2019 Sustainable Business Report

SAFARICOM SUSTAINABLE BUSINESS REPORT 2019 INTRODUCTION OUR BUSINESS OUR MATERIAL TOPICS STAKEHOLDER ENGAGEMENT CONCLUDING REMARKS 48 The Business Development Division reviewed the existing plan and tactical challenges in our evolving operating environment to develop our priorities for the year under review. The resulting changes in structure will change how we innovate. SLOW GROWTH FOR MOBILE DATA Our mobile data subscriptions and revenue grew relatively slowly (by 6.4%) in the year under review. This can be attributed to numerous factors, including: • increased tax on mobile data; • revised data prices to cushion customers against inflation; • shifting market trends – high-value customers who have home fibre internet services are switching to home internet when they are there; and • shrinking of the consumer wallet. FY19 FY18 FY17 FY16 Net Promoter Score* 61 72 70 66 Brand Consideration** 63 60 80 82 * Assessment of customer satisfaction **Assessment of likelihood of customer choosing Safaricom in the future Our NPS score for overall consumer customer satisfaction was 61 per cent in March 2019 (the end of the reporting period). The score trend was steady earlier in the year, but plunged into a steep dip in September 2018 , which we attribute partly to customers being disgruntled at the prices of our data offerings. This was followed by a gradual growth post-October 2018, and a strike of 64 per cent in February 2019 – backed by our excellent mobile money services, good network quality and effective turnaround plans that put our performance on track. Our Brand Consideration score recorded a more stable trend, with marginal improvement from 60 per cent earlier in the year and constant performance at 63 per cent towards the final quarter of the year. Harsh economic conditions in the first half of the year reduced disposable income, and hence the spend on our products. For customers on a tight budget, mobile data was a luxury. A key initiative taken to combat was the repackaging of our data plans, which saw a drastic reduction in the cost of data per MB by 41.9%. Our customers enjoy worry-free experience through WhatsApp Kadogo, which allows customers to use WhatsApp services at no cost when their data bundle has run out. This resulted in a surge in the rate of uptake of these products by 6.6% and 150% respectively, within a short span of time between February and May 2019. FY19 FY18 FY17 FY16 Mobile data revenue (KSh billion) 38.7 36.4 29.3 21.1 Mobile data customers (million)* 18.8 17.7 16.6 14.08 % increase in mobile data usage per customer 77.9% 56.3% 60.3% 77% * 30-day active Becoming a digital company reviewing our operations, people and tools to be a more digitally in- tune company Expanding on our partnership framework stimulating the wider ecosystem and development of a partnership framework Regional expansion deepening financial inclusion beyond Kenya Putting our customers first shaping products and services through data analytics and customer research