Creating Eco system for Customer assistance in retail E-Commerce/M-Commerce March 2012

Services Ecosystem Today Transaction & Service Delivery Platform Consumer Phone Line/Internet/MobileData/SMS/USSD Prepaid Services Mobile Internet/Broadband TV (DTH) Warranty Entertainment Toll/Taxes Prepaid Services Mobile Internet/Broadband TV (DTH) Warranty Entertainment Toll/Taxes Un-organized Retail MOM & POP STORES GROCERY STORES SMALL CYBERCAFES STATIONARY SHOPS CHEMISTS Organized Retail CHAIN STORES PETROL PUMPS SUPER MARKETS/MALLS INTERNET CHAINS Telecom Retail TELECOM RETAIL CHAINS TELECOM SHOPS PCO’s Non-Traditional Channels HOUSING COMPLEXES COLLEGES/HOSPITALS/BPOS0 Banks Websites (B2C) Un-organized Retail MOM & POP STORES GROCERY STORES SMALL CYBERCAFES STATIONARY SHOPS CHEMISTS Organized Retail CHAIN STORES PETROL PUMPS SUPER MARKETS/MALLS INTERNET CHAINS Telecom Retail TELECOM RETAIL CHAINS TELECOM SHOPS PCO’s Non-Traditional Channels HOUSING COMPLEXES COLLEGES/HOSPITALS/BPOS0 Banks Websites (B2C) Retail Devices Access POSPC Mobile SMS & IVR Gateway IVR Postpaid Services Mobile/Fixed line Internet/Broadband Utilities/Insurance Postpaid Services Mobile/Fixed line Internet/Broadband Utilities/Insurance Payments Travel (Air/Rail/Bus) E-Commerce Retail/Consumer Payments Payments Travel (Air/Rail/Bus) E-Commerce Retail/Consumer Payments Wallet Virtual (on mobile) Physical (cash cards) White Label (Banks/Telcos) Wallet Virtual (on mobile) Physical (cash cards) White Label (Banks/Telcos) Banking Services NO Frills A/c opening Cash-in/Cash-out/transfer Remittances (Dom./Intl.) Wallet Top-ups Banking Services NO Frills A/c opening Cash-in/Cash-out/transfer Remittances (Dom./Intl.) Wallet Top-ups

Process Flow for Mobile/DTH Recharge Retailer 1 1 Retail service provider buys inventory (Airtime Minutes/DTH) from operators Operators (Telco/DTH) Operators (Telco/DTH) Distributor 2 2 Distributor deposits cash into own bank account and transfers to Retail Service Provider’s bank account through electronic bank transfer OR deposits cash directly into Retail Service Provider’s bank account 3 3 Retailer buys inventory but it remains on Retail Service Provider’s server for just-in-time download 4 4 Customer gives mobile number/subscriber ID and amount to Retailer 5 5 Agent logs on to Retail Service Provider system (via POS terminal/PC/Mobile) to input consumer’s mobile number/subscriber ID, amount after selecting appropriate Service Provider on menu 6 6 Retail Service Provider informs Operator of transaction. Operator debits Retail Service Provider’s balance 7 7 Operator sends transaction authorization to Retail Service Provider 10 Consumer collects transaction receipt from PoS/PC agent. No online receipt from Mobile based agent Customer Fund movement Process Flow 9 9 Retail Service Provider sends transaction confirmation on PoS/PC/Mobile 8 8 Telco sends SMS to Mobile # to confirm purchase of minutes and activates minutes DTH sends confirmation message on set top box and activates services Telco sends SMS to Mobile # to confirm purchase of minutes and activates minutes DTH sends confirmation message on set top box and activates services Retail Service Provider Retail Service Provider

Technology options for Customer Services Delivery in Retail

Consumer in retail eco system lessons learnt so far Customer needs service fulfillment and physical proof of same (sms confirmation is gaining acceptance but paper receipt is still preferred) Trust and comfort on neighborhood shop (read permanent establishment) higher than transacting with machine/web (remember voice mail is a total failure in India) Even top of pyramid customer segment prefers assisted service eCommerce popularisation on “cash on delivery” a huge cost burden on eCommerce players Digital payment preferred by eCommerce players but would not want to pay higher costs for Cash card based payments Retail behavior is a function of segment which means that there may be no one form factor which can be considered as “The Solution” for service fulfillment

Retailer in retail eco system lessons learnt so far Retailer is a tougher customer than end consumer He will always be on a hunt to get better service, cost and options Is always willing to give honest feedback on what (his) customer wants Better commercials requirement is always the first demand but not at the cost of service levels Skill set of person managing service delivery operations are very elementary and have high churn. This defines form factor being used. RoI (return on investment) is important but increasingly RoT (return on time) is becoming factor in deciding what form factor to use

What this means is: Customer wants service fulfillment They love assisted service Form factor is a function of retail comfort Most transactions are micro transactions eCommerce/mCommerce take off for mass market is first happening through assisted commerce For Consumer take off, mindset of large eCommerce sites need to change on approach to cash cards

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