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5 Tips for SMEs to attract millennials
5 Tips
FOR SMES TO ATTRACT MILLENNIALS
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Millennials have been under the microscope for a number of years now, with many organisations carrying out extensive research about this generation, their needs and how businesses can meet their demands. This has led to various stereotypes about the characteristics and behaviours of a group of millions of people born over a 20-year period.
As the largest consumer group in the world today, it is impossible to ignore the impact the youth has will have as they settle into their prime spending years.
Their impact will be particularly keenly felt in Africa, where millennials have overtaken their predecessors – the Baby Boomers – as the largest demographic. South Africa alone has over 14 million millennials, for instance, making up approximately 27 percent of the population. What makes this so important is the fact that Africa’s youth are driven by different concerns and realities than their global counterparts.
“This makes it critical for businesses operating in Africa to understand the unique challenges and opportunities of the continent’s millennial customers, and their buying behaviour in order to be able to build meaningful relationships with them and give them the level of service they demand,” says Mike Higley, Vice President Operations, FedEx Express Sub-Saharan Africa.
Here are 5 key insights into the youth psyche:
1 Tech savvy and are increasingly choosing to shop online – and with a mobile-first approach Improved access to the internet, greater mobile penetration and increasingly easyto-use and navigate online experiences make consumers, especially African millennials, more likely to shop online. According to the PayPal and Ipsos third annual cross-border commerce report, South Africa’s online spend is forecasted to grow to over R53 billion in 2018. In 2016, 43% of adults in South Africa shopped cross-border.
2 Communicate with brands mainly through social media Social media has completely changed how young Africans interact with companies. Immediate access to information and brands has changed the relationship between businesses and customers, as well as the way customers approach buying products. The continued growth of social media – with 191 million active social media users across the continent (172 million of whom access social media through their mobile) – has meant that peer reviews and referrals online carry more weight than traditional advertising; peer-written content is millennials’ most trusted source of information. 3. Demand personalised customer 3 experience They expect brands and businesses to not only know what they want, but to provide it. And the results of a bespoke approach speak for themselves: brands that create personalised experiences see revenue increase by six to 10 percent. Small businesses have an advantage in this area, as there is more opportunity to get to know and build more meaningful relationships with customers than, where the same can be difficult in big businesses.
4. 4 Want to co-create bespoke products to meet their unique needs They prefer brands that emphasise unique offerings that allow them to express themselves over mass-market alternatives. Co-creation is more than just a buzzword; 40 percent of millennials want to have a say or play an active role in co-creating the products that they spend their money on.
Loyal – but you have to earn it 5 Research by Accenture indicates that millennials differ significantly from other generations when it comes to the concept of loyalty – and South African and other African customers differ even further. For instance, 88 percent of South Africans are loyal to brands that protect their private information, 67 percent are loyal to those that give those personalised discounts or special offers, and 52 percent are loyal to brands that support a cause that they value
R6 MILLION SAVINGS FROM A SOLAR WATER COMPANY SYSTEM
Poor rainfall and incessant drought is largely to blame for the challenges in South Africa’s agriculture sector, a situation that is threatening food security. Solar water pumping presents lasting solutions to the challenge.
BY: LUIS E PEREZ
Access to water is crucial for sustainable agricultural development. This is especially true for South Africa, a country endowed with vast tracks of farmable land without access to rivers, dams or other sources of water for irrigation. As a result, many areas are not available to farming purely due to the elevated cost of bringing water from very long distances or the building of electrical network required to operate borehole pumps.
Farming remains vitally important to the economy. It is estimated that some 8.5 million people are directly or indirectly dependent on agriculture for their employment and income.
South Africa has both well-developed commercial farming and more subsistencebased production in the deep rural areas. Agricultural activities range from intensive crop production and mixed farming in winter rainfall and high summer rainfall areas, to cattle ranching in the bushveld and sheep farming in the arid regions.
Solar Water pumping is the solution to this problem for many reasons. For one thing, it is a low-cost option which allows the placement of boreholes right where the water is needed. The water is pumped to targeted areas utilising borehole pumps powered by Solar Panels. This is a welcome departure from a pump powered through the national grid, which is expensive and at the whim of power availability.
The concept is really simple; since the solar energy only peak for a few hours per day, solar pumps are only operational between four to five hours per day. During
Luis E Perez this period the solar panels generate enough power to pump water to the required daily levels. distributed through the force of gravity to the areas of need. Up 30, 000 litres can be pumped per day. 2. Another plus is that the solar power can be installed directly by the farmers themselves, even in the remotest of areas, at half the cost of running a generator. incentive for renewable energy a move that can reduce the capital outlay costs for the first year by up to 30%.
A good example is the recent inaugurated 75Kw pumping site at a pecan farm in Cradock, Eastern Cape. This solar pumping system was designed to pump almost 1 million litres of water per day to an irrigation dam from a nearby river. This enables drip feeding irrigation using solar energy. Once this system is in full operation it is estimated that it will generate savings of close to R6 million to its owners. Within three years it will have been paid off. With a useful life of more than 20 years it is a certainty that this technology will become the cornerstone of the profitability of this farm.
This is a worthy intervention to the continent’s food security situation. The food challenges in Africa are multipronged. The population is growing, but it is threatened by low farm productivity exacerbated by weather changes, shorter fallow periods, and rural-urban migration that deprives
1. The water is stored in tanks and is 3. Moreover, government offers a tax
farming communities of young people.
Perez is Managing Director of Easy Power. He boasts over 20 years of very varied international experience in the commercial sectors of the energy, oil and gas and renewable energy. Born in Spain, Perez has a Mechanical Engineering Degree and a Masters in Turbomachinery design
THE SHOE, THE ARTIST, THE WINERY: HOW TO EXPLORE SA’S TAPESTRY OF BEAUTY, WONDER
Since the dawn of democracy South Africa has become one of the most popular leisure and business travel destinations in the world.
Boasting, as it does, a tapestry of fauna and flora, cultural diversity and a forgiving climate, the country is a basket of wonders waiting to be explored. You can see it all in just one country.
Here are two treasures to sample: 1. The Shoe Guest House Situated in Ohrigstad, known as the gateway to the Panorama Route and nestled at the foothills of the Drakensberg Mountains, close to the Blyde River Canyon, God's Window and Potholes, this treasure is a must see. This highly scenic area is packed with beautiful waterfalls, viewpoints, historic towns and cultural heritage sites.
What is The Shoe about? The Shoe, legend has it, is where the ‘old lady’ lived with her many children. Except the furniture of the ‘old lady’, The Shoe has a small museum featuring the history of the Valley as well as an art gallery. This place is operated by Dr Ron van Zyl, his wife Yvonne and children. There is also a curio shop and tea garden. From The Shoe is the entrance to the Alpha Omega Cave. The Shoe was built in 1990 to be a landmark and tourist attraction.
Dr van Zyl was born in Cape Town in 1950. He grew up around the Cape, then joined the South-African Navy in 1968 to 1974 when he left to settle near Ohrigstad. His brother Pastor Paul van Zyl as well as his parents had already moved here, and he started the Alpha Omega Bible Garden on the way to the Echo Caves. Here he built the 16-metre-high rock face, called ‘The Dammed’ depicting tormented figures in “Hell”. Whilst living there he met his Yvonne, married her and moved away to a small piece of land a local farmer gave them. Once again, they built a shop which they called ‘Ron’s Art’ which they stocked with their own artwork and curios. Their
two children Michell and Aldo were born and eventually in 1990, through the help of a friend and partner, they bought the current property on which The Shoe is situated to this day.
After The Shoe was build they started to develop the rest of the property. Accommodation facilities, restaurant, curio shop and tea garden came into being over the following years.
In 1996, Ron was able to accomplish his dream - he started building the Cave. Easter Weekend of 1999 their son, Aldo took the first tour through this special man-made Cave in which the spiritual world is explained by sculptures, sound and lighting. Pictures can be viewed at the reception area. (website: www. theshoe.org)
After he received divine inspiration to paint a large painting in 2005, the very painting used as an introduction to the Cave tour, a transformation took place in their lives. Many other divinely inspired paintings came about and Ron wrote his first book, called ’The Line’.
This new transformation was made official and in 2007 through the establishment of “The Shoe Ministries” of which Ron and his family are the founding members. The Shoe Ministries now makes it their mission to teach people about true Christianity. The Cross of Jesus Christ is the centre of their teaching.
As already alluded to, the Alpha Omega Cave came into existence because of the vision Ron had many years ago. Tourists or guests that come to visit The Shoe and the Cave are guided through seven underground rooms in which the Spirit World is depicted. The 7th room is a small Chapel where weddings can be held.
The Shoe Ministries also has a Guesthouse and a Restaurant. The accommodation is luxurious, stone build, chalets with indoor fireplaces, kitchens, TV and bathrooms. braai areas, swimming pool, pub, games and hiking trails.
Groups of up to 38 people can be accommodated. Weekend seminars are held for church or cell groups. Wedding receptions and conferences for up to 70 people can be held in the main restaurant and smaller groups of 15 – 25 in the two smaller venues.
Throughout all of this Ron has written nine books, painted numerous paintings and carved an unbelievable amount of sculptures, he conducts teaching seminars, and still do guided tours through their man-made Cave. He has obtained his Doctors Degree in Theology and his books are available from The Shoe Ministries directly. He still lives and works actively with his family on this current property today. He continues to write, build, sculpt and paint.
2. The Rooiberg Winery The story of Rooiberg Winery – situated in the renowned Robertson Wine Valley of South Africa – is that of a group of pioneering wine farms alongside three rivers surrounding the Rooiberg Mountain, which overlooks the cellar and its source vineyards. Here at the more than a half century old Rooiberg Winery, with its striking red land art, you find an exciting expression of wine diversity and quality born from a unique set of ecological features.
Today a private company with 29 shareholder members who operate 20 farms and with exports to several countries, Rooiberg has shown a remarkable growth spiral following its founding on 14 April 1964, as well as the ability to harness nature into excellent wines for the global market. The winery this year processed record 16 340 tons of grapes and its emphasis on quality production has yielded increasing accolades, while at the same time being a leader in clean and green production practices and nature conservation.
With the largest Chair in Africa as a beacon to this well-established awardwinning winery and the only love-lock wall at a winery, one will find more than just great wines. With a cosy Bistro, specialized bakery and our traditional farm stall, Rooiberg is a sure stop for passers-by.
The main aim of the ESD AMP is to amplify the marketing efforts of Small and Medium Enterprises through a partnership of media owners in collaboration with Enterprise Development Program Managers and Transformation Managers.
“Like large corporations SMEs must advertise to showcase their products and services in order to succeed but unfortunately many cannot afford to do so. ESD AMP exists to bridge this gap,” - Saki Mabhele, Founder of ESD AMP
Enterprise Development Access to Markets Partnership (ESD AMP)
