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The Customer Journey to Regular Usage - MMU Global Event 2013
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The Customer Journey to Regular Usage - MMU Global Event 2013

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  • 1. Restricted - Confidential Information © GSMA 2013 The Customer Journey to Regular Usage Presented at MMU Global Event in Nairobi Phil Levin, MMU Manager July 9, 2013
  • 2. Restricted - Confidential Information © GSMA 2013 Let’s talk about the customer
  • 3. Restricted - Confidential Information © GSMA 2013 The customer journey toward regular mobile money usage Awareness Registration Trial Regular use Where is the industry succeeding in this journey? Where is the industry struggling?
  • 4. Restricted - Confidential Information © GSMA 2013 The industry is very good at generating awareness Awareness Registration Trial Regular use Tanzania - ~90% aware Source: Intermedia FITS study (Feb 2013), Visa (October 2012), GSMA “Mobile money in the DRC” (July 2013) Ghana – 93% aware Pakistan – 89% aware DRC – 75% aware
  • 5. Restricted - Confidential Information © GSMA 2013 The industry is also quite good at registering users Awareness Registration Trial Regular use Zimbabwe – 31% penetration (EcoCash only) Uganda – 52% penetration 1.5 years 4 years 6 yearsKenya – 93% penetration 12-15% of adult population registered per year in these countries Source: Bank of Uganda (Dec 2012), Central Bank of Kenya (April 2013), Econet Zimbabwe (April 2013), CIA World Factbook population figures Individual users may have multiple accounts. Kenya figures include other mobile banking.
  • 6. Restricted - Confidential Information © GSMA 2013 Where does the industry struggle? Driving activity Awareness Registration Trial Regular use East Africa: 20% active rate West Africa: 9% active rate Asia: 32% active rate Source: GSMA Global Mobile Money Adoption Survey 2012
  • 7. Restricted - Confidential Information © GSMA 2013 Million Shilling Question: Why has driving activity been so difficult for operators?
  • 8. Restricted - Confidential Information © GSMA 2013 How long does it take to build trust in mobile money? Suppose we register a mobile money user today – July 9th 2013 Q. When will this user do their first transaction? Today: Registered Data to follow from one mobile money operator (not industry-wide average)
  • 9. Restricted - Confidential Information © GSMA 2013 This user won’t do their first transaction until September 23rd Today: Registered September 23: First transaction Furthermore, 49% of registered users will never initiate a transaction at all
  • 10. Restricted - Confidential Information © GSMA 2013 How long until this user does their second transaction? Today: Registered September 23: First transaction
  • 11. Restricted - Confidential Information © GSMA 2013 The second transaction will happen just before Christmas Today: Registered December 18: Second transaction September 23: First transaction
  • 12. Restricted - Confidential Information © GSMA 2013 Registration: July 9th (today) 1st transaction: September 23rd 2nd transaction: December 18th 3rd transaction: February 12th 2014 4th transaction: March 25th 2014 5th transaction: April 27th 2014 6th transaction: May 24th 2014 It will take 10.5 months before this user does the 6th transaction
  • 13. Restricted - Confidential Information © GSMA 2013 Should we be discouraged by this?
  • 14. Restricted - Confidential Information © GSMA 2013 Sign of encouragement #1: Time in between subsequent transactions decreases rapidly Registration 1st transaction 76 days 2nd transaction 3rd transaction 4th transaction 5th transaction 6th transaction 56 days 41 days 33 days 27 days 86 days Registration commission paid ($) Activation commission paid ($) Regular monthly usage
  • 15. Restricted - Confidential Information © GSMA 2013 Sign of encouragement #2: Revenue contribution from these customers steadily increases ARPU grows 100% in first two years.
  • 16. Restricted - Confidential Information © GSMA 2013 Sign of encouragement #3: Customers readily adopt new use cases over time
  • 17. Restricted - Confidential Information © GSMA 2013 Sign of encouragement #4: 24.2 6.1 9.2 39.5 0 5 10 15 20 25 30 35 40 45 P2P transfer Bill / merchant payment Airtime topup TOTAL Zaad monthly transactions per active customer March 2013 Existence of proof points such as Telesom Zaad
  • 18. Restricted - Confidential Information © GSMA 2013 How do we shorten the journey to regular usage?
  • 19. Restricted - Confidential Information © GSMA 2013 How do we shorten the journey to regular usage? 1) Shift incentives from registrations to activity 2) Coddle your early stage customers 3) Make a plan for PIN resets 4) Cultivate your “influencers” 5) Understand the barriers: Talk to customers and look at your data Five quick ideas… More from MMU on this topic: Stay tuned for new MMU guide on customer business intelligence to drive usage Available week of July 22nd on http://www.gsma.com/mmu