1. SMME Fixed Line Churn The Role of Customer Experience

2. 2 For Telkom use only Proprietary & confidential company information Contents Overview of Telkom Churn Telkom Churn Initiatives that worked The Impact of ongoing focus Customer Experience The Future of Telkom Churn Management 1 1 2 2 3 3 4 4 5 5

3. 3 For Telkom use only Proprietary & confidential company information Contents Overview of Telkom Churn Telkom Churn Initiatives that worked The Impact of ongoing focus Customer Experience The Future of Telkom Churn Management 1 1 2 2 3 3 4 4 5 5

4. 4 For Telkom use only Proprietary & confidential company information Minus: Cease part of Move Cancelled Provide Part of Move Moves not provided within 3 months Minus: Telkom Initiated Dismantlements Deceased Emigration Liquidations Successful Moves 4 Churn management landscape Dismantlements Real Churn Addressable Churn Churn management Retained Customers Propensity to churn (Churn Prediction) Customer indicate he wants to dismantle his service TOC – Manage efficiency of churn Churned Customers Customer indicates he wants to dismantle his service Process to generate leads to new owner to be developed Customer Base Churn prediction model – predict customer about to churn Churn unpredicted Retained through pro active initiatives Customer indicates wish to churn

5. 5 For Telkom use only Proprietary & confidential company information Reasons or Disconnections Strong Links to Customer Experience Dissatisfied Migration Affordability Customer request Customer migration to another product Insolvency, liquidation and administration Cease due to collection

6. 6 For Telkom use only Proprietary & confidential company information Contents Overview of Telkom Churn Telkom Churn Initiatives that worked The Impact of ongoing focus Customer Experience The Future of Telkom Churn Management 1 1 2 2 3 3 4 4 5 5

7. 7 For Telkom use only Proprietary & confidential company information What we did Dedicated Function Adequate Human resources Dedicated manager Incentives Tools Offers Centralised learning’s and specialised training Correct profiling of agents Mover’s desk Adapted Business Processes Red phone Educated Value Chain Internal Communication Enforced terms and conditions Notice periods Research Customer insights leading to offers Relooked all Value Propositions Profiled customers when doing targeted campaigns Contract Renewals Increased focus

8. 8 For Telkom use only Proprietary & confidential company information Contents Overview of Telkom Churn Telkom Churn Initiatives that worked The Impact of ongoing focus Customer Experience The Future of Telkom Churn Management 1 1 2 2 3 3 4 4 5 5

9. 9 For Telkom use only Proprietary & confidential company information What not to do when running a retention unit Lack of incentives Removing components e.g. the mover’s desk due to resource limitation Outdated retention offers Reporting that is not geared to manage the different levels – e.g. retention centre, line management and senior management Not responding to changes in customer requirements – Not having ongoing customer insights. Not keeping up with increasing and changing customer expectations especially around customer experience

10. 10 For Telkom use only Proprietary & confidential company information Contents Overview of Telkom Churn Telkom Churn Initiatives that worked The Impact of ongoing focus Customer Experience The Future of Telkom Churn Management 1 1 2 2 3 3 4 4 5 5

11. 11 For Telkom use only Proprietary & confidential company information Customer First Overview Come work here! Buy from here! Enthusiasm, innovation Excellence, trust, value Growth, opportunity Employee Promoters Objective To create an army of employee and customer Promoters To change customer perceptions Complicated Broken Complex That we are… To we are… Friendly Uncomplicated Reliable Competent

12. 12 For Telkom use only Proprietary & confidential company information Approach: Focus on a core set of products and episodes to start with within the volume market segments Explore and Buy Get Started Pay Bill UseGet HelpFix Fault Compare and choose service that suits need Get my service connected and working Understand and pay my bill (conveniently) Experience the service (e.g. make calls, surf) Receive prompt and effective help to account problems Connection problems are fixed promptly Upgrade/ Change Change plan as needs/circum- stances change Product focus DSLISPPOTS Episode focus EnquiryFulfilmentAssurance

13. 13 For Telkom use only Proprietary & confidential company information Use “Always as needed” The product performance is consistent with what I purchased (“true to label”) Telkom Internet always remains connected and the speed enables me to use the product as I need Explore and BuyGet Started Each episode has a defined ambition, informed by customer feedback, fact-based diagnostics output and from the top-down BB survey “Easy to find, choose, and buy” “Conveniently connected” Easy to access Telkom in the channel that I choose Easy to compare and choose best products for me Easy to apply - short form, no mistakes, quick process Convenient appointment windows are respected Telkom products are easy to install - ideally plug- and-play Get quickly connected how and when I choose Fix Fault “One contact, one day” Quick and easy to report faults to Telkom, e.g. short wait time on the phone Fault is resolved in a timely and efficient manner (and does not recur)

14. 14 For Telkom use only Proprietary & confidential company information Net Promoter Score (NPS) is a central element in our approach Would you recommend Telkom to a friend? % of Promoters - % of Detractors = Net Promoter Score (NPS) How the score is calculated:

15. 15 For Telkom use only Proprietary & confidential company information The NPS question separates our customers into three groups based on their answer Dissatisfied by their experience Frequently make complaints Bad-mouth Telkom to others Got what they asked for but nothing more Indifferent about which operator to use Talk with low energy about Telkom Loyal customers Make repeat purchases Talk with energy about Telkom to friends and colleagues

16. 16 For Telkom use only Proprietary & confidential company information High-velocity continuous improvement process

17. 17 For Telkom use only Proprietary & confidential company information Contents Overview of Telkom Churn Telkom Churn Initiatives that worked The Impact of ongoing focus Customer Experience The Future of Telkom Churn Management 1 1 2 2 3 3 4 4 5 5

18. 18 For Telkom use only Proprietary & confidential company information What we will do for Churn Management going forward Reporting into COO OPCOM Reconfigured Retention centre increase focus, and adequate resources (tools systems etc.) Developing new TOC Offers CEX program for DSL etc Renewed focus on contract renewal Implement Churn Prediction Model Revised definitions for proper reporting