building soho and sme revenues through richer …

Building SOHO and SME revenues through richer communicationsWebinar

Thurs 28 May, 2020

© STL Partners | Proprietary and Confidential 2

16:35 – 17:00STL Partners & EricssonQ&A session3

16:05 – 16:35STL Partners & EricssonSTL & Ericsson presentations2

16:00 – 16:05STL PartnersIntroduction and notes1

Agenda


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Our speakers

Chris Barraclough,STL Partners

Presenter

Vikas Singhal,Ericsson

Presenter

Abhey Seth,Ericsson

Presenter

Yesmean Luk,STL Partners

Moderator


Agenda





SOHOs and SMEs: an untapped market opportunity for operators?

Chris Barraclough

STL Partners


SOHOs and SMEs: the untapped customer segment for many operators?

• Needs similar to

large corporates

• Purchasing power

similar to high-end

consumers

Difficult to serve!

93%

30%21%

6%

20%

18%

17%

18%

33%44%

Number of enterprises Number of employees Economic value-added

EU companies

Large

Medium

Small

Micro

Source: Eurostat Annual SME report 2018/2019Micro: between 1 to <10 employees, Small: 10 to <50 employeesMedium: 50 to <250 employees, Large: 250 employees and above


Smaller companies struggle with productivity

100

79

68

53

Large Medium Small Micro

Economic value-added per employee (indexed)

Source: Eurostat Annual SME report 2018/2019; STL Partners analysisMicro: between 1 to <10 employees, Small: 10 to <50 employeesMedium: 50 to <250 employees, Large: 250 employees and above


Improving financial performance is a key concern for most SMEs globally

Increasing productivity & operational efficiency,

28%

Growing market share in current market, 25%

Maintaining current strengths, 17%

Expanding domestically, 17%

Expanding internationally, 9%

M&A, 4%

What do you think will contribute most to your company’s financial performance over the next 3 years. Top response.

Source: SME Pulse report 2019n = 3,000 SMEs in 12 major countries globally


Technology has become the highest priority for smaller businesses to address commercial challenges

58%

68%

69%

75%

Agility - responding quickly to changing demands

Attracting and retaining skills & talent

Acclerating innovation

Applying the latest technology

Thinking ahead, which of these will you be working hardest to address over the next three years? Top responses



Improving communications ranks as a top technology priority for 2 out of 3 SMEs

68% 66%63%

59%56%

51%45%

39%34%

25% 25% 23%

% of SMEs citing as a top 2 priority for technology improvement



SOHO and SME situation Implications for technology solutions

61%

61%

61%

63%

69%

Speed and ease of set up

Simplicity of maintenance

Price

Trustworthy vendor

Ease of use

% of SMEs citing as important for technology evaluation

SOHOs and SMEs have specific requirements for implementing technology

Source: Small & Medium Business Trends Report, 2019n = 2,000 SMEs in 10 major countries globally

Lack of (specialist) technical and procurement resource

1

Time-constrained2

Budget-constrained3


Implications for telecoms operators

SOHOs & SMEs are:

1. Economically important

2. Under financial pressure

3. Seeking profit growth from efficiency & improved customer experience

4. Willing to adopt technology

5. Time and budget-constrained

Communications providers should:

1. Offer simple managed solutions

2. Move to as-a-service models that scale up and down

3. Adopt try-before-you-buy and/or freemium models

4. Create and market communications services that drive efficiency and/or growth


Audience vote: Which of the following best describes your organisation’s attitude towards SOHOs and SMEs?

4%

50%

27%

19%

*Based on webinar audience responses

Little focus: we offer them consumer or corporate solutions

A tough segment: we tailor solutions but hard to do profitably

Growing importance: forecasting fast growth in future

Cash cow: we already focus here and can do little extra

| 2020-05-28 | Ericsson |

What is the problem ?

SoHo/SME Business User Service Provider

●86% unanswered calls●85% will not call back●@ 30% conversion rate= 22% lost business

Never miss a customer call

●69% of SME valueEase of Use

●61% of SME ask for Speed & Ease of setup

50-80% of SoHo/small businesses are NOT on business mobile plans

ARPU same as of consumers

| 2020-05-28 | Ericsson |

How to address the problem….


Enriched Communication

Improved Customer Experience

Incremental Value

| 2020-05-28 | Ericsson |

Enriched Communication– For SoHo and small businesses Enriched

CommunicationImproved Customer Experience

Incremental value

Enriched communication

Business main number

Enriched B2C communication

Customer

Easy onboarding and self-service management from the cloud as-a-service

“Never miss a customer call”

Be perceivedas a credible business

Increased responsiveness

| 2020-02-12 | Ericsson Internal |

DEMO VIDEO

● Enriched Communication

//www.kaltura.com/p/1614541/sp/0/playManifest/entryId/1_9cwu9ruq/format/applehttp/protocol/http/flavorParamId/32121831/video.mp4

| 2020-05-28 | Ericsson |

Customer Experience is the key Enriched

CommunicationImproved Customer Experience

Incremental value

VoLTE Calling

Pull Down Notification Tab and touch “Call Transfer” menu

Receive a Call on the Mobile Native Dialer

Start to talk on the Mobile Native Dialer

●No app calling

●Features natively on phone

●Presence status

●Possibility to enhanced services

| 2020-05-28 | Ericsson |

Convenience through all workflowsEnriched Communication


Incremental value

Self service Onboard Configure

Customer Self-Service

| 2020-05-28 | Ericsson |

Convenience through all workflowsEnriched Communication


Incremental value

Self service Onboard Configure

Customer Self-Service

Use

| 2020-05-28 | Ericsson |

What can be the outcome?


Enriched Communication


Incremental value from Small /SoHo pack:~7-15 €/user/month

| 2020-05-28 | Ericsson |

Audience vote: What impact could enriched communication and improved customer experience have on your SOHO/SME revenues?

12%

39%

21%

27%

*Based on webinar audience responses

Greater than 20%

Between 10% to 20%

No impact

Between 5% to 10%

| 2020-05-28 | Ericsson |

Cloud communication to accelerate businessDesigned for service providers and their customers

5G Ready

Quick time to market

Reliability& Security

Cost efficiency

Try & Buy

Flexibility

Self-service & automation

Excellent UX

As-a-Service

Leveraging existing assets

Offer the right communication services to your customers based on their business needs.

Quick & Easy!

| 2020-05-28 | Ericsson |

Ericsson Communication Accelerator

UC Seamless Native Mobility

VoLTE enablement for Unified Communication

Intelligent Enterprise Communication

Service Number calling

SoHo Communication

Micro business calling

IoT CommunicationSmart Device Calling

Wearable Communication

AR voice & video calling

Turnkey Services

Operator NW – A

Operator NW – B

Operator NW – C

Operator Multi-Country Network Services

Partners Industry verticals


| 2020-05-28 | Ericsson |

What do you need to do in order to get there 3 steps to revenue generation

●Connect to the Ericsson Communication Accelerator

●Define your commercial offering based on the microservices

●Onboard your customers and provide self service capabilities

Operator NW – A

Operator NW – B

Operator NW – C

Operator Multi-Country Network Services

Partners Industry verticals


ericsson.com/communication-accelerator


Agenda





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