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Translate Wi-Fi noise for retail

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Everybody wants wireless and they want it yesterday, but what does it really mean for the business? MARIUS VISSER of Metacom explains how a properly implemented wireless solution will benefit a company.

Executives come out of board meetings saying that now is the time to implement Wi-Fi, but there is a lack of substance behind it. Only a few truly understand what it can mean for the business or how to create wireless environments in such a way as to solve customer needs while building the brand and business.

The truth is that the business needs to pull back and take a long look at what it expects from a wireless solution and what metrics it will use to assess its value and potential. There has to be a picture painted by the organisation which outlines the user, the type of Wi-Fi needed and the pain points it is designed to address. This is particularly true of the retail sector where interactions with consumers have become essential.

Benefits of Private Wi-Fi Solutions

The wireless platform has evolved into a place to interact, and transact. Currently there are two Wi-Fi networks which are most commonly used – private and public. Public solutions are limited in scope and functionality, and often the user experience is patchy and unreliable. Private Wi-Fi networks, on the other hand, are far richer, allowing businesses to build secure and highly functional solutions which can be tailored to suit specific business requirements, and customer interactions.

If you apply this technology in the correct way and have measurable objectives, then there will be a clear return on investment. Businesses have to invest in tailored Wi-Fi solutions which deliver superb user experiences and have functionality that can be adapted to suit specific markets and requirements. They also need to ensure that the solution is secure. What we offer is a private network with all the security and capability the business needs to deliver a mature Wi-Fi experience to their customers.

Metacom has developed solutions for its clients which provide interactions for customers on one level and access to training materials for employees on another. Pepkor Africa utilised this dual-level solution to create a space where their employees could gain access to vital training materials on their tablets, regardless of location or store. Whilst staff access is important it is also necessary to build a secure managed environment for interaction with clients. This type of private Wi-Fi environment is aptly described as a ‘walled garden’, a private and secure sanctuary which the brand builds for its staff and its customers. It is secure, it is capable and it has specific rules built in.

Many of our customers offer these Wi-Fi services to their customers and allow them access to certain levels of connectivity. However, there is a need to balance the download demands of the customer with the reality of price and availability. Some customers can abuse the system, fortunately you can build in a failsafe mechanism to prevent this. This level of functionality enables interaction between customer and retailer within tight parameters and sends them to the apps you want them to use and information you want them to learn. In addition, the types of apps and their capabilities can be tailored to specific customer requirements.

Data to Enhance Customer Experience

Through the right Wi-Fi solution, the business can build loyalty and learn more about its customers’ online habits and interests. They can uncover the type of device they prefer to use, when they are more likely to go online, what drives their purchasing habits and so much more. They can use the free Wi-Fi connectivity as a portal to meet the customer halfway – a few marketing questions or a survey to gain valuable insight in exchange for free data.

Almost every user has a smartphone and retailers need to develop communities which offer consumers both a service and the item they purchaser.  Loyalty schemes, banking apps, communication tools – these not only build communities and brands, but they give decision makers a lot of information and learning opportunities in the process.

It is one thing to say that it’s a good idea to make a brand, branch or business Wi-Fi-enabled, but there are some challenges. The first is the price – the customer may be willing to pay for the service, but perhaps they can’t afford it – and in some more rural areas, connectivity is poor or non-existent. Many retailers have had to create their own hotspots so that the community can come to them, engage with them in their own space. They also need to ensure that the Wi-Fi solution is accessible from different devices, not just a select few. Compatibility across all devices used by consumers is key.

In conclusion, a tailored private network, allows the business to lower the cost of transactions, learn about what the customer is using and ensure a seamless end-to-end experience.

* Marius Visser, Executive Business Solutions at Metacom

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Online retail gets real

After decades of experience in selling online, retailers still seek out the secret of reaching the digital consumer, writes ARTHUR GOLDSTUCK.

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It’s been 23 years since the first pizza and the first bunch of flowers was sold online. One would think, after all this time, that retailers would know exactly what works, and exactly how the digital consumer thinks.

Yet, in shopping-mad South Africa, only 4% of adults regularly shop online. One could blame high data costs, low levels of tech-savviness, or lack of trust. However, that doesn’t explain why a population where more than a quarter of people have a debit or credit card and almost 40% of people use the Internet is staying away.

The new Online Retail in South Africa 2019 study, conducted by World Wide Worx with the support of Visa and Platinum Seed, reveals that growth is in fact healthy, but is still coming off a low base. This year, the total sale of retail products online is expected to pass the R14-billion mark, making up 1.4% of total retail.

This figure represents 25% growth over 2017, and comes after the same rate of growth was seen in 2017. At this rate, it is clear that online retail is going mainstream, driven by aggressive marketing, and new shopping channels like mobile shopping. 

But it is equally clear that not all retailers are getting it right. According to the study, the unwillingness of business to reinvest revenue in developing their online presence is one of the main barriers to long-term success. Only one in five companies surveyed invested more than 20% of their online turnover back into their online store. Over half invested less than 10% back.

On the surface, the industry looks healthy, as a surprisingly high 71% of online retailers surveyed say they are profitable. But this brings to mind the early days of Amazon.com, in 1996, when founder Jeff Bezos was asked when it would become profitable.

He declared that it would not be profitable for at least another five years. And if it did, he said, it would be in big trouble. He meant that it was so important for long-term sustainability that Amazon reinvest all its revenues in customer systems, that it could not afford to look for short-term profits.

According to the South African study, the single most critical factor in the success of online retail activities is customer service. A vast majority, 98% of respondents, regarded it as important. This positions customer service as the very heart of online retail. For Amazon, investment back into systems that would streamline customer service became the key to the world’s digital wallets.

In South Africa online still make up a small proportion of overall retail, but for the first time we see the promise of a broader range of businesses in terms of category, size, turnover and employee numbers. This is a sign that our local market is beginning to mature. 

Clothing and apparel is the fastest growing sector, but is also the sector with the highest turnover of businesses. It illustrates the dangers of a low barrier to entry: the survival rate of online stores in this sector is probably directly opposite to the ease of setting up an online apparel store.

A fast-growing category that was fairly low on the agenda in the past, alcohol, tobacco and vaping, has benefited from the increased online supply of vapes, juices and accessories. It also suggests that smoking bans, and the change in the legal status of marijuana during the survey, may have boosted demand. 

In the coming weeks, we can expect online retail to fall under the spotlight as never before. Black Friday, a shopping tradition imported “wholesale” from the United States, is expected to become the biggest online shopping day of the year in South Africa, as it is in the USA.

Initially, it was just a gimmick in South Africa, attempting to cash in on what was a purely American tradition of insane sales on the Friday after Thanksgiving Day, which occurs on the third Thursday of November every year. It is followed by Cyber Monday, making the entire weekend one of major promotions and great bargains.

It has grown every year in South Africa since its first introduction about six years ago, and last year it broke into the mainstream, with numerous high profile retailers embracing it, and many consumers experiencing it for the first time. 

It is now positioned as the prime bargain day of the year for consumers, and many wait in anticipation for it, as they do in the USA. Along with Cyber Monday, it provides an excuse for retailers to go all out in their marketing, and for consumers to storm the display shelves or web pages. South African shoppers, clearly, are easily enticed by bargains.

Word of mouth around Black Friday has also grown massively in the past two years, driven by both media and shoppers who have found ridiculous bargains. As news spreads that the most ridiculous of the bargains are to be had online, even those who were reticent of digital shopping will be tempted to convert.

The Online Retail in SA 2019 report has shown over the years that, as people become more experienced in using the Internet, their propensity to shop online increases. This is part of the World Wide Worx model known as the Digital Participation Curve. The key missing factor in the Curve is that most retailers do not know how to convert that propensity into actual online shopping behaviour. Black Friday will be one of the keys to conversion.

Carry on reading to find out about the online retailers of the year.

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Reliable satellite Internet?

MzansiSat, a satellite-Internet business, aims to beam Internet connections to places in South Africa which don’t have access to cabled and mobile network infrastructure, writes BRYAN TURNER.

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Stellenbosch-based MzansiSat promises to provide cheap wholesale Internet to Internet Service Providers for as little as R25 per Gigabyte. Providers who offer more expensive Internet services could benefit greatly from partnering with MzansiSat, says the company. 

“Using MzansiSat, we hope that we can carry over cost-savings benefits to the consumer,” says Victor Stephanopoli, MzansiSat chief operating officer.

The company, which has been spun off from StellSat, has been looking to increase its investor portfolio while it waits for spectrum approval. The additional investment will allow MzansiSat’s satellite to operate in more regions across Africa.

The MzansiSat satellite is being built by Thales Alenia Space, a French company which is also acting as technical partner to MzansiSat. In addition to building the satellite, Thales Alenia Space will also be assisting MzansiSat in coordinating the launch. The company intends to launch the satellite into the 56°E orbital slot in a geostationary orbit, which enables communication almost anywhere in Africa. The launch is expected to happen in 2022. 

The satellite will have 76 transponders, 48 of which will be Ku-band and 28 C-band. Ku-band is all about high-speed performance, while C-band deals with weather-resistance. The design intention is for customers of MzansiSat to choose between very cheap, reliable data and very fast, power-efficient data. 

C-band is an older technology, which makes bandwidth cheaper and almost never affected by rain but requires bigger dishes and slower bandwidth compared to Ku-band connections. On the other hand, Ku-band is faster, experiences less microwave interference, and requires less power to run – but is less reliable with bad weather conditions.

MzansiSat’s potential military applications are significant, due to the nature of the military being mobile and possibly in remote areas without connectivity.  Connectivity everywhere would be potentially be life-saving.

Consumers in remote areas will benefit, even though satellite is higher in latency than fibre and LTE connections. While this level of latency is high (a fifth of a second in theory), satellite connections are still adequate for browsing the Internet and watching online content. 

The Internet of Things (IoT) may see the benefits of satellite Internet before consumers do. The applications of IoT in agriculture are vast, from hydration sensors to soil nutrient testers, and can be realised with an Internet connection which is available in a remote area.

Stephanopoli says that e-learning in remote areas can also benefit from MzansiSat’s presence, as many school resources are becoming readily available online. 

“Through our network, the learning experience can be beamed into classrooms across the country to substitute or complement local resources within the South African schooling system.”

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