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CS Solutions

Living in a Fast+Simple World

“How to Earn and Grow The Lifetime Loyalty of Your Customers!”Fast+Simple Customer Experiences

Thomas Wandahl3

London November 28th 2006

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is the world leader in 3G UMTS mobile broadband networks with 13,5 million customers in 9 countries

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Our Vision:“Pioneers for a Better Mobile Life.”

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Our History so far:

• August 2000 - Hi3G Access AB founded.• December 2000 – Awarded 3G License for Sweden, network

rollout begins• September 2001 – Awarded License for 3G in Denmark• September 2003 – Awarded License for 3G in Norway• May 2003 – commercial launch in Sweden• October 2003 – Danish launch• Today – more than 614 000 customers in Sweden and Denmark.

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Why the market needs us.

• We bring three things to the market – exceptional value for money, fun and systematic innovation.

• We launched free calls on net, generous bundles of minutes with the monthly fee

• We were first with videocalls, music on the handset, first to offer Skype over mobile broadband and our 3player turns our handsetsinto a better iPod with millions of Songs on our Network harddrive.

• Soon, HSDPA will deliver 3,6 Mbps and we will start to see fixedline substitution from ADSL

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Our Achievements:

• Awarded Best 3G Operator, Aftonbladet and Mobil Magazine, May 2005

• Named as ”Best 3G Network in Europe” by regulatory body PTS, spring 2005

• Awarded three “Gold Mobiles” for Best Music Service, Best Entertainment Service, Best Mobile Portal, november 2005

• Ranked as having best coverage of any Network (3G OR GSM) in Stockholm, Göteborg and Malmö and 36 other areas in extensive drive-round test, Mobile Magazine, November 2005

• Ranked as Best Customer Service of any mobile operator by Mobile Magazine, February 2006

• Awarded as the Worlds best Mobile Music service, GSM Awards 2006

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How do we stop doing dumb things to customers?

My passion

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What are you passionate about?

Passion

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What changed with our customers?More junk mail

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What changed with your customers?Perfect information

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What changed with your customers?Differentiation minimal –Product evolution copied direct

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What changed for your colleagues?

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What changed for your front line colleagues?

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What changed with the world?

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What changed for your customers?Help yourself

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CS Solutions

Fast+Simple

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Why do people think they are Fast+Simple to do businewith

simple, quick, direct, polite, efficient, informative,always there, always helpful, professional,

caring, friendly staff, human touch, straightforward to deal with,

personal,quick answer, right culture, superlative customer service

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CS Solutions

Fast …but not so Simple!!

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‘Most common customer loyalty drivers’

• They give something extra back (/ say ‘thank you’ / nice surprises)• Consistently good value (/ I trust them on price / no ‘rip-off’)• Communications and contact consistently a good experience• Product and brand ‘connects with me’ (relevant / my values /

enhances my lifestyle)• They recognise and know me (/ personalised / friendly / familiar /

welcoming)• Never let me down (/predictable / reliable)• I am in control (/my choice / customised / on my terms / not

intrusive)• Responsive (/flexible / accessible when I need them)• It’s clear and simple what they stand for (/I understand them)

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Programmes

Ops

The closed loop of customers telling you what frustrates them and the change programmes you try to put into operations

Customer

1 time cycle

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CPO (Resolved) by Contact Code--Overview (1st Half)

$15,603$22,867$15,615$25,285$24,791$26,432$28,846 $23,129$11,060$3,780$38,783$23,452$68,724$83,602

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25-Mar-01 1-Apr-01 8-Apr-01 15-Apr-01 22-Apr-01 29-Apr-01 Upper Tolerance 13 week Average Lower Tolerance 30-Apr-00 G

weeks.

Amazon example

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Each contact reason code has a root cause programme where the real work gets done

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Customer data shall enable 3 to know their customers and tailor their offer according to individual needs

Customer Data

Customer Insight

Customer Management

Long Term Customer

Loyaltyenables...to

drive...to

grow...

Segmentation– Lifestage – Value & Loyalty– Lifestyles

Communication strategy

– Retention– Growth– Win-back/prospecting

Business strategy– Price – Promotions – Ranging – Availability

Increased customer value

– Sales growth

The process…

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…understanding customers

Customer Data

The Process…

Customer Insight

enables...

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…targeted communication and a tailored offer

Customer Data

The Process…

Customer Insight

enables...

Customer Managementto drive...

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Loyal customers receive communication and offers based on their Lifestyle and interestsCommunications to high spending customers based on their lifestyle or their interests and needs e.g. Pets, Organic

40% of mailed customers redeem

Less loyal customers receive incentives to visit more often

With strong enough offers, we can tempt less loyal and lapsed customers to switch their shop from other supermarkets.

This drives trade above that expected within the normal trade cycle.

25% of mailed customers redeem.

The Tesco statement is the world’s most targeted mailing

10 million customers ‘thanked’ each quarter

4 million variations deliver personal relevance

Christmas comes 4 x per year

A valuable tool for suppliers – helps off set costs

Statement is at the heart of Tesco’s contact strategy

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Tesco sends targeted coupons to its club card holders

Half are forProductsTesco wouldlike to temptthem to buyand believesit is likelythey wouldlike.

Half thecoupons arebased onitems theShopperalready buys

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3 Multi Channel ambitions

1:1 Multi Channel Dialogue

A rule based fulfillment systemPersonal 3G terminal – 2000/4000 combinations Personal Webpages – 3000/5000 combinationseMail – 450/3000 combinationsdMail – 450/3000 combinations SMS/MMS – 450/3000 combinationsTelemarketing and CR – 2000/4000 cIVR – 50/150 combinationsInvoice – 300/9000 combinations

• Customer X

• Customer Y

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Loyalty Results – Would you Recommend 3 to a friend or Co-worker?

2329

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410 11

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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Telia Tele2 Telenor

2005 2006 2005 2006

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Dissuade No Maybe Yes Definitely

Private Business Benchmark

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ThankYou!

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QuestQuestions.