DEPLOYING A 100% DIGITAL CUSTOMER EXPERIENCE FOR …Accenture Digital Report 2016 Accenture Digital...

Confidential and Proprietary

DEPLOYING A 100%

DIGITAL CUSTOMER

EXPERIENCE FOR

MILLENNIALS

ERIC MORHENN, LOTUSFLARE


LotusFlare Overview

Mobile Growth is our passion.

LotusFlare was founded in 2014 by former mobile executives from Facebook who helped Facebook reach a

billion users on mobile. We bring this growth expertise and ‘OTT Playbook’ to mobile operators. We build

products to help operators deliver engaging, intuitive digital experiences for their customers.

LotusFlare is backed by some of the world’s leading VC companies.


LotusFlare Customers

Increased ARPU by 25% Reduced churn by 22% Reduced call-center traffic by

17%

Operators working with LotusFlare have


Winning Subscribers on Digital is Vital


Source: KPCB 2017 Internet Report

Importance of Mobile and App Engagement

• Mobile Usage had tremendous growth from “less than 1 hour” in 2011 to “greater than 3 hours” in 2016

• Mobile Usage has become the biggest portion – 55% – of Digital Media Usage


Why Traditional Businesses Must Go Digital

Personalized, contextual and real-time offers leads to better

monetization

A large percentage of operating cost of a traditional business is

marketing, retail and customer support - going digital can significantly

reduce these cost

Personalized and contextual experience leads to better customer

satisfaction

Better Customer

Experience

Higher Top Line

Lower Operating

Cost

6


Rich communications

Transparency

Order…Done

Control

Personal media

Premium, yet accessible

Access, not ownership

Millennials: A My-Now Digital Experience

Complexity

Instruction manuals

Friction

Bill shock

Loyalty to utility brands

Born between 1980-2000 Millennials are roughly 30% of global

population. Digital natives and in prime spending years.


What OTT Players Have Done

• What do these companies all have in common?

– A great product

– A hyper-focused growth team and growth discipline across their organizations

• Growth team and discipline were pioneered by Facebook in 2006

– The largest team inside Facebook and is responsible for growing Facebook to its current size

1.5B ActiveUsers

300M ActiveUsers

400M ActiveUsers

1 B Riders500,000stays / year

800 MillionUsers


Operators Lagging Behind in Delighting

MillennialsMeanwhile, users are increasingly disappointed by the experience provided by their mobile

operators.

60% 83%Of customers are

dissatisfied with their mobile operator

experience and would switch if given a chance

Of customers would buy more products if

reliability and speed of problem resolution

were improved

48% 6-8xDecrease in average

ARPU for mobile operators across the

world since 2006

Projected growth in mobile data usage 2016-

2022

Accenture Digital Report 2016 Accenture Digital Report 2016 Strategy& PwC Ericsson

This helps explain why mobile data prices and ARPU are eroding in spite of an explosion in

data usage.


Traditional MNO

• Digital experience is a after

thought

• Heavy in CapEx, relies on physical

infrastructure and hardware

• High cost of experimentation

(due to fixed costs)

• Requires significant number of

people to run the service

• Costs incurred regardless of the

number of users

• Focus on network speed,

coverage and selling minutes and

megabytes

Successful DNO

• 100% digital experience

• Low development fee, cloud based

infrastructure

• Low cost of experimentation due to

pay-as-you-grow model

• Innovative features including

customizer, data control, data

buyback, chatbot, VOIP & messaging

platform

• OTT player Growth framework

• Open API for easy integration with

Digital Partners

• Fast iteration

Traditional MVNO

• Lack of focus on digital

experience

• Compete on cost and focus

on sub-prime market

• No product differentiation -

capability and user experience

relied heavily on MNO

LotusFlare Digital Network Operator


Digital Network Operator™ – The Future of Telecom

Business Impact.

Remove friction for

top-ups, buying MBs,

music, videos. Reduce

cost of traditional

customer support and

retail channels

State-of-the-art.

DNO includes

innovative features:

customizer, data

control, data buyback,

chatbot, VOiP,

messaging.

100% Digital.

Users sign up, choose

and customize their

plans all online, without

visiting a store or

engaging with an

agent.

DNO enables a 100% digital journey for operators and customers


Case Study 1: Tapp (Digi Malaysia) User Journey


Case Study 2: Ookyo (Maxis)


Ookyo – 100% Digital Experience

Account settings Member get member programHome page feature other

Unlimited packsBuying additional packs


Call History

• Missed calls

• Incoming calls (VOIP,

PSTN)

• Outgoing calls

• No Answer calls

• Dialer pad

• Available credits in $

and minutes

• Dialer pad

• In-progress call

duration

• In-progress caller

name/ID

• In-progress caller

name/ID

• Dialer pad access

• Mute and speaker

control

• Bluetooth control

• Call status

• Accessible active calls

at status bar

• Mute and speaker

control

• Hang-up capability

Advanced Voice and Messaging (Optional)

Dialer PadIn – Progress

Call PanelIn – Progress

Call Status Bar


DNO Product Component (Notifications)

Status Bar Application Popup

Configurable in the portal

Deep link supported:

actionableFlexible: HTML

based


Rewards

System

• Point wallets - Redeem Points

• Milestone wallets - Milestone & Badged

• Direct Rewards (core product, voucher / QR)

Referral

Program• Code Based

• Referee enters referrer’s code to activate reward for both parties

Usage-Based

Rewards

• Usage / Activity – i.e. 6 months anniversary, 10th add-on, total top-up

50 USD

• Daily spin

• Random award – just because

DNO Product Component (Rewards)


Growth Product Component (Rewards)


Operator Portal

As part of DNO LotusFlare provides the operator with a portal. This is the portal UI for an operator to create a user segment.

The segment is then used to create targeted campaigns.


User Management

Product Catalog

Order and Subscriber

Mgmt

Reward / Loyalty

LotusFlare Product Stack

Dynamic Product Platform

Chatbot /KB

Notification Engine

BSS / OSS

Network

Operator Digital API

Growth Services and Platform

Gro

wth

Dig

ital

Netw

ork

O

pera

tor

Back

en

d

Infr

ast

ruct

ure

Contextual

Engagement

Platform

LF Digital BSS


Launching an App is not DIFFICULT

Getting millions of users to engage and keep coming back to the app is the

real CHALLENGE – tackling this problem is what we mean by

GROWTH

Launching an App is not DIFFICULT

Getting millions of Millennials to engage and keep coming back to the app is

the real CHALLENGE – tackling this problem is what we mean by

GROWTH


# of Total Downloads % Total Mobile App

1,000,000,000 - 5,000,000,000 0.00200%

500,000,000 - 1,000,000,000 0.00100%

100,000,000 - 500,000,000 0.01200%

50,000,000 - 100,000,000 0.01900%

10,000,000 - 50,000,000 0.17300%

5,000,000 - 10,000,000 0.21400%

1,000,000 - 5,000,000 1.31200%

500,000 - 1,000,000 1.22300%

100,000 - 500,000 5.76700%

50,000 - 100,000 4.00700%

10,000 - 50,000 8.23500%

0 - 10,000 79.03600%

Driving Engagement on Mobile is Hard

98.7% of mobile apps have

less than 1MM downloads

5%

23%

77% of users deleted apps in

first 3 days of download


1. Growth is NOT ONLY about Analytics

2. Growth is NOT about one-time hacking

Growth is a framework based on first principle to help your product succeed and

grow.

Leverages the OTT Playbook.

Our Approach to Growth


• Define North Star Metric

• Identify and implement appropriate analytics technology

• Determine the stage of product-market fit

Measure and Understand


Growth Pillars and Growth Funnel

Growth

Analytics /

Data Science

Product /

Engineering

Marketing

Awareness

Acquisition

Activation

Retention

Tra

ditio

nal M

ark

etin

g

Gro

wth

Team

-W

ho

le F

un

nel

Monetization


MAU(t) = new(t) + retained(t) + resurrected(t)

MAU(t - 1) = retained(t) + churned(t)

MAU(t) – MAU (t-1) = New(t) + Resurrected(t) - Churned(t)

Increase ARPURevenue(t) = MAU(t) × ARPU(t)

Acquire new users Resurrect stale users Reduce churn or retain

Acquire New Users

Resurrect Stale Users

Reduce Churn

Increase ARPUGROWTH

Growth Accounting Formula


Growth activities are different depending on which growth stage your product is in.

Understand the Stages of Growth

Measure and Understand

Finding Product-market fit

Scaling Growth

Monetize


Determining the Stage of Product

30%

40%

50%

60%

70%

80%

Jan/17 Feb/17 Mar/17 Apr/17 May/17 Jun/17 Jul/17

% o

f U

sers

Re

tain

ed

fro

m P

revi

ou

s M

on

th

Retention Curve to Determine Product-market Fit Level

Post Product-market Fit

Pre Product-market Fit

Grow your product!

Fix your product!


Finding the Right Benchmark

20%

45%

70%

95%

% o

f St

ill A

ctiv

e

Time

Retention Varies by Product Market

Social Apps: ~60%(Facebook, Instagram, SnapChat)

Productivity App: ~35%(Evernote, Dropbox)

E-Comm: 25%(Dollar Shave Club, Birchbox, Ipsy, Taobao)

Customer Care App: ~39%North American Mobile Operator


Finding Product-market Fit

Getting feedback from users to understand what’s working and not

Finding a segment of users for whom your product has good retention

Getting users to experience core value aha! moment sooner

Tune product so retention parallels to the x-axis


Scaling User Growth

Iteratively create hypothesize, prioritize, implement, test, and refine ideas

Improve product to increase core value

Add growth features to create acquisition loop and retention loop

Create the right organizational structure to support growth efforts


The Growth Stack

Retention / Engagement

Acquisition

Monetization

App Store

Optimization

Content

Marketing

Performance

Marketing

Influencer

MarketingCross-sell

Activation

(aha moment)

Lifecycle

Marketing

Activity

Notification

Community /

SupportResurrection

ViralityNetwork

Effects

Content

Indexing

Revenue Model

Development

Payment

ProcessingPricing

Ad Inventory

Management

Event Tracking

Campaign

Measurement Cohort Analysis

User

SegmentationA/B Testing

UX / UI

CLTV ModellingGrowth

AccountingRetention Curve

Analytics

Product Loyalty / Rewards

App Performance

Contextual

Trigger Engine

Deep Linking AttributionAB Test Framework Analytics Platform

User Psychology Transactions

App Store

Analytics /

Intelligence

App Usage

Analysis

Chabot

Push Notification

Platform

User Satisfaction

and Negative

Engagement

North Star / Check

Metric

Leverage

Existing

Channel

Technology Life Cycle Platform

Mark

eti

ng

/

Op

era

tio

ns

Pro

du

ct /

En

gA

naly

tics

/A

ct S

ci

Growth Team

Rest of Organization – with Growth Discipline

Org

Str

uct

ure


Example: App Store Optimization (ASO)

Screen shots of out

date.

Lacks video

Many users don’t touch apps with less than 3.5 star

rating

More 1 star than 5 star reviews

User complaints left unanswered

Text out date. Lacks keywords


On The Horizon

BlockchainRoaming fraud detection, loyalty tracking

Exploring how emerging technologies can be used to improve operator and customer

experience.

eSIM

Big DataCustomer 360, Churn prevention, credit scoring, 3rd party API

eSIMEnhanced UX, acquisition, loyalty


LotusFlare works with operators to create 100% digital customer experiences and apply a proven OTT Growth framework to mobile

apps.

LotusFlare Executive Summary

Proven Business Value

Time to Market 60% faster

Data ARPU 22% increase

Call Center Traffic 17% reduction

Churn 25% reduction

Telco Grade Software

• 100% software solution with no HW

needed

• Integrates with existing BSS / OSS

• API integration and 3GPP compliant

• Single on-line platform for operator to

create, market, sell and service digital

Growth

Deploy OTT playbook pioneered

by Facebook to drive mobile

acquisitions, engagement and

monetization. Instill OTT Growth

mindset and KPIs in organization.

Digital Network Operator

Order SIMs via app, advanced

voice and messaging, app based

pricing, un-used data buybacks,

care via chatbot, rewards &

loyalty, Google PlayStore

integration

What We Do

Making Digital Awesome


THANK YOU

[email protected]

m

DEPLOYING A 100% DIGITAL CUSTOMER EXPERIENCE FOR …Accenture Digital Report 2016 Accenture Digital...

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