The foreign exchange market is undergoing rapid transformation globally. South Africa is not immune to this major change in investment, however, this is a new market. As with anything that is new, it has been met with much skepticism, largely due to ignorance. Another major issue is that many of the companies which offer this service have been known to scam consumers. And so, the following marketing strategy can be implemented to deal with the skepticism and expand the customer base.
- To increase customer trust through informative marketing
- To establish the company as a valid and safe investment scheme
- To make the relevant information more accessible to the general public
- To tune into the companies target market impactfully
Strategy Plan- 4 Step Plan
Step 1- Increase customer trust through informative marketing
One of the most pertinent issues blocking the growth of this market is a lack of trust between service providers and customers. This particular market faces the issue of being largely unregulated because of its international status and crypto currency focus. This may leave consumers feeling uneasy.
However, a practical way to combat this is through informative marketing. Infographics used on social media pages is the best way to achieve this. Being that the market can also be difficult conceptually, ‘beginners’ videos and guides on the basic knowledge are also a useful tool that can be used. Through such spread of information, the company will educate their potential customers. Furthermore, they may be able to put them at ease about engaging with the market.
Step 2- Establish the company as a valid and safe investment scheme
Whenever dealing with investments and an individuals money, it is important to establish a high level of security. Being that this market is new, individuals and institutions have made use of it as a means to take advantage of customers. As a result, it is imperative for the growth and sustenance of the institution to establish itself as valid and trustworthy entity.
Luckily, there exists a server which informs people on whether a specific investment company is a scam, or legit. This server is called WikiFX. The best method would be to register the company on this server and provide all the relevant information that the company will be reflected as valid.
Step 3- Make the relevant information more accessible to the general public
First and foremost, it is important to understand that a consumer is less likely to be drawn to a product they do not understand. If one can not comprehend the use of the product, they are not likely to purchase it. And so, fully understanding the exchange market is imperative for consumer engagement. However, this can be a very daunting and complex task for many consumers. This lack of understanding can drive potential clients away.
The best method to combat this is by creating short blogs and videos to display on your website, WordPress and YouTube page. These tools can be used to briefly explain the basics of stock markets, how they work and what the key influences are. By making them accessible on the listed social media, the company is able to access a wide range of clientele who may have interest in investment.
Step 4- Tune into the company’s target market
In the case of Foreign exchange businesses it is essential to note the kind of consumers the company is trying to draw in. Since we are dealing with investments, the target market is primarily the working class. The ages of the desired market would range from the ages 24-60 years old. The target market must also be individuals with an income to invest.
The best platform to source such consumers is LinkedIn. This is because the entire platform is for working individuals and companies. Furthermore, being that it is not a social space but rather a professional space, the company is able to perfectly target the correct market. Thus, the company should focus its efforts on developing a LinkedIn page in which they can share the above information, and establish themselves in the market.
In conclusion, the most pivotal of outcomes in this case would be the complete shift in narrative in the field. Through this strategy plan a trading company will be able to adequately inform and engage with potential clientele. This would ultimately lead to sales. By targeting the lack of knowledge and security within the space of the target market, one is able to build trust with their potential clients. Furthermore, one is able to create a brand identity. It is important to start here, because this is a market that has a lot of potential in South Africa.
By Unathi Radebe and Merlyn Adams