• Customers

We are delighted to report that our total customer base grew by 11.8% during the year to 28.12 million customers in total. Our broad customer base encompasses the full spectrum of individuals and organisations across Kenya. We classify our customers into two main categories: consumer and enterprise. Consumer customers are individual purchasers of goods and services, while enterprise clientele includes business of all sizes, ranging from small-to-medium enterprises (SMEs) to large corporate firms.

CONSUMER CUSTOMERS

Consumer customers have been segmented into four major segments, with 16 sub-segments. The four major segments are: Discerning Professionals; Hustlers; Youth; and the Masses. Of our total customer base, 28.1 million are consumer customers. Consumer customers grew by 2.97 million during the year and we now enjoy 72% of the total Kenyan market in the consumer space. We attribute this satisfying growth in consumer customers during the year to the success of our ‘Dandia’ acquisition initiatives, which included extremely competitive data bundle and affordable handset promotions.

In order to serve the needs of our consumer customers better, we classify these customers into four main market segments: the Youth, the Masses, Hustlers, and Discerning Professionals. While we are pleased to report that we exceeded our target in the Hustlers segment, which we ascribe to the popularity of the FLEX product launched during the year, we failed to achieve our targets in the other three segments because it was our first year of targeting these new segments and our customer classification rules changed during the year (as we learnt more about our customer segments). We have learnt much and have streamlined customer targets and classifications for the year ahead. Despite not reaching our overall target for Youth customers, we made good progress during the year and our BLAZE platform already enjoys 1.6million subscribers. Both the Youth and Mass segments have grown significantly during the year and we have also seen a satisfying spike in Consumer NPS as well

ENTERPRISE CUSTOMERS

Enterprise customers are split into four major groups: Large Enterprises; Public Enterprises; Small-to-Medium Enterprises (SMEs); and Small Offices-Home Offices (SOHO). We currently have a presence in 96,712 enterprise customers, which represents an increase of 12,712 from the previous year. Most of this growth is attributable to our significant acquisitions in the SME segment.

While the SME segment has seen solid growth during the year, large enterprise customers still account for most of enterprise customer revenue and so our focus has remained on nurturing long-term relationships and up/cross-selling in this market segment. We are pleased to report that we grew large enterprise revenue specifically by 44% in FY17 and now enjoy 61% market share overall in terms of revenue in the Kenyan enterprise space.

MONITORING OUR PERFORMANCE

We continue to use the Net Promoter score (NPS) to monitor customer satisfaction. NPS measures the likelihood that a customer would recommend Safaricom to other businesses or friends, based on their overall experience. NPS is measured separately for consumer and enterprise customers. Our ongoing NPS targets are to be the number one integrated communications service provider by a margin of 5% for consumer customers and 10% for enterprise customers, relative to our nearest competitors. The following table presents a breakdown of our NPS.

As the preceding table illustrates, we maintained a healthy Enterprise NPS of 20% margin and enjoyed an 8% margin over our nearest competitors in Consumer NPS in FY17. We associate the slight growth in Enterprise NPS to our decision to send our teams into the regions during the year, which has allowed us to get significantly closer to our customers. We attribute the stability in Consumer NPS to the successful migration to a segments-based strategic approach and the successful launch of BLAZE and other promotions.

FY17 HIGHLIGHTS

In terms of consumer customers, we were delighted to introduce a Diversity and Inclusion (D&I) queue to our call centre during the year. The queue serves visually-challenged customers with a set service level of 70:30 (that 70% of calls to the service are answered within 30 seconds of ringing). Over 550 agents have been trained and dedicated to the D&I queue and any abandoned call within this queue will receive a call back within 20 minutes. The Service Level of the D&I queue has been 100% consistently since it was introduced. As part of our focus on diversity and inclusion, we have also ensured that assistance from call centre staff is available in 21 local languages.

In terms of enterprise customers, we sought to tackle issues regarding obtaining support by creating a new department called EBU Care, which offers centralised support to enterprise customers. This development was further supported with an improved presence within the regions, offering personalised assistance to customers.

Looking Ahead

FY18 GOALS

  • Reduce fees and commissions on M-PESA transactions; for example, the Buy Goods Rate for merchants and the Business to Consumer (B2C) Rate for banking institutions.
  • Reduce calls to the call centre.