It is expected that the much anticipated Consumer Protection Act 68 of 2008 (CPA) will have a significant effect on business for consumers and corporations alike. There are a number of practical steps that should be taken to protect both consumers and businesses, specifically regarding social media platforms.
There are three important laws and codes that marketers should familiarise themselves with when dealing with consumers on the Internet:
- The Advertising Standards Authority (ASA) Code of Advertising Practice
- The Electronic Communications and Transactions Act 25 of 2002 (ECTA)
- The CPA
All online advertising will now be subject to the ASA code, as well as the two acts. Both acts also apply to any website, whether hosted overseas or owned by a non-South African resident, which performs a transaction with South African consumers. A transaction includes the supply, or potential supply of goods and services as well as the giving of information or advice for some form of consideration. Even if the transaction is free the CPA may still apply, depending on the nature of the services, advertisements or advice dispensed. The Act therefore applies to a wide range of products and providers, whether they operate from South Africa or not.
For example, if an advertisement or Facebook page recommended a specific product to a consumer, the CPA applies. While this is a debatable topic, every piece of advice given on the web needs to be treated as though the CPA applies to it. Marketers using social network sites such as Facebook and Twitter must err on the side of caution and take all steps to ensure they are compliant with the CPA.
Understanding the risks
The Act presents real risks to any business marketing their products through the Internet, with lawsuits, class actions and even criminal prosecution a potential and costly reality for a company.
Section 61 of the CPA imposes product liability on suppliers. In other words, if a consumer uses a product or service which would include advice dispensed, and by using the product or service correctly dies, becomes ill or has property damaged, then the supplier of those goods is liable for all the damages suffered by the consumer.
This means that if a customer follows the advice posted on a website or social networking site, and consequently suffers damages, whether by economic loss or illness etc, they can sue the website or social network or the member of the social networking site to compensate them. This also includes, among others, any medical costs.
This form of liability cannot be limited by the supplier in terms of section 61 and the website. Social networks and members of the social networking site must be extremely careful about what information they make available online and how the consumer must follow it. The same applies to online advertisements.
Confidentiality has become critical and is taken seriously by the CPA. If you give away confidential information about your communities you could be at risk of up to ten years in jail. If you find yourself in contravention of any other section of the Act you may be fined up to 10% of your annual turnover for the preceding year, or R1 million.
The CPA does not prohibit advertisements and dispensing of advice over the Internet; however, all website owners and social networking forums must be aware of the rights the consumers will have when dealing with them, as well as the obligations they will have to fulfill under the CPA regarding the quality and source of the information they provide.
If these standards are not met it will not make the activity illegal, but it will open the website to lawsuits, including class actions.
The following are selected fundamental rights available to consumers in terms of Chapter 2 of the CPA and broadly speaking are most likely to affect websites and social networks:
- The right to fair and responsible marketing
- The right to fair and honest dealing
- The right to fair value, good quality and safety
Again, it is important for website owners, social networks and members of social networks to familiarise themselves with the requirements for marketing and advertising as contained in the CPA.
Defining Direct Marketing
Direct marketing, according to the CPA, entails approaching someone, in person or electronically (for example, email marketing or approaching a LinkedIn business connection), for the direct or indirect purpose of promoting or selling goods or services, or even requesting a donation.
The use of the verbal approach in the definition is crucial. A related form of marketing is catalogue marketing (governed by section 33 of the CPA). Unlike direct marketing, this is a form of interaction between business and the consumer where a product or service is sold, but not in person, for example online shopping or retailing.
It includes an agreement concluded telephonically (if the customer initiates the contact), by postal order or fax, in fact, any instance where the consumer is not able to inspect the goods before making payment.
The supplier of the goods or services is required to disclose specific information such as license or registration number (if any), physical address and contact details, sales record information required by section 26 of ECTA, currency in which the goods are payable, delivery arrangement and their cancellation, return, exchange and refund policies.
A consumer may, within five business days after any goods were delivered as a result of direct marketing, send the product back to the supplier without reason or penalty, as long as the supplier is notified in writing or some other recorded manner. The supplier has to return any payment received from the consumer within 15 days of receiving the notification. Moreover, the consumer must be informed of this cooling-off period.
Restrictions on Direct Marketing
According to section 11(1) of the CPA, every person as part of their right to privacy has the right to:
- Refuse to accept
- Require another person to discontinue
- Or (in the case of an approach other than in person) pre-emptively block any approach or communication from those who are engaging in direct marketing.
Using direct marketing
In light of the above, there are several conclusions that can be drawn in response to websites and social networks.
- If a business actively approaches a consumer, even using an email address provided to it by the consumer, this is likely to constitute direct marketing and selling. This is something to keep in mind for any email or SMS marketing.
- However, this will nonetheless always remain a question of fact. If the consumer approached the business and left his email address with the business, actively requesting it to contact him, it is unlikely to qualify as direct marketing and selling.
- Therefore, any marketing which includes approaching a consumer should in all probability fall within the ambit of direct marketing or selling.
- Websites, online advertisers, social networks and members of social networks should therefore be cautious about their marketing strategies involving emails and SMSes sent to consumers.
- All websites (including blogs), online advertisers, social networks and members of social networks would be well-advised to set in place a procedure to facilitate any consumer requests to opt out of receiving any company communication, whether via email, a blog subscription, a Facebook page wall or Tweet stream.
Registration as a Direct Marketer
While this provision is not yet enforced, in the near future every direct marketer must register with the administrator of the registry, supplying all business contact details and the name and contact details of a person responsible for any applications lodged under this regulation. These details will need to be confirmed or updated in writing annually. Consumers who do not wish to receive any form of direct marketing will also be able to register with the body.
Three Steps to Limit Liability
Given the fact that under the CPA you must provide information of a certain standard, it is strongly advised that all websites and social networking sites and members comply with the CPA. There are three general steps that can be applied to each online platform to help limit company liability:
- It is important that all websites and social network members providing information clearly state and display who is dispensing the information and their qualifications, or authority to provide the content. This makes it a lot harder to hide behind a company brand or logo, particularly on sites such as Facebook and Twitter. Any email newsletters or marketing should also include such detail.
- Include terms and conditions on your website or social networking page.
- Develop internal policy and processes within your company to help employees involved with company websites or social networks to advise consumers on how to opt out of communications, with simple step-by-step instructions that they can easily follow.
Today marks an interesting turnaround for online marketing agencies, companies and even individuals marketing products and services.
Online marketers have often thought of social media marketing as ‘permission-based’ marketing. According to the CPA, nothing is permission-based unless explicitly received in writing. Ensure that your online marketing efforts comply with the CPA by applying the above tips in conjunction with the details specified by the Act and regulations, as there are many other parts of the Act that may be relevant to your business. Download a copy of the CPA at www.polity.org.za and scroll down to legislation downloads. Use the report as a starting point to protect your customers and business.
Applying the CPA on Social Networks
- State clearly on the page ‘who’ is speaking. Facebook has now made this possible as an option to page administrators. Make use of this new functionality to show whom the administrators are behind the brand or page name. Click on ‘Edit Page’ in top right hand corner, click on the ‘Featured’ tab on the left hand side and finally click on the button ‘Add Featured Page Owners’. The Page Owners will be featured on the left hand side of the page under the number of people who ‘Like’ the page.
- In the page information (Info) make clear the qualifications or authority of those people posting on the page.
- Private messages in Facebook may constitute direct marketing, depending on the content of the message, if they were not prompted first by the member. Do not send private messages for marketing or direct marketing, unless prompted, or unless you follow steps 4 and 5.
- Set up Terms & Conditions in accordance with the Act on your page. A good place to put this would be a link under ‘Info’ or all the information under ‘Notes’. It is specified in the Act that these need to be in simple and very clear language, for the ordinary consumer to understand. In the Terms ensure that it is explained that joining the page amounts to explicit permission to receive posts on their personal wall and other forms of communication, for example an event invitation.
- Set up internal systems and processes to allow consumers to ‘opt out’ of your communications if and when they want to. Describe these in your Terms & Conditions.
- Make sure that your page advertising follows the requirements of the Advertising Standards Authority Code of Advertising Practice, the CPA and the ECTA.
- State clearly on the page ‘who’ is speaking. Ensure the person tweeting is listed underneath your company name or ‘handle’ to show who the administrator is behind the brand or ‘handle’.
- Make the qualifications or authority of the administrator clear on the page, either within the profile information visible on your Twitter page or embedded within the design elements of the page.
- Do not send direct messages for marketing purposes, unless prompted, or unless you follow steps 4 and 5.
- Set up Terms & Conditions in accordance with the Act on your Twitter page. Shorten the URL link to the Terms and include in your profile blurb.
- Set up internal systems and processes to allow consumers to ‘opt out’ of your communications if and when they want to. Describe these in your Terms & Conditions.
LinkedIn, YouTube & Forums
- Do not use the messaging feature within LinkedIn to send direct marketing messages promoting your goods or services.
- When offering business, product or service advice remember that if a contact follows the advice and consequently suffers damages, whether by economic loss or illness etc, they can sue LinkedIn, YouTube or the community forum and you as a member. This is applicable across all networks.
Gareth Cremen is an attorney at Goldman Judin Inc. Attorneys. He has extensive knowledge in litigation in the High Court and Magistrates Court, contracts, debtor recoveries, liquidations, sequestrations, advertising law, competition law and consumer protection law. Candice De Carvalho and Sarann Buckby are co-directors of Phatic Communications, a Johannesburg-based digital PR and social media agency that combines a strategic, creative and opportunistic approach with the setting of measurable objectives that assess, refine and improve on communication results that directly support business outcomes.
By Gareth Cremen, Candice de Carvalho & Sarann Buckby
The Top Ten Marketing Trends To Look Out For In 2019
With 2018 behind us, there is no better time to start looking to the future.
Most people start making their new year’s resolutions this time of the year, goals to make things better for themselves in the coming year. This is something that businesses need to look at doing too.
Running a digital marketing agency means one needs to keep ones finger on the pulse.
The world is continually changing and developing, and if businesses want to survive and thrive, then they need to grow and develop too.
As with everything else, marketing is also continuing to change over time, so it is important for businesses to be on top of the newest trends. Even if 2018 was a successful year for you and your marketing team, don’t get left behind by ignoring the latest trends. Make the necessary adjustments to ensure that 2019 is just as successful.
Maintain an advantage over your competitors by preparing yourself and adjusting your marketing strategy before they do. Whether your current marketing strategy is working for you or not, this article will help you by identifying the top ten marketing trends that businesses should look out for in 2019.
The first few trends look at technology that you have likely already heard of, but with constant advancements in technology, it is still worth taking a look at.
1. Chatbots and live chat
Although this is not a new technology, chatbots and live chat is becoming very popular with businesses all over the world. People are interacting with more and more chatbots on a daily basis. This technology has become so popular because of the benefits it offers businesses in terms of customer interaction and better customer service.
In a very conversational way, chatbots message back and forth with customers for a number of tasks, such as suggesting products to customers and ordering the items. Chatbots enable businesses to provide a 24-hour service to customers by providing customers with an instant response to questions, providing an easy form of communication, resolving complaints quickly and providing a good customer experience. It is a lot easier for customers to communicate with chatbots online than it is for the customer to phone or send an email to a company representative.
According to research, live chat makes it three times more likely that customers will complete the purchase process. With so many benefits to businesses, it is very likely that the use of chatbots and live chat will continue to grow in 2019 and beyond.
If you want to experience chatbots, feel free to visit this link and click on the chat button that appears on the screen.
2. Enhanced personalised recommendations
This technology has already stared becoming the way of the future. Personalising the customer experience is a trend that most businesses are already starting to implement, whether it is recommending movies or series when watching Netflix or recommending other products that the customer might be interested in based on previous buying behaviour, this technology can help businesses enhance the customer experience by giving the customers more of what they want.
This artificial intelligence algorithm is constantly being bettered and is making more accurate recommendations as time goes on. This is a trend that should not be ignored in the coming year.
3. Facebook and Instagram adverts
The trends around paid social media ads are constantly changing. With these changes it is becoming obvious that businesses prefer to focus their attention on Facebook and Instagram ads over other social media platforms.
Social Media Examiner published the following data to show how ads on social media sites like Snapchat and Pinterest are becoming less popular with businesses, while Facebook and Instagram are growing in popularity.
As we know, Instagram is owned by Facebook, so it is not a surprise to see these two social media sites growing in popularity together. Businesses are able to manage ads on both these social sites in the same place. The format of these sites make it much easier for businesses to create ads that target the right audience, based on its needs.
Although it is a good idea to advertise on as many social media sites as possible to ensure that you are reaching the largest audience possible, it would be wise to focus most of your attention on these two top trending sites. If you are only looking at making use of paid social media ads in the coming year, then these two sites are the ones to start with.
4. Voice search
Voice recognition software has been around for a while, but the technology is evolving at a steady pace. Google Home now has a 95% word accuracy which shows how the technology is gradually getting better and more accurate. Voice search makes it easier and faster to search apps, to conduct web searches and even conduct image searches. Very soon, voice searches may represent the majority of total searches.
With voice search technology, people are searching for information, making purchases and even interacting with websites using only their voice. In time businesses will need to rethink how information is presented to audiences and may even be forced to come up with entirely new structures to keep up with this change.
In was reported that as of January 2018, voice searches were conducted 1 billion times a month, and in 2019 this figure is expected to grow. As a business, this should be flagged as technology of interest.
5. Mobile payments
Marketing your products and reaching potential customers is only half the battle won, the other half is completing the sale. Being able to offer customers a variety of payment options is something all businesses need to look at. A growing trend in this regard is mobile payments, so this is another option that businesses need to look at offering customers.
One portion of mobile payments allows customers to pay for goods and services directly from a mobile app, another portion of mobile pay comes from alternative payment options.
In 2018 an estimated 440 million users across the globe used contactless pay options, and this number is expected to increase in 2019.
The following graph shows exactly how this trend has been growing.
Your business should be prepared to accept these types of payments because consumers are getting used to it. If you don’t have their preferred payment option, they may take their business elsewhere.
Related: Free Sample Marketing Plan Template
6. Interactive video content
Video marketing is a trend that has been on the rise for many years. More and more videos are being uploaded to social media and websites as part of marketing strategies. Video blogs (vlogs) have also been taking off in this regard. In 2019 we will start seeing changes to the way video is consumed with an increase in interactive videos.
An example of an interactive video is a 360-degree video that allows users to view the whole area being discussed in the video by clicking the navigation button in the top left-hand corner of the screen while the video is playing.
This 360-degree video was uploaded to YouTube by Washington Post.
Offering interactivity with videos means that more people can engage with your content. Interactivity also makes your videos more exciting for your viewers to watch than traditional videos. Research has shown that 360-degree videos have a greater click-through rate than traditional video formats, offering a higher return on your investment.
This is a trend that will continue to grow due to its popularity, so it definitely worth looking into now.
Instagram has decided to re-envision mobile video with the introduction of IGTV. This new standalone platform has been developed specifically for mobile phones. Instagram has caught onto the fact that people these days are watching less TV and more videos. They have decided to develop this trend and cater to the growing wants and needs of the masses.
Instagram is definitely evolving with the times and its popularity has continued to grow because of this since its launch in 2010. Instagram currently has over 1 billion active users on its site, so even if a small percentage of these users download IGTV, it is still a large audience for marketers to target.
It will be highly beneficial to have an active presence on both Instagram and IGTV in order to use the large number of current users to your advantage. With the IGTV platform being so new, try to get a step ahead of competitors by getting to know the platform and producing content for it.
8. Beacon technology
In a mobile era where mobile apps are becoming more and more popular, businesses need to get onboard with the latest technology if they want to stay current. Beacon technology is a great way for businesses to improve the profitability of their mobile app. This new technology works in a similar way to GPS, just not quite as complex.
Firstly, with this technology retailers need to encourage their customers to download their mobile apps. Once the customer has downloaded the app on their mobile phone, the app will be able to track their location. Retailers can then strategically place beacons around the shop so when the app users walk past a beacon, the business will know exactly where the customer is and what the customer is shopping for. With this information businesses can then send the customer a promotion via push notifications.
This technology can even be used by businesses that only have an ecommerce platform. Beacons can be placed in public areas relevant to what the business offers. Promotional push notifications can then be sent to the user when they are in the vicinity of the beacon.
Below is a visual representation of how the beacon technology works.
2019 Will see a rise in popularity with this technology because of the rise in popularity with mobile apps.
9. Predictive analytics
Predictive analytics is very much related to personal recommendations in the sense that it uses a variety of statistical techniques that analyse current and historical facts to make predictions about the future. Businesses can use predictive analytics to gain a competitive advantage by uncovering new opportunities. Predictive analytics are used to determine customer responses or purchases and help businesses to attract and grow their customer base.
Technology like this can be so beneficial to a business, and that is why more businesses are making use of it. Its popularity is growing and will definitely continue to grow throughout the coming year and many years to come.
10. Artificial Intelligence and machine learning
Artificial intelligence (AI) and machine learning is by no means new technology, in fact, many of the trends discussed in this article make use of AI and machine learning. It is so important for businesses to learn the marketing skills needed to survive in this age of AI as it is the fastest growing technology and no business can afford to ignore it. Ignoring developments in technology could mean that businesses will not be able to keep up with competitors.
It is so important for all businesses to recognise the newest trends and to keep developing their marketing strategies along with new technology in order to be able to compete in such a competitive, ever-changing market.
2019 Is sure to be a very big year for marketers so I hope that by following these trends, your business will find success in the coming year.
Now’s The Time To Go Digital
The digital age has completely transformed the way businesses market their products and services to their customers. As a result, the playing field of industries both big and small has forced companies to relook their strategies.
- Call: 086 142 8710
- Visit: www.digitalschoolofmarketing.co.za
Digital marketing is a broad term covering digital channels that people use to market their products. But what makes digital marketing different and unique compared to traditional marketing channels?
It gives the marketer or advertiser the opportunity to hone in on specific audiences that are more likely to purchase or see value in their offer, says Lisa Schneider, Managing Director at the Digital School of Marketing.
“Because digital marketing is computerised, it allows the marketer to get accurate analytical data about their campaigns, both in the research phase and when their campaign has finished. This makes digital marketing an easy way to gauge ROI of marketing and advertising efforts.”
Do you know how to market your businesses online?
Regardless of the size of your business, to remain successful, you need to have a good understanding and grasp of what digital marketing is and train your organisation on the skills it involves. According to Lisa, digital marketing skills encompass aspects that include:
- Analytical skills
- Social media skills
- Search marketing skills
- Copywriting skills.
“Without a doubt the most important element is understanding who your customers are and what makes them tick. One of the biggest advantages by far in digital marketing is the ability to market to an audience, assuring that your message will be seen, heard and appreciated,” says Lisa.
“The technology that is made available to market products in the digital realm is sophisticated software that allows the marketer’s message to be seen as widely or as granularly as they would want. A solid understanding of your target market is absolutely one of the most fundamental and important elements of digital marketing.”
Advance digitally without breaking the bank
Marketing is an expensive exercise no matter how you look at it, says Lisa. “Digital marketing requires a solid understanding of many different areas that are quite broad, and how to manage and understand a multitude of platforms and analytical data is imperative. This will allow the marketer to extract the most value without burning a hole in their pocket.”
As a business owner, you must look at what is out there in terms of online education providers. It’s important to do your homework about the company and what accreditation and endorsements the company holds.
Lisa suggests contacting the accreditation body to find out the legitimacy of the educational provider. The Internet provides a wealth of information regarding different institutions and how their courses can benefit the company.
What defines a reputable online marketing education provider?
Authentic online education providers have a third-party accreditation or endorsement. In a nutshell, accreditation means that a third party, that is usually government regulated, has looked through the institution’s educational material and internal business procedures to see that it has met their standards of approval.
What this means is that the education provider is not self-governed but is regulated by higher government authorities. This makes your course more credible, recognised and respected compared to a non-accredited provider.
For best results, choose the experts
“The Digital School of Marketing stays on top of trends through solid research,” Lisa explains.
“Google is constantly updating algorithms and adjusting their online marketing platform capabilities. Social networks also come and go and adjust their marketing and advertising platforms.”
Related: Free Sample Marketing Plan Template
DSM prides itself on the ability and appetite to constantly research trends by reading industry journals, attending workshops and seminars, but only publishing what is relevant and has longevity. “We also benchmark the changes that are made on online learning platforms, so we can offer our students an experience that is unique and truly fulfilling on their educational journey,” says Lisa.
I Built A Social Media Following Of 1 Million In 30 Days. Here’s How You Can, Too
By applying these social strategies you can build a huge following with high levels of engagement.
Many people want to share messages with the masses to gain exposure for their brand, product or service on social media. But, with over 60 billion messages shared each day on mobile platforms alone, most content gets lost in the noise. For the last 10 years I’ve worked on improving online strategies for people like Taylor Swift, Rihanna and Disney. I’ve learned how to optimise analytics, data and paid media to help companies achieve massive growth.
When I set out to gain my own One Million Followers, I was aware that the people I work with had the advantage of fame and influence. But, I wanted to see if I could use what I’d learned to build an audience for someone unknown – someone building a following from scratch. That way I could gain validation and credibility for anyone that wanted to achieve their dreams. So, in June of 2017 I put into practice all my tools and by July of 2017 I had a million Facebook followers.
The experience changed my life and now hopefully it can impact yours. If, as an unknown digital strategist, I can create this type of social following so can you. By applying the social strategies below you can build a huge following with high levels of engagement. For the purposes of this article, I’ll focus on strategies for Facebook, but many of the tactics can be applied to the other social channels as well.
1. Hypothesise and test
Aim to create shareable content with your audience. Do research about what gets people to share and come up with a hypothesis about the type of content to create. Identify a format or theme that will engage your audience around a specific message. Then create a low-cost proof and test it.
When I built my following, I used a lot of picture quotes. They are fast and easy to create and are highly shareable. However, if you have the means to create short videos, between 30 seconds and four minutes, they usually perform the best.
2. Learn from your tests and pivot when necessary
My ability to learn from the tests I conducted was essential in reaching a million followers. Take the time to understand why certain content works and why other content doesn’t. Be very specific with your tests – I tested thousands of variations of content and segmented out as the variables to truly learn what was optimising performance. I also didn’t waste time; as soon as I saw that something wasn’t getting the engagement I desired I pivoted. For example, I posted viral videos of dogs and kittens performing cute and funny actions as well as prank videos. Although they all performed really well, I decided to pivot because they didn’t align with my brand’s theme of thought leadership.
Analyse the results from your tests and allow them to drive both your short and long-term content strategy. Test until you find a format or theme that truly works.
3. Find a hooking headline
Imagine walking by a newsstand in the supermarket. What is it that makes you stop and stare at an article in a magazine? Usually it’s a headline that communicates the story’s hook-point in a succinct and exciting way. It’s a short sentence or phrase that stands out, grabs attention and leaves your audience wanting more. A good headline helps communicate what makes your brand, message or content different and valuable to your customers.
When creating the headline be specific and find relevancy to your audience’s lives. Linking content to celebrities or current events is a great way to grab people’s attention.
4. Target the right audience
You can have great content, but without reaching the right audience you won’t develop a following or find the people who will champion your message for you. As Nike‘s CEO Mark Parker explains, “It’s our obsession with serving the consumer that sharpens our focus and drives our growth.”
One of the benefits of using the Facebook ad platform is the level of niche targeting it provides to find your ideal consumer. When creating ads, segment out your targeting by: Gender, age, location, interests, lifestyle (married, single, occupation, yearly income and products or brands they like) and target some of your competitors’ fans.
5. Invest the time and money necessary to reach your goals
Reaching a million followers has gotten me opportunities to speak at conferences, but getting to a million isn’t necessary for everyone. Gaining a following requires an investment of time and money. Where you put your energy depends on how quickly you want to grow.
To determine how much you need to invest, analyse the benefits you want to receive from building a large following – the return on investment (ROI). Imagine your end goal and work backward. Sometimes the ROI isn’t a dollar amount – instead, it’s more validation or credibility that gets you into a meeting with a casting director, modelling agency a music producer or an investor. Ask yourself how many followers you truly need and invest what’s necessary to reach those goals.
We live in a digital world and social following numbers matter. Hope to see your content on Facebook soon.
This article was originally posted here on Entrepreneur.com.
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