USSD Remains An Essential Component Of Any Omnichannel Strategy In Africa

As businesses today push forward in their journey towards digital transformation, a significant oversight emerges – numerous companies unintentionally marginalize substantial segments of their customer base that do not own smartphones. This approach isolates crucial demographics, and undermines any efforts to foster digital inclusion.

One technological avenue that should not be overlooked is USSD – especially in Africa. Despite being over two decades old, the technology remains relevant and far from obsolete.

USSD – OLD BUT NOT COLD

USSD is still remarkable technology that has facilitated services for customers across the African continent for well over a decade. USSD is a communications protocol controlled by mobile operators and supported by 99% of GSM handsets. It is used to provide mobile services at a low cost, and without requiring access to the user’s SIM card.

Individuals of all demographics are familiar with USSD, regardless if they are utilizing a smartphone or a feature phone. It stands as the most widespread mobile technology in South Africa and should form a fundamental element of any customer-oriented offering.

In spite of the increasing prevalence and affordability of smartphones, Southern Africa’s largest brand store – Pep – has seen feature phone sales increase in recent years. Pepkor head of Cellular, John Edwards, estimates that over 5 million feature phones will be sold in South Africa in 2023, and the market is growing year on year.

This trend is borne out by recent research by the IDC (International Data Corporation), which reveals shipments of feature phones were up. The top three smartphone markets in Africa by unit share are South Africa, Nigeria, and Kenya; and all three saw shipments decline in 2022.

Shipments of feature phones, however, were up 11% QoQ, with their cheaper prices offering a viable alternative for cash-strapped consumers.

This underscores the crucial importance of the USSD channel in any comprehensive channel strategy.

OMNICHANNEL APPROACH

Despite the effectiveness of the technology, numerous companies are still neglecting this channel for catering to lower-income demographics.

While organizations concentrate on implementing smart technologies such as AI and natural language processing, incorporating more conventional technologies like USSD expands an organization’s outreach.

USSD serves as a cost-effective and scalable enterprise solution that rapidly can facilitate user connections, interactions, and transactions with businesses. It should be recognized as an efficient revenue generator, empowering you to both sell products and assist customers through swift and straightforward self-service options.

USSD operates without the need for internet access and does not consume customers’ valuable and often very costly data. There are no drawbacks to incorporating USSD into your organisation. For a cost-effective channel to your omnichannel strategy that provides substantial value, USSD codes present an excellent means to broaden your mobile engagement.

When used appropriately, technology can foster simplicity and efficiency. The crucial factor lies in deploying the correct technology in the right location, at the right moment, and for the right reasons.

Although main markets are generally viewed as a unified entity, they can be far from homogeneous – and employing a one-size-fits-all approach is unlikely to produce the best results.

The key is a multi-touch, omnichannel approach combining sales teams, automation and communication channels with the flexibility of either assisted or self-service. The objective of technology should consistently be to streamline engagement, and intelligent, integrated communication channels play a pivotal role in efficiently optimizing the pathway to reach urban, semi-urban, and rural areas across South Africa and the broader African continent.

Get in touch to get started. We can offer expert advice to help you get started with USSD as part of your broader omnichannel strategy, or as a stand-alone strategy.