In less than a decade, the Nigerian business landscape has changed considerably. Navigating the business world has become more daunting, especially in a struggling economy where everyone is trying to prioritize the things that are more important to them.
These days, customers prefer services that allow them to make their money last a little longer or services that make them believe they are getting the most value for their money. As a result, customers are more doubtful than ever when deciding to trust a brand or make a purchase.
In this article, we will be exploring key insights you need to be aware of as a new entrepreneur in this new landscape, and the best ways to operate within it to succeed.
Key Insights into the Nigerian Business Landscape
1 . Economic uncertainty among citizens
Economic uncertainty happens when things like prices, jobs, or how much people spend change a lot and are hard to predict. This uncertainty makes it tricky for businesses to plan for the future and for families to feel secure about their finances. A sailor navigating through stormy waters must adjust course and secure their vessel to stay afloat. Similarly, businesses must adapt and diversify to weather economic storms.
How to approach this:
During the 2008 financial crisis in the United States, companies like General Electric and Procter & Gamble diversified their offerings and reduced costs to stay afloat. In the same way, diversifying your offerings as a Nigerian entrepreneur will help you reduce dependence on a single stream of income. Also, constantly stay on the lookout for creative ways to reduce or at least stabilize costs without compromising quality.
- Marketing Pro Tip: Focus on marketing based on product value, highlighting the benefits and cost-effectiveness of your product or service. Offer flexible pricing and package deals to attract price-sensitive customers.
Related post: 9 Customer Retention Strategies to Keep Your Customers Happy (and Coming Back for More) in 2024
2 . Lack of trust between customers and companies
Customer scepticism is when people doubt or question the truthfulness or reliability of products, services, or information from companies. It occurs when customers are cautious and hesitant to believe marketing claims or promises, even when they are coming out of the mouths of their favourite influencers. This is often due to past experiences, conflicting information, or concerns about hidden agendas. This scepticism can lead consumers to research products thoroughly, seek reviews, and carefully consider purchases before trusting a brand or making a buying decision.
What you can do TODAY
If you call the number on an IG business page and the voice on the other line greets you just like First Bank would, would you consider that business to be a serious, professional, non-scam business or not?
It’s the same for the average Nigerian customer. A professional welcome greeting/business number helps the customers know they are dealing with a credible Nigerian business and not a scam. As the first point of contact between the business and the customer, you don’t want to leave that first impression to chance. This is why smart entrepreneurs are using PressOne’s customized numbers and interactive voice recording features to record welcome greetings for first-time callers and cement immediate trust. Try PressOne, your competitors are likely already using it to get ahead.
- Learn How To Get A US Number in 2024
How to approach this in the long term:
A person trying to gain the trust of a sceptical friend must be transparent, consistent, and reliable. Similarly, businesses navigating the Nigerian business landscape must build trust with customers through transparency and quality. You have to be transparent in your business dealings with your customers to gain their trust, and even long after that has been achieved, prioritize customer service to foster loyalty.
You wouldn’t trust a secretive and unreliable person, would you? Deliver on promises to build trust, and if anything goes wrong with their order, be sure to offer full disclosure so they don’t suddenly get suspicious and put their guard up. Make it a part of your customer success routine to encourage customer feedback to improve your services, and train all your staff to interact with customers with an attitude of cheerfulness and empathy.
Marketing Pro Tip: Amazon’s customer reviews and ratings system helps them build trust with potential customers. Prioritize customer testimonials, reviews, and ratings in your marketing strategy. Offer free trials or demos to let customers experience your product or service firsthand.
3 . Digital rule and social media reliance
We rely on tools like social media and online shopping so much that it has fundamentally changed how businesses work and how people connect. This influence shapes our daily lives and has also changed how companies can compete and grow in Nigeria’s business landscape.
How to approach this:
A Nigerian business without an online presence is like a store without a signboard – invisible to potential customers. Similarly, investing in a strong online presence through a website and excellent social media strategy is like making sure that your shiny signboard is mounted on the expressway and blinking brightly for all to see as they pass by.
Set aside a budget for great marketing talent and have them handle the looks and voice of your brand. Invest in effective content marketing, stay consistent and understand that creating is only 50% of the job. Content that has been created also needs to be distributed effectively to have the desired effect. Leverage social media to engage with customers and build brand awareness. You can also invest in competitor and collaborator research, and gain insights that will guide you when it is time to make important changes in the way you conduct business.
Marketing Pro Tips:
- Consider community marketing and personalize marketing efforts.
- Collaborate with adjacent businesses. For example, if you sell raincoats, you could collaborate with a business that sells umbrellas to increase your customer base and drive more lasting growth.
4 . Demand for Innovation
A demand for innovation means that Nigerian companies must keep coming up with new and better ideas to stay competitive by always finding ways to improve products, services, and processes. Innovation helps businesses grow and adapt to changes in technology and customer needs. For instance, Apple’s continuous innovation in the smartphone market has kept them ahead of competitors. This practice is crucial for staying ahead in a competitive market and for meeting the demands of customers who expect new and exciting things.
How to approach this:
A business that doesn’t innovate is like a car without fuel – it won’t move forward. Similarly, innovation is essential to stay ahead in a competitive market like the Nigerian business landscape. You can do this in the following ways:
- Invest in research and development to stay ahead of the competition
- Embrace new technologies to improve efficiency and productivity
- Encourage a culture of innovation within your organization
- Collaborate with other Nigerian businesses to share knowledge and resources
Pro-tip for growth:
Go for low-hanging fruits (common complaints that have an easy fix) and offer them to the Nigerian market in a way that your competitors haven’t. Ask why your competitors haven’t tried to offer them to the public. It could be that people are unwilling to pay for it, or that there is a regulatory restriction, so make sure to do your due diligence before investing resources in a new product.
You might also like: Tips for Registering a Company Phone Number in Nigeria
5 . Flexibility Advantage
The flexibility advantage in business means being able to quickly adapt and respond to changes in the Nigerian business landscape and meet customer needs. It involves being flexible and proactive in decision-making, processes, and strategies. Businesses with agility can seize opportunities faster, solve problems more efficiently, and stay competitive in a rapidly changing environment like the Nigerian business landscape. This is a trait that makes Nigerians call someone a ‘Sharp Guy’. This ability to pivot and innovate helps companies stay ahead of the curve and maintain growth and resilience over time.
How to approach this:
- Stay flexible and adapt quickly to changes in the market. A business that can pivot quickly is like a sports car that can change direction fast – it has a competitive advantage. Similarly, adaptability is crucial when navigating the Nigerian business landscape.
- Be willing to pivot your strategy if something isn’t working. Netflix’s pivot from DVD rentals to streaming services has been a huge success.
- Encourage a culture of experimentation and learning. In navigating the Nigerian business landscape, being too afraid to fail will not take you anywhere. Try new things, and do not feel uneasy if something doesn’t happen the way you thought it would. Instead, use failure as an opportunity to learn and improve your services.
Marketing Pro Tip: Stay flexible with your marketing strategy and be willing to adjust based on customer feedback and market trends. Use agile marketing methods like Scrum to stay adaptable.
Conclusion
By understanding the Nigerian business landscape and following these tips, you can build a thriving business even in challenging economic times. Stay informed, adapt quickly, and prioritize customer trust to create a resilient enterprise. To further enhance your business operations and communication, consider using PressOne Africa. With features like caller greeting, call tracking, and team collaboration, PressOne can transform your phone calls into powerful sales channels. Get a free demo now.
