Connecting O2 business customers all over the world. Anjuli Valera
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- Rosalyn Barber
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1 Connecting O2 business customers all over the world Anjuli Valera
2 Roaming is not a positive subject in customer satisfaction There are 3 key reasons why roaming is an area of dissatisfaction with our customers Greedy operators Customer bill shock Confusing propositions Historically, mobile operators have failed to meet customer needs for those who roam from home. Operators have kept roaming revenues inflated for profit. Legislation has now changed this across the EU. Customers fear the bill after a trip abroad. Going abroad is great. The mobile bill when they get back can be horrendous. Roaming is a devil in disguise. Headline marketing messages hide true comparisons that can only be found by comparing offers at a feature level. Yet more confusion for customers
3 Market Context
4 The market Situation Threat Opportunity Roaming in Europe Standard roaming rates in Europe declining. By 2017 roam like home in Europe will be compulsory These compulsory changes will wipe millions from O2 s bottom line Put customers back in control with O2 Travel Roaming in Rest of World O2 s propositions put us in a good position against our competitors for RoW roaming, especially for data Our competitors are often perceived as the customer champion on roaming Awareness to drive opt-in to our Worldwide Data Bolt Ons (WWDBO) UK Calls to abroad O2 s international calling rates are complicated Confused by our pricing, customers use OTT services such as Skype & Viber instead of their mobile to call abroad from the UK Simplify our pricing structure for calling abroad.
5 Our Propositions
6 Roaming options for O2 customers travelling abroad Standard Roaming Rates Europe and Rest of World Europe Rest of World Voice SMS Data O2 Travel Worldwide 24 hr data Bolt On Low User Cap High User Cap Worldwide data Bolt On (30 Day) 6
7 O2 business customers travelling to Europe Europe O2: Just to let you know you ve used 50MB from your O2 Travel daily allowance. You can continue to use O2 Travel but may experience slower data speeds until you get your new allowance at midnight UK time. If you d like to continue using data at the same speed, text MOREDATA to This will reset your daily allowance and you ll be charged another 1.66 ex VAT, which will last until midnight that day (UK time). O2 Travel Not compatible with Mobex or B4B PAYU 1.66 for a day s worth of data Text TRAVEL to to opt in Reduced speeds at 50MB Text tells them how to buy more data Offers control so av. spend is 5.90 more over 5 day trip than on standard rates Worldwide data Bolt On (30 day) 99 for up to 2GB to use over 30 days Text BUYWORLD to to opt in Uncapped but can cap to 1 per billing cycle Data usage texts sent (bar MBB) Worldwide Cost control Flexibility Tethering 7 Fairford Electronics Case Study:
8 O2 business customers travelling to Rest of World Rest of World Worldwide 24 hr data Bolt On 7.50 for up to 200MB to use over 24 hrs Text BUYWORLD24 to to opt in There are 3 cap options or uncapped Data usage texts sent Out of Europe Cost control Flexibility Worldwide data Bolt On (30 day) 99 for up to 2GB to use over 30 days Text BUYWORLD to to opt in Uncapped but can cap to 1 per billing cycle Data usage texts sent (bar MBB) Worldwide Cost control Tethering Flexibility 8
9 Worldwide data Bolt Ons Comparisons Worldwide 24 hour data Bolt On Outside of Europe only Use data over 24 hours Compatible with O2 Travel Not compatible with data only tariffs No tethering 3 capping options available and 1 uncapped option 4 bolt ons per billing cycle 1 bolt on per day 2 bolt ons per day Uncapped Customer automatically put on cap of 4 bolt ons/billing cycle (post July 2015). Has to request other options if wanted. Worldwide data Bolt On (30 day) Worldwide Use data over 30 days Not compatible with O2 Travel Compatible with data only tariffs Tethering available 1 capping option available and 1 uncapped option 1 bolt on per billing cycle Uncapped Customer automatically put on uncapped. Has to request cap if wanted 9
10 Roaming Compatibility Tariffs Tariffs O2 Travel Worldwide 24 hour data Bolt On Worldwide data Bolt On (30 day) RRP 2012 voice tariffs onwards Compatible Compatible Compatible RRP Mobex & B4B PAYU Not Compatible Compatible Compatible RRP Post-2010 data only Tariffs Not compatible Not compatible Compatible All Pre-2010 Tariff (excluding Mobex & B4B PAYU) Not compatible Not compatible Not compatible Blackberry Roaming Daily & Monthly Not Compatible Not Compatible Not Compatible Please note situation for bespoke customers. The RRP tariff compatibilities remain true if a customer is on a bespoke contract, however it depends on where a bespoke contract customer is in their lifecycle as to whether they can have the propositions. If an in contract bespoke customer wants one of these roaming propositions, then it is NOT possible. If a new or re-signing customer opting for a bespoke contract wants these propositions, then based on the RRP tariff compatibilities, the propositions can be made compatible if they ask at this point in time. For example, I am a new customer opting for a bespoke contract with my employees taking Mobex Tariffs. At this point in time as the deal is being created I can have those Mobex tariffs made compatible with either of the Worldwide data Bolt ons (24 hour or 30 day). However I can t have them made compatible with O2 Travel, as even in RRP world Mobex is not compatible with O2 travel. 10
11 O2 business customers calling from abroad from the UK Calling abroad from the UK International Favourites Bundles of mins to int l landlines and mobiles 2 options 8.33/mth or 16.67/ mth Get a call me number Call BCS to get set up Customers can stay in contact with international customers, suppliers etc. Standard Rates All customers on standard rates as default Our standard rates are competitive Unlike Voda no monthly fee to unlock low rates Competitively priced standard rates keep customers connected 11
12 The Competition
13 How O2 compares to the competition O2 Vodafone EE Europe Travel O2 Travel 1.66/day Reduce speeds after 50MB 4p texts. Free to receive 41p per call up to 60 mins. EuroTraveller (RED plans) 2.50/day to use data, texts and mins from UK bundle Euro Pass 3.33/day Unlimited mins & texts Up to 500MB data (throttled) 2.50/day just for data World Travel Worldwide Data Bolt Ons 7.50/day up to 200MB. Countries outside Europe 99/30 days for up to 2GB. Worldwide WorldTraveller 5/day to use UK mins, texts and data DataTraveller 5/day for 25MB Add-Ons 10/day for 100MB 40/week for 500MB UK Calls to abroad International Favourites 8.33/month for 3000 mins to landlines & 100 mins to mobiles across 3 numbers Standard Rates Prices range from Zone 8p/min to Zone 77p/min Unlock cheaper rates for 4.17/month Standard Rates Europe: 83p/min RoW: 1.25/min 75 mins of IC Calls for 8.34/month Business Extra Plans have international calling included 100 UK-to-EU mins for 8.33/30days 50 UK to RoW mins: 5/day Hero device mins on HTC1
14 Worldwide 24 hour data Bolt Ons vs World Traveller Double Paying Overage Time restrictions Charge Triggers Worldwide? O2 Customer pays 7.50 for 200MB of data. This DOES NOT come out of their domestic bundle Customer either uncapped & can use as much data they want. Or capped at a certain spend depending on the cap opted into As soon as a customer has used 50kbs on data they are given 200MB of data to use over a 24 hour period. Not just to midnight If a customer uses 50Kbs of data then they are charged 7.50 to use 200MB over 24 hours This Bolt On covers all countries we have a roaming agreement with outside of Europe. Offering complete flexibility Vodafone Customer pays 5/day to use data texts and mins from home bundle, meaning they are double paying If you use up your domestic data bundle then you will be charged overage, which starts at 15/GB If a customer starts using data at say 10pm, they will be charged 5 to midnight and then 5 again if they use the next day If a customer sends a text, makes a call, or uses 50kbs of data, then they will be charged 5 Only covers 30 countries, 17 of which are the Caribbean. Customer would have to work out what they d pay in non World Traveller countries
15 Our Marketing
16 Making roaming hassle free for our customers And there are three pillars to this Make customers aware Stimulate customers Excite customers This is about making our customers aware of our different propositions and the benefits they offer them when doing business abroad Customer action: Opt in Once we ve got customers opted in, it s about changing their behaviour. We want them to use their device as they do at home when abroad Customer action: Leave roaming on for data and voice The purpose is to get our customers excited by sharing good news that impacts them positively, for example 4G roaming Customer action: Share good news through WoM
17 Our ask of you
18 What we need to focus on To claw back the roaming revenue we ll lose through the regulation changes O2 Travel opt in Customers on O2 Travel spend more than those who aren t WWDBOs opt in Our Worldwide data Bolt Ons offer customers flexibility and control. Customers are much better off on these propositions than standard rates
19
20 Appendix
21 O2 Travel o For customers travelling in Europe o Price is 1.66 (ex VAT) for the days data is used in Europe (our standard rates are 14.5p per MB). It costs nothing to add it and customers only pay if they use it. o There s no upper usage limit but data speeds will be slower once 50MB of data has been used. o Daily data charge will apply from midnight to midnight UK time. o To make or receive calls is 41p and then its free to talk for up to 60 minutes. After 60 minutes standard UK out of bundle rates apply (30p per minute). o Texts are 4p to send and free to receive. o Its compatible with the Worldwide 24 hour data Bolt On
22 O2 Travel o Customers can now opt in to O2 Travel text TRAVEL to o If customers don t select O2 Travel then they ll pay the standard roaming rates for Europe (unless they already have a Worldwide data Bolt On (30 day)). o O2 Travel works in o Austria; Belgium; Bulgaria; Cyprus; Czech Republic; Denmark; Estonia; Finland; France, Monaco; Germany; Gibraltar; Greece; Guernsey; Hungary; Iceland; Ireland; Isle of Man; Italy, Vatican; Jersey; Latvia; Liechtenstein; Lithuania; Luxembourg; Malta; Netherlands; Norway; Poland; Portugal; Romania; San Marino; Slovakia; Slovenia; Spain; Sweden; Switzerland.
23 Worldwide data Bolt On (30 day) o For customers who travel regularly around the world including Europe. o Customers pay 99 for up to 2GB of data to use over a 30 day period. Remember customers are only charged from when they use the data. (Customers not opting for WW data Bolt Ons will pay 6 per MB for data). o There are different data allowances for different zones ie. Zones 1 & 2 is 2GB, Zone 3 is 1GB etc all the Zone information and which countries fall into each Zone can be found here on O2.co.uk o Customers data travels with them between countries, prorating itself if they enter a different zone. o Tethering to laptops or tablets is supported. o This Bolt On includes Europe, so customers won t need O2 Travel if their travels include the Continent. A customer has to remove O2 Travel to take the Worldwide data Bolt On (30 day)
24 Worldwide data Bolt On (30 day) - Capping o 1 cap per billing cycle o A cap that ensures that customers can only purchase one Worldwide data Bolt On (30 day) per billing cycle. o Customers will receive alerts at 0%, 80%, 95% and 100% of the Bolt On allowance. If they continue to use data, they will be directed to a web page explaining they have used their allowance and if they want to remove the cap they should speak to their account administrator. o If a customer does not proactively opt in to this cap, then they will be uncapped.
25 Worldwide 24 hour data Bolt On o For customers travelling outside of Europe on brief trips. o A customer is only charged when they start using data. It costs 7.50 per Bolt On and they get up to 200MB of data to use over a 24 hour period. (Customers not opting for WW data Bolt Ons will pay 6 a MB for data). o There are different data allowances for different zones ie. Zone 2 is 200MB, Zone 3 is 100MB etc all the Zone information and which countries fall into each Zone can be found here on O2.co.uk o Can be used anywhere where we have a network agreement outside of Europe. o Customers data travels with them between countries, prorating itself if they enter a different zone. o It s compatible with O2 Travel o Tethering to laptops or tablets is not supported. o New and re-sign customers are opted in to this Bolt On as default unless they opt out.
26 Worldwide 24 hour data Bolt On - Capping o Default Cap 4 Bolt Ons per billing cycle o All new customers to O2 and new customers to Worldwide 24 hour data Bolt Ons will be opted in to the Worldwide 24 hour data Bolt On with a default cap of 4 x Bolt Ons per billing cycle. o Customers will receive text alerts at 0%, 80% and 95% of the Bolt On allowance. o If they continue to use all the data, they will automatically role into a new Bolt On. o Once a customer have reached their 4 cap allowance they will be sent to a landing page showing number to text back to remove the cap. They can t use any more data until this cap has been removed. o Only the account administrator has the ability to authorise the removal of the cap
27 Worldwide 24 hour data Bolt On - Capping o 1 or 2 caps per 24 hours o Customers can cap their Bolt On consumption at 1 or 2 Bolt Ons per 24 hour period. o They can limit their spend to 7.50 or 15 per 24 hours. o Customers will receive text alerts at 0%, 80%, 95% and 100% usage of the Bolt On allowance. If they continue to use data, they will be directed to a web page explaining they have used their allowance and that to remove the cap they should speak to their account administrator. o Please note: If a customer decides not to cap the WW 24 hour data Bolt On they will receive text alerts at 80%, 95% and 100% usage of the Bolt On. If they continue to use data, they will automatically role into a new Bolt On.
28 Opting in for the Worldwide data Bolt Ons Worldwide 24 hour data Bolt On Text message Number Opt in to 4 per billing cycle BUYWORLD24CAP Opt in to 1 bolt on per day BUYWORLD24CAP Opt in to 2 bolt ons per day BUYWORLD24CAP Opt out of data caps BUYWORLD Worldwide data Bolt On (30 day) Text message Number Opt in to 1 per billing cycle BUYWORLDCAP Opt out of cap BUYWORLD
29 Proposition Compatibility 29
30 Standard Rates for calling abroad 30
31 Standard Rates for going abroad World Zones Calling to the UK from included countries (per min) Calling within Zone (per min) Calling out of Zone (per min) Receiving a call (per min) Sending a text Sending a media message Zone 1 & 2 Western Europe EU & Non EU 13.8p 13.8p 79p 3.6p 4p 21p Zone 3 Eastern Europe 81p 81p 179p 52p 30p 21p Zone 4 USA & Canada 90p 90p 179p 39p 25p 21p Zone 5 Asia Pacific 60p 60p 179p 43p 30p 21p Zone 6 Rest of the world Including Andorra 120p 189p (120p in country) 179p 85p 40p 21p 1. Rates are stated in pence per minute, and apply all day. Prices stated exclude VAT. 2. For calls made in Western Europe the minimum duration is 30 seconds, then charged in one second increments, rounded to the nearest penny. For calls made elsewhere the minimum duration is one minute then charged in 15 second increments. 3. All calls received while abroad are charged in one second increments, rounded to the nearest penny. All prices shown are per minute and exclude VAT 31
32 Standard Rates for going aboard o If a customer decides to opt out of O2 Travel or either of the Worldwide data Bolt Ons, we ll still automatically cap the customers costs for using data. We don t charge the customer for data aboard until they use it. o We ll send usage alerts when they re nearly their monthly usage limit. If they reach 230MB/50MB, their data service will automatically stop, so if they want to use more they ll need to opt in to a higher spending cap ideally before they go aboard by calling their Partner contact who in turn will contact PCS. Default spend cap Region Charge limit per month Europe MB RoW 36 6MB Usage limit per month High spend cap Region Charge limit per month Usage limit per month Europe MB RoW MB 32
33 International Favourites o International Favourites is a Bolt On that is applied to each mobile phone. A customer can call up to five business contacts in 60 countries. Also a customer gets a Call Me Number, giving their contacts in a selected country a way to ring you on your O2 mobile without paying international charges. One monthly price. No additional charges. There are two options o 8.33 (ex VAT) a month 3000 minutes of landline calls and 100 minutes of mobile calls to three international numbers o (exc VAT) a month 3000 minutes of landline calls and 200 minutes of mobile calls to five international numbers. o To check which countries are covered for International Favourites and Call Me Number visits O2.co.uk here 33
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