30 / 98
Best value
In South Africa, we made good progress this year in our pricing
transformation strategy, offering customers more personalised
packages that provide them with greater value. At year end, 85.1%
of our contract customers were on new integrated price plans with
better value offerings. This has been achieved through programmes
such as ‘Next best activity’, which assists customers in choosing
packages best suited to their needs and mix of services used at the
time of upgrade. These contracts include much more value in terms
of minutes, messages and megabytes, providing customers with a
worry-free experience. We are seeing the benefits of this pricing
transformation, with record low contract churn of 8.5% and
improved average revenue per user (ARPU). 71.3% of our contract
revenue is now in bundle.
On prepaid, we have evolved our bundle strategy into a much more
personalised experience for customers. We have used our strength
in customer value management effectively to target customers
with personalised offers not publicly advertised. We are seeing very
good results from the ‘Just 4 You’ platform, which profiles
customers’ behaviour and presents them with personalised offers.
We now have a full suite of offerings ranging from time-based
micro-bundles for hand-to-mouth consumption (such as: R2 for
10 minutes that expire within 10 minutes of loading; R4 for one
hour that expires within an hour of loading; and R7 for an hour for
the day) to integrated bundles and personalised offers. We sold
763 million prepaid voice bundles for the year, with the total
number of voice bundles sold up 36.5% compared to last year.
This has resulted in a 16.9% reduction in our average effective
price-per-minute for calls.
Our data bundles now include a number of affordable daily, weekly
and monthly options, from small ‘bite size’ bundles of 10MB to
larger bundles such as 5GB. We saw an 85.9% increase in the
number of data bundles sold, selling 343 million data bundles for
the year, resulting in a 13.6% reduction in the average effective
price per megabyte of data.
We have also continued our efforts in lowering the prices of smart
data devices, aided by the purchasing power we enjoy through the
Vodafone Procurement Company, but are expecting this to be
constrained by higher import costs due to poor exchange rates.
Our performance
À
À
Blended price per minute reduced 16.9% to 54 cents in
South Africa.
À
À
Prepaid price per minute reduced 17.8% to 37 cents in
South Africa.
À
À
Effective price per MB reduced by 13.6% in South Africa
and 28.6% in International.
À
À
Data traffic grew 46.8% in South Africa and 73.1% in
International.
À
À
In South Africa: 85.1% of contract customers are on integrated
tariffs and contract churn reduced from 9.2% to 8.5%.
Strategy: Customers
continued
R
2014
2015
0.79
0.65
Blended ppm
Prepaid ppm
0.54
2016
0.55
0.45
0.37
16.9%
17.8%
Reducing effective voice pricing in South Africa
ARPU growth in South Africa
Contract ARPU
R397
+4.5%
2016
R380
2015
Personalised bundles
2015
775
South Africa total voice and data bundles sold (million)
2016
1 149
+48.2%
Vodacom Group Limited
Integrated report for the year ended 31 March 2016
26