Craig Blignaut | Product Manager | WiFi | Vox | mail me |
It has become increasingly challenging to meet consumer demand for accessible data. This challenge is changing the shape of service delivery and innovation in 2025.
In the first quarter of 2024, one user consumed 411.4 terabytes of data. According to MTN, the average contracted user consumes around 21.9 gigabytes of data every month. This consumption rate has increased by nearly 44% since 2023. Statista found that internet usage in South Africa has increased to almost 80% of the population.
Mobile devices now take up 80% of market share in the country. The demand for data, particularly accessible and cost-effective data, has become insatiable.
Companies are evolving their services and capabilities to meet this growing demand. Over the next six to 12 months, data and connectivity will undergo significant changes. The future of data consumption will be shaped by demand, innovation, personalisation, Artificial Intelligence (AI) and competition.
Companies that recognise the importance of automation, speed, personalisation and cost optimisation will set the standard. These companies will lead consumer engagement and data consumption in 2025. Looking ahead, four key trends will set the tone for the year.
Emerging data trend 1 – Speed and accessibility
Approximately 75% of South African consumers use social media regularly. Of these, 13 million spend more than 20 hours a week on these platforms.
Streaming services are also on the increase across the country. More than eight million people already subscribe to Netflix, Showmax, and YouTube services. Added to this, online shopping has gained significant traction recently. More so, international e-commerce giants Shein and Temu have arrived in South Africa. Innovators such as Checkers Sixty60 are also growing their market share locally. Marketing All Product Survey (MAPS) provides these figures about consumer behaviour.
These findings show how invested South Africans have become in the online landscape. The findings also highlight the importance of accessible and fast data. Consumers want their information delivered at speed. Speed allows them to be more productive, more engaged and more connected.
Providing consumers with high-speed data is a significant competitive advantage. The data must also be easy to use, access and manage. Companies have to adapt to customer needs and expectations. This translates into creating products that meet these needs. Companies must avoid complicated, convoluted and onerous restrictions.
Emerging data trend 2 – AI that minimises the load
Users want to be connected to everything. However, they are struggling with information overload. They want solutions that allow them to feel less inundated by constant messages. These messages come from email, instant messaging, SMS and other communication platforms. This is where AI can potentially make a difference.
AI can summarise chats and notifications across different platforms. It can also provide action points or insights for users. Users can then respond without reading all the messages.
AI can simplify billing and access to services. It can also enhance self-service experiences for users. Companies should pay attention to how AI can simplify data access. Additionally, AI can reduce costs and enhance user experiences significantly. Companies that differentiate through innovation will likely gain market share. They will also gain traction in the competitive landscape.
Emerging data trend 3 – Free connectivity as a differentiator
The tourism sector in South Africa is flourishing. According to the SA Tourism Q4 report 2023/2024, 2.4 million international visitors came to the country. This was an increase of 15.4% on 2023 figures. The figures are slowly gaining ground post-pandemic.
Local travel is equally on the rise in South Africa. At R334.2 billion, local travel has exceeded 2019 levels. This creates opportunities for hospitality experiences that attract and retain visitors. High-quality connectivity helps to achieve this, according to research.
Visitors want to work, stream, engage, share, create and listen from their devices anywhere. Whether staying for business or pleasure, Wi-Fi connectivity has become a key business differentiator.
Guest Wi-Fi and Wi-Fi hotspots will continue to evolve over the next year. Companies are investing in solutions that meet customer demand for connectivity. This investment extends beyond the hospitality industry alone.
Coffee shops, restaurants, and other venues will follow this trend. These spaces will soon be distinguished by the connectivity they provide. Connectivity will be as important as the services they offer.
Emerging data trend 4 – Data becomes loyalty
The final trend focuses on Wi-Fi connectivity and affordable data solutions. Companies will build loyalty programmes within their data platforms. These programmes will allow customers to earn rewards from data purchases.
Reward programmes will be built around marketing data collected from Wi-Fi network logins. Many companies ask for email addresses and relevant information before releasing free data. If collected in line with Protection of Personal Information Act (POPIA) or other regulatory requirements, this information becomes valuable.
Information can be used to build loyalty frameworks that increase sales. These frameworks also build customer stickiness over time. Easy Wi-Fi access at airports, stadiums, parking lots, malls or events encourages information sharing. People are more willing to spend money on data or solutions if rewarded for their loyalty.
Loyalty programmes create ecosystems that can radically change consumer perceptions.
Consumers traditionally see data purchases as a grudge expense. These programmes can change their relationship with the service provider.
In conclusion
According to the emerging data trends, data will continue its upward demand trajectory for the foreseeable future. It remains essential for consumers and their need for always-on connectivity.
Connections allow them to live, travel, eat and entertain seamlessly. Serving this data on innovative platters will reframe costs and redefine benefits. Doing so will set leaders apart from other service providers in 2025.
