Consumer Journey in a Digital Age: Prospects and Challenges- A keynote address
Keynote Speech delivered by Femi Darabidan, Chief Operating Officer, Clan Africa, at the maiden edition of MediaConsortium Conference and Awards, on Thursday, Sept., 28, 2023
Theme: Consumer Journey in a Digital Age: Prospects and Challenges
Good morning, everyone. I’m thrilled to be here today to discuss the ever-evolving consumer journey in the digital age.
In recent years, the way consumers interact with brands has undergone a significant transformation. This shift presents both prospects and challenges for businesses in today’s dynamic marketplace.
The Consumer Journey
The consumer journey, traditionally a linear path from awareness to purchase, has now become a complex and non-linear process. Today, consumers are more informed and empowered than ever before. They have access to a wealth of information online, allowing them to compare prices, read reviews, and explore products from multiple retailers with just a few clicks.
According to Statista.com as of January 2022, Nigeria with over 200 million population, had more than 122 million internet users – the highest number reported all over Africa. Meanwhile, Egypt ranked second with over 80 million users.
Most of the web traffic in leading digital markets in Africa originated from mobile devices – in Nigeria, one of the countries with the largest number of internet users worldwide, 82 per cent of web traffic was generated via smartphones and roughly 16 per cent via PC devices. This is due in part to the fact that mobile connections are much cheaper and do not require the infrastructure that is needed for traditional desktop PCs with fixed-line internet connections.
As of January 2023, Nigeria has a high internet penetration rate, with approximately 55.4 per cent, ranked 17th in Africa as of January 2023 with Morrocco leading at 88.1 per cent making it the country with the highest internet penetration in Africa.
The projected trend for Africa indicates a consistent rise in internet users from 2024 to 2028. It will have a collective addition of 280.2 million users (equivalent to a growth of 45.81 per cent). Following fifteen successive years of growth, the user count is anticipated to reach a record high of 891.93 million by 2028.
Regardless of the above, and breaking the consumer journey down into five stages, consumers have been seen to move between these stages at will, often switching between various devices and channels throughout the process.
Awareness: This is where consumers first learn about a brand or product. It can happen through a variety of channels, such as online advertising, social media, or word-of-mouth.
Consideration: Once consumers are aware of a brand or product, they start to consider whether it’s right for them. They may read reviews, compare prices, or visit a store to learn more.
Purchase: This is the point where consumers decide to buy the product. They may do this online or in-store.
Retention: After consumers purchase a product, businesses need to focus on retaining them as customers. This can be done by providing excellent customer service, offering loyalty programs, and keeping customers engaged with new products and content.
Advocacy: At this stage, customers become advocates for the brand and recommend it to their friends and family.
What are the Prospects and Challenges?
The digital age has ushered in several exciting prospects for businesses that can adapt to the evolving consumer journey:
Increased reach: Digital channels enable businesses to reach consumers all over the world, opening new markets and growth opportunities.
Improved customer engagement: These channels facilitate personalized and interactive interactions, fostering stronger customer relationships and increased loyalty.
Data-driven insights: By collecting and analyzing data from digital interactions, businesses can better understand their customers’ needs. This data can be used to enhance products and services, craft targeted marketing campaigns, and create personalized customer experiences.
However, the digital age also poses its share of challenges:
Competition: The digital landscape is becoming increasingly competitive, requiring businesses to stand out and capture consumers’ attention effectively.
Complexity: The consumer journey has grown more intricate and multi-channel, necessitating seamless integration of digital channels to provide a consistent experience.
Privacy: As consumers become more concerned about their online privacy, businesses must maintain transparency in data collection and usage.
Case Study 1: CowryWise
CowryWise is a Nigerian fintech company that provides investment and savings products to individuals. CowryWise has successfully used digital technology to improve the consumer journey for its customers.
For example, CowryWise allows customers to open an investment account in minutes using their smartphones. Customers can also deposit and withdraw funds from their accounts at their convenience. CowryWise also provides its customers with access to a variety of investment products, including mutual funds, stocks, and bonds.
In addition, CowryWise uses data and analytics to understand the individual needs of its customers. CowryWise then uses this information to personalize the customer experience, such as by recommending investment products or offering relevant discounts.
CowryWise’s success is a testament to the power of digital technology to improve the consumer journey.
Case Study 2: Cowbell Milk
One example of how businesses in the FMCG sector in Nigeria are using digital technology to improve the consumer journey is Cowbell.
Cowbell is a popular brand of milk powder in Nigeria. Cowbell Milk, a leading FMCG company in Nigeria, has successfully adapted to the digital age by embracing digital channels and investing in customer data and insights.
Cowbell Milk has a strong presence on social media, where it engages with consumers through interactive content, promotions, and customer service. The company also uses digital channels to collect and analyze customer data. This data is used to improve the customer experience, develop targeted marketing campaigns, and create more personalized products and services.
For example, Cowbell Milk uses data to understand the different needs of its consumers across different regions of Nigeria. This information is used to develop tailored marketing campaigns and product offerings. For example, the company offers a different type of milk powder in the north of Nigeria than it does in the south, to account for the different climates.
Cowbell Milk has also invested in e-commerce, making it easy for consumers to purchase its products online. The company has partnered with leading e-commerce platforms in Nigeria, such as Jumia and Konga.
As a result of its focus on digital innovation, Cowbell Milk has been able to maintain its position as a leading FMCG company in Nigeria. The company has also been able to attract new customers and increase sales.
In conclusion
The digital age has fundamentally altered how consumers interact with brands, products or services, offering both opportunities and challenges for businesses. Those who adapt to this shifting landscape and embrace digital channels stand to thrive in this era.
In closing, I’d like to leave you with some actionable advice for businesses:
Map the customer journey: Understand how customers interact with your brand at each stage of their journey to identify areas for improvement.
Offer a personalized experience: Use data and analytics to tailor the shopping experience, making product recommendations and providing relevant discounts.
Integrate your digital channels: Make it seamless for customers to transition between different digital touchpoints.
Prioritize data security: Ensure that you protect customer data to maintain trust and comply with data privacy regulations.
By implementing these strategies, businesses can navigate the digital age successfully, building robust relationships with customers and securing their future success.
Do you have a compelling story to tell? Contact us via our email: espinewsng@gmail.com or call/WhatsApp on 08032519246.
