Mobile operator Cell C is mapping out the dynamics of the telecoms market in the informal sector to better strategise its products and services deployment.
The Spaza 5 000 pilot project, undertaken by gig technology company M4Jam, gathered initial market analytics from 5 152 spaza shops in Mpumalanga, the Eastern Cape and Limpopo over a four-month period in 2019.
M4Jam ‘jobbers’ went into the field to geolocate spaza shops, profile and interview the spaza owners, as well as gather detailed information on their telecoms product sales.
The analytics will help inform Cell C’s strategy and activities over the next year, says Cell C marketing and special key accounts executive Dino Naicker.
Cell C and M4Jam are now expanding the project nationally to map an additional 115 000 spazas.
The initial Spaza 5 000 pilot provided insight into which province “stood out” with the most opportunity for market share growth, based on spaza owner needs.
Some of the information gathered shows, for example, the need for new paint for some spaza shops, that there is a high level of spend on airtime and data and that there is a desire for cheap smartphones.
“In one province, Cell C is viewed positively as the most affordable airtime option, but the company’s branding is least visible and its Sim cards are not the most [sought after] by customers,” says M4Jam CEO Georgie Midgley.
“Already there are tangible examples of how Cell C can start to take action in this area.”
In another province, it was revealed that many spaza shop owners are also interested in new paint jobs for their shops, while a third province is dominated by Cell C’s competitors, with not much market share to gain, and the average spend per customer remaining low.
The project has had a profound impact for many jobbers from informal communities, with the national roll-out set to create 230 000 jobs for M4Jam jobbers and roughly R13-million in revenue to be paid into these communities.
During the four-month pilot project, 15 146 discrete jobs were completed, with 176 jobbers sharing more than R1-million in revenue.
The top-earning jobber made R53 450, completing 1 069 jobs in Mpumalanga, says Midgley.
Ninety-six per cent of the Spaza 5 000 jobbers were black, 65% female and 70% between 25 and 44 years old.