Today is a digital age – where businesses engage in strategic partnerships & collaborations, leverage social media, and create anticipation among customers through business promotions.
Do brands face challenges in business promotions? They do, and load shedding is one of the constraints in achieving the set promotional goals.
Isilumko Activate, South Africa will help you explore the load shedding challenges for businesses and their coping strategies. In addition, you’ll get valuable insights about customers’ behaviours during load shedding (survey responses).
Overview of how load shedding affects the promotional activities of a business.
What is load shedding?
Load shedding is an intentional and controlled power outage strategy implemented by electricity providers & utilities.
This scheduled power outage balances the supply & demand of electricity during the high demand periods and insufficient power generation capacity.
Moreover, load shedding involves the intentional cut-off of electricity supply to different regions or customer groups on a rotational basis. It helps prevent the complete system collapse and prioritizes the available power for essential services.
What are Business Promotions?
Promotions are the marketing strategies and techniques used to generate brand awareness, enhance customer engagement, and increase sales & revenue.
These marketing initiatives can take different forms, such as discounts, coupons, contests, giveaways, sales events, loyalty programs, partnerships, advertising campaigns, social media marketing, influencer collaborations, etc.
Impact of load shedding on business promotions
Load shedding affects the businesses’ promotional activities, which results in less customer engagement and potential revenue loss. Here are a few points that emphasize this discussion further:
Disrupted Operations:
★ Delayed events lead to logistical challenges, supply chain issues, and venue availability.
★ Incomplete product launches can result in missed marketing opportunities and potential revenue.
★ Obstructed production & unfulfillment processes can impact the delivery and availability of promotional materials, reducing their efficiency.
Limited Advertising Opportunities
★ Inability to utilize digital signages, neon signs, and other illuminated displays can lead to less visibility in peak hours.
★ Offline promotional mediums (radio, television) can experience less viewership, limiting the reach of advertising campaigns. In addition, online campaigns also get affected by a power disruption.
Reduced Productivity
★ Power outages or load shedding can disrupt creative processes, including content creation, graphics design, or video editing. These initiatives are critical for digital marketing campaigns.
★ Businesses depending on cloud-based applications and online collaboration tools may face hindrances in teamwork and overall campaign progress.
★ Technical difficulties arise due to intermittent power supply, resulting in system crashes, data loss, and thus the loss of productivity.
Communication Challenges
★ Unreliable internet connections may impact online communication mediums, for example, emails, and social media, affecting the coordination of team members.
★ Impeded access to the Customer Relationship Management system (CRM) or databases may hamper promotional activities and personalized experiences.
★ Difficulty attending to customer complaints and queries may negatively impact customer satisfaction and brand reputation.
Increased Costs
★ Investing in backup power sources (UPS, generators) can be costly and affect a company’s marketing budget.
★ High operational expenses may arise due to inefficient use of resources, diverting funds from the promotional budget and decreasing the cost-effectiveness of marketing campaigns.
Negative Customer Perception
★ Customer disappointment because of delayed promotional events may result in the loss of customer loyalty.
★ Inconsistent Marketing may drive customers to other competitor brands having solutions for uninterrupted power solutions.
★ Negative online reviews can spread quickly and they can impact customer engagement and brand reputation.
Competitor Advantage
★ Competitor brands having uninterrupted power backups can gain a competitive edge, capturing your business’ marketing share and customers.
★ Competitors that adapt quickly to alternative marketing channels and strategies during load shedding can strengthen their position in the marketplace.
Strategies to mitigate the impact of load shedding on business promotions.
Managing business promotions with load shedding may look like a daunting task. But here are some concise strategies you can use for this purpose:
- Use diverse promotional channels. Ensure your brand uses online and offline advertising platforms to reach a wider audience.
- Optimize your power usage. Implement energy-efficient techniques and use low-power equipment to minimize the impact of load shedding.
- Consider investing in reliable backup power solutions such as UPS systems and generators. These devices can ensure an uninterrupted power supply during promotions.
- Adjust promotional activities with load shedding schedules. Ensure their execution during the load shedding free periods to maximize the effectiveness of promotional campaigns.
- Leverage mobile-friendly and data-efficient advertising platforms to communicate with customers during load shedding.
- Develop contingency plans and consider using alternative advertising sources.
- Collaborate with business partners less affected by the load shedding, for example, other businesses or venues having interrupted power sources.
- Build understanding and empathy with your customers. Communicate openly with them. Offer incentives during load shedding, such as exclusive discounts and limited time offers.
- Monitor your competitor brand’s strategies to deal with load shedding.
- Consider investing in traditional marketing methods such as print media, radio, or outdoor billboards. These methods are less reliant on electricity and can increase brand awareness.
Importance of Contingency Plans and Backup Power Sources
How do customers face load shedding?
load shedding affects customers on multiple fronts, such as interrupted work, restricted access to amenities, inconvenience, and disrupted communication.
However, we gathered valuable data about what customers do during load shedding. As a business owner, you can use this data to make better contingency plans for your brand during load shedding. (Total responses: 139)
- 84.9% responded that they use mobile apps and social media to get news updates. Businesses can center their promotions around these platforms to make the most out of the downtime.
- When asked about different load shedding time slots, most survey responders voted that they dislike it the most during 18:00-20:30. Brands can utilize this data and post their promotional content when people are the most active on their phones during load shedding.
- 74.1% of people responded that their traffic route has lights switched off during load shedding. Businesses that have access to innovative technologies, such as solar panels & lights, can use this opportunity to create unique promotional campaigns.
Frequently Asked Questions (FAQs)
What are the 5 causes of load shedding?
Here are the 5 causes of load shedding:
- Insufficient power generation capacity
- Infrastructure and maintenance issues
- Fuel shortages
- Seasonal demand variations
- Unforeseen circumstances and natural disasters
What are the advantages of load shedding?
Mostly seen as an inconvenience, here are a few advantages of load shedding:
- Stability of the power grid.
- Prevents complete failure of the power system.
- Energy conservation and efficiency.
- Cost savings for utilities and more stable electricity prices.
- Integration of renewable energy sources.
What are the recommendations & solutions for load shedding?
Bottom-line
In conclusion, load shedding has a significant impact on the promotional activities of a business. The power interruption disrupts marketing campaigns, reduces brand visibility, and limits the marketing channels.
However, businesses can overcome these hurdles if they input proactive planning, resilience, and adaptability into their strategies. The government and other utility companies can also play a role in coping with these challenges by implementing collaborative policies.
So, as a business owner, you must stay vigilant, embrace innovative solutions, and remain committed to the promotional goals.
If you want Isilumko Activate to help you with your business promotions in South Africa, contact us by clicking here. We have a solid track record of assisting brands to achieve their Marketing goals for over 28 years.
Thank you for reading!
