The effects of the COVID-19 pandemic in Kenya have been significant across many different industries.
Surprisingly, there are a few industries that have benefitted from the pandemic and have seen a rise in their Customer Satisfaction, as measured by their Net Promoter Score according to Ajua’s Quarter 2 2021, Customer Loyalty Benchmark Report.
The Report found that the following four industries increased their NPS scores the most during COVID:
- Banking
- Insurance
- Food & Beverage
- Retail
These industries leveraged the pandemic to fast-track their innovation. They also listened to their customers and made changes to their service delivery, which significantly improved customer satisfaction.
The Banking industry had a Net Promoter Score (NPS) of 28 in Q2 2019 but in Q2 2021 had a score of 34, gaining a whopping 6 points. These large improvements were mainly owing to the Banking industry’s continued and aggressive focus on digitization. 80% of consumers in this industry reported that their banking habits have changed since the pandemic began according to the report.
Effect Of COVID-19 On Customer Experience In Kenya
More Kenyan consumers in the banking industry now prefer usind digital services as opposed to visiting physical branches. During this period, banks have heavily invested in self-service digital channels as well as mobile and online banking. “I no longer have to present myself to the bank. I use my mobile phone.” One delighted KCB customer said.
One customer even mentioned that they no longer saw the need for being in a chama (informal cooperative societies that people normally use to pool and invest savings), due to the multiple accessible banking options made available to them, “Notable banking, I can do my transactions using my mobile phone.” The customer confidently said.
From a similar period pre-COVID 19, the Insurance Industry had an NPS of 16 in Q2 2019, this later improved by 5 points to an NPS of 21 in Q2 2021. Players in the Insurance Industry geared their efforts more towards digitized services and improving their customer service since the pandemic. Consumers in this industry are even more likely to choose insurers with better customer service than those with cheaper premium rates.
Despite strict government-enforced COVID restrictions in 2020, the Food and Beverage industry emerged as the most improved industry. This industry improved its Customer Experience by 5 points from a record low score of 23 in Q2 2020. This brought them back up to an NPS of 28 which they scored in Q2 2019 and Q2 2021.
Consumers responded positively to the implementation of online delivery services. In addition, changes made around clean eating improved the overall consumer experience and many customers were delighted. Up to 34% of respondents who are consumers in this industry have ordered food at least once in a span of three months.
The Retail Industry has also made remarkable improvements since its industry score of 33 in Q2 2019. Their Customer Experience improved by 6 points to an NPS of 39 in Q2 2021. Online shopping has gained traction in Kenya since the pandemic, about 20% of Ajua’s respondents reported buying groceries online over the last three months. One happy customer shared, “I normally used Jumia to buy like everything I need, especially clothes and shoes because it’s the best platform ever…”
On the other hand, the pandemic has had a negative effect on Mobile Money Lenders who recorded the largest drop in NPS. This industry is particularly vulnerable as consumers budgets tightened because of the pandemic.
Mobile Money Lenders’ Customer Experience plummeted by an astonishing 11 points from an NPS of 25 in Q2 2019 to an NPS of 14 in Q2 2021. The huge drop was mainly brought about by the crude methods used by lenders to follow up on the repayment of loans. Up to 31% of the respondents from the benchmark study mentioned that they have been harassed by Mobile Money Lenders.
Insights from the report showed that the most common forms of harassment include calling people on the contact list, threatening to list people with CRB, rude texts and rude calls, use of abusive language and hefty penalties. Kenyans are now more cautious about the lenders that they borrow from and are requesting the government to further regulate the industry.
In conclusion, companies that were able to make it through the pandemic were quick to innovate and deploy digital solutions for their businesses.
Understanding and predicting consumers’ constantly shifting needs will also continue to be crucial in driving business growth. To see a full list of companies and get more information, you can download Ajua’s Q2 2021 Customer Loyalty Benchmark Report here: Ajua Q2 2021 Benchmark Report
