2013 Safaricom strategic analysis Essay


Sustained growth in our customer baseSafaricom’s one of the present strategy is to build trust and loyalty among customers and giving them what they want is vital to the success in an increasingly competitive industry. There is a need to retain customers by offering differentiated products and services so that they recommend them to others. Customers want an overall better experience than they can get elsewhere.

More access to mobile services and better network quality, more value for money, more convenient interactions and better customer service; all of these add up to an experience that makes customers smile. And that keeps them with Safaricom. Customer numbers grew by 2% in the year to 19.4 million.

In February 2013, the government announced its intention to enforce subscriber registration through a gazette notice. An adjustment of 1.4 million customers was made to the base in the last quarter. To target the 2.9 million unregistered subscribers, Safaricom ran a customer education and awareness registration campaign. Ultimately 1.

5 million people were able to register their SIM cards. Safaricom purchased a knowledge management system that organizes company and product information in a manner that supports agents and customers to quickly and easily find answers to questions on our products and services. B. Excellent Customer ExperienceCustomer experience forms the backbone of our customer engagement process. At Safaricom they understand that customer perceptions are formed through their interactions with their various touch points. When a customer uses a Safaricom product or service and interacts with staff, they have certain expectations, and there is need to ensure that those expecations are met or exceeded.

Customer experience management is the process of strategically managing customer’s entire experience with Safaricom products and services to ensure that business goals are met. A favorable customer experience translates to business continuity for Safaricom, through customer retention as well as favorable ‘word of mouth’. Safaricom view customer experience as a business opportunity through the creation of brand ambassadors who advocate our products and services.C. Building Customer TrustSafaricom customers are by far the most valued assets. They have well-developed systems and put procedures in place to protect their customers. This includes keeping their personal information confidential and preventing fraud.

Customer information is confidential and it is the company’s responsibility to protect it. The responsibility extends to protecting customers and preventing fraudsters from preying on them. This is especially so in M-PESA where there has been a rise in fraudulent activity. Through continued customer sensitization and education Safaricom is able to help minimize the cases of fraud that affect M-PESA customers. There are well developed systems and procedures in place to protect our customers on all these fronts.

To discourage the theft of mobile phones, all handset reported to have been stolen are blacklisted so that they cannot be used on other mobile networks.D. Grow VoiceVoice remains the heart of Safricom business, contributing 66% of service revenue. Voice revenue grew by 13% in the year. This was primarily driven by an improved network experience, increased usage and customer growth. Airtime availability now stands above 85% in the market with several consumer propositions carried out in the year. In June 2012, Safaricom ran a campaign to reduce the off net tariff from Kshs 5 to Kshs 4. Due to minimal impact on revenue, the tariff was made permanent in July 2012.

Mobile Terminating Rates (MTRs) reduced from Kshs 2.21 to Kshs 1.44 effective 1 July 2012. Following the confirmation of MTRs, Safaricom opted to maintain the headline tariff. The rest of the market either held or increased its tariffs, especially the off net calling rates. To reward its customers, a telescopic billing campaign, “Wakenya Tuongee”, was launched.

The objective was to reward customers for speaking longer. Customers who spoke for more than three minutes were charged Kshs 1. This campaign ran successfully for two months.

The “Wika Na 2 Bob” voice promotion was launched in the fourth quarter of the financial year. The promotion offered a lower per minute rate of Kshs 2 for daily calls past the four minute threshold. The objective was to grow voice usage among customers speaking for less than 2.5 minutes daily and increase the length of talk time per subscriber.E. Empowering Employees To Do MoreSafaricom continue to focus on developing the Human capital through various avenues. Secondment and international exposure opportunities were provided for 19 of their key talent in the financial year.

To enhance the capabilities in Data products and services offering, various certifications were achieved with 192 staff successfully completing various levels of data offering related certifications. 5 of the Safaricom staff are now certified Cisco Internet Experts, having successfully passed the prestigious CCIE lab exams (CCIE). 58 staff members are certified project managers having passed the Prince 2 practitioner examination, while one staff member joined the exclusive ranks of Oracle Certified Masters which is the highest globally recognized expert certification in Oracle. To entrench self-learning, over 1,000 staff have been certified in various professional areas through the E-Learning suite which has over 3,000 Business, ICT and Management & Leadership modules. Safaricom managers and leaders across the business, benefited from over 20 programs focusing on strategy execution, leading innovation, corporate leadership & Governance, operational excellence, people management and coaching for performance. F.

Celebrating The BrandIn the period under review, the marketing functions across Safaricom were centralized into a single division. This consolidation saw further enhancement of the Safaricom brand stature resulting in the documentation of Safaricom Brand Guidelines and culminating in the launch of the much acclaimed ‘Naweza” thematic campaign. Naweza. Our story, our brand. When Niko na Safaricom was launched in 2009, the subsequent campaign in 2010 captured a stunning glimpse of Kenya’s diversity in a heartwarming way that was culturally relevant to Safaricom. This not only helped to define Safricom through the brand, but also to define their lives with a single and powerful line said in everyday-speak, Mimi ni Safaricom. This was a proud statement of ownership and progress by the customers. With time, Niko na Safaricom has been the single most compelling association with Safaricom brand.

So what was next for this dynamic brand? Wherever you go in Kenya, Safaricom is closely woven into our cultures, making it an essential part of every Kenyan’s life. For the brand, a natural progression would flow fromthis insight. The direction of the brand commercial explores this mutual relationship of brand and consumer by cleverly delving into their lives. After Niko na Safaricom, who was the Kenyan consumer three years later? What did it mean when anyone, regardless of their status in society could achieve their goals? It meant that through the Safaricom brand, Kenyans were now more informed, ready and empowered to direct their dreams as they pleased.

Safaricom is now Limit – less.