A new year begins

If there is one thing we can be certain of as the new year dawns, it’s that 2015 will have left an indelible mark on South African society. In some way, our lives will not be the same as they were before the student marches that took place towards the end of 2015. There’s a new level of activism and it’s not limited to politics. The voice that social media has given to consumers continues to grow and it’s in this landscape that brands and marketers must find their niche.

“It’s an environment where brands are going to need to learn to stand for something,” maintains David Wingfield, head of marketing at Barclays Africa Group. “We will have to find a way to fit into the lives of consumers on a new level. In order to be heard, you’re going to need to differentiate or to make people think.” 

According to Gartner market research, 89% of businesses will be competing mainly on customer experience in 2016, compared to 36% just four years ago. Nir Tenzer, marketing and operations director at Microsoft South Africa, says having a great product at the right price is becoming less important to consumers than great customer experiences across multiple channels. He says this is the real competitive edge.

Financially, 2016 will be a tough year and consumers will have less to spend. They will look for value for money. “Twenty years ago a cash-strapped consumer would have made brand decisions based on loyalty and trust,” says Wingfield. “Today, it’s all about value.” He adds that because banks operate in an already indebted society, they need to take a more responsible role in payment and paying back loans faster.

This is not a year in which banks will acquire new customers based on lending. “It’s set to be a year of consolidation. Consumers are likely to opt for solid, dependable brands. Moreover, they’ll be spending more time at home and clever brands will find ways to capture their attention and entertain them while they’re at home, probably watching TV,” he says.

For Tenzer, 2016 will be the year marketers should be striving to make deeper connections with their customers and fans. Staying relevant, providing a personal touch and content people can use have always been important, but will become even more so in the coming year.

This is the year to reach consumers where they are, and emotional connections and experiences will be far more significant in differentiating between brands than product and services alone.

The big take-out: Social activism and a cash-strapped consumer mean brands must work harder than ever to stand for something and forge connections with consumers.