This document summarizes research conducted by MTN Uganda and MMU to understand barriers to customer activation for their mobile money platform. It identifies key barriers for non-users (lack of knowledge around how mobile money works), inactive users (network issues, agent liquidity problems, high fees), and areas for improvement according to active and inactive users (improving education, agent network, customer service, and transaction limits). The conclusions recommend MTN focus on improving knowledge of mobile money through education campaigns, boosting the agent network in rural areas, enhancing customer service and addressing issues causing network downtime and agent liquidity problems.

1. Barriers to Customer Activation:A case study from MTN UgandaM. Yasmina McCarty, MMU ManagerJune 2011, Singapore

2. AgendaProject backgroundCustomer journey frameworkResearch resultsNon users – barriers to activationActive users – areas of satisfaction / dissatisfactionInactive users – what caused inactivityConclusions

3. Project background: MTN UgandaMTN Uganda launched their product “Mobile Money” in 2009Format: E-wallet service on STKServices offered: Money transfer, airtime topup, bill pay (water, cable TV), school feesRegistration process: Registration is a 2 step process 1) ID + application form submitted to agent or field agent 2) application vetted by back office and then account activated Today MTN Uganda boasts one of the largest mobile money subscriber base with 1.5 million registered usersMTN wanted to drive customer activation, both continuing to sign up new customers as well as encourage existing customers to be more active on the platformMMU worked with MTN to identify optimal marketing strategies for customer activation by better understanding customer segments

4. Project background: Research objectivesMTN Uganda & MMU commissioned Synovate to conduct qualitative research to:Identify high potential segments of nonusers to be activated Determine non users barriers to trialIdentify knowledge gaps which discourage trial & areas of distrust which may limit useIdentify the areas of dissatisfaction and satisfaction for usersPlatform - reliability, ease of use, and priceUsage experience - agent, user interface, and customer careIdentify what limits inactive / lapsed users from being active on the platformIdentify formal/informal competitors that consumers prefer over MTN Mobile Money and understand the value propositionResearch was followed by action planning to implement findings

5. Project background: Consumer segmentsPrior to conducting the research, market segments were selected based on existing customer behaviours as well as hypothesis on customer behaviours

6. All segmentation was aligned with core marketing strategies so results would be directly applicableCustomer journey frameworkMMU & MTN Uganda had strong hypothesis about the customer journey and where customers might be getting bogged downUnawareAwarenessUnderstandingKnowledgeTrialRegular UseCustomer has heard of mobile money and knows what it does Customer understands how mobile money could be useful to themCustomer knows the steps necessary to transact Customer has never heard of mobile moneyCustomer tries the serviceCustomer habitually uses the mobile money service

7. Non users - Awareness & understanding of Mobile MoneyAwareness was very high & had been created through different sourcesAdvertisements through media – TV, radio, billboards, newspapersFrom friends and relatives who are already registered Through promotional activitiesField agents who were educating peopleReceiving messages from MTNMTN Mobile Money trucksUsers and nonusers alike had a clear understanding of what the service was for:It’s a fast and easy way of sending and receiving moneyIt’s a cheaper way to transact compared to the banksYou can save and buy airtime with itYou can make payments with it, e.g. paying water bills

8. Non users – Top of mind perceptions

9. Non users – Knowledge as a barrier to using mobile moneyNon users were aware of Mobile Money and understood the main use of the serviceHowever non users did not know how Mobile Money worksThere was confusion about how the concept actually works i.e. what is digital money, what does the agent do, what does the operator do, what does the consumer need to do on their mobile, what happens if the transaction goes wrong, etc.“Here in the deep village not many people know much about so they should sensitize us more on how it works.” Traders, non user“I do not trust it because I do not know how the money will reach the other person.” Survivors, non user

10. Non users - Barriers to using mobile money

11. Active users – Customer journeyHigh awareness: Users were aware the product was for exchange of money using the phone, like a bank for transactions – even savingsClear understanding: The main usage mentioned was to send and receive money, other usages mentioned include savings (e-wallet perceived as a short term secure storage for money), buying airtime, purchasing commodities, paying water bills, Unforeseen emergencies / problems that require money immediatelyGood knowledge: Learnt to use the service from agents who helped them register, friends/relatives who already knew how to use it, MTN service centres and through the STK menu, which some found to be user friendlyActivation: Although consumers had first learned about Mobile Money from a variety of advertising mediums, they only become convinced to take action and register when prompted by a person – the driver of activation was either DST or a friend compelling them to sign up

12. Active Users – Experience with Mobile Money

13. Inactive usersMNOs have diverse segments within inactives i.e. those who don’t understand the service, don’t need the service, grew frustrated and stopped using the service, etc. MTN conducted research with inactives who knew how to use the service but had stopped transacting for some reasonThe areas of complaints for inactives mirrored complaints from actives:Network down time when one wants to withdraw money - this has frustrated them the most, especially when they urgently needed the money

14. Disappointments from agents when one wants to withdraw money and they do not have

15. Some found it to be expensive to transact – high fees for transactions“The system was always down when I wanted to withdraw money so I decided to stop as I got disappointed.” Inactive / lapsed, KampalaTransaction limit of 1 million shillings is perceived not to be enough

16. Poor customer care services in the rural area from the agents and service centresAlternatives to Mobile Money – Non users

17. Alternatives to Mobile Money – Actives & Inactives

18. Non users – Requested improvements to MTN UgandaEducation: Sensitize / educate people more on how mobile money works especially in the rural areasRegistrationMake registration process easier with less formal requirements of filling long forms with a lot of information – should be straight forwardActivation process should be improved to avoid one from waiting for a long time before using the servicesAgentsEnsure agents are well trained so as to be able to assist the customers all the time–good customerEnsure agents always have enough money at all times to avoid inconveniencesAgents should be in secure locations where one can feel safe when transacting or withdrawing moneyIncrease the number of agent outlets especially in the rural areasNetwork: Improve on the network system to ensure one can always get their moneyProduct features: Increase maximum transaction amount of sending and receiving money

19. Active Users – Requested improvementsEducation - Sensitisation of the rural people on how to go about the process Registration & Customer careTrain agents to know everything about the activation / registration process so that when they are questioned they can be able to give valid reasons to customers.Should have reliable systems that will speed up the activation process – have back up systems if necessary when system is downAgents should be equipped with all necessary equipments at registration points to ensure fast registration process e.g. having photocopiers machinesShould have more mobile centres and agents outlets for convenience so as to reduce on the number of long queues on only few outletsProduct featuresNetwork: Improve on the network system to ensure that its always up and running when one wants to perform a transactionPrice: Reduce on charges for both sending and receiving moneyTrnx limits: Increase on the amount of money someone can save, send and receive

20. Conclusions – Barriers to activationFor non users, there was high awareness, good understanding but a clear gap in knowledge levels on how Mobile Money works which kept them from registering for Mobile MoneyAdditionally, there were specific barriers to activation which varied by segmentFor users and inactives, there was common complaints that required urgent attentionNetwork down timeAgent illiquidityCustomer care These issues created negative word-of-mouth for non users and if left unaddressed, could lead active users to becoming inactive