May 19, 2020

“Toll free” data: disrupting data payment responsibility

Data
Payment
Opinion
Eckart Zollner
4 min
“Toll free” data: disrupting data payment responsibility

A recent emerging global trend that is disrupting traditional data payment responsibility, is that of businesses offering their consumers free online access to their websites or other online platforms. Usually, consumers who wish to access a business’s online services, particularly via mobile channels, need to have enough data to do so – or they simply don’t go online at all. This has incited many businesses and service providers in South Africa to begin offering free access to their sites regardless of whether the consumer has any data left or not – but who covers the data costs?

The concept of offering toll free access to customer service channels isn’t a new one. Toll-free numbers that enable consumers to call businesses, at no charge to themselves, are still in effect today for both customer care and the selling of services and products. Today’s consumer, however, is more likely to access a business’s services, products or customer care centre via the Internet than over the telephone, meaning that businesses have had to change the way they offer their toll-free services to their market, shifting the same concept to an online platform.

At what price?

Data charges for accessing these “toll-free” platforms are invariably covered by the businesses who own the platforms, or websites. A business wishing to provide their consumers with free access to their sites – data or not – strikes up an agreement with one or many network operators which allows them to cover the charges for anyone who accesses their online site or platform. The charges that the person accessing the site would usually incur simply gets redirected to the business site owner.

Businesses offering this service can end up with hefty data bills, particularly for high traffic sites, however the benefits more than make up for the costs. Although there is the risk of incurring data charges which don’t result in sales, offering free access to their online portals means that businesses are able to effectively remove almost any barrier for consumers – potential and existing – to access their products and services. This translates directly into more site visits which means more sales and, ultimately, increased profits.

The disruptor differentiator

Providing free access to online portals also enables a business to stand out from its competition. It differentiates the business from others of its kind, and consumers are more likely to visit their site, free of charge, than those sites which require that they use their own data. Consumers see the perceived value of this service and are able to immediately feel the tangible effects thereof. They can “window shop” at no cost to themselves, which increases the possibility of impulse buying and serves to heighten the reputation of the business in their eyes. It’s a definite brand activator.

Despite the incurred data charges, businesses offering this service could actually end up saving costs. Businesses could shift most of their operations online and do away with physical, brick-and-mortar premises. This means fewer physical shops or offices, fewer employees and less need for infrastructure, all of which drag heavily at the bottom line.

Finally, businesses are able to tap into heretofore untouched markets. Consumers who would ordinarily have to travel for kilometres can access products and services at their fingertips – for free! Consumers who tend to use up all of their data before their month is up can still access platforms without worrying about the data charges. Suddenly, a business’s customer base can expand radically.

Integration is key

Any business who wishes to offer toll-free access to their sites and online platforms firstly needs a mobile commerce platform which will enable this functionality. Their platform must be able to integrate with their current operational systems, software, billing platforms and even customer relationship management systems.

Integration is critical to this process, to ensure full functionality and service delivery. A business would also need to engage with one or more network providers to ensure the charges for accessing their site, or specific portions of their site, are redirected to themselves and not to their customers.

Paving the way

Toll-free online access is the tip of the iceberg for similar services aimed at making it easier for consumers to access and buy products and services online. There are many other disruptive services starting to emerge in South Africa to simplify the buying process and widen the customer base. For example, companies that offer cardless purchasing, where consumers who don’t have access to credit or debit cards are able to use a ‘middle man’ platform to pay for products and services – consumers “buy” credit from a third-party provider, such as a mobile money service provider, who then pays the supplier for them.

It’s a short hop and a skip to a world of Internet shopping in which consumers are unencumbered by traditional shopper problems such as lack of accessibility or lack of a bank account, and South African businesses are acting quickly to be a part of it.

 

Eckart Zollner is Head of Business Development at Jasco Group

 

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Jun 14, 2021

5 minutes with... Janthana Kaenprakhamroy, CEO, Tapoly

Tapoly
Insurance
Leadership
Digital
Kate Birch
3 min
Heading up Europe’s first on-demand insurance platform for the gig economy, Janthana Kaenprakhamroy is winning awards and leading with diversity

Founder and CEO of award-winning insurtech firm Tapoly, Janthana Kaenprakhamroy heads up Europe’s first on-demand insurance platform for the gig economy, winning industry awards, innovating in the digital insurance space, and leading with inclusivity.

Here, Business Chief talks to Janthana about her leadership style and skills. 

What do you do, in a nutshell?

I’m founder and CEO of Tapoly, a digital MGA providing a full stack of commercial lines insurance specifically for SMEs and freelancers, as well as a SaaS solution to connect insurers with their distribution partners. We build bespoke, end-to-end platforms encompassing the whole customer journey, but can also integrate our APIs within existing systems. We were proud to win Insurance Provider of the Year at the British Small Business Awards 2018 and receive silver in the Insurtech category at the Efma & Accenture Innovation in Insurance Awards 2019.

How would you describe your leadership style?

I try to be as inclusive a leader as possible. I’m committed to creating space for everyone to shine. Many of the roles at Tapoly are performed by women and I speak at industry events to encourage more people to get involved in insurance/insurtech. Similarly, I always try to maintain a growth mindset. I think it’s important to retain values to support learning and development, like reliability, working hard and punctuality.

What’s the best leadership advice you’ve received?

Build your network and seek advice. As a leader, you need smart people around you to help you grow your business. It’s not about personally being the best, but being able to find resources and get help where needed.

How do you see leadership changing in a COVID world?

I think the pandemic has proven the importance of inclusive leadership so that everyone feels supported and valued. It’s also shown the importance of being flexible as a leader. We’ve had to remain adaptable to continue delivering high levels of customer service. This flexibility has also been important when supporting employees as everyone has had individual pressures to deal with during this time. Leaders should continue to embed this flexibility within their organisations moving forward.

They say ‘from every crisis comes opportunity’, what opportunities do you see?

The past year has been challenging, but it has also proven the importance of digital transformation in insurance. When working from home was required, it was much harder for insurers to adjust who had not embedded technology within their operating processes because they did not have data stored in the cloud and it caused communication delays with concerned customers at a time when this communication should have been a priority, which ultimately impacts the level of customer satisfaction. This demonstrates the importance of what we are trying to achieve at Tapoly in driving digitalisation in insurance and making communication between insurers and distribution partners seamless. 

What advice would you give to your younger self just starting out in the industry?

Start sooner, don’t be afraid to take (calculated) risks and make sure you raise enough money to get you through the initial seed stage.

 

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