Connect with us

Featured

Eat, drink, be merry in SA, but communication not hot

A recent survey has found that despite the challenging economic climate, South Africans still like to eat, drink, travel and be with friends, however the communications industry has seen a steady drop from 2013 until 2015.

The top three industries out of 19 industry sectors according to loyal usage by South African consumers as ranked in the Ask Afrika Icon Brands survey are Drinks, Restaurants and Fast Food, and Foods. This is followed by Travel and Leisure, Pets or Pet Food, and DIY and Gardening. Consumers have to tighten their belts in tough economic times that show no sign abating in the near future and spending is less frequent, their focus is on satisfying basic needs, but also on enjoying leisure time with friends and family.

Communications has fallen steadily, from being one of the top categories in 2013, to being an also-ran in 2015.

unnamed

Drinks which include both alcoholic and non-alcoholic drinks, with the non-alcoholic drinks scoring the highest were the leading industry category this year. A factor which influenced the higher Ask Afrika Icon Brands score for the drinks industry, is a slight increase in loyalty score across all demographic groups for non-alcoholic beverages.

This may be good news for those in the FMCG sector, yet even brands within this industry sector will require a carefully crafted brand strategy to retain consumer loyalty. This is due to economic and lifestyle pressures which decrease the frequency of spend, and also because consumers are more willing to experiment and try new products.

According to a recent article by Jakkie Cilliers from the Institute for Security Studies on Moneyweb,   “The gross domestic product (GDP) growth dropped from 2.2% in 2013 to an ailing 1.5% in 2014, and electricity constraints will continue to restrict growth for several years. And without a near revolution in policy coherence and government efficiency, there is little chance of average GDP growth levels reaching 5% over the medium to long term.”

Despite this, certain brands get it right and understand how to retain customer loyalty in this challenging environment. Ask Afrika recently conducted their Icon Brands™ nationally representative survey that revealed 28 brands out of thousands measured achieved iconic status, these are brands that are used loyally across the South African demographic, irrespective of income, education, culture, race, and even personal style. Sixteen of these 28 Ask Afrika Icon Brands were local brands. In addition, the top five brands in each of the 164 product categories within the 19 industry sectors were ranked.

The scope of the survey is partly quantitative, but largely qualitative providing insight into South African consumer mind-set and behaviour. These insights can help companies place themselves within the context of their product category and industry sector and provide invaluable, current psychographic understanding of their target market.

“Brand loyalty is not as simple as repurchasing, it is multidimensional and it is determined by several distinct psychological processes. True brand loyalty exists when customers have a high relative attitude towards the brand, which dramatically affects profitability. Consumers demand a continuing pattern of change to keep up with their fluctuations in taste, lifestyle and circumstance, even for brand leaders,” says Sarina de Beer, MD of Ask Afrika.

The Ask Afrika Icon Brands survey uses a nationally representative random sample, 15,690 consumers were surveyed, representing over 23.3 million adult South African consumers. An enumerated area sampling design was employed and the universe includes all communities with more than 8,000 inhabitants 15 years old and above. The data was weighted using the Statistics South Africa’s population mid-year estimates and audited by respected independent experts BDO and Dr Ariana Neethling.

Detailed Ask Afrika Icon Brands reports can be ordered which demonstrate a brand’s relevance across the evolving consumer spectrum to enable brand owners to increase their performance, either to maintain winning status or to improve future performance. The report includes customised trended category and brand scores to understand performance. Competitor analysis and a loyalty matrix that unpacks cross brand usage. Ask Afrika will identify market opportunities for the brand.

Featured

Mobile is the new branch

Standard Bank has launched an account for mobile devices that gives back 500MB of data a month

Standard Bank has introducd a R4.95p/m bank account called MyMo that customers can open on their mobile devices, loaded with data and airtime offerings and other benefits such as virtual and Gold physical card.

MyMo account holders will also enjoy the convenience of a cheque account through a Visa and Mastercard gold card. Once the account is open, users can choose to either receive R50 in airtime or 500MB of data a month, if their card is swiped more than four times a month. A further megabyte of data is loaded on the account for every R20 spent.

“MyMo is an account for everyone, whether you just landed your first job or have been around the block. With no documentation required it only takes a few minutes to open the account,” says Funeka Montjane, Chief Executive for Personal and Business Banking, South Africa, at Standard Bank Group. “For just R4.95 a month customer will be able to enjoy free swipes and ATM withdrawals at only R6.50 for amounts under R 1 000.

“Mobile is the new branch. This account is about bringing the mobile branch into customers hands, it is about convenience and security while banking.”

She says mobile offers low cost transactional banking which integrates people and businesses into the new connected economy, making mobile the new branch ecosystem that will drive and connect Africa’s growth. Physical connections to the economy are rapidly changing to digital where banks have to move from being financial institutions to service organisations.

“In the past people congregated in communities and eventually cities to maximise the advantages of connectivity. Today a simple hand-held device has the potential to open infinite doors, transforming individuals’ access to opportunities, regardless of where they are, and like never before in history. 

“Historically, a bank account represented access to economic citizenship. Today, having a simple device enabling digital access to a modern banking platform is a passport to global connectivity and vast human development potential.”

The bank says it is using technology, and mobile phones in particular, to deliver low-cost transactional channels accessible to all our customers. The evolution in mobile can be seen in transaction options like cash back at the retail checkout till rather than the ATM, free digital banking rather than using a branch, and the ability to transact using digital wallets, even without a bank account.

“Developing comprehensive connected ecosystems requires a mind-set change from Africa’s banks,” says Montjane. “Banks will evolve away from traditional financial service organisations, into service ecosystems enabling broad universal access to almost everything like enhanced purchasing experiences of vehicles and homes, online procurement of goods and services and lifestyle elements like rewards and travel. 

“These connectivity drivers will also act to future-proof evolving connectivity ecosystem by allowing us to offer untold future services while deriving income from as yet unrealised revenue streams,.   

From a customer perspective, the kind of ecosystems of knowledge, access and, ultimately, connectivity that banks will come to provide will radically transform the share of life that almost all individuals will be able to access.”

Continue Reading

Featured

Two-thirds of SA staff hide social media from bosses

With 90% of people in employment going online several times a day, it can be hard for most workers to keep their private and work-life separate during the working day (and beyond). The recently published Global Privacy Report from Kaspersky Lab reveals that 64% of South African consumers choose to hide social media activity from their boss. This secretive stance at work also extends to their colleagues, with 60% of South Africans also preferring not to reveal online activities to their co-workers.

Globally, the average employee spends an astonishing 13 years and two months at work during their lifetime. Interestingly though, not all this time is directly related to solving work tasks or earning a promotion: almost two thirds (64%) of consumers admit visiting non-work-related websites every day from their desk.

Not surprisingly, 35% of South African employees are against their employer knowing which websites they visit. However, more interestingly, 60% of South African are even against their colleagues knowing about their online activities. This probably means that colleagues constitute an even greater threat to future perspectives of an office slouch or maybe the relationships with colleagues are more informal and therefore, more valuable.

On the contrary, social media activity appears to be a less private domain for many and therefore, more suitable for sharing with colleagues but not the boss. This is probably because workers fear harming the public image of a company or interest in decreased staff productivity motivates companies to monitor employees’ social networks and make career changing decisions based on that. Such policies have led to 64% of South Africans saying that they don’t want to reveal their social media activities to their boss and 53% even don’t want to disclose this information to their colleagues.

A further 29% are against showing the content of their messages and emails to their employer. In addition, 3% even said that their career was irrevocably damaged as a consequence of their personal information being leaked. Thus, people are worried about how to build a favourable internal reputation and how not to destroy existing workplace relationships.

“As going online is an integral part of our life nowadays, lines continue to blur between our digital existence at work and at home. And that’s neither good nor bad. That’s how we live in the digital age. Just keep remembering that as an employee you need to be increasingly cautious of what exactly you post on social media feeds or what websites you prefer using at work. One misconceived action on the internet could have an irrevocable long-term impact on even the most ambitious worker’s ability to climb the career ladder of their choice in the future,” comments Marina Titova, Head of Consumer Product Marketing at Kaspersky Lab.

To ensure workers don’t fall prey of the internet threats at a work, there are some core guidelines to adhere to in the digital age:

  • Don’t post anything that could be considered defamatory, obscene, proprietary or libellous. If in doubt, don’t post.
  • Be aware that system administrators may at least, in theory, be informed about your web browsing patterns.
  • Don’t harass, threaten, discriminate or disparage against any colleague, partner, competitor or customer. Neither on social networks or in messages, emails, nor by any other means.
  • Don’t post photographs of other employees, customers, vendors, suppliers or company products without prior written permission.
  • Start using Kaspersky Password Manager to ensure your social media and other personal accounts are not at risk of unauthorised access by someone else in an office. Install a reliable security solution such as Kaspersky Security Cloud to protect your personal devices.

Continue Reading

Trending

Copyright © 2019 World Wide Worx