1

Key Lessons in Mobile Payments Utility Payment Conference| San Diego, California TIO Networks Corp. Steve Barha, EVP Mobile & Web

5 Lessons 1.Mobile web is not a mobile app 2.Customers have high expectations 3.Customers want to find you 4.Mobile payments is convenience 5.Mobile is social 3

MOBILE APP VS. MOBILE WEBSITE LESSON 1 4

5 Definition Native Application : App is installed directly on the smartphone via application store Web Application : App is accessed through smartphone’s web browser

Native Apps Smooth navigation Branding and ease Easy Distribution Richer Engagement More Expensive to Develop and Manage Limited Audience per App 6

Web Apps 7 Easier Management Faster to Deploy Cheaper to Build Wider Audience Harder to distribute Less functionality Risk of slow data connection

TIO’s Recommendation TIO recommends Native Apps to provide a better overall customer experience 8

HIGH CUSTOMER EXPECTATIONS LESSON 2 9

High Customer Expectations 50%+ of customers will never return to an app or a website after a poor experience Only 1 in every 3 customers will visit a support website if app not working; only 1 in every 10 customers will call Customers will find every reason to criticize your app 10

What Do They Expect? Simple user experience Smooth navigation and flow with no lag and acceptable load times Well thought-out design and flow Optimized for mobile 11

Managing Expectations Key is to find a vendor or to build in- house to support all mobile platforms Progressively continue to build new features and functionality in your app Frequent updates and iterations are a must in order to keep up with customer satisfaction 12

CUSTOMERS WANT TO FIND YOU LESSON 3 13

Customers Want to Find You Customers can be very easily driven to the mobile channel by the utility 14

Smartphone Landscape More than 1 out of every 2 mobile phones are smartphones in USA 1.5M+ apps available across iOS, Android, Blackberry, & Windows Phone 15

Smartphone Landscape 50B+ apps downloaded to date Almost 3B apps downloaded per month Average number of apps per device grew from 28 to 41 in 2012 (28% increase) 16

App Discovery How Customer Find Apps Utility’s Website High App Store Ranking Word of Mouth (employees and customers) In-Store Promotions (posters, flyers, handouts) Hold Messaging Mobile Ads 17

Customers Will Find You Customers are resourceful and will interact with you in the easiest way possible The best services make it easy for customers to find information 18

MOBILE PAY IS CONVENIENCE LESSON 4 19

Customers Love Mobile Cost savings save cost of stamp, envelope, post office, gas, parking Convenience Saves time, reminds customers to pay their bill, quick and efficient, fast, don’t have to turn on computer to make payment Great experience Customers find it easy, it doesn’t feel like it’s a chore 20

Cost Savings 21 Convenient “How much does it cost you to buy checks, fill one out, buy a stamp, and drive to the post office? I bet it ends up costing more…” Saved my butt!! “…compared to the reconnection fee that I would have to pay, it is worth it…”

Convenient 22 Made my day “I'm always busy with no time. This app is so worth it! A must have.” Super fast and easy “…this app installed in less than 30 seconds, registering my and payment info was a snap. I installed, registered and made my first payment in less than 5 minutes.”

Convenient 23 One of the most useful apps I have!! “I love this app!! It makes it sooo easy to pay my home and business bills without having to sit on the phone for 20 minutes. Well worth the convenience fee for the ease of use and amount of time I save.”

Great Experience 24 most fun app for paying bills EVER! “If I could, I would probably want to pay [my bill] all on time instead of late because it’s so much fun to pay it” Love love love the app “…this is so much quicker and accessible where I may be. This app has made paying my bills become something I actually look forward to!”

MOBILE IS ABOUT BEING SOCIAL LESSON 5 25

Dialogue is Key to Social Your customers are always talking about you and you can’t stop it Don’t sit and spectate, embrace it and join the conversation Your customers appreciate prompt responses People most receptive to transparency, honesty 26

Mobile as a Forum Average person spends 2.7 hours per day on their mobile phone 97% of push notifications are opened vs. 4% of messages Use mobile as an effective tool to reach and engage with customers through your app It’s no longer a broadcast, it’s a dialogue, it’s an open forum 27

Ways to Converse Posting picturesVideosTestimonialsInfographicsQuotes Asking questions Customer feedback & opinions Crowdsourcing media content Pushing alertsOutagesNotificationsPosting news Tips Talking about topics people care about Interesting factsFigures Highlighting local business Citizens EmployeesPartners Running contests TriviaGiveawaysPolls Fill in the blanks Ways to save money 28

Customer Service & Risks Responding to customers Negative Comments Service Outages Aggressive comments Customer complaints 29

BRINGING IT TOGETHER Recap 30

5 Lessons 1.Mobile app is not just another website 2.Customers have high expectations 3.Customers come to you, not the other way around 4.Mobile Wallets offer convenience 5.Mobile is all about being Social 31

Steve Barha Executive VP, Mobile & Web Copyright TIO Networks 2012 TIO Networks Corporation Suite 1550 – 250 Howe Street Vancouver, BC, Canada 32