After narrowly missing going into a recession in 2016, the country is on the edge of being graded between investment and junk. Although government debt has risen to R2.2 trillion there is a reprieve for the first half of 2017, in that South Africa will not be downgraded. As SMEs are unable to rely on government for funding, SMEs have to place themselves in a position where national economic transformation is possible. South Africa needs small and medium enterprises to improve job creation. Large corporates such as Dis-chem and Clicks also have a role to play. “With just under 20% of the pharmacy market each (for a total of <40%), there remains significant room to grow for both businesses.” Says Hilton Tarrant in a Clicks vs Dis-chem discussion. Companies, brands and retailers should engage with consumers prior to a purchase. Provide the right products at the right time and at the moment of truth, while bearing in mind that consumers have less disposable income is a challenge.
According to findings, 69% of smartphone owners complete mobile search prior to purchase or at the time of purchase, shopping around for better deals. More users search online for local businesses and convert to purchase within a day of that search. An interactive campaign utilising the best of ATL and BTL technology increases awareness, engagement and results in sales.
Key success factors and quick fixes to build your brand and grow your sales this Easter:
- Know and understand your target market
- Drive interactive digital media campaigns with consumers in their comfort zone when they are receptive to marketing.
- Instant responses to queries and compliments – Millennial and GenZ consumers value instant communication and feedback.
- Compete with online stores and deliver quickly – GenZ consumers are more willing to pay for convenience than wait more than 3 days for their purchase to arrive. Concierge services and app purchases on the rise.
- Winning at the moment of truth is critical to convert potential customers into guaranteed sales. Consumers still go instore to interact with the product and may go online to complete purchase.
- Knowledgeable and personable staff are critical to closing sales.
- Pricing parameters. Cash strapped consumers want value not specials, a key finding from BMi Research. “The latestNielsen Global Premiumisation Survey indicates that 92% of South Africans are willing to pay an above-average price for products that deliver higher quality, offer superior functioning (91%) or stand behind environmentally responsible (86%) or socially responsible (77%) principles; this despite economic limitations where only 50% of the population believe that they are financially better off than five years ago.”
- Speed of service, delivery and immediate feedback are key in catering to instant gratification consumers.
- Positioning of disruptive promotional displays at eye level
These KSFs increase your chances of getting your product in the hands of your consumers, increasing sales.