By Jonah Nwokpoku
With the introduction of GSM communication, Nigeria has continuously witnessed increased adoption of mobile technology in all spheres of life. From its use in agriculture to financial services, mobile technology has proved indispensable in many great ways. According to a recent study, mobile penetration in sub-Saharan Africa is expected to increase from 52 per cent in 2012 to 79 per cent in 2020.
A Gallup report also noted that nearly two-thirds, 65 per cent of households in 23 countries in sub-Saharan Africa had at least one mobile phone in 2013, with median growth of 27 per cent since 2008 and median annual growth of 5 per cent. In a country like Nigeria, percentage of households with at least one mobile phone rose to 78 per cent in 2013 and has continued to grow by at least 4 per cent annually.
This trend has pervaded into the general economy as players in different sectors strategized to tap into the advantages offered by mobile technology. However one sector that has successfully tapped into the mobile advantage is the e-commerce sector. Today, no operator can imagine playing without a mobile application. With the quest to get the attention of consumers wherever they and beat competition, mobile has come to form an integral part of their businesses.
Last week, two of Nigeria’s major e-commerce players, Jumia.com.ng and Konga.com held sales fiestas that leaned heavily on mobile. Jumia, tagged its own ‘Mobile Week Megathon’ and not only celebrated mobile by offering massive discounts on different models of mobile devices but also prioritized sales via their mobile apps.
On their part, online marketplace, Konga.com which tagged theirs ‘Big App Sales promotion’ conducted the entire sales promotion that lasted for two days only through their mobile application. This trend indicates that mobile has continued to dictate the strategies of online retailers.
According to Strategic Growth Concepts on ‘Mobile technology for increased productivity and profitability’ this trend is driven in part “by the interactive nature of mobile technology as sharing information through this medium allows businesses to get immediate feedback on products and services from customers. This speed and accessibility have led to faster research and development for companies, an important part of staying ahead of the competition.
It has also led to product upgrades moving at a faster rate. In addition, customers and clients feel as if they have a more direct role in a company’s development. “Also mobile technology has introduced a new dimension into advertising and marketing for businesses worldwide.
Potential customers now see business advertisements on mobile phones through a wide variety of mobile marketing technologies including: SMS (text) messaging, mobile websites, mobile applications, banner ads, etc. These advertisements can be customized to reach a more specific, targeted audience thanks to software that “reads” the website or information individuals are seeking on their mobile device and displaying advertisements that relate to that information.
Marketing is made more effective by this customization, and because most customers / potential customers always have a mobile device handy, their exposure to advertisements is increased.” Analysts believe this trend is driven by consumers’ inclination towards use of app based online shopping carts to store items for later purchase as well conduct research before making purchasing decisions.
They argue that shoppers now increasingly use all available devices to make the best decisions and enhance their shopping experience and that e-commerce operators need to clearly understand consumer shopping and purchasing behaviors, particularly the move toward mobile, in order to maximize revenue potential and identify effective commerce marketing strategies.
Disclaimer
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