Consumer Wallet: How Kenyan Consumers Are Adjusting their Spending Behaviour During The Coronavirus Pandemic
By Leonida Kombo,
The Coronavirus pandemic has disrupted consumer behaviour both globally and locally. This has raised important questions on how this black swan event has impacted Kenyan consumers and their spending behaviour. Findings from Consumer Wallet, Ajua’s real-time consumer spending platform indicate that there has been a 21% decline in Kenyan consumers’ wallet size. 37% of Business owners also reported a significant decrease in revenue since the onset of the pandemic.
The Consumer Wallet insights that highlight Kenyans’ spending trends across 11 categories have shown that as a result of their constrained budgets, Kenyans have resorted to cutting down their spending on non-essential items such as entertainment, alcoholic beverages and cigarettes. When we asked Kenyan consumers what their biggest financial struggle is at the moment, 35% of them reported that paying rent has been particularly difficult.
Some of the spending categories most affected by the change in spending habits include betting and airtime. Since the start of the pandemic the wallet-share Kenyans spent on Betting dropped by a significant 7% to ~0% within 3 months. Airtime took a dip as well with the wallet-share declining from 24% to 17% within a month. On the other hand, Kenyans are spending more on food as well as household and personal care items. The wallet share for these categories increased by 4% and 2% respectively.
Customer retention is crucial to businesses now more than ever. According to Richard Owen, co-creator of the globally recognized Net Promoter Score (NPS), returning customers typically spend 33% more than new customers. This means that in order for businesses to stay alive and thrive beyond the Coronavirus pandemic, they will need to understand how their customers spending behaviour is changing and understand their real competition in order to maintain customer loyalty and trust.
Learn how you can understand and act on your customers’ buying behaviour in real-time with Ajua’s Consumer Wallet. Sign up for a free demo today: https://bit.ly/2SCvxue
Ajua is Africa’s first Integrated Customer Experience company for businesses on the continent. We exist to bridge the gap between businesses and their customers. Ajua’s technology integrates with businesses at the points that matter most to their customers to measure and optimize their Customer Experience. Our plug and play platform has enabled leading brands of various sizes and industries on the continent to create actionable strategies that drive business growth.
Ajua officially rebranded from mSurvey on July 31st, 2019 to reflect our growth, ambition and African Identity in our corporate brand.