France Telecom investor day, June 10th 2004: Building the integrated broadband communication services Group

Transcription

1 1 France Telecom investor day, June 10th 2004: Building the integrated broadband communication services Group

2 2 Sales & Services

3 3 Has something changed in the value chain?

4 4 Agenda! Why a Sales & Services Division?! N 1 for sales and services in France! Benefits from an integrated model! 2004 initiatives

5 5 Why a Sales & Services Division?! Controlled distribution Key for retaining share of value on maturing markets Faster services launch Faster diffusion of new services Faster customer learning of new features! High tech requires high touch! Enabling customer interface for customized offers In current markets, sales and services becomes a central asset

6 6 FT shops France Telecom A standalone Division for sales and services

7 7 Why a Sales & Services Division?! By implementing the integrated operator model each product line benefits from: Better market intelligence Stronger branding Improved sales effectiveness and versatility Integrated customer support Shared costs Develop usage A key lever for FT's integrated operator strategy

8 8 International footprint summary United Kingdom " 248 own Orange shops Belgium " 2 own Mobistar shops " 122 Mobistar exclusive affiliated retailers France " 620 own FT shops " 106 Orange exclusive affiliated retailers Poland " 192 own TP shops " 25 own Centertel shops Already 1,315 controlled shops in four countries

9 9 Roadmap and objectives! Reconfigure for better integration and efficiencies France fully integrated by year end 2005 Roll-out out integration internationally! Expand retail network coverage in France New shop formats to be introduced From 620 to 800 shops by year end 2006! Apply TOP program to customer facing 8 TOP projects launched FT differentiates from competition also on Sales and Services

10 10 Agenda! Why a Sales & Services Division?! N 1 for sales and services in France! Benefits from an integrated model! 2004 initiatives

11 Interacting with customers the way they want Mobistore orange.fr wanadoo.fr On line Outlets Outbound call centers Call centers Hotline Wanadoo Hotline Orange Orange In France 47% of persons aged 15+ interacted with France Telecom in 2003* *Source: CSA, Oct. 2003

12 12 The n 1 sales and customer support network in the French mass market Own shops 620 FT shops 5,800 salespeople Affiliates 106 Orange exclusive affiliated retailers Inbound calls Outbound calls Call centers for Mass market Orange 700 8,100 representatives On line sales orange.fr wanadoo.fr voila.fr 13,900 customer representatives serving the French mass market

13 13 Online sales properties Full Group product line Fixed line universe # of contacts per month ~ 1.8 M ~ 2.5 M Mobile universe Internet universe Consumer electronics Infotainment universe orange.fr wanadoo.fr voila.fr Number 1 for audience in France ~ 2.1 M ~ 9.5 M ~ 6.5 M 0.5 M ~ 2 M

14 14 The n 1 sales & customer support network in the French Enterprise market* Sales & support Inbound calls Outbound calls Self care Sales teams with customer- dedicated salespersons and support personnel Enterprise Call Centers Enterprise Call Centers «Canal Web» 4,200 representatives facing 280,000 Enterprise sites with telecom decision- makers * Excluding the Corporates segment, but some tasks done on behalf of the Corporates segment In-depth knowledge of telecom decision makers

15 15 Call centers Patricia Dufrien / France Telecom Patricia Dufrien / France Telecom

16 16 Call centers Patricia Dufrien / France Telecom

17 17 Technical support & field engineering Customer Care Orange & Wanadoo Hotlines 5,500 representatives Hot lines Fixed line hot lines 1,600 representatives Self care orange.fr wanadoo.fr Field engineering Installation & maintenance 11,100 representatives 18,200 representatives providing local service, anywhere in France

18 18 Orange Distribution highlights! 600 people dedicated to increase sales of FT products in competitive channels! More than 4,000 point of sales visited! Contracts with main retailers Best Sales Force FT = 7.7 Competitor n 1 = 7.2 Competitor n 2 = 7.1 Best Distribution hotline FT= 7.1 Competitor n 1 = 6.7 Competitor n 2 = 6.6 *Source: CSA, June 2004 Orange Distribution best rated by 650 Points of sales*

19 19 Agenda! Why a Sales & Services Division?! N 1 for sales and services in France! Benefits from an integrated model! 2004 initiatives

20 20 Benefits for the Group (1/2) Each product line benefits from:! Market intelligence Capacity to listen to the voice of the customer & collect market intelligence at the local level! Branding Brand awareness of France Telecom shops: 97% for Fixed,, 90% for Mobile, 79% for Internet (Source: CSA, Oct. 2003)! Sales effectiveness and versatility Coverage of all retail and customer care formats, each potentially ly capable of selling the whole Group product offering Capacity to target fine-grained customer segments or individual customers with tailored solutions, not only products Capacity to launch marketing campaigns at very short notice 40% - 45% of Orange France gross adds captured by FT shops 55% - 60% of Wanadoo gross adds captured by FT shops and call centers

21 21 Benefits for the Group (2/2) Each product line benefits from:! Sales effectiveness and versatility (continued) Additional contact and cross-selling selling opportunities FT retail network own initiatives to stimulate customer visits in i shops (accessories, Training coaches, thematic in-store campaigns, etc.)! Customer support Trusted advice and reliable customer support, also provided to indirect channel customers Usage stimulation through customer training in shops (Training coaches, etc.)! Costs Better match between customer value and contact channels Retail costs shared with the other product lines, within arm-length distribution contracts Lower churn in average vs. purely indirect channels Leverage when negotiating with indirect channels *Source: CSA, Oct *Source: CSA, Oct In France, one person aged 15+ out of three visited France Telecom shops in 2003

22 FT stores: Fixed line, Mobile and Internet products in a single place France Telecom A "One stop" shop concept 22

23 23 Agenda! Why a Sales & Services Division?! N 1 for sales and services in France! Benefits from an integrated model! 2004 initiatives

24 key initiatives! Moving toward a more integrated sales & service network in France First pilot in the Paris area! Consumer market Densification and relocation of shops Orange: Expand controlled distribution for best customer experience Implement a needs based segmentation Develop self-care usage! SME market Leverage CRM now! Customer facing TOP initiative! Implement best practices in Distribution marketing Capturing economies of scale and scope

25 25 Integration in progress: current situation Fixed Internet Mobiles Direct Sales Sales & Services in France Indirect Sales Customer & Technical Support Outbound calls Self Care Wanadoo Wanadoo Wanadoo Wanadoo Orange Orange Orange Orange Field engineering Some coordination between dispersed assets

26 26 Integration in progress: year end 2004 plan Home Personal Direct and Indirect Sales Sales & Services in France Customer & Technical Support Outbound calls Self Care Personal Personal Personal Field engineering A first step towards a full integrated sales & services network

27 27 First pilot scheme in the Paris area! Common customer service for Home and Personal 50,000 Paris customers in pilot scheme Global view of customers and their uses Global view of products: Fixed, Mobile, Internet, TV Incentives for cross selling Objective is to improve customer loyalty! High potential customers Intensive users, whether mono or multi-products! Various service offers Global customer assistance Single point of contact Integration for customer benefit and usage centricity

28 28 Densification and relocation of shops! Add new shops in high customer traffic areas approx. 50 net new shops opened in 2004 approx. 90 net new shops planned in 2005 approx. 40 net new shops planned in 2006 > from 620 to 800 shops planned by end 2006! Relocate 35 to 40 shops in 2004 for increased customer traffic! Implement new formats for relocated shops and new openings Type 1: multimedia stores with 150 m 2 each Type 2: 80 m 2 each Type 3: 45 m 2 each New shops will be more profitable than the average existing ones

29 New multimedia stores showcasing the Group integrated offer Stimulate adoption of multi- access devices and services Stimulate adoption of new uses through customer coaching 29 Innovative store format for capturing better share of high value customers

30 30 FT stores: increase presence in high traffic shopping zones and where customer reside France Telecom Shopping centre shop France Telecom City centre shop Redesigned store formats for consolidating market share of residential customers

31 31 FT retail network own initiatives to stimulate customer visits in shops France Telecom Increase satisfaction and usage through demos France Telecom Increase revenues and margin by selling accessories and multimedia peripherals

32 32 Develop self-care usage! 3000 voice portal Improve the effectiveness of customer interface through unstructured speech recognition Stimulate sale of services # Investigate, subscribe, check, use, activate! francetelecom.com Internet portal Stimulate sale of products and services Stimulate audience to capture lower value contacts Encourage on-line bill presentment and payment Stimulate usage with on-line user guides and operation manuals # Investigate, purchase / subscribe, check, pay Driving higher-value contacts to FT representatives

33 33 Towards self-care integration Communication Services & High Tech Sales Culture & Leisure Product Sales Fixed Line Service, Sales & Configuration Web Web Wap Phone Phone Self-care Web Integration for customer benefit

34 34 Leverage CRM now on the Enterprise market Marketing Campaign Managers 100 representatives Generalist Sales Team Inbound call centers 2,500 representatives 400 representatives Specialist Salespeople & Technical Support 800 representatives 150,000 customers Outbound call center 100 representatives Billing & claims Call center 400 representatives Sales Administration 400 representatives 4,700 France Telecom representatives better serving 150,000 Enterprise customers through CRM

35 35 Customer facing TOP initiative! Overall objective Reach best-in in-class operational performance levels Drive operational performance for market power Allocate resources for best market return : sales, profitability, customer loyalty! Eight TOP chantiers chantiers Operational excellence of Customer Relationship Services Optimize Retail Points of Sales Increase Sales force efficiency in Enterprise Branch Offices Join Sales & Services forces in Spain Join Sales & Services forces in Poland Join Sales & Services forces in the UK Join Sales & Services forces in the Netherlands Marketing spend effectiveness Applying TOP discipline for better Sales & Services operational performance

36 36 Conclusion: expected results! Position Sales & Services as the provider who best responds to customer needs through integrated solutions with superior customer support and coaching! Further develop cross-selling selling & cost synergies in direct channels & better cooperate with indirect channels! Roll-out out integrated Sales and Services model internationally A key lever of FT group performance