By Jonathan Phillip Kyetume
The pandemic is still wrecking havoc on the global economy, and its consequences have had a significant impact on businesses at all levels. Lockdowns, curfews, and business restrictions in the East African region have resulted in fewer people visiting malls and shopping complexes, which has a direct impact on retail sales revenue. Matching digital and physical in-store experiences for optimal consumer experience and satisfaction is also becoming more difficult. From a strategic marketers’ perspective, this translates into adopting strategies that ensure higher Return on Investment (ROI).
According to the latest consumer insights research report by PwC, the consulting firms’ Global Consumer Insights Pulse June 2021 survey confirms that the pandemic might have changed consumer behaviour forever as more and more consumers are ordering goods online. The prediction is that customer shift to digital channels will remain even after the pandemic. Furthermore, the findings suggest that customer loyalty has been impacted as a result of increasing competitor strength and digital disruption with buyers switching brands at unprecedented rates. Another significant finding of the PwC report is that the use of smartphones for shopping has doubled since 2018, indicating growing acceptance and convenience with online shopping.
Retailers are faced with imminent challenges of growing digital disruption, growing online shopping platforms, unplanned digital transformation, increasing operation costs, declining customer loyalty, and retention. Retail businesses must then translate disruption signals and refine or modify the customer journey to factor in consumer behaviour trends to remain profitable.
To differentiate themselves from the competition, retail enterprises should consider enhancing their digital strategy by adopting and using Customer Relationship Management (CRM) tools. Customer experience, satisfaction, and loyalty will all improve as a result of CRM adoption, as will revenue. CRM software enables businesses to analyze data and provide actionable insights to improve the customer experience. CRM systems enable personalized marketing communication, which fosters client retention and satisfaction.
Customer retention is critical for retailers not just because it facilitates upselling and cross-selling but also because it provides essential post-purchase or product performance data that may help retailers optimize targeting and provide a more personalized experience.
CRM tools improve marketing efficiency by enabling consumer segmentation and streamlining marketing communications through email marketing, newsletters and text messaging, achieving brand or product awareness, and influencing the purchase decision. CRM software is sustainable, affordable, and also ensures a significant return on investment ensuring profit maximization.
Retail enterprises can also enhance their digital strategy through programmatic advertising through Demand Side Platforms (DSPs). Programmatic advertising involves the acquisition of digital media through automated direct inventory access. Programmatic advertising can run rich media ad formats to ensure engagement and these are effective for multi-channel and device campaigns.
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To ensure lead conversion across the purchase funnel, programmatic advertising enhances consumer targeting and retargeting. The analysis of critical consumer data points such as search history, interests, age group, demographics & psychographics, programmatic allows for a more accurate and precise customer targeting.
Additionally, programmatic advertising is unique because it can provide a smart solution to link digital gains to retail location through geofencing optimizing in-store opportunities while creating location awareness and new revenue opportunities. Retail businesses can use virtual in-store tours as an innovative method to increase geofencing interaction while simultaneously increasing online digital exposure and brand awareness. Virtual tours not only enhance website traffic but also encourage customers to visit and experience the actual retail store.
All the above recommendations can further be supplemented and reinforced with the digital marketing gold standard; SMS marketing. SMS marketing is a smart and affordable solution to foster retention, repeat purchases and, customer loyalty.
On the East African perspective, according to Statistics, as of December 2020, Kenya had the highest internet penetration of approximately 85.2%, Rwanda 45.1%, Uganda 39.3%, Tanzania 37.6%, Burundi 13.1% & South Sudan 7.9%, translating to increasing internet usage mainly through smartphones. Retailers need to continuously advocate for a favorable business environment and policies from regulators, respective governments, or the East African Community (EAC) to expedite communications infrastructure development and inclusive policy frameworks to ensure accessible and affordable internet to exploit the vast digital opportunities. The internet usage transition is the right direction for East Africa and an opportunity that can be exploited by retail enterprises to execute a planned digital transformation to establish competitive advantage, ensure business survival, sustainability and viability during and after the pandemic.
Jonathan Phillip Kyetume is a Marketing and Communications Specialist
Email: jonathankyetume@gmail.com