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

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The Customer Journey to

Regular Usage

Presented at MMU Global Event in Nairobi

Phil Levin, MMU Manager

July 9, 2013


Let’s talk about the customer


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?


The industry is very good at generating awareness


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


The industry is also quite good at registering users


Zimbabwe – 31% penetration (EcoCash only)

Uganda – 52% penetration

1.5 years

4 years

6 years Kenya – 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.


Where does the industry struggle? Driving activity


East Africa:

20% active

rate

West Africa:

9% active rate Asia:

32% active

rate

Source: GSMA Global Mobile Money Adoption Survey 2012


Million Shilling Question: Why has driving activity been so difficult for operators?


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)


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


How long until this user does their second transaction?

Today: Registered September 23: First transaction


The second transaction will happen just before Christmas

Today: Registered

December 18: Second transaction

September 23: First transaction


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


Should we be discouraged by this?


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


Sign of encouragement #2: Revenue contribution from these customers steadily increases

ARPU grows 100% in first two

years.


Sign of encouragement #3: Customers readily adopt new use cases over time


Sign of encouragement #4:

24.2

6.1

9.2 39.5

05

1015202530354045

P2P transfer Bill /merchantpayment

Airtime topup TOTAL

Zaad monthly transactions per active customer March 2013

Existence of proof points such as Telesom Zaad


How do we shorten the journey to regular usage?


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

http://www.gsma.com/mmu

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

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