End-User Insight. Service Description

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End-User Insight

Service Description

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End-User Insight service description page 2 (17)

Ericsson has an unparalleled understanding of end-user drivers and

attitudes towards technology. We carry out annual end-user

research, interviewing over 13 500 mobile and broadband

consumers worldwide. This provides us with strong insight into the

behaviours and preferences of 600 million global consumers with

regards to telecommunications services.

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Introduction:

Deeper insight provides greater clarity

Deep consumer insight is a critical requirement for operators focusing on market penetration and subscriber retention, ultimately driving revenue growth.

In today’s competitive environment, operators and service providers must develop meaningful insights into, and extrapolations from, end-user usage psychology. Intimate market knowledge will provide operators with a competitive edge in the effective targeting of existing and new services to defined market segments.

Ericsson established ConsumerLab in 1995 to stimulate a more end-user driven approach to the development of new products and services. ConsumerLab provides operators with the foresight to address the shift in the industry from being technology driven to one that is market and end-user oriented.

The suite of ConsumerLab services is designed to address key operator challenges, namely:

Business Growth

— Which market segments to target new services to in order to ensure sustainable revenue growth?

Evolution Strategy

— How to pre-empt future market developments, in order to optimally evolve services and networks

Cost Efficiency

— How to maximise marketing and CAPEX ROI?

Overcoming these core competitive challenges allows operators to address market issues and growth opportunities in both the mobile and fixed telecommunications services market. These include:

Developing new mobile services to increase revenues, such as enterprise solutions, voice portals, mobile internet and machine2machine applications Fixed to Mobile migration / substitution

Capturing the exploding broadband market Growing traditional voice revenues

Developing advanced services for fixed networks

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About Ericsson ConsumerLab

Ericsson’s ConsumerLab research and consulting services offer commercialised, in-depth consumer insights to operators. We improve operators’ business performance, via our proven segmentation methodology, proprietary market knowledge and innovative tools, plus deep business and network consulting expertise:

In-depth global end-user market knowledge

o Ericsson carries out global end-user applications and services

development research annually, giving a rich foundation for generating insights into end-user market segments

o Tools supporting a holistic approach — strategic analytical tools (enabling operators to understand implications on branding and forecasting); implementation tools (market simulation software); and databases with local market information and global benchmarking information

Imparting global and local end-user insight

o Our globally certified consultants use both global and country-specific data to derive strategies that will stimulate the mobile and broadband markets

o The insight gained from this research is incorporated into our advisory offerings, which aim to expand both the subscriber base and market segment penetration of our operator clients, through targeted end-user services. Knowledge from these studies is structured using Ericsson’s Take 5 global segmentation model, a breakthrough value-based framework derived from extensive experience in the telecommunications business.

o Our consulting services also ensure the implementation of operator business growth and evolution strategies — this is supported by Ericsson’s industry experience and technology leadership

Why segment?

Effective segmentation strategies facilitate the successful targeting of services to those customers most likely to adopt new services to ensure higher revenues, faster.

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ConsumerLab service offerings

Ericsson’s End-user Insight offerings include five service options, which can be further customised to your requirements. These offerings aim to provide you with a competitive edge by empowering you to design sound revenue growth strategies founded on credible market research data and Ericsson’s consulting expertise:

1 MarketReality

 Simulation — enabling you to understand market dynamics

and to assess the impact of strategic and tactical marketing decisions

2 Customer Insight Workshops

— providing greater understanding of market issues and opportunities, through a structured analysis of local and global survey data

3 End-User service pre & post launch testing

— ensuring the long-term success of a service launch

4 Segmentation Advisory Services

— facilitating the development of focused

and effective market targeting strategies

5 Knowledge Base System Pre-study

— optimising marketing investments and service development through in-depth understanding of your customers Combined, these service options address all phases of the operator service life cycle:

Figure1: Ericsson’s comprehensive ConsumerLab services

Business Strategy Defined Vendors Selected Detailed Design Defined Solution In Operation Customer Solution Life-cycle phases

Planning Design and Specification

Implementation

And Launch Operation Service

Products: Solution

Management Solution Service Integration

Solution Advise

Market Reality Simulation

Segmentation Advisory Services Tailored Workshops

End-User Pre- & Post-Launch Testing

Knowledge Base System - Prestudy

Specific CLAB Offerings: Business Strategy Defined Vendors Selected Detailed Design Defined Solution In Operation Customer Solution Life-cycle phases

Implementation

And Launch Operation Customer

Solution Life-cycle phases

Implementation

And Launch Operation Planning Design and

Specification

Implementation

And Launch Operation Service

Products: Solution

Solution Advise Service

Products: Solution

Solution Advise

Specific CLAB Offerings:

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MarketReality™ Simulation Workshop

MarketReality is an innovative example of how to create a true understanding of market dynamics through learning. The tool provides a real-time market simulation around the three dimensions of consumers, competitors and the macro-market environment.

Appreciation of the practical realities of both current and upcoming market dynamics will provide invaluable input into your strategic planning process, by conveying a likely, big picture scenario to key decision makers.

The MarketReality workshop enables you to use both strategic and tactical marketing decisions to:

1. Investigate which consumer segments exist in the marketplace today and how

they evolve so you that can develop targeted campaigns that hit the mark

2. Examine the different values and attitudes that drive consumer buying

behaviour to improve the success of your offerings by accurately targeting the behaviours

3. Discover how the marketing mix can be aligned for maximum competitive impact, through testing the implementation of various marketing strategies under predetermined competitive scenarios

Operator benefits

MarketReality can help you test how your marketing strategies and tactics perform using current Australian market data - to avoid making costly mistakes Through scenario generation, the tool enables you to understand how the market

will develop dynamically over the years

Preparedness for market developments, enabling the making of informed decisions on market launch, pricing or branding strategies

Facilitate the development of marketing capability through improved

cross-functional understanding and cooperation within your organisation. This will enable you to implement strategies with increased efficacy, as your organisation will be aligned under a common view of market dynamics. As both strategic and tactical market issues are addressed, the game is relevant to senior as well as more junior managers and specialists.

What you get

A fun, interactive real-time electronic simulation workshop (typically 1 day), including a theory session on brand strategy and consumer segmentation and an evaluation of strategies during the game

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Customised Insight Workshops

Ericsson provides customised workshop programs to address specific operator questions and issues. These programs provide a structured analysis of ConsumerLab local and global market data, and enable operators to develop action plans to address the target issues and opportunities.

Operator benefits

Gain deeper insights into the end user, and of your competitive position in order to enhance marketing effectiveness. This can be achieved by leveraging

Ericsson Interactive Report.

Verification of assumptions about target segments, enabling easier

identification of growth opportunities (including the prioritization of these) and the development of an aggregate service roadmap.

What you get

A customised consultancy incorporating a program of interactive workshops Presentation pack outlining the key findings of the consultancy

Access to Ericsson Interactive Report, a data analysis tool enabling deeper neurological understanding and extrapolations of consumer behaviour. These reports can be made available for purchase and use under license in your own business after the workshops.

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End-user service testing — pre and post launch

Service launch success is dependent on the alignment of marketing programs to

customer perceptions and expectations. Ericsson’s end-user pre and post launch testing assists operators in understanding issues around customer preferences and behaviours with regards to a specific service’s functionalities and features.

This offering provides you with:

An understanding of the revenue potential of different services, including the identification of the key drivers and inhibitors to customer usage

Insight into the perceived value / benefit of the service across market segments, hence identification of higher-value segments to target. Verification of the perceived value of the service with an end-user sample reduces strategic and financial risks to you, in terms of product / service portfolio roadmap planning, and marketing / brand positioning

activities.

Testing and validation of the end-to-end service experience from a consumer perspective (perceived ease of use, usability testing of terminals, content interface)

An understanding of pricing sensitivities and elasticity; charging and billing preferences; packaging, distribution and promotional strategies which will be most effective in addressing the most lucrative subscriber segments

An evaluation of the impact of the service on existing services, i.e. will cannibalization / substitution occur or will the revenue pie expand?

Operator benefits

Through validating the value of the service attributes to particular segments, operators can ensure optimal targeting, positioning and pricing of the proposed service. Implicit benefits accrued by the operator include:

Knowing how to increase minutes of use by existing subscribers Optimisation of marketing ROI

Optimisation of current network performance according to customer values The ability to build a robust business case (using traffic data to drive assumptions) Invaluable insight when crafting key marketing communications messages and building a branding platform

What you get

Planning workshops with Ericsson consultants, defining

o Key required learnings in the context of the operator’s marketing strategy o What is the customer experience to be tested

o Segment selection and the customer need / opportunity

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End-User Insight service description page 10 (17) Pre-launch testing — is the total product offering optimized for the target

segment?

o Qualitative research focusing on the selected segment.

o Focus groups may include providing access to the service / application being tested, to provide a realistic user experience

o Presentation / report on pre-launch testing findings, including ramifications for go-to-launch strategy, and

o Results from this initial testing will serve both as input for further development / fine-tuning of the service as well as understanding of the triggers for an interest in the service / device features, etc.

Post-launch testing — how well is the offering performing in the market?

o Quantitative follow-up studies on usage, including an analysis of traffic data post-launch to monitor service uptake by the target segment. o This can be supplemented by further exploratory qualitative research into

factors affecting service usage (e.g. focus groups for deeper insight into behaviours and to validate pre-launch study results.)

o Presentation / report on findings and recommendations on how to refine the service, and agreement on next steps

Service options

Holistic go-to-market planning and support, through joint marketing workshops Training of key internal contact points such as customer care staff

Business case development

Technical verification, integration and monitoring of the new service (refer to Appendix 2 for more details)

Figure 2: Ericsson’s holistic approach to service launch — pre & post launch testing

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Segmentation Advisory Services

Ericsson provides segmentation advisory services, either by building a customized segmentation model from the ground-up, or by enhancing the operator’s existing framework.

We can optimize your segmentation model by leveraging available Australian market data and global benchmarking information, enabling you to improve the marketing

competitiveness of your voice and data services. We can then ‘operationalise’ the segmentation model by populating it with actual market data for input into marketing campaigns, sales channel distribution strategies, loyalty programs, etc.

Our segmentation advisory services have been refined over ten years’ experience in delivering tailored consulting to operators around technology specific value-based segmentation strategies.

Our extensive experience, coupled with our comprehensive value-based Take 5 segmentation model, provides Ericsson with the capability to refine your segmentation methodology focusing on the fundamental values, and hence purchasing behaviours, of consumers.

Operator benefits

A robust segmentation model improves the competitive effectiveness of an operator’s marketing plans and campaigns, as customers can be clearly identified and targeted. The following benefits can be realized:

Understanding which services to launch and which segments to target Minimised subscriber churn

Increased revenue from current customers

Understanding the impact of new service diffusion on network planning Optimised current network performance according to customer values

What you get

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Knowledge Base System Pre-study

Understanding your customer base is essential to retain your high-value customers. Ericsson’s ConsumerLab Knowledge Base System Pre-study provides an

implementation plan for drawing together disparate customer information sources to present synergistic, total subscriber profiles.

A better understanding of their subscribers enables operators to identify key marketing intervention points where consumer behaviour can be influenced (e.g. to increase usage and enhance loyalty).

This ConsumerLab offering identifies bridges between your consumer segmentation model and other existing internal and external data sources within your environment, including:

Ericsson’s ConsumerLab 2004 Australian market study results

Specially commissioned primary research (e.g. from other ConsumerLab offerings, such as End-user pre and post launch testing)

Other available market studies Brand positioning surveys Macro-market data

Operator’s own subscriber database

Operator benefits

Increasing the accuracy of customer profiling leads to greater effectiveness in targeting your customers and therefore optimisation of marketing ROI. Benefits include:

Targeted services

Increasing revenue from existing customers Decreasing customer churn

What you get

A clear understanding of the potential of improved customer profiling

A comprehensive report outlining a range of options for the development and implementation of consumer profiling and database tools

The following tools can be developed specifically for you: o Consumer Segmentation Model

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Providing the whole picture

Ericsson’s comprehensive ConsumerLab advisory services addresses all aspects of an end-user service launch — from initial market and segment opportunity scanning, through to launch implementation and performance monitoring.

Figure 3 depicts a typical service flow scenario - from understanding the revenue growth opportunities to shaping data-validated strategies to realize business goals.

Figure 3: ConsumerLab service flow scenario

Advisory services — how to capture the

opportunities Insight services — understanding the opportunities

1. Customised insight workshops 1. Customised insight workshops 2. MarketRealityTM Workshops 2. MarketRealityTM Workshops 3. Segmentation Advisory services 3. Segmentation Advisory services 4. End-user service pre & post launch

testing

4. End-user service pre & post launch

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Why Ericsson?

Proven track record

Ericsson has extensive experience in helping operators increase revenue through the introduction of new end-user services. Ericsson has conducted over 300 projects in Market and Service Launches worldwide, capitalising on our hybrid expertise in business and technical consulting. This is backed by industry experience and technology leadership, ensuring our solutions address commercial, technical and strategic facets of the operator’s business.

Holistic approach to service launch

Ericsson’s ConsumerLab services leverage our business and technical acumen to enable our customers to realise revenue expansion and a strong foothold in the increasingly competitive mobile and fixed communication services market. Ericsson’s expertise span the following:

Product development Consumer research Marketing

Strategic planning

General presentations on consumer understanding

Risk mitigation

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Leveraging Ericsson assets

Behind the introduction of any successful end-user service lies a well-devised strategy that takes into account all the key decisions that have to be executed for a launch. Ericsson has an all-encompassing suite of Intellectual Property ensuring our customer’s go-to-market strategies, and therefore, traffic and revenue growth objectives, are fulfilled.

Figure4: Ericsson’s comprehensive suite of expertise and IP

Ericsson’s deep specialisation in telecoms business and network technology consulting, insight into end-user trends, network and service implementation, integration and operational capabilities uniquely positions us to assist operators in growing their business strategically. We can advise on how best to grow business and evolve telecom networks for a profitable future.

Mobility World

Over 1000 Content and Applications

Partners

Mobility World

Over 1000 Content and Applications

Partners

Network services

Best Practice in Optimizing Service

& Network Traffic

Network services

Best Practice in Optimizing Service

& Network Traffic

Consumer Insight

Industry leading insights & Database of End-user needs

for Telecom Services

Consumer Insight

Industry leading insights & Database of End-user needs

for Telecom Services

Business Consulting

Over 300 projects in Market Strategy and

Service Launch

Business Consulting

Over 300 projects in Market Strategy and

Service Launch

Case portfolio

Global watch of best services

Case portfolio

Global watch of best services

Increased

Traffic &

Revenue

•Benchmarking & Audit •Continuous global watch •Benchmarking & Audit •Continuous global watch

•Opportunity Analysis •Market Planning

•Service Launch Consulting •Opportunity Analysis •Market Planning

•Service Launch Consulting

•Systems Integration •Benchmarking & Audit

•Network Performance Improvement •Systems Integration

•Benchmarking & Audit

•Network Performance Improvement

•Matchmaking

•Accreditation and Testing •Partner Management •Matchmaking

•Accreditation and Testing •Partner Management

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Appendix one

ConsumerLab customer references

Ericsson has extensive experience in delivering consultancy around end-user insight to operators worldwide. These advisory services address the typical business challenges for operators and service providers, namely achieving business growth, cost efficiency and having a sound network and business evolution strategy.

Some recent success stories include:

Operator Ericsson offering

AIS, Thailand local market study with segmentation and target group descriptions Orange, Sweden local market study, customised segmentation modelling and target

group identification and descriptions SonyEricsson

(global)

global market studies, customised segmentation modelling, tools for analysis and implementation results

TelCel, Mexico local market studies, CRM pre-study

TeliaSonera local market studies, segmentation modelling, development and implementation of analytical and pedagogical tools

TIM, Brazil local market studies, customised segmentation modelling Vodafone, UK segmentation, evaluation of launched services

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Appendix two

Ericsson Mobility World application testing services

overview

To augment end-user behavioural validation studies, Ericsson also has the technical integration expertise to ensure that the proposed service becomes reality for the consumer — in short, the service works, and it is robust.

Ericsson Mobility World is our 3rd_{party partnering program for application developers} and service providers. Ericsson Mobility World’s verification and monitoring services are based on Ericsson’s experience of extensive application testing in mobile networks for over five years, which has provided us with in-depth knowledge of how mobile network infrastructure affects application performance, and knowledge of best practices in application design.

Application verification

This service provides the customer with an opportunity to test and verify mobile applications to their requirements, to help isolate the interoperability and functionality issues between mobile infrastructure, terminals and applications — ensuring technical issues are addressed prior to commercial launch.

Application monitoring

Ericsson provides the operator with an opportunity to monitor launched mobile applications according to their requirements for performance, usability and availability Ericsson facilitates the operator with a tailor-made, scalable, end-to-end solution that monitors the services from both an end-user and technical perspective by analysing the jointly defined service use cases and defining KPIs for each application.

Operator benefits

Shorten time to market Reduced subscriber churn

Ensuring application quality and reliability Cost control, risk reduction

End-User Insight. Service Description

End-User Insight

Service Description

Ericsson has an unparalleled understanding of end-user drivers and

attitudes towards technology. We carry out annual end-user

research, interviewing over 13 500 mobile and broadband

consumers worldwide. This provides us with strong insight into the

behaviours and preferences of 600 million global consumers with

regards to telecommunications services.

Contents

Introduction:

Deeper insight provides greater clarity

Business Growth

Evolution Strategy

Cost Efficiency

About Ericsson ConsumerLab

In-depth global end-user market knowledge

Imparting global and local end-user insight

Why segment?

ConsumerLab service offerings

1

MarketReality

 Simulation — enabling you to understand market dynamics

2

Customer Insight Workshops

3

End-User service pre & post launch testing

4

Segmentation Advisory Services

5

Knowledge Base System Pre-study

MarketReality™ Simulation Workshop

Operator benefits

What you get

Customised Insight Workshops

Operator benefits

What you get

End-user service testing — pre and post launch

Operator benefits

What you get

Service options

Segmentation Advisory Services

Operator benefits

What you get

Knowledge Base System Pre-study

Operator benefits

What you get

Providing the whole picture

Why Ericsson?

Proven track record

Holistic approach to service launch

Risk mitigation

Leveraging Ericsson assets

Increased

Traffic &

Revenue

Appendix one

ConsumerLab customer references

Appendix two

Ericsson Mobility World application testing services

overview

Application verification

Application monitoring

Operator benefits