Safaricom 2023 Sustainable Business Report

65 OUR BUSINESS KPI SUMMARY OUR MATERIAL TOPICS PATHWAY TO A PURPOSE-LED TECHNOLOGY COMPANY OUR STAKEHOLDERS ENTERPRISE CUSTOMERS RE-CATEGORISING OUR CUSTOMERS Previously, we categorised our enterprise customers into three main groups: Large Enterprises (LEs) – more than 50 employees; Small-to-Medium Enterprises (SMEs) – between 10 and 50 employees and Small Offices-Home Offices (SOHO) now classified as micro enterprises – less than 10 employees. As indicated in the table below, we have now separated our Public and County customers from LEs and SMEs. Our target for this customer base is to achieve revenue of KSh 4.1 billion by FY25, at a compound annual growth rate (CAGR) of 20.66%. In FY23 we generated KSh 3 billion and are on course to meet the target. The total number of SME and micro enterprises customers significantly grew year on year (y-o-y). LE customers dropped slightly, due to the re-categorisation described in the previous paragraph. We had targeted 700 county and public customers but fell slightly short of this goal. Market share in the corporate share was constant, while micro enterprises market share increased by 14 percentage points (y-o-y). PROFILE OF OUR ENTERPRISE CUSTOMERS FY20 FY21 FY22 FY23 Total number of Small and Medium enterprises (thousands) 75 101 90 133 SME revenue growth (2022-2023) 48% 12% 34% 18% Total number of micro enterprises (thousands) 210 299 210 560 Micro enterprises revenue growth (2022-2023) 48% 20% 92% 12% Total number of large and public enterprises 1 200 1 255 1 365 1 593 Large enterprise revenue growth (2022-2023) 19% -15% 19% 18% Market share in corporate segment (by customers) 99% 99% 99% 99% Market share in SME segment (by customers) 20% 25% 32% 92% Number of enterprise customers (thousands) 286 401 360 695 Market share by revenue (excluding payments) 53% 55% 58% 61% Note: The redefinitions in table are based on the Strategic Plan 2020-2024 by the Micro and Small Enterprises Authority. DIGITISING OUR OWN AND OUR CUSTOMERS’ OPERATIONS Our aim is to establish the Enterprise Business Unit as the leading partner of holistic value offerings and customer experiences. A key highlight was the development of the Falcon tool which has been through several iterations. This has significantly improved our service turnaround time as tasks that previously needed to be completed manually like order management and sales are now automated. This end-to-end system for onboarding customers has made our service delivery faster and seamless. In addition, our customers can now make use of self-service business hub where they can discover our services and submit service requests. There were 802 000 visitors to the site business.safaricom.co.ke, with 6.6% of our customers converted. We are refining the channel so that customers will soon be able to view and pay for their invoices as well as other account management functions such upgrade, downgrade, suspension or termination. GROWING OUR ICT PROPOSITIONS We accelerated our ICT propositions related to security services (cybersecurity, together with video management and storage), digital transformation, interactions and cloud services. In terms of security, video management and storage offer significant advantages for smart cities and towns. Our IoT use case continued to offer business and company owners the opportunity to realise the efficiencies created by technology. Telematics solutions in the form of fleet management and remote tracking of various assets continued to gain traction. So, too, did our partnership with Earthview on smart water. This gives municipalities, landlords and business owners a digital view of how much water has been consumed, how much has been lost, etc. RESOLVING CUSTOMER CONCERNS Key customers concerns were the cost of our mobile voice and data, and M-PESA charges; reliability of our services particularly internet (fibre and wireless); access to support and quick resolution of issues; concerns around value for money in how our products and propositions, as well as structured, accurate and easy-to-understand bills delivered on time.