solutions offer advanced delivery scheduling and rescheduling capabilities. This flexibility allows customers to choose preferred delivery slots, accommodating their availability and improving overall satisfaction.

Route Optimisation for Last-Mile Delivery: AI and ML optimises last-mile delivery routes, reducing delivery times and costs, creating quicker and more cost-effective deliveries and contributing to a positive brand perception.

AI is the driving force behind delivering personalised and customised customer experiences in the Middle East. With the UAE and KSA introducing numerous initiatives focusing on the development of AI, businesses have been leveraging these innovative capabilities to enhance customer satisfaction and achieve tangible benefits, including reduced delivery costs, fewer complaints, and higher Net Promoter Scores.

As digitalisation continues to shape the regional landscape, embracing AI technologies will be crucial for staying ahead in pursuing a delightful and individualised customer experience. In a world where customers increasingly expect personalised interactions, the Middle East’s logistics industry is rising to the occasion with the help of AI.

By integrating AI into logistics processes, businesses can streamline operations and significantly enhance the overall customer experience. The key is leveraging AI to provide efficiency, personalisation, and transparency throughout the supply chain, from order placement to delivery.

Read More Source:

  • World Logistic Passport

  • Logistics Partner

  • Supply Chains


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