Upload
dothien
View
218
Download
0
Embed Size (px)
Citation preview
Buying Process for Fixed Broadband Product Case Study : Telkom Speedy
Dhata Praditya
PT. Telekomunikasi Indonesia, Tbk.
Bandung, 4 Des ‘13
International Seminar & Conference on Learning Organization
Speedy is a brand of Internet access service end-to-end for use in residential or small and medium business sized. This service guarantees high speed data access according to internet package with access speed options ranging from 384 kbps to 3 Mbps per line.
DSLAM / GPON
Source : SPIRE Sep 2013
Market Share (FBB) - Nasional
LIS Growth
Market Growth
FBB 35,7%
Market Share (FBB) - Jabodetabek
TOTAL BROADBAND NASIONAL FIXED BROADBAND NASIONAL
Mobile Broadband; 14.002.327 ;
85%
Speedy; 2.131.257 ;
13%
Fastnet; 217.563 ; 1%
Others Fixed;
64.020 ; 1%
Ytd Sep 2012
Market Growth TOTAL
55%
Mobile Broadband; 22.208.311
; 87,4%
Speedy; 2.893.965 ;
11,4%
Fastnet; 246.903 ;
1,0%
Others Fixed;
58.343 ; 0,2%
Ytd Sep 2013
Speedy; 2.131.257 ;
88%
Fastnet; 217.563 ;
9%
Others Fixed;
64.020 ; 3%
Ytd Sep 2012
Market Growth
FBB
32,6%
Speedy; 2.893.965 ;
90% Fastnet; 246.903 ;
8%
Others Fixed;
58.343 ; 2%
Ytd Sep 2013
90,46%
7,72%
1,52%
0,30%
Speedy
Fastnet
Biznet
Others
-5,2%
13,5%
-24,%
72,61%
22,55%
4,65%
0,19%
Speedy
Fastnet
Biznet
Others
-5,1%
11,4%
-35% LIS Growth
Market Growth
FBB 28,04%
The buying process is the set of steps that a customer chooses to go through with the goal of satisfying a need. (Hudadoff, Pamela. 2009). The consumer decision making is triggered by the recognition of a problem or arousal of a need, followed by search for information, then consumer follows evaluation of alternatives and goes with purchasing the alternatives which are attractive, and in post purchase, consumer experience product and outcome may be satisfaction or dissatisfaction. (Blackwell et al., 1995)(Tamboli, Sajid 2008)
Awareness /
Understanding Interest Trial Accept & Buy
Use &
Satisfaction
• How well do the different channels create awareness of Speedy
• Are there sufficient marketing initiatives?
• Does the product capture my attention?
• Is it competitive versus similar offerings?
• How can I try Speedy?
• Does the trial experience convince me to buy?
• How easy is the order process?
• How satisfying is the installation?
• Service quality & user experience?
• Am I satisfied in the long-term?
Need Recognition & Problem Awareness
Information Search Evaluation of Alternatives
Purchase Post Purchase
Evaluation
Blackwell et al., 1995
• Go-to-Market Research
• Operational Assessment
Buying Process
Analysis On Progress
Buying Process
Modelling
Speedy Revitalization Program - GTP Assignment in TELKOM
Broadband Division - Implementation Phase in 2 selected
areas
Channels to create awareness and understanding of Speedy
Limited display and demonstration of Speedy in Plasa Telkom
No product differentiation across fibre or ADSL
Only standalone product available via inbound sales; no
bundles
Brochure available on the pricing in the shop
• Brochure focused on pricing by speed and not on the quality of ADSL/fibre broadband (e.g: dedicated connection to ensure speed)
• A simple standee on Speedy at the Plasa does not communicate as well as a live demo
Speedy Regular
Broadband internet access for family starting from 384kbps to 100Mbps
Speedy Instan
A Pay-as-You-Use offering that allow non-customer to access through prepaid
Speedy Gold
SME broadband
Speedy 3 main products listed on the website
• Not focusing on superior quality and experience of fibre broadband
• No product categorization by quality
147
1
3
2
4
6
5
Telkom Flexi
Speedy
Fixed phone
Delima & Content
Indonesia Wi-Fi
• Could not obtain info regarding bundle on inbound call
• To subscribe to USeeTV you need to have Speedy
Trial Accept/Buy Use Awareness Interest
UseeTV
As a key channel to create awareness and understanding of the product, more attention should be paid to communication product value and providing relevant information
Speedy Websites
Trial Accept/Buy Use Awareness Interest
• Only brief available product info
• No link to Telkom Speedy website where more info on pricing, package are available
• Wordy, non-visual design fails to capture reader attention
• Hard to appreciate product
• Only standard pricing on the website, no promotions.
• No bundle package or pricing available
Product Description Design Pricing
Speedy promotional price analysis
First Media offer described here is based on offer before July-2013
1. Speedy maintains the same
bandwidth at a reduce price
2. First Media strategy focuses
on higher bandwidth. Price
remains the same but they
upgraded 1.5Mbps 4Mbps
and introduced a 30Mbps
offering
3. Speedy Promotional Price is
still not as attractive as First
Media
Trial Accept/Buy Use Awareness Interest
195 295
645
995
1.695
60 195 235
350
695
350
695
2035
0
500
1000
1500
2000
2500
384K 512K 1M 1.5M 2M 3M 4M 6M 8M 12M 30M
Bandwidth
Price (Rp 000/ month)
Speedy Standard offer
Fastnet Home & Kid offer
Speedy Promotional
Price
30M offer is newly introduced
Product / Pricing Strategies
MBB providers continue to have an edge in pricing and speed offer
Plans Quota
(GB) Speed
Price
(Rp,000)
Broom 100 2 1M 100
Broom150 3 1M 150
Broom200 5 2M 200
Broom quota
100 2.5 7.2M 100
Broom quota
200 6 7.2M 200
Plans Quota (MB)
Speed Price
(Rp, 000)
XL99 3,600 7.2M 99
XL49 1,500 7.2M 49
XL25 600 7.2M 25
Plans FUP Speed Price
(Rp,000)
Super pro 500M/day 14.7 275
Super
advance 500M/day 3.1 150
Basic 500M/day 768K 90
Speedy 1st
month 2nd -12th month
Tariff
Speedy 384 Pro-rata 99k 195k
Speedy 512 Pro-rata 125k 295k
Speedy 1Mbps Pro-rata 295k 645k
Speedy 2Mbps Pro-rata 455k 995k
Speedy 3Mbps Pro-rata 645K 1695k
Trial Accept/Buy Churn Awareness Interest
Speedy Comparison
Multiple, area-specific promotions
Speedy 1st
month 2nd -12th month
Tariff
Speedy 384 pro-rata 99k 195k
Speedy 512 pro-rata 195k 295k
Speedy 1Mbps pro-rata 295k 645k
Speedy 2Mbps pro-rata 645k 995k
Speedy 3Mbps pro-rata 995K 1695k
Community pricing
Speedy 1st
month 2nd -12th month
Tariff
Speedy 512 pro-rata 125k 125k
Speedy 1Mbps pro-rata 150k 195k
Speedy 2Mbps pro-rata 275k 275k
Speedy 3Mbps pro-rata 335K 335k
Acquisition pricing
Speedy 1st -6th month
7th 30th month
Speedy 384 50k 99k
Speedy 512 99k 125k
Low occupancy
pricing
1
2
3
1. Multiple pricing for the same product leads to dissatisfaction among subscribers not offered the promotional pricing
2. Difficult for Telkom to refuse customer requesting for similar promotional price
3. ‘Below the line’ promotion: narrow effect on awareness & interest
Trial Accept/Buy Use Awareness Interest
Speedy 1st month 2nd -12th month
Standard Tariff
Speedy 384kbps pro-rata 99k 195k
Speedy 512kbps pro-rata 125k 295k
Speedy 1Mbps pro-rata 295k 645k
Speedy 2Mbps pro-rata 455k 995k
Speedy 3Mbps pro-rata 645K 1695k
Speedy latest promotional pricing
User Reaction Promotions
Many schemes, no loyalty management
PayTV bundle comparison: Telkom, First Media
• Currently only low-speed bundle available (512kbps and 1Mbps) for Indihome, therefore not very attractive to subscribers
• Competitiveness of Indihome bundle:
• Price: Slightly cheaper but not compelling enough to influence a switch for First Media’s subscriber
• Broadband Speed: Not superior to First Media
• TV: Fewer channels and lack of HD
• VAS: Free POTS at certain time may attract a certain segment. Storage and Melon may not be perceive to be of high value due to availability of free OTT offerings
Not available yet
Indihome ‘Gold’ First Media Combo pack
FBB: 2Mbps TV: 51 ch + 1 mini pack Price: Rp 320K
POTS: Free calls from 20:00 – 06:00 VAS: • 100MB storage • Melon • 12 mth anti-virus
FBB: 2Mbps TV: 56 SD and 12 HD channels Price: Rp 280K
FBB: 3Mbps TV: 51 ch + 1 mini pack Price: Rp 385K
FBB: 3Mbps TV: 64 SD and 17 HD channels Price: Rp 390K
FBB: 5Mbps TV: 51 ch + 1 mini pack Price: Rp 435K
FBB: 5Mbps TV: 92 SD and 25 HD channels Price: Rp 550K
Trial Accept/Buy Use Awareness Interest
Telkom launched Indihome bundle to compete with First Media Combo Package
First Media offerings before July-2013
Wi-Fi Hotspot
1. Service availability is not communicated on the offer to the subscriber
• Not actively promoted to be part of the VAS in the bundles offerings
2. No info on available hotspot locations (no map on availability
3. Login using Speedy ID is cumbersome
4. issues that need to be solved:
• User will be log out every 60 mins
• 30% hotspot not working
Trial Accept/Buy Use Awareness Interest
Issues of awareness & use Promotion
Major element of FBB offer is semi-mobility from Wi-Fi
• Speed: Only available for 512kbps
• Price: Could cannibalized subscription of Speedy (30 days of Speedy Instan is Rp 150k against subscription at Rp 125k)
• Conversion: No proactive up-sell to convert Speedy Instan Speedy subscription
Aims to be a trial mechanism to encourage adoption of Fixed Broadband for pre-wire users
Speedy Instan: Pre-paid service
Speedy 1st month 2nd – 12th month
Standard Tariff
Speedy 384 pro-rata 99k 195k
Speedy 512 pro-rata 125k 295k
Speedy 1Mbps pro-rata 295k 645k
Speedy 2Mbps pro-rata 455k 995k
Speedy 3Mbps pro-rata 645K 1695k
Speedy latest promotional pricing
Trial Accept/Buy Use Awareness Interest
Issues Available to non-Speedy Subscribers
Needs to be an effective broadband trial service with good up-sell to post-paid
10%
1%
51,370 7,291 44,079
Call Offered Abandon ACD Call 4,342 3,855 1,677
Promo Sales PS
656 592 235
UCS-R2
UCS-R3
89% 44%
17%
86%
90% 40%
Service Provisioning Performance
Gap exists in both Jakarta Timur and Selatan High drop in take up between Sales Put-to-Sales
• Issues such as long lead time in service activation lead to only low number of subscribers finally taking the service
• Long time for service provisioning could be attributed to:
• Drop wire performed by another party therefore it takes one day to confirm availability to the engineer performing installation
• Password activation takes more than 1 hour. Engineer comes back another day leading to delay
• Situation seems to be more severe in Jakarta Timur
• Some other reason raised :
• Availability of modem
Source: IBC147 Mar-2013
Source: IBC147 Apr
Trial Accept/Buy Use Awareness Interest
44% 60%
0
100
200
300
400
500
600
700
800Sales
Hierarchy of Churn reasons (100%) Reasons for Customer Churn
Source: Telkom
1. Unable to actively diagnose the network to predict churn
2. No customized special offer to retain customer expressing churn intention
3. No loyalty reward
4. No ‘win back’ strategy (e.g pre-wire fallback)
Churn management
Trial Accept/Buy Use Awareness Interest
Efficiencies
37%
Connection
21%
Competitor
16%
Expensive
13%
No Interest
8%
Moved
5%
Leave Speedy (95%)
Move location (5%)
Connection problem
Competition Expensive
Connection unreliable
Faulty modem
Other FBB
Other MBB
Efficiencies (combination
of reason)
Not interested
Buying Process: Gap Analysis
Awareness & Understand
Interest Trial Accept & Buy Use & Enjoy
Understanding of high bandwidth subscription
Inefficient channels In Plasa shop, Speedy’s value
proposition not well communicated and no live demo.
Brochure on Speedy is simple without much description. No brochure on bundled offerings.
Web site navigation is poor and does not present information clearly.
Low bandwidth offerings starting at 384kbps
Bundle: POTS + Speedy (N/A) Triple-play (not as
attractive compared to First Media and late to market)
Quad-play (N/A)
Pricing: Nationwide promotional
pricing still expensive Localized promo create
confusion as not open to all
Wi-Fi VAS: No info on Wi-Fi hotspot
location 30% of Wi-Fi hotspot not
working
Pre-wire trial only available for 1 month (at 512kbps). Unable to truly experience benefit of broadband
No proactive calls to convert trial customers to paying customers
No trial available for regular Speedy services (1Mbps and above)
Service provisioning takes a long time compare to competitor (40% drop for Selantan. 38% drop for Timur). Speedy takes at least 3
days against competitor 1 day
drop wire installation causes delay
Need to wait at least 1 hour after modem install for password generation
Price still expensive No discount for loyal
customers
Competitor quality, branding and price
Install done in 1 day Perceive more stable
connection Aggressive pricing in
targeted area
Network problem Often attributed to modem
with long hours taken for restoration
No churn management for customer expressing churn. Just redirect to Plasa. No control of subs
cancelling and re-signing with better promotion
Recommendations
• Free upgrade to higher bandwidth is a must. However it requires wider coverage and infrastructure betterment.
• To encourage take-up, bundling product either double play with POTS or triple
play combine with IPTV and POTS should be offered. With 75% of Telkom subscribers on POTS only, this strategy could be a quick win to promote adoption. This could also helpful to prevent POTS revenue disruption.
• To different strategy approached to reduce churn rate: Prevention using prediction
tools and giving loyalty reward; Deflection using win back offer especially in high risk area.
• Improvement in website with dynamic and complete information. The website
could also use for advertising promo media with other social media. • Improvement in network database, and data integration inter-provisioning tools.