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 Uganda M. Yasmina McCarty, MMU Manager June 2011, Singapore

2. Agenda Project background Customer journey framework Research results Non users – barriers to activation Active users – areas of satisfaction / dissatisfaction Inactive users – what caused inactivity Conclusions

3. Project background: MTN Uganda MTN Uganda launched their product “Mobile Money” in 2009 Format: E-wallet service on STK Services offered: Money transfer, airtime topup, bill pay (water, cable TV), school fees Registration 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 users MTN wanted to drive customer activation, both continuing to sign up new customers as well as encourage existing customers to be more active on the platform MMU worked with MTN to identify optimal marketing strategies for customer activation by better understanding customer segments

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

7. Non users - Awareness & understanding of Mobile Money Awareness was very high & had been created through different sources Advertisements through media – TV, radio, billboards, newspapers From friends and relatives who are already registered Through promotional activities Field agents who were educating people Receiving messages from MTN MTN Mobile Money trucks Users and nonusers alike had a clear understanding of what the service was for: It’s a fast and easy way of sending and receiving money It’s a cheaper way to transact compared to the banks You can save and buy airtime with it You 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 money Non users were aware of Mobile Money and understood the main use of the service However non users did not know how Mobile Money works There 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 journey High awareness: Users were aware the product was for exchange of money using the phone, like a bank for transactions – even savings Clear 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 immediately Good 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 friendly Activation: 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

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

17. Alternatives to Mobile Money – Actives & Inactives

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

19. Active Users – Requested improvements Education - Sensitisation of the rural people on how to go about the process Registration & Customer care Train 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 down Agents should be equipped with all necessary equipments at registration points to ensure fast registration process e.g. having photocopiers machines Should have more mobile centres and agents outlets for convenience so as to reduce on the number of long queues on only few outlets Product features Network: Improve on the network system to ensure that its always up and running when one wants to perform a transaction Price: Reduce on charges for both sending and receiving money Trnx limits: Increase on the amount of money someone can save, send and receive

20. Conclusions – Barriers to activation For 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 Money Additionally, there were specific barriers to activation which varied by segment For users and inactives, there was common complaints that required urgent attention Network down time Agent illiquidity Customer care These issues created negative word-of-mouth for non users and if left unaddressed, could lead active users to becoming inactive

21. Conclusions – MTN next steps Knowledge Develop an ATL education campaign on the “how-to” Improve training & monitoring of DSTs for clearer customer communication according to segment needs Agent Improve agent shop fascia & merchandising to portray a more secure environment Train agents on customer care processes, possibly introduce exclusive agent help line Improve agent liquidity, especially in rural areas Open more agent points in rural areas Registration / Activation – improve time lag between these two steps, especially for rural consumers

22. Thank you for your time. Unanswered questions? Email mmu@gsm.org