1to1 Magazine - November/December 2008 - (Page 26) South America’s Dangerous Liaisons As the region experiences economic growth following more than a decade of inflation and recession, the middle class is growing and businesses are taking notice. However, companies need to consider three key challenges in reaching customers there: Populism has replaced democracy in countries like Venezuela, Bolivia, and Nicaragua, causing nationalization in some industries and leaving businesses to wonder if their assets will be seized. Remittances from migrants to the U.S. have decreased because of the downturn in the U.S. economy. Crime and corruption are still rampant in some countries, increasing costs for legitimate businesses. Banu Akca, senior consultant at Peppers & Rogers Group in Dubai, “so Middle East–based customers have started to demand more accessibility, greater availability and simplicity with transactions, and immediate access to information.” Consequently, Middle Eastern companies have started to embrace mobile technology and social media as a means to communicate with customers. “Companies here are aware of the fact that if you want the rest of the world to know about your business, it’s better to jump on the social media train now, and not be left behind wondering what happened,” Akca says. “They’re aware that the benefits of social media include providing better customer insight, utilizing a direct communication channel, and the ability to measure the effectiveness of conversations.” Middle Eastern companies are also meeting customer demands with a move to self-service. Mobile and Internet penetration ranges from 50 to 100 percent in most of the region, and companies are eager to use these channels to reduce costs while providing immediate response to customers, especially in banking. “Financial services providers in the Middle East are working toward a single customer environment, addressing risk-adjusted Asia: Creating a Customer Culture To group India and China with Japan, Korea, and the rest of Asia may seem odd considering the enormity of their economies and vastly different cultures and citizenry. However, there are similarities in the way businesses can approach operating in these countries and connecting with Asian customers. One of the biggest commonalities is how men and women are treated differently in Asia, according to Kim Schott, president of Schott Cultural Consulting. “In a business environment, men take charge and if you’re a B2B company that’s who you want to speak to,” Schott says. “If, however, you’re trying to reach a household decision-maker, that’s generally where a woman is in charge.” Schott points to a series of Heinz ketchup commercials that aired in India last year and won a number of awards. In them, a man at a business lunch and a woman making dinner both have difficulty pronouncing “Heinz.” The stark difference between who Heinz is targeting with each ad is clear. Another commonality is mobile technology adoption. Mobile commerce, or m-commerce, is widespread in Korea and Japan, for example, and GPS-enabled mobile marketing is making its way into the mainstream across Asia. “There are three times as many mobile phones as PCs in Asia,” says Brenda Bence, president of Brand Development Associates. “There’s a great opportunity there for interactive marketing, and that trend will be coming to Europe and the U.S. as well.” Ultimately, though, most of the mobile companies operating in Asia want to tap China’s one-billion–plus consumers, Bence says. “Especially with m-commerce and mobile marketing, everyone wants to make sure these things work in smaller, more advanced regions, and then they can make it work in China.” Middle East: Building a Customer Oasis Despite the economic downturn in much of the world and the instability of the world financial market, Middle Eastern companies remain strong and responsive to changing customer needs. “The Internet has become the main tool for getting the fastest information from anywhere, anytime,” says Opportunistic in Europe The European Union brings together many of the countries on this continent, but conquering this diverse business landscape requires a deep understanding of multiple cultures—and brings with it a unique set of challenges and opportunities, including: • • • • • Multinationals have to balance the cultural, language, and geographic differences among countries in close proximity, one reason why understanding local markets through customer engagement is so important. Companies are harnessing the potential of such emerging technologies as kiosks and digital signage to increase the number of customer touchpoints they use to interact with customers. Mobile and broadband penetration exceeds 100 percent, allowing tech-savvy companies to reach consumers via mulitple channels. Cross-channel marketing for relationship-building is growing, especially as the online and offline channels converge and companies combine the two disciplines internally. Each European country has multiple well-established players in industries like telco and banking, leading to aggressive competition when they expand beyond national borders to the rest of the continent. 26 1to1 magazine www.1to1media.com http://www.1to1media.com
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