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Payment tech changes forecourt

Catering for the demand for speedy, on-the-go and emergency purchases, the forecourt convenience retail sector has carved out a thriving niche for itself, writes HYMIE MARNEWICK, managing director of payment connectivity market leader of XLink Communications.

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Advancements made within the card payment technology space have allowed for more seamless card transactions, which in turn has driven the successful expansion of the forecourt convenience retail sector.

Since the beginning of time, humans have offered payments for goods and the means by which these payments were made has changed dramatically over the years. From bartering goods, to using grain as currency and then from metal coins to paper money, and now cashless payments.

These advancements have enabled the forecourt retail sector to offer customers exactly what makes the sector an attractive place to shop in the first place – convenience by way of proximity, speed and efficiency – resulting in the advent of the fuel forecourt as the new convenience stores.

Card acceptance progression

Initially, payment at the fuel forecourt was limited to cash and fleet cards; the latter was only printed with the name of the company, vehicle registration and signature. Fleet cards eventually began to use magnetic strips that were more secure through PIN codes and eventually chip cards.

To increase accessibility and convenience, credit card payments were then also accepted at the forecourt and, thereafter, debit cards.

The movement of established conventional retailers such as Woolworths and Pick ‘n Pay to the forecourt also had a positive impact on the number of cards swiped, which also drove connectivity.

System evolution

The systems used for card payments have also progressed over the years, shifting from the use of 2G to 3G networks and LTE devices. As the volumes of card transactions increased, so did the speed of payment processes and the development of card payment devices.

With the need to address safety concerns came the need to bring card payment machines to vehicles, and thus payment devices changed from a desktop to a mobile solution through the use of the SIM card.

The utilisation of SIM cards has currently been replaced by wireless WiFi technology, which make use of access points within and around the petrol station to ensure connectivity.

Communication and reducing downtime

The uptime of cashless payment systems has become critical to forecourt retail, because of this, there has been a shift towards providing that redundancies are put in place in order to monitor and ensure the uptime of systems.

The reason that forecourt retail holds much of its appeal is due to the true convenience it offers customers. Without active and connected payment terminals, a large part of this convenience is eliminated, requiring those who wished to pay for goods by card to draw cash.

In order to ensure that this does not happen, card payment systems will need to make use of both fixed line infrastructure as well as a secondary failover connectivity in future.

Communication is another critical factor for the sector, which requires connectivity to gather and convey important information, such as stock currently in the store, vouchers, prepaid airtime and data or the lotto.

In order to make sure that there is no lag or downtime of communication, payment systems are moving to incorporate a converged software-defined wide-area network, or SD-WAN, which connects networks over large geographic distances through the internet or a cloud-native private network.

Digitisation

The future of forecourt retail will be all about connected digitisation, in order to cater to a growing digital customer base. This will lead to new ways of engaging customers, using technology to attract drivers to stop at the forecourt when they’re just driving past, using WiFi to advertise specials to customers filling up at petrol stations and placing orders with other retailers for pick-up at the forecourt.

And, last year, multinational oil and gas company BP admitted that half of the customers at its forecourts don’t even buy petrol.

All of these new means of operations by the sector will rely on payment connectivity solutions to make sure that customers receive an “on-the-go” experience, which is what they’re there for.

And, the more that card payment technology and secure payment connectivity improves, the more attractive factors such as speed and convenience improve, resulting in the progressive growth of the forecourt convenience retail sector itself.

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It’s printing, Jim, but not as we know it

Selling printing services is not only about the hardware anymore, writes ARTHUR GOLDSTUCK

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The seminal science fiction series Star Trek generated many catch-lines, like “The Prime Directive” and “Live long and prosper”. One of its most parodied lines, however, is Doctor Bones McCoy’s words to Captain Kirk on encountering an alien species: “It’s life, Jim, but not as we know it.”

That’s exactly the way one could describe the printer industry today. Every time an HP, Epson or Konica Minolta releases a new machine for this sector, one can sense the puzzled frowns of people taken by surprise that it still exists.

The difference is that it has evolved from a focus on paper to an emphasis on document management.

One of the first companies to spot that shift in the market, Japanese-headquartered Konica-Minolta, pioneered the concept of a dedicated printer company introducing its own software development division.

“We’ve always believed our role is solving problems for the customer, and not just to provide print, copy and scan solutions,” says Marc Pillay, CEO of the company’s South African division. “Our primary focus is multi-functional devices, but we always look at adding value to clients. Our real job is to assist in achieving a better return on investment.”

The proof of the pudding is that the local division is one of the biggest Konica-Minolta distributors in the world. The reason is simple: unlike most other countries, the South African operation has both a direct and indirect channel. That means it is able to supply companies through its reseller network, while also having a presence on the ground in the form of a dealer network across the country. That, in turn, has given it access to municipalities and other organs of state.

“Our value proposition is based on quality products, service and an unparalleled supply chain,” says Pillay. “When everyone was afraid to do business with government, we thrived on it. It comes from being located in areas where it’s easy to do business with us.”

One could call that the secret of success for existing demand. The coming era, however, will require an appreciation of the next big shifts in printing, says Pillay.

“We’ve seen the big shifts from analog to digital, from monochrome to colour, and from decentralisation to centralisation of printing. The next shift is unbundling printing into a hybrid approach, using both cloud and managed solutions. It’s all going to become subscription-based, and it will be print-on-demand. The high-end customers go into that very quickly, but we still have to cater for people who just do copying.”

Pillay believes that the opening of Microsoft’s Azure data centres in South Africa in March has already made a difference.

“Now you can scan from a device into Microsoft’s SharePoint online or Google Drive. It’s not about screen size anymore, but what you can do to make an impact.”

Where people don’t print, says Pillay, they’re absorbing documents digitally.

“We have to make sure that, where we lose the print, we are gaining the management of the scan, digitisation of the document or management of the workflow. Our income will come out of the workflow.

“Clearly, we’re not just focused on selling a piece of hardware anymore.”

  • Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter and Instagram on @art2gee

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SA chooses most loved local businesses

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A new World Wide Worx research report identifies and names South Africa’s 12 Most Loved Local businesses, and places the spotlight on the vital role commercial businesses play in the South African economy. The country’s favourite local businesses include the Chapman’s Peak Hotel in Hout Bay – famed for its calamari, celebrity chef David Higgs’ Rosebank eatery Marble as well as Rouge Day Spa with branches in Kenilworth and Constantia in Cape Town run by a dynamic mother and daughter duo.

The aim of the Most Loved Local report was to celebrate those businesses South Africans love the most and to investigate exactly what makes consumers big fans of these entities. It further offers these enterprises insights into what it takes to succeed in business, highlights the qualities that convert clients into fans and encourages more South Africans to ‘shop’ local.

Report results

Commissioned by Santam, results were compiled using a combination of digital listening tools and traditional research. Social media listening using organic search analysis looked into which business categories were being searched for most. This was followed up with a trend analysis to assess whether a business category was growing in popularity, keyword volume analysis to refine the categories and finally social listening within the categories which businesses were being spoken about in the most positive terms. Thereafter, a poll was conducted among 2 489 respondents to find out what made them love a local business – or not. The sample was nationally representative and aligned to the economically active population per province. A respected independent research house World Wide Worx conducted the research.

The full list of businesses that came top across 12 categories are:

  1. Place to Stay: Chapmans Peak Hotel (Cape Town) – the one with the perfect calamari
  2. Eatery: Marble (Johannesburg) – the one with the celebrity chef in the kitchen
  3. Butcher: The Butcher Man (Cape Town) – the one that people cross town for
  4. Bakery: Fournos (Johannesburg) – the one that is way more than a bakery
  5. Spa: Rouge Day Spa (Cape Town) – the one run by a dynamic mother-daughter team
  6. Entertainment Spot: Gold Reef City (Johannesburg)  – the one with the heart of gold
  7. Gym: Dream Body Fitness (Johannesburg) – the one that is completely unintimidating to work out at
  8. Interior Designer: By Dezign Interiors (Johannesburg) – the one that really, really gets its clients’ style
  9. Market: Bryanston Organic & Natural Market (Johannesburg) – the one that was an organic market before it was trendy to be an organic market
  10. Laundromat: Exclusive Dry Cleaners (Johannesburg) – the one that treats every single client like family
  11. Car Wash: Tubbs’s Car Wash (Johannesburg) – the one that cleans your car while you have a haircut
  12. Construction company: Radon Projects (Pretoria) – the one that is ready all day and all night

Delving into what makes a consumer go from ‘client to fan’, the key factor standing out above all others was service. Arthur Goldstuck, CEO of World Wide Worx, says it seems South Africans will forgive a multitude of ‘sins’ if they are treated well. “Good service was the number one factor that makes 40% of those surveyed support a local business. This was followed by quality products at 18%. Third place went to value for money at 10%, proving the old adage that competing on price alone is not a sound business strategy,” said Goldstuck.

When asked what makes them loyal to a local business, some interesting views across age groups emerged. “Younger clients are more swayed by quality, while older ones are impressed by service. This seems to fit with younger people wanting the status of nice things, and older people wanting to feel valued and respected,” said Goldstuck.

Unsurprisingly, all 12 Most Loved Locals called out service as one of their guiding lights and core pillars when interviewed. Theo and George Parpottas, owners of Exclusive Dry Cleaners, the selected company in the laundromat category, believe when someone walks into their shop, they should be greeted with smiling faces and courteous people. “We don’t care if it’s the president or a beggar, from the moment they walk in, they are a client. We greet them, we are courteous, and we treat them with respect. It doesn’t matter what they bring.”

For Gary Karycou, who co-owns Marble in Rosebank with celebrity chef David Higgs, it is all about attitude. “You can teach someone anything if they want to do it, but we employ on attitude. You get the basic skills but if someone really wants to learn, you can transform them.” He continues, “Giving the best service to our clients, is our motto. It’s something that’s lacking in South Africa and even globally. Businesses just become a bit complacent.”

Famed Green Point butchery and restaurant, The Butcher Man, is owned by Arie Fabiani. He says people will drive past other butcheries and come all the way to the Butcher Man because “we deliver a great service. Good service is critical, and our team knows it.”

Another key finding was that people are more likely to recommend a business if there is a good deal or excellent value for money. Mokaedi Dilotsotlhe, Chief Marketing Officer at Santam, says this is an interesting finding. “Perhaps we are more likely to share a good deal with others and keen to help others find great nuggets of the positive trade-off between value and price. So, it is worth ensuring that, in addition to service and quality, your clients feel like they are getting value for the money they spend with you. That way, they are more likely to tell family and friends the good news!”

Dilotsotlhe added that the report’s release has been well-timed as the need to stimulate sectors of the economy which can create jobs has never been more vital. Commercial enterprises are responsible for a significant percentage of the labour-force in South Africa, and the impact thereof is significant. Due to the fact that these enterprises remain a largely underinsured sector, the campaign also seeks to highlight the need for insurance as a vital aspect of business continuity. When they thrive, it benefits the whole nation, and from a Santam perspective, this translates into sustainable growth for our business.

To download the full report, click here.

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