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Doing business CUSTOMER LOYALTY reduce transaction costs, greatly Digital payments can developing economies, one of the increase customer convenience and greatest challenges is providing minimise the need for expensive physical leapfrog the formal convenient options for cash deposits infrastructure, including branch networks. banking system and withdrawals. ATMs, point-of-service “The region’s small- and medium- devices and agent networks must be sized enterprises also send and receive conveniently located throughout a a wide variety of payments. They community. The up-front investments this receive payments from customers, requires can be substantial, but they are middlemen and government agencies, The researchers believe there are also necessary to provide a solid foundation while making payments to wholesalers, indirect benefits of mobile payments to for future growth.” employees, landlords and service consider. Mobile operators, for example, The report concludes: “Clearly, providers. Notably, most of these are have noted that churn rates for mobile- there is significant latent demand for still paid with cash. Small- and medium- money users are significantly lower. And digital payments in many markets of sized enterprises are recognised as an by incorporating data from payment flows sub-Saharan Africa, and widespread important market segment given their and other non-traditional sources into consumer acceptance of mobile- higher payment volumes. And, being credit models, institutions can significantly communications technology is highly PHOTOS: GETTY/GALLO IMAGES at the centre of customer and supplier reduce loan losses. Mobile operators encouraging. For players that are able and networks, such enterprises can stimulate could do likewise for post-paid customers. willing to move in the near future, there adoption of mobile money both up and “Launching mobile payments are also opportunities to win important Consumer down the value chain.” in new markets is seldom easy. In first-mover advantages.” loyalty 54 strategicmarketingafrica Second quarter 2014 can be a ferociously fi ckle a air Customer loyalty programmes, particularly in the retail sector, are on the increase around the world. But simple implementation of a scheme is no guarantee of success. TANDING OUT IN A WORLD and fading, says a new study by the consumers say can manifest in big of choice isn’t easy and earning global Nielsen research company. While changes in what they do,” says Julie S consumer devotion to a brand the report shows that bigger rewards Currie, Senior Vice President of Global or store takes more than just offering a generally inspire higher loyalty levels, Loyalty at Nielsen. “While there is some good product. Price, packaging, customer loyalty programmes are still no absolute consistency around the world in loyalty service and reputation are just some guarantee of loyal behaviours. sentiment within categories, across of the factors involved in a consumer’s “There is a strong link between retailers and service providers, there are decision-making process. the way consumers describe also notable differences – especially for But getting to the heart of what their loyalty habits and the way consumable products and in the online makes a consumer ‘stick’ or ‘switch’ can they subsequently buy – so even retailing space, where the likelihood to be the difference between flourishing comparatively small shifts in what switch is greater.” Second quarter 2014 strategicmarketingafrica 55 55-56_Customer_Loyalty_2.indd 55 2014/04/25 10:29 AM 52-54_Doing_business3.indd 54 2014/04/25 10:16 AM