If you have met a business that loves selling products to family, friends by recruiting other people to join their habits, then a typical African must have met a multi-level marketing company (MLM) in the mix. Last year, I acquired assets and had to insure them.
Fast track, I never got any telco from the insurance company until the final week of my renewal. This was due to the predatory savor of customer acquisition, not retention as is with other companies on this side of the world.
Just as many common business models have ignored more agile ways to boost sales and onboard more sales due to the MLM model that has been stuck to by multiple scholars coupled with the fear to innovate amongst enterprises as highlighted afore in my previous articles that many companies in small thrive on the absence of the threat of new entrants.
Taking a further look at how marketing is done for services in small markets, moguls have ignored the fact that we too deserve Hyper-personalization [of customer experience].
In addition to that, little is being done to achieve customization and simplification of customer journeys which is very critical to the furtherance of our market and ability to garner by every company.
Where data is concerned, Insurance companies and banks have traditionally operated on the basis of statistical averages, from which they estimate likelihoods of someone becoming a defaulter or crashing cars respectively.
The only way to get there is through Artificial Intelligence in order to personalize the insurance/ banking products and experience. Through this, the industry will get to accurately predict individual risk characteristics, as opposed to guessing based on historical averages. To a large extent, many enterprises in Africa are in the game of averaging, but the less they do, the better it is for their respective customer base.
The goal of AI in this context is to pinpoint and act on opportunities immediately by providing customers and carriers alike with a seamless buying and support experience that leaves everyone satisfied.
The glaring fact is that 90% of businesses in East Africa have no online presence nor have key aspects of the customer experience digitized thus the reality in order to leapfrog the competition and deliver outcomes at scale, incremental improvements alone is not achievable which keeps our startups at the same threshold number 20,000 SMEs in Uganda as they were in 1999 owing to the inability to leverage social media and technology at hand.