27
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 2012 credible conversations Hot off the press- Service diagnostics for a dynamic SA

ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

Embed Size (px)

DESCRIPTION

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

Citation preview

Page 1: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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 2012 credible conversations

Hot off the press- Service diagnostics for

a dynamic SA

Page 2: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Page 3: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Page 4: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Page 5: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Page 6: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Page 7: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Page 8: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Page 9: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Page 10: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Tra

nsa

ctio

na

l/

serv

ice

Structure

Relational

Communi-

cations

dimension

• Human messaging • Symbolic dimension

• Access • Referral • Timing

• Obligation

• Trust • Strength of tie

So

cia

l C

on

tra

ctin

g

Se

ntim

en

t o

r in

ten

t

© Ask Afrika 2012

Page 11: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Tra

nsa

ctio

na

l se

rvic

e Structure

Relational

Communi-

cations

dimension

So

cia

l C

on

tra

ctin

g

Social media, responsiveness, FCR. Complaints , Hello Peter, processes, effort

Perceived value, empathy, fairness, relationship

CSR public service, environmental impact, transparency, ethics, reputation

Se

ntim

en

t o

r in

ten

t

© Ask Afrika 2012

Page 12: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Page 13: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Page 14: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Page 15: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Page 16: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

© Ask Afrika 2012 credible conversations © Ask Afrika 2012 credible conversations

Humanness

Reliability

Assurance

Responsiveness

Empathy

Tangibles

Tra

nsa

ctio

na

l se

rvic

e e

xp

erie

nc

e

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

Page 17: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Correlation 0.852**

Page 18: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

© Ask Afrika 2012 credible conversations © Ask Afrika 2012 credible conversations

The path to success

18

Effort

Contribute Detract

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.

Page 19: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Imp

ort

an

ce

Page 20: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Page 21: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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.

Page 22: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Page 23: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

credible conversations credible 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.

Page 24: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Page 25: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Page 26: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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

Page 27: ICEW 2013 Anneli Retief - Consumer Consciousness Trends in South Africa

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