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OUR MATERIAL MATTERS

| GOVERNANCE, RISK & REGULATION | NETWORK QUALITY | ENVIRONMENTAL RESPONSIBILITY

| INNOVATION |

42

CUSTOMER SATISFACTION IMPROVING

As the following table shows, our NPS score for consumer customer satisfaction

improved from 66% in FY16 to 70% for the period under review. Much of this

improvement can be attributed to the successful launch of BLAZE and other

promotions, such as

Shinda Ma Mili

with

Stori Ibambe

, together with other

4G-related services and products. Conversely, our Brand Consideration score

decreased from 82% in FY16 to 80% during the year and this can be attributed to

the perception that Safaricom products and services are expensive, along with a

dip in trust related to airtime and data bundles being consumed at more quickly

because of the faster data transfer rates across the network.

NET PROMOTER SCORE*

FY17 FY16 FY15

Consumer (Overall)

70% 66% 53%

BRAND CONSIDERATION

Overall

80% 82% -

* Assessment of customer satisfaction. Research performed by TNS.

† Assessment of likelihood of customer choosing Safaricom in the future.

4G ADOPTION DRIVING MOBILE DATA GROWTH

In terms of mobile data usage and growth, we enjoyed another year of solid

progress. We grew our mobile data customers (who have been active within the

last 30 days) from 14.08 million to 16.6 million. Likewise, our revenue from mobile

data grew by 38.5%, from KES 21.15 to KES 29.3 million, and now accounts for

14.3% of our total service revenue.

FY17 FY16 FY15

Mobile Data Revenue (KES billion)

29.3 21.15 14.82

Mobile Data Customers (million)*

16.6 14.08 11.59

* 30-day active

We are particularly pleased to have been able to realise our ambitious target of

KES 7 billion additional revenue for mobile data for the year. This achievement

can be attributed to three main, interrelated initiatives: the expansion of our 4G

network; the execution of several campaigns to raise awareness of the potential

of 4G and stimulate usage; and a concerted drive to increase smartphone

penetration and the number of 4G devices connected to the network.

The expansion of our 4G network was the first step towards growing our revenue

from 4G services and we increased 4G network coverage by 9% in seven major

towns (Nairobi, Mombasa, Kisumu, Kisii, Meru, Eldoret and Nakuru) during the

year. We also successfully increased the number of 4G devices connected to

the network from 400,000 to 1.8 million by introducing affordable devices through

our in-house brand

Neon

(the most affordable unit currently retails at KES 3,499),

holding open days in the regions to help raise awareness of the benefits of owning

a smartphone and the available options, together with targeted promotions

offering subsidies,

Bonga

points and vouchers to feature-phone owners to

SDG 8

SDG 9

FY17

FY16

FY16

FY15

Net Promoter Score

Brand Consideration

FY17

25%

75%

70%

80%

100% 0%

50%