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