2023 was a year of uncertainty in Nigeria, especially with the political transition. How did Dochase navigate those challenges, considering the cash crunch and the new government in place?
2023 was definitely a turbulent year. It felt like a plane hitting unexpected turbulence. The mid-year change in government definitely shifted the economic landscape. While we maintained profitability throughout the year, our margins did contract a bit. Business boomed from January to May, but a sense of uncertainty gripped the economy after the new government took office. Clients were hesitant, and with the fluctuating Naira exchange rate, planning became a challenge.
One major concern is the Naira’s volatility. How did this impact your business and that of your clients?
Absolutely, the talk of a single exchange rate sent shockwaves through the business community. Daily fluctuations in the Naira value made everything unpredictable. Additionally, the government’s restrictions on cash flow, intended to promote digital transactions, ironically limited customer spending. Many businesses we work with advertise products and services that people typically pay for with cash, and these restrictions hampered their ability to close deals.
Despite these challenges, you mentioned staying profitable. Can you elaborate on your strategies during this time?
We have been fortunate to be profitable for a while now. While profitability decreased due to rising costs, we saw a significant increase in transaction volume. However, we had to adjust our plans for major revenue growth in light of the economic uncertainties. In essence, transaction volume went up, but profitability decreased because our costs had doubled within a four-month period. For example, fuel prices tripled, impacting not just us but all businesses. We had to be more strategic with our spending and focus on efficiencies.
Let’s talk about Dochase’s recent transition from an Ad Tech company to a Martech company. What led to this strategic decision?
Technology has always been our core competency. We started by helping businesses leverage advertising technology to find their target audience online. However, we are a company that listens to our customers. Demand drives innovation, and we realised that advertising is just one piece of the marketing puzzle. Through our work in Ad Tech, we were already providing core marketing activities. The natural progression for us was to expand our offerings to encompass the entire customer journey, going beyond just advertising and into areas like customer acquisition and retention. This aligns perfectly with our vision of empowering businesses to acquire and retain customers.
When did you begin to make this transition, and what does the Martech landscape look like for Dochase in 2024?
We started laying the groundwork in 2023 and really ramped things up towards the end of the year. In 2024, we are going full throttle as a Martech company. We anticipate a market focused on cost savings. Businesses will be looking for more affordable ways to achieve their marketing goals. Automation, Artificial Intelligence (AI), and data adoption will be at the forefront. At Dochase, we believe AI is a game-changer, and we’re committed to using it to help businesses save money, reach their target audience, and address their pain points.
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