RLA Wireless Committee Project Report: Reverse Logistics Preventing Handset Remorse Returns Bill Kenney, Bob Sullivan, & Art Teshima January 2011

2 Industry Challenges  Preventing Remorse Returns  Customer Experience, Product Installation, Upgrade and Utilization  Remorse returns  Customer lack of education of how to install, activate, utilize and upgrade product  Speed of installation or upgrade within required time frame  Average Revenue per User  Increase calls to Customer Care / Tech Support RLA Wireless Committee /

3 Reducing Handset Returns  Preventing Remorse Returns  Retail Associates need greater training to “properly fit” customers to the appropriate new phones  Commission programs typically incent retail associates to oversell features and functions beyond customer needs  Consumers are not provided adequate training on their new devices  Consumers get frustrated and return devices that are too complex or too difficult to operate.  Carriers may experience churn when customers are not satisfied with their handset or handset buying experience. RLA Wireless Committee /

4 Industry Findings  Preventing Remorse Returns RLA Wireless Committee /  Proactively contact the customer the day after purchase.  By demonstrating interest in the customer’s success, retailers [or carriers] not only head off potential usage and implementation problems, but also strengthen their brands in the minds of customers…  Proactively contact the customer the day after purchase. Source: Accenture, “Big Trouble with No Trouble Found Returns”, Terry Steger, Brian Sprague, David Douthit, 2008

5 Client Goals and Objectives  Preventing Remorse Returns  Maintain increased Average Revenue Per User by  Reducing remorse returns  Improving utilization of features and functionality  Cost avoidance by reduced equipment returns  Provide reports and insights that drive action  A timely start-up implementation that achieve  Early visibility into the customer experience  Lift on customer loyalty / recommender scores  Positive impact on customer experience RLA Wireless Committee /