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ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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Ask Afrika is the largest independent Market Research company in SA. Find out the latest on market trends and how to analyse data to produce meaningful insights for your organisation

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ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

  1. 1. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 1 © Ask Afrika 2012 credible conversations © Ask Afrika 2012credible conversations Hot off the press- Service diagnostics for a dynamic SA
  2. 2. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 2 © Ask Afrika 2012 credible conversations • Dropping service levels • The Private Sector mandate is morphing to accommodate the change of consumers into citizens • The implication of balance – transactional excellence and social contracting • What to expect in future • Closing thoughts Let’s talk about… © Ask Afrika 2012
  3. 3. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 3 © Ask Afrika 2012 credible conversations Here is the bad news • Service levels have dropped dramatically • Dissatisfaction levels are increasing, because of – inconsistent service delivery. – changing customer needs. • New customer segments – Customers feel entitled and are aware of their power through social platforms- and willing to use it. Here is what the customer wants NOW and HERE in SA • Our demand for humanity and being heard is not met by government, we thus demand it from business environments, where we can. • Operational Excellence is a basic expectation and will not build commitment. • Transactional success and responsiveness with high-tech self-help options have now shifted the game to multi-dimensional communication skills. © Ask Afrika 2012
  4. 4. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 4 © Ask Afrika 2012 credible conversations The Ask Afrika 2012 Orange Index® Base: 15430 Service levels decreased with 5.24% - it is now at the lowest level in the last decade and shows the 2nd biggest drop ever 0 10 20 30 40 50 60 70 80 90 100 Average Rating 2001 Average Rating 2002 Average Rating 2003 Orange Index 2004 Average Rating 2005 Orange Index 2006 Orange Index 2007 Orange Index 2008 Orange Index 2009 Orange Index 2010 Orange Index 2011 Orange Index 2012 Forecast 2013 Dissatisfaction (0-4) Satisfaction including Delight (6-10) Delight (9-10) Ask Afrika Orange Index ® Score
  5. 5. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 5 © Ask Afrika 2012 credible conversations A context of Social Capital credible conversations © Ask Afrika 2012
  6. 6. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 6 © Ask Afrika 2012 credible conversations • We are witnessing is a new found “consumer revolution” where the power has shifted to the consumer rendering traditional strategies as inadequate to cope with trends emerging from consumers’ patterns of change. • As trend analyst Dion Chang illustrates: “The post-recession has led to a shift of power balance, where we see the rise of a consumer-dominated economy, and even business templates that we used in the past are fast becoming obsolete”. • This calls for a re-awakening to demystify who the consumer of today is and how it impacts on our relationships with consumers. A new world
  7. 7. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 7 © Ask Afrika 2012 credible conversations 0 10 20 30 40 50 60 70 80 90 100 Average Rating 2001 Average Rating 2002 Average Rating 2003 Orange Index 2004 Average Rating 2005 Orange Index 2006 Orange Index 2007 Orange Index 2008 Orange Index 2009 Orange Index 2010 Orange Index 2011 Orange Index 2012 Dissatisfaction (0-4) Dissatisfaction (0-4) Setting the scene for collaboration Base: 15430 Ask Afrika Orange Index ® score Government trend tracking
  8. 8. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 8 © Ask Afrika 2012 credible conversations credible conversations Making sense of social capital Consumers are mobilising the private sector for what they need and believe they are not getting from government. © Ask Afrika 2012
  9. 9. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 9 © Ask Afrika 2012 credible conversations credible conversations Low levels of social capital results in dysfunctional problem solving- Volatility as opposed to conversation © Ask Afrika 2012
  10. 10. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 10 © Ask Afrika 2012 credible conversations Transactional/ service Structure Relational Communi- cations dimension • Human messaging • Symbolic dimension • Access • Referral • Timing • Obligation • Trust • Strength of tie Social Contracting Sentimentorintent © Ask Afrika 2012
  11. 11. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 11 © Ask Afrika 2012 credible conversations Transactional service Structure Relational Communi- cations dimension Social Contracting Social media, responsiveness, FCR. Complaints , Hello Peter, processes, effort Perceived value, empathy, fairness, relationship CSR public service, environmental impact, transparency, ethics, reputation Sentimentorintent © Ask Afrika 2012
  12. 12. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 12 © Ask Afrika 2012 credible conversations Global truisms are to be enjoyed with caution © Ask Afrika 2012 • Value systems differ • Nations remains a unit of shared experience • These shape our expectations, what we value and what we need
  13. 13. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 13 © Ask Afrika 2012 credible conversations Source: UNESCO Unemployment, total (% of total labour force) (2009) 4.3 23.8 8.3 7.7 9.3 Unemployment Income inequality 44.0 48.2 43.8 67.8 23.0 35.8 36.0 57.5 Literacy Linguistic Diversity Index Population 1, 347.6m 41,6m 162,5m 50,5m 9,4m 62,4m 313,1m 12,8m credible conversations South Africa: Socio-economic diversity A tale of two worlds © Ask Afrika 2012
  14. 14. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 14 © Ask Afrika 2012 credible conversations Top 10 consumer trends 1. Community centric cocooning 2. Like minded connectedness 3. Escapism 4. Power to the consumer – the customer monologue 5. Quality in relationships, products and experiences 6. Transparency and trust- the synchronization of a single truth 7. Ubuntu 8. Solidaristic individualism 9. Humanness 10.Citizenship 14 Source: Ask Afrika
  15. 15. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 15 © Ask Afrika 2012 credible conversations A service re-awakening credible conversations © Ask Afrika 2012
  16. 16. © Ask Afrika 2012credible conversations © Ask Afrika 2012 credible conversations Humanness Reliability Assurance Responsiveness Empathy Tangibles Transactionalserviceexperience Overall service The strength of the relationships have increased from 2011. All constructs forming part of the transactional service experience have a significant impact on both Overall Service and Humanness/Experience. Community focus The human agenda is part of the picture
  17. 17. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 17 © Ask Afrika 2012 credible conversations Slow service breaks down trust. Responsiveness Correlation0.852**
  18. 18. © Ask Afrika 2012credible conversations © Ask Afrika 2012 credible conversations The path to success 18 Effort ContributeDetract Trust Empathy Responsiveness Reliability Relationship Fairness CSR Public support FCR If there is a lot of effort in the system it will detract from the service experience. However, building trust and relationship will lead to excellence.
  19. 19. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 19 © Ask Afrika 2012 credible conversations The customer is not an actuarial disposition Fairness 54.99 Public Service 30.59 Humanness 48.49 Corporate Social Responsibility 50.91 Responsiveness 40.93 Trust 46.33 1 2 3 4 5 6 Importance
  20. 20. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 20 © Ask Afrika 2012 credible conversations The Path to Customer Satisfaction For the Unhappy • If no human connection is made, the unhappiness triples • If there is no sense of fairness, it deteriorates rapidly • If there is no evidence of CSR, there is an 80% probability of churn For the Satisfied • If a human connection is made, the happiness rises by 12% • Fairness contributes another 2% • CSR builds on with another 2% © Ask Afrika 2012
  21. 21. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 21 © Ask Afrika 2012 credible conversations Customer Segments at risk- The world is becoming more individualised and segmented Generation Y - 51% of the current market, already Small Communities Males Three customer segments are disengaging, because their needs remain unmet.
  22. 22. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 22 © Ask Afrika 2012 credible conversations Customer segments at risk Areas of challenge for generation Y. They make up 51% of the current consumer market and we are expecting this number to be 18 685 648 by 2017. Their sense of disappointment lies in what we know drives retention • Male consumers place a higher premium on drivers of connectivity like empathy. • Black and coloured consumers place more emphasis on dimensions of social contracting. • Indian and white consumers place more emphasis on transactional excellence • Generation Y are rating significantly lower on: • Overall service • Humanness • Empathy • Responsiveness • Effort • Corporate social responsibility • Public service © Ask Afrika 2012
  23. 23. credible conversationscredible conversations © Ask Afrika 2012 Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 23 © Ask Afrika 2012 credible conversations Social Media Raise a concern = 54% Praise the product or service = 46% Expected a response from the company Received a response from the company 53 70 Expected a response from the company Received a response from the company 81 66 52% happiness Social Media channels have not been mastered in a corporate relational space yet. They are thus sabotaging business, whilst being regarded as channels, not service channels.
  24. 24. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 24 © Ask Afrika 2012 credible conversations So, the choice is yours… Are you the Gecko, or Robin Hood Or simply a proud South African? credible conversations © Ask Afrika 2012
  25. 25. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 25 © Ask Afrika 2012 credible conversations So, let’s roll up our sleeves… STOP Dropping service levels • Get to know your own customer segment expectations and become great at what matters to them- focus on the middle ground, grow the satisfaction slice of the pie. Re-define the partnership of corporate and government delivery • Understand, how your customers expect to experience Humanness from your company. • Regard service delivery protests as relevant to your business- the disenfranchised will come knocking, soon. Mobilise in partnership with Government. • Citizens want to be recognised as such- and not just as consumers. They expect social contracting from business- where proven citizenship is becoming a pre-requisite for retention. Show your heart • Humanness is still the corner stone for success – even increasingly so, and is building the bridge between transactional success and performance on social contracting. • Make it easy, make it quick! Effort and FCR are the main detractors from customer retention. Perfect scores won’t yield more credits, but failure will send customers to competitors. © Ask Afrika 2012
  26. 26. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 26 © Ask Afrika 2012 credible conversations So much more than a Rainbow Nation…a multitude of differences, which requires a mirror in the service environments • Starting afresh with customer relationships • Customers and Citizens call corporates back to basics- let’s meet with interest and respect • The Future has changed- let’s understand the opportunities within the differences • A note to fellow researchers and marketers- A local connection is no longer optional © Ask Afrika 2012
  27. 27. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2013/03/06 27 © Ask Afrika 2012 credible conversations 27 © Ask Afrika 2012

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