2. Developing A Successful Loyalty Programme… Fastlink Shukri Eid Prepaid Marketing shukrie@fastlink.com.jo

3. Agenda Mobile Industry in Jordan. Prepaid Products – Fastlink. Dayman … Loyalty Programme - Definition - Mechanism - Implementation - Evaluation Different Retention Schemes.

4. Jordan – Mobile Penetration Population: 5.2M Age Structure (0-14) 35.2% (15-64) 61.1% (>64) 3.7% GDP – per capita JD1,200 $1,700 Mobile Penetration Rate: 23% July: 2004

5. Fastlink – Market Share Fastlink was established in September 1995, offering postpaid mobile services. In 1999, the first prepaid product “EZlink” was introduced. Fastlink Market Share: 72% 1,060,000 Subscribers Operators in Jordan Fastlink – 1995 - GSM MobileCom – 2000 - GSM Express – 2004 - IDEN 4 th Operator – expected 2005

6. Prepaid Products Consumer: For High Day Usage For High Night Usage For Calling Specific Numbers With Reduced Rates For Temporary Users – Visitors & Expatriates

7. Prepaid Products Corporate: Student’s Line Other prepaid corporate products designed for: - Organizations - Jordan Armed Forces

8. Why A Retention Programme? -Protecting the Consumer Prepaid Base. -Competitive Advantage. -Reducing Churn. -Increasing The Active Base. -Building a Loyal Prepaid Community. -Increasing ARPU & MOU’s.

9. Prepaid Life Cycle – Consumer Churn New LineValidity Reactivation Grace

10. Loyalty Programme Consumer Subscribers Up to 20% Free Credit 1-year Programme Brand Name!!? Excluding Ziyarah...Why? For Active Lines! Protective Action…

11. Mechanism -To register, the subscriber has to dial a free number “Dayman Number”. -Registered subscriber has access to check his/her balance, points and status with the programme by calling Dayman Number. -Upon registration, the subscriber chooses the way of being informed about his/her given bonus, either via; A) AutoDialer B) SMS Increase awareness!

12. Mechanism -Getting Free Credit Total Recharge Value (JD)Given Free Credit (JD) First JD15JD1 Second JD15JD2 With every JD15 afterJD3 (20%) - To get the repeated JD3 “20%” line has to be always Active! - By entering into the Reactivation Period, registration is still valid but any collected points will be deleted.

13. Implementation Creating Value @ the Executional Level! -Brand Name! What does “Dayman” stand for? - Pricing With every JD15, a bonus up to 20% is given. To increase the monthly JD12 recharge to JD15. - Advertising Support Communication with the targeted segment. - Training Call Center & Front Liners; Fastlink Shops & Dealers.

14. Media – Advertising Campaign -Radio -Newspapers & Magazines -Outdoors -POS Materials “Flyer, Poster… -Fastlink WebSite -W.O.M

15. Evaluating -Monthly Growth

16. Evaluating -ARPU -Churn Rate Dayman Subs<Non Dayman Subs. - (Active/Total Base) Dayman Subs>Non Dayman Subs. -No remarkable differences had been found regarding the subscribers behaviour from different products. A slight higher (Bonus Given/Recharge Value) for RAZOR subs., and that is justified by their higher ARPU & MOUs. But it was a genuine behaviour, higher recharge values. With a difference of 20% after 10 months of launch.

17. Evaluating -(Benefited Subscribers/Participants) Not all participants had benefited “monthly” from Dayman due to: Entering into the Reactivation Period. Not achieving the total of JD15 in that month. Considered as a registered subscriber, but not aware of the mechanism. -(Bonus Given/Recharge Value) Feb02: 6.5% Feb03: 15.2%

18. Evaluating Telemarketing Campaign, September 2002  Questionnaire was designed to serve both Dayman & Non-Dayman subscribers. Findings: A)Dayman subs. follow new promotions offered by Fastlink more than Non-Dayman subs. by a higher difference of 16%. B)The highest promotion remembered by both segments was Dayman!! C)7.6% of Dayman subs. did not know about the programme, on the other hand 56.0% of Non- Dayman subs. did not know about it!

19. Evaluating Findings – cont; D) Both segments had heard about Dayman by: - W.O.M - about 50% of respondents” in both segments - Newspapers - Fastlink Employees - T.V - Dayman was not advertised by any T.V commercials! - Other Tools of Media E) 29% of Dayman subscribers claimed that they did not feel any difference with Dayman, why? Getting extra credit talking more Talking more losing credit!

20. Different Retention Schemes -By studying Dayman and its impact on the market, the main concern for all subscribers was to get free bonus regardless of the mechanism. -The monthly given bonus “money spent” for Dayman was enormously increasing. -Market needed a simpler mechanism to get instant bonus, with no need to register “Do not trust any long-term promotion”. -The intention to increase the ARPU/MOU’s has already been achieved.

21. Different Retention Schemes In order to capture the created value with Dayman, a decision was taken to stop Dayman after a year and new approaches were adopted and implemented on the Prepaid RoadMap of 2003 & 2004. Interesting Fact!!  Specific segment “high value recharging behaviour” was getting the big portion of the monthly given bonus!

22. Prepaid RoadMap - 2003 February 18 th – March 18 th, 2003 50% Added Bonus With Every Recharge. All Prepaid products – Consumer & Corporate. May 13 th – June 13 th, 2003 25% Added Bonus With Every Recharge. All Prepaid products – Consumer & Corporate. July 15 th – September 15 th, 2003 Summer Promotion “Prize Draw” 2 Mercedes Cars & 100 Sony Ericsson Handsets. All Prepaid products – Consumer & Corporate. October 7 th – October 14 th, 2003 50% Added Bonus With Every Recharge. Excluding the JD5 Scratch Card. All Prepaid products – Consumer & Corporate. February 25 th,2003 New Calling Rate Reductions on RAZOR & EZLink.

23. Prepaid RoadMap - 2004 February 14th – February 21 st, 2004 With Every Recharge, A Bonus% Was Given Bonus% depends on the value of the scratch card used. Excluding the JD5 Scratch Card. All Prepaid products – Consumer & Corporate. April 13 th, 2004 Scratch & Win “with a total value of JD1,000,000”  10 Mercedes Cars  300 Siemens handsets  More than 100,000 Scratch Cards October…. November …. December!!

24. Comparison Debatable Points!Dayman Other loyalty Schemes Duration of Program>< Flexibility<> Awareness== Cost “Money Spent”Bigger marginsEasier to control Recharging Behaviour== Educating potential marketMechanism - detailsDirect, simple Impact on marketSlowerFaster

25. The law of Win/Win says… Let’s not do it your way or my way; let’s do it the best way! Greg Anderson

26. Thank you…