THE CUSTOMER

Reaching today’s customer

The pandemic catalysed emerging communication trends into broad acceptance, writes James Francis

While it’s tempting to think that customer communications changed suddenly in response to the pandemic, COVID-19 was more of an accelerator than a pivot point.

Kevin Welman, director of ByDesign Communications, says if you look closely, other forces were already shaping how business reached customers. “If you take a step back, a few additional things happened in the world of communication in this ‘new normal’. The US election had a massive impact on communication as a whole, particularly the polarisation of the media. I think everyone has become sceptical and views the media as having agendas. Then there was fake news and a general distrust in leaders. So you’ve got this almost perfect storm and a great lack of trust among consumers,” he says.

Welman cites a recent study by global communications fi rm Edelman that surveyed more than 33 000 people in 28 countries: 54 per cent of US respondents trust businesses more than NGOs, governments or the media.

Business brands have been gravitating into that vacuum, adds Sylvia Schutte, Stratitude’s managing director. “There is more of a focus on putting content out around brands. Brands have become a lot more verbal and are no longer only about selling products and services anymore. The pandemic absolutely accelerated that, but it already was happening.”

Yet, the trend is not solely due to adverse changes among other communication sources. Digital plays an enormous enabling role for brands to be their own publishers and reach audiences more directly.

“We do quite a lot more than just your standard digital and direct marketing campaigns,” says Stratitude’s digital account director, Nic Baker. “We’ve put together intelligent trigger-based lifecycle communication campaigns and those have really come to the fore, so that you can deliver real-time communication to a group based on their interaction with your online platforms.”

Research provided by Schutte shows a signifi cant shift towards digital spending by marketers in the UK, a trend refl ected in the local market as well, “to the degree where many agencies have repositioned themselves from full service agencies to digital agencies,” she says.

Welman notes a greater emphasis on internal and operational communications during the early days of the pandemic. Though brands have started focusing externally again, the habit appears to be sticking - communicating properly with employees is as key as reaching today’s customer. Digital channels have risen to customer. Digital channels have risen to the occasion as well.

“There’s been a massive uptake “There’s been a massive uptake in digital communications. There’s in digital communications. There’s been a huge movement towards been a huge movement towards the professionalisation of content and authenticity of content on platforms such as LinkedIn.”

“Brands have become a lot more verbal and no longer only about selling products and services

anymore.” – Sylvia Schutte

Sylvia Schutte

COVID-19 and consumer spending habits

The economic consequences of COVID-19 are continuing to be felt in the form of changed shopping patterns and lifestyles, but also faster innovation and technology adoption, writes Ashleigh Blair, Bernadette Versfeld and Kelvin Madembo from Webber Wentzel

Generally, our spending has

shifted from discretionary items to essential items, particularly groceries and household goods.

Mitch Slape, CEO of Massmart Holdings Limited, indicated in a recent Deloitte webinar that varying behaviour patterns have been observed across customer segments categorised according to the Living Standards Measure (LSM).

High LSM households have generally not borne the brunt of income reduction and are more cash-fl ush because they have reduced their spending on travel, eating out and work wear.

The trend of “nesting” has also been observed, driving spending on DIY, home offi ce and home exercise equipment, and home entertainment (notably, Makro sold more televisions in 2020 than in any prior year).

Low LSM households, meanwhile, have felt increased price pressure, and are dependent on pay- and government aid cycles.

COVID-19 has also come with immense innovation, and, as a consequence, an increase in the development of intellectual property and the rapid adoption of technology. The consumer sector has observed both existing technology being embraced (such as the adoption of “off the shelf” mobile applications for online orders) and the development of bespoke technology (for example, online ordering and order tracking). There has also been increased collaboration among retailers, technology companies and logistics businesses, using this technology not only in their own businesses, but also to generate new revenue streams by commercialising the technology under license.

Spaces Waterfall offers various flexible working options.

INVESTING IN A FLEXI-SPACE FRANCHISE

IWG South Africa offers an unparalleled franchising opportunity for creating the office spaces of the future

The flexible workspace sector has changed significantly and following many years of exponential growth, global demand for temporary offices, meeting rooms and co-working will take over. This has accelerated a new opportunity for investment as flexible office franchise ventures prove to be sustainable, regardless of the economic conditions.

THE EVOLUTION OF THE OFFICE

With the extreme success that remote working saw last year, one question is constantly asked: “What does the future of the office look like?” The effects of the COVID-19 pandemic have shown that the socioeconomic environment is becoming increasingly unpredictable. This has ripple effects on businesses globally and has led to many companies developing contingency plans that involve significant changes, such as migrating head offices or adjusting to remote working.

Our new way of working may seem like a dream come true for a workforce that has been intrigued by the idea of flexibility and work-life balance for some years now. Remote working may solve the issues of long commutes and wasting valuable time stuck in traffic. But with little social interaction, unstable internet connection and an endless list of distractions, there are also disadvantages to this model.

Alan van der Westhuizen, head of Partnership Growth at IWG South Africa, says: “Recent circumstances have not only forced people to work remotely, but have also been a catalyst for many companies to review or consider a remote working strategy. While working from home has its advantages, the challenge is creating an environment that is client-facing and professional with stable internet connection and power supply.”

What is the best way to bottle this coronavirus-forged culture and prevent a backslide to hierarchical, risk-averse, siloed ways of working?

Looking to the future, flexible working solutions like Spaces and Regus (part of IWG) may well have found the sweet spot between the advantages and disadvantages of working remotely. These spaces meet the requirements of individuals and large corporates who are looking for a hybrid model of working and to cut added costs, while also providing world-class infrastructure and convenience.

THE FUTURE IS FLEXIBLE

Flexibility and agility are important as businesses will pivot and modify processes as they operate. While flexible workplaces include the essential elements of traditional offices, they are forward-thinking and focused on creating dynamic environments.

“Hybrid working is becoming the new norm and, in our view, it is here to stay,” says Joanne Bushell, MD for IWG South Africa. Regus-commissioned research by Development Economics shows that by 2030, flexible working will have created 30 million additional jobs across 16 of the world’s leading economies. By 2022, the global mobile workplace will number 1.87 billion people.

She adds: “Hybrid working has been touted as the ideal solution for employees who still want the option to work from home, but miss the camaraderie and collaboration that the office holds.”

INVESTING, RUNNING AND OWNING A FRANCHISE

IWG is seeking franchise partners to help drive its global growth strategy, which was rolled out in 2019. Despite the pandemic, there has been impressive growth in recent months, with new franchises worldwide. Before COVID-19 hit, IWG had spread its franchise programme into Africa to meet rocketing demand for flexible, modern office space and access to services across the continent. Entering the market now, as an early adoption franchise partner, will enable a shift from traditional industries and generate strong returns on investment from the start.

“Flexible office space franchises are giving rise to a new set of variables that make their model recession-resistant and able to withstand economic downturns,” says Van der Westhuizen. “The ideal franchise partners are multi-unit business owners with the skills and financial capability to develop their locations across South Africa.”

Franchising offers people the opportunity to be in business for themselves, but not by themselves. The franchisee owns his/her own business, but the franchisor remains in the picture, providing ongoing training, strategic direction and field support. The franchisor – IWG – has developed a proven business formula resulting from 30 years of experience with its global brands, such as Regus and Spaces, and can grow the brand further by approving new franchise partners (franchisees).

For more information:

franchise.iwgplc.com

Technology and innovation through mobile devices, cloud computing and social networking allows people the freedom to work from anywhere at any time.

The fl exible working segment is an asset class that has shown great potential over the last few years, attracting growing interest from both large occupiers and small and mid-sized fi rms. In South Africa, “space as a service” is a rapidly developing business sector that’s gaining traction in the country’s prime business hubs and now in the suburbs, thanks to the cost advantages and fl exibility offered by varied working spaces.

While the fl exible offi ce as a franchise segment in South Africa is still in its budding stage, the COVID-19 crisis has alerted institutional investors to the potential of this franchise opportunity as a synergistic extension of their existing portfolio, or even as a safe bet for their next venture.

HUGE DEMAND FOR SHARED OFFICE SPACE

The pandemic has already forced many fl exible offi ce space providers to evolve. At the same time, investors are watching the emerging trends in the offi ce space industry, which appears to be making a shift from ‘work-from-home’ to ‘work-from-anywhere’. Companies are looking to adopt a capexlight, low-risk model in the wake of the pandemic,” says Alan van der Westhuizen, head of Partnership Growth South Africa at IWG Plc. (Regus and Spaces in South Africa).

For franchise professionals looking to strengthen their business portfolio, fl exible workspaces, unlike gyms, hotels and many food franchises, were able to stay open to

Spaces Waterfall provides co-working spaces with all the necessary amenities.

FLEXIBLE WORKSPACE FRANCHISE

The way people work is changing and companies have discovered that fl exible working is a great solution

customers during the pandemic. There is huge unmet demand for new centres in suburbs and secondary cities around the country, with few nationwide brands in competition.

The shift to hybrid working is driving solid growth in sales from offi ce workers who want to continue working closer to home in smaller towns and cities, so now is a great time to explore fl exible offi ce space within a diversifi ed franchise portfolio.

The pandemic has accelerated the trend shift to hybrid working, which, before the crisis, was already set to pump at least R232-billion into local economies over the next 10 years, according to IWG’s Suburban Economic Survey. “What we are seeing is increased demand from businesses that have learned from the events of the past year and a half. They want to continue working fl exibly because they know that it maximises staff productivity and reduces overheads. This demand to work in a new way is defi ned by a combination of working locations. For many businesses, this still means a central city offi ce, but also a space to work from home, along with fl exible workspaces that are somewhere in between the two,” adds Van der Westhuizen.

OPPORTUNITY TO BENEFIT FROM GOOD RETURN ON INVESTMENT

The IWG franchise model presents investors with an opportunity to diversify from traditional franchise industries and benefi t from signifi cant returns on investment. Landlords, multifranchise operators, real estate investment trusts (REITs), business investors and high-net-worth individuals can enter this exciting industry in partnership with Regus, the world’s largest provider of fl exible workspace and part of IWG plc.

If you’re looking for an investment in an industry with high demand, look no further than the fl exible workspace industry. This segment is poised for continued expansion and there is ample opportunity for franchisees to stake their claim and succeed.

Are you interested in joining one of the fastest-growing fl exible workspace franchises? Contact us today to learn more about franchise opportunities:

For more information:

franchise.iwgplc.com

SHEQ TRAINING IN TURBULENT TIMES

BBF SHEQ Services is providing virtual training to enable businesses and individuals to continue their schooling in SHEQ disciplines from home

It’s a little more than a year since COVID-19 was declared a global pandemic and the fi rst infections were confi rmed in South Africa. This period has had tragic consequences with both the loss of lives and livelihoods. On the business front, the disruptions to local and global operations have been immense.

Joep Joubert, group manager of BBF SHEQ Services – a specialist Safety, Health, Environment and Quality (SHEQ) training provider – explains the challenges faced. “Firstly the health and safety environment in any organisation is not something that can be ignored. Regulatory requirements, as laid out by the Occupational Health and Safety (OHS) Act and COVID-19 guidelines, dictate the measures companies need to take to ensure they have adequate resources and processes in place to protect their employees and anyone visiting their premises.

“As a SHEQ training provider, we have long offered the options of training via classroom-based, customised on-site or distance learning. As we approached the initial lockdown in March 2020, we recognised the need for people to use this downtime as productively as possible and we were able to repurpose a number of our courses onto virtual platforms. This enabled businesses and individuals to continue training from home in the various SHEQ disciplines, whether it was our basic courses such as First Aid and Fire Fighting, or more preventative options such as our Hazard Identifi cation and Risk Assessment course.

“Initially, the adoption of virtual training was quite slow, but as people realised the pandemic was not going to disappear overnight, so acceptance and uptake of these new solutions grew. Being a member of the South African Institute for Occupational Safety & Health (SAOISH) and having our courses recognised by the organisation, meant that we could ensure that industry professionals were able to refresh and expand their knowledge while earning Continuing Professional Development (CPD) points during this time. Similarly, those looking to update their skills and value to current or potential employers could embark on our Health and Welfare Sector Education and Training Authority (HWSETA) accredited Skills Programme, which provides training to become a safety and health representative. This can now be done virtually or through our other methods of delivery.

“With the easing of lockdown restrictions, several companies have preferred to hold training for smaller groups on their own premises, something which we offer with most of our courses. We have also seen a return to some of the classroom-based training, but the new reality will most likely trend towards the more customised and digital solutions to limit the movement of people,” explains Joubert.

The economic landscape within South Africa currently does not make for great reading, but as a country and a people we have always shown resilience, and that will be required in the coming months and years. In particular, those companies manufacturing goods locally will play a signifi cant role in the economic recovery and will need to take every opportunity to ensure sustainability and growth. BBF SHEQ Services can further assist in training staff and key personnel in SHEQ legal liability training and ISO quality management evaluation and certifi cation courses – key considerations for ensuring your business is a viable option for larger local and international corporations.

CERTIFIED TRAINING PROVIDER

BBF SHEQ Services, a subsidiary of the BBF Safety Group – Africa’s largest manufacturer of safety footwear and personal protective equipment – offers a range of expert SHEQ (Safety, Health, Environment and Quality) services and specialist training. Training is administered by Advantage ACT, which has over 25 years of SHEQ training experience. Advantage ACT is an ISO 9001 and 45001 certifi ed training provider with courses accredited by HWSETA (Health & Welfare SETA), QCTO (Quality Council for Trades & Occupations) and is recognised by SAIOSH (South African Institute for Occupational Safety & Health).

For more information:

Wynnecent Nhlengetwa Bronwynn Peters

+27 11 396 1246 www.bbfsheqservices.co.za

SMARTER LIVES, SMARTER HOMES

Smart homes are now within reach. The technology makes life easier and helps save costs too

Technology is changing how we engage with each other and the world around us. Smart watches tell us how many steps we take and monitor our heart and health. Our phones allow us to browse dresses in Dublin and have them delivered in Durban. Now, our homes are also connecting, helping us to live more effi cient lives and save money too.

Smart homes are gaining popularity, especially among younger generations, many of whom already have smart assistants, like Alexa, in their homes. The number of smart homes is expected to surpass 300 million by 2023 and the global market for smart home automation will reach $40-billion by 2020, according to statista.com

What makes your home smart?

By connecting objects in your home to the internet, you can control them remotely and use the data they produce to optimise your home environment. Using the internet of things, technology enables you to connect anything from a toaster to your home security system to the internet.

Adjustable thermostats not only keep the ambient temperature at the right level, but they also work smartly to ensure they are not on while you are at work. They only switch on when you instruct them on your way home. Fridges can restock themselves, ordering online and getting home delivery.

The pandemic has boosted sales of smart appliances. Ovens and hobs that link to online recipes and ensure exact cooking times are a hit. Remote viewing via smartphone of a fridge’s contents can help separated families monitor elderly relatives’ food requirements.

Home security systems can alert you via your phone when there are people in your home or on your property and you can set your lights to come on at different times while you are away, making it look like your home is occupied.

Even gardens can benefi t from new technology that senses the water content of the soil and can activate your irrigation system without your intervention.

A survey conducted in the US and Canada showed that consumers were more than ready to engage with smart technology, including smart thermostats; time-varying rates (demand-side management by smart meters); rooftop solar; and other clean energy and energy-saving technologies. Most participants said they were motivated by the cost-saving capability.

Enabling your future BEGINS with your meter

Enjoying the benefi ts of a smart home begins with ensuring that you can access near real-time usage data. Smart prepaid meters play a signifi cant role in automating and greening your home because they can respond to energy usage and allow for remote control.

The near real-time data from smart prepaid meters means users can see exactly how their behaviour is affecting consumption. This heightened awareness has been shown to result in incremental changes that make a difference. Studies done in the UK show that bills are reduced by between fi ve and nine per cent. Other benefi ts of smart prepaid meters include displays in rands and cents as well as kWh. This helps sensitise users to how they consume power. The automated, accurate billing and detailed reports mean less admin, better management and fewer disputes between landlords and tenants. Landlords also benefi t from immediate alerts in the event of tampering.

One of the most exciting benefi ts of smart meters and smart home appliances is that while just a few years ago it was only the wealthiest who could afford these technologies, today they are reaching price parity with earlier models and smart appliances are extremely accessible.

All of this is great news for local consumers looking to enjoy a more responsive home environment and an effi cient future.

TRUSTED VENDING SYSTEM PROVIDER

Citiq Prepaid is one of the biggest and fastest-growing prepaid sub-meter and utility vending system providers in South Africa, trusted by electrical contractors, property owners, property developers and specifi ers, wholesalers and retailers, and tenants.

Since 2010, Citiq Prepaid has vended tokens worth 850 GWh of electricity (equivalent to 25 years of the output of one 4MWh power station) through several hundred thousand active meters across the country. We aim to provide innovative, transparent products and solutions that support and empower everyone to manage their utilities.

Our proprietary software enables detailed reports to better track and manage electricity and water consumption, helping to eliminate unexpected costs, quickly resolve disputes and simplify payment collection.

For more information:

www.citiqprepaid.co.za