simplifying the app store experience to increase subscriber engagement
TRANSCRIPT
© 2016 Bango plc
bango.com
Trevor Goldberg, VP Business Development at Bango
Noaf Ereiqat, Director Digital Services and DCB at du
Simplifying the app store experience to increase subscriber engagement
18 October 2016
0
5
10
15
20
25
30
2014 2015 2016 2017 2018 2019 2020
Reve
nu
e (
$b
n)
The importance of app store carrier billing
2Source: Ovum
Global carrier billing revenue, by segment, 2014-20
Bango delivers maximum success
…
Physical Goods
Bundling / off-store apps
Online PC games
Browser based
PRS / feature phones
Indie stores
OS app stores
So why doesn’t everyone pay with carrier billing?
Hurdles?
1. Fear of cannibalization?
2. Customer awareness?
3. High costs / poor commercials?
App store customers
Customer paying
by other means
Customer not yet
paying
Customers currently
paying with carrier billing
Fear of cannibalization
Introduction of lower margin
3rd party app store business
3rd party
app store
SMS
Voice
Data
1stp
art
y
se
rvic
es
-
Erosion of high margin revenue
Customer spends no extra money on bill
Less spent on high margin 1st party services
Money redirected to lower margin app store
Loss of margin from fixed monthly budget
F
ixe
d m
onth
ly b
ud
ge
t
SMS
Voice
Data1stp
art
y s
erv
ice
s
Existing high margin
1st party business
App store carrier billing adds incremental revenue
Introduction of lower margin
3rd party app store business
3rd party
app store
SMS
Voice
Data
1stp
art
y
se
rvic
es
-
MythErosion of high margin revenue
Customer spends no extra money on bill
Less spent on high margin 1st party services
Money redirected to lower margin app store
Loss of margin from fixed monthly budget
F
ixe
d m
onth
ly b
ud
ge
t
SMS
Voice
Data1stp
art
y s
erv
ice
s
Existing high margin
1st party business
SMS
Voice
Data1stp
art
y s
erv
ice
s
3rd party
app store
+
Customer spends more money on bill
No loss of spend on 1st party services
Additional spend on 3rd party content
Total spend grows, adding new revenue
RealityAddition to high margin revenue
In
cre
ase
d m
on
thly
bu
dg
et
App store carrier billing drives other revenue streams
6
Introduction of lower margin
3rd party app store business
3rd party
app store
SMS
Voice
Data
1stp
art
y
se
rvic
es
-
MythErosion of high margin revenue
Customer spends no extra money on bill
Less spent on high margin 1st party services
Money redirected to lower margin app store
Loss of margin from fixed monthly budget
F
ixe
d m
onth
ly b
ud
ge
t
SMS
Voice
Data1stp
art
y s
erv
ice
s
Existing high margin
1st party business
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
2014 - 2015
Voice minutes
Before Google Play After Google Play
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
2014 - 2015
SMS sent
Before Google Play After Google Play
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
2014 - 2015
Mb of data
Before Google Play After Google Play
Download the full report from http://bango.com/resources
SMS
Voice
Data1stp
art
y s
erv
ice
s
3rd party
app store
+
Customer spends more money on bill
No loss of spend on 1st party services
Additional spend on 3rd party content
Total spend grows, adding new revenue
RealityAddition to high margin revenue
In
cre
ase
d m
on
thly
bu
dg
et
Compelling content drives new users
7
1st carrier billing purchase in Google Play (single operator)
Pokémon Go versus all others
New DCB user – Pokémon Go
New DCB user – All others
Result: Significant revenue growth
8
1st carrier billing purchase in Google Play (single operator)
Pokémon Go versus all others
New DCB user – Pokémon Go
New DCB user – All others
New operator revenue
Pokémon Go
Number 1
Number 2
Number 3
All others
Vertical move into adjacent business
9
No secret that revenues from voice and messaging are in decline
DCB
Why DCB?
10
• Financial inclusion of unbanked
• Seamless customer experience
• Reduce revenue leakage
• Higher conversion & increased
stickiness
• Lacking consumer education
• Fear of fraud & accidental purchase
• Evolving regulation & consumer
protection
Advantages of Integration partner
11
• Single integration for multiple partners
• Proactive app store onboarding
• Dedicated team for technical integration & testing
• Single point of contact for customer operations
• Ongoing support & alignment
Post-Launch success
12
• Continuous month on month growth
• Joint performance analysis – Bango Boost
• Efficient customer care tools
• Spend limit reviews & adjustment
• Joint alignment on new products & services
95%
75%
What the future holds
13
• New partner & store onboarding
• Consumer education
• Expansion of DCB use cases
• New app stores
• Digital vouchers
• Services
• Physical goods
15
Impressive speaker line-up! Etisalat – VR roller coaster
STC Samsung’s presence The du Telecom booth