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How chat commerce is remoulding marketing

How chat commerce is remoulding marketing
A person using computer and phone. PHOTO/PRINT

The way organisations market products and services has undergone a radical transformation that has seen the rise of social media chat apps, ushering in a new era of direct and instant communication and processes for businesses.

Gone are the days when email marketing, TV, radio, and newspaper advertisements were the only forms of communication for businesses.

Chat apps have become an integral part of daily communication with close to five billion messaging app users worldwide, and market projections estimating the number to grow to seven billion users by 2030. In Africa, chat commerce is taking hold, a trend that has become a powerful influence. Apps such as WhatsApp, TikTok, Facebook and Instagram have become virtual marketplaces and businesses are seizing the opportunity to communicate and connect with their customers at a more personal level.

WhatsApp has a high penetration rate in African countries, hence the most popular chat app. In Kenya alone, WhatsApp accounts for 97 per cent of Kenya’s mobile internet use, followed by 96 per cent in South Africa and 95 per cent in Nigeria.

Facebook Messenger is also among the most used communication platforms followed by Tiktok and Instagram. These chat apps are widely used for both personal and business communications.

Key findings of a research by Infobip show that 60 per cent of millennials, followed closely by 53 per cent of Gen Zs use social media to communicate with brands. On the other hand, only 28 per cent of baby boomers and 25 percent of Gen X have adapted to this change.

“When it comes to channel preferences, it seems that older generations are particularly keen on receiving communications on their preferred channel. Sixty per cent of Baby Boomers selected this compared with 35 per cent of Gen Z,” the study reveals

“A similar trend can be seen with the frequency of communication with 53 per cent of Baby Boomers preferring less communication with a brand, compared with just 30 per cent of Gen Z respondents,” it adds.

Among the reasons why chat apps use is booming in Africa is because they offer endless opportunities, massive marketing potential, and growth for businesses. But, only if used correctly.

According to Clifford Mwenda, relationship Manager at Pazurina Holiday Homes, today, if your brand is not social media, you are out of place, explaining that brands are increasingly using social media to position themselves in the market.

Modes of communication

“In the corporate world, social media is now a must have tool in addition to the traditional modes of communication. Most companies now have different social media accounts where people can communicate with them and you will get a response in less than five minutes,” he says.

Different generations have different preferences when it comes to messaging and shopping. Each of them wants to be served in a certain way and on their preferred channel. Therefore, businesses must adapt their communication to each target audience to ensure a company’s growth and longevity. According to Mwenda, the channel you use should be determined by the urgency of the information and how the target audience will relate to it.

“If I’m advertising about home ownership or the mansions in leafy suburbs, definitely, my clientele will be older people and I’ll focus on Facebook where most of them are or Linked In where most professionals spend their time. For Air BnBs, I’ll use Instagram and Tiktok because this is where the younger generation below the age of 40 years camp base,” he emphasises.

The survey by Infobip also revealed that the younger generation, particularly Gen Zs and millennials, want to be understood by brands in addition to getting timely feedback. They are also keen on buying from brands that offer uniqueness, compared to generic products that can be found almost anywhere in the market.

Leona Asachi, a Gen Z and a fourth-year student at Multimedia University prefers shopping on Instagram and Tiktok where she spends most of her time. “Instagram and Tiktok are my go to apps. I relate more to brands on these apps because most of their products are for the youth, unlike when I go to Facebook and find products like machinery, houses, and home appliances which I’m currently not interested in.”

Additionally, Leona adds, Tiktok makes brands more believable because I can see the real products from the seller and also go to comments to gauge if indeed the brand is real. She emphasises that she is more likely to buy from brands that have group chats, personalised promotional messages, and broadcast lists as it creates a sense of belonging and builds a relationship between the brand and the customer.

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