Vodafone Italy Customer Operations

Alessandro Varotto
North-East Customer Care Director
Padova, March 2006

Agenda
Business Opportunity, Vision, Passion

and Goals, Brand Essence

Vodafone Group and market Vodafone Italy and market Customer Operations in Vodafone CRM goals Customer Care in Vodafone Customer Satisfaction Index - CDI

Vodafone Italy Customer Operation

Business opportunity, Vision, Passion and Goals, Brand Essence

Customers tell us they want more freedom to communicate, with instant access to other people, to work, to entertainment, and to information, wherever and whenever they need it. This gives us a market opportunity to mobilise three major industries:

This will enable us to realise our vision of being

the worlds mobile communications leader, enriching customers lives, helping individuals, businesses and communities be more connected in a mobile world

To deliver our vision we have to demonstrate the passion in our business

for customers
for our people for results for the world around us

And achieve our six strategic goals to: Delight our customers Build the best global Vodafone team

with a brand positioning that says: Vodafone helps people enjoy richer communication, an ywhere, anytime. Always reliable, always easy, always great value passionately delivered.

Leverage global scale and scope Expand market boundaries Be a responsible business Provide superior shareholder returns

Our Opportunity
4 Vodafone Italy Customer Operation

Our Goal

Our Focus

Brand Essence: Red, Rock Solid, Restless

Brand essence, the essence of the Vodafone brand, our DNA.

Brand essence is our way of being, the way in which, every day, through our work we bring our passions and our goals to life.
Red: people who are ever more passionate, Rock Solid: people who are ever more reliable Restless: people who are ever more advanced in the way they manage our customers and in the continuous search for new ways of meeting their expectations.

Vodafone Italy Customer Operation

Vodafone Group and Market

Vodafone Group

44 COUNTRIES and 163 million customers

Customer base over 163 million: 1/4 of the subscribers of mobile telephony in the world Agreements with 426 operators in 223 countries
7 Vodafone Italy Customer Operation

Vodafone Italy and Market

Shareholders
23,14%
Verizon Vodafone

76,86%

Vodafone Italy Customer Operation

Vodafone Italy today

Customers: 23.688,000 at 31 December 2005 88 offices: located throughout Italy GSM Coverage: 97% of the country equal to 94% of the
population

UMTS coverage: 70% of the population

Call Centers: 8 Call Centres operating in Milan, Rome,
Padua, Ivrea, Naples, Pisa, Catania and Bologna

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Vodafone Italy Customer Operation

Annual Report 2004/2005

Total revenues: 8,159 million euro (+7%) Service revenues: + 7% EBITDA: 4,340 million euro (+8%) Investments: 1 billion euro from April 2004 to March 2005

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Vodafone Italy Customer Operation

Vodafone Italy people

9.411 employees at 31st December 2005 MIX FOR GENDER
Women 56%

MIX FOR STUDIES

Secondary school 73%

Men 44%

Bachelor 27%

Average age 34 years

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Vodafone Italy Customer Operation

Italian market shares

Total subscribers as of 30 September 2005

19,4%

7%

39,7%

33,9%
Source: Operators own data

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Vodafone Italy Customer Operation

Vodafone live!
Motorola V3X

Easy User Interface

Color Multimedia Services

Exclusives Partner and Contents Personalized multimedia phones

Samsung ZV10

Life is Now On Vodafone live!

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Vodafone Italy Customer Operation

UMTS for Vodafone Italy

. is the evolution of actual services
Connect Card

+ exitement
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+ fast

Customer Operations in Vodafone

Organisation structure 1/2

Vodafone Italy

Chief Executive Officer Pietro Guindani North West Region Giovanni Orestano Finance Margherita Della Valle Human Resources and Organization Michele A. Verna North East Region Salvatore Saia

Centre Region Pierpaolo Cardamone

Public and Legal Affairs Bianca M. Martinelli Safety, Security and Facilities Stefano Bargellini South Region Pasquale Fedele

Strategy Pietro Guindani a.i. (acting Stefano Gastaut)

Technology Didier Lebrat

Commercial Operations Paolo Bertoluzzo

Supply Chain Management Francesca Fiore

Media Relations and Corporate Communication Silvia de Blasio

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Vodafone Italy Customer Operation

Organisation structure 2/2

Commercial Operations

Commercial Operations Paolo Bertoluzzo

Commercial Planning Stefano Gastaut

Business Division Laura Cioli

Consumer Division Roberto Larocca

Customer Operations Ferruccio Borsani

Brand and Advertising Gianfranco Piccolo

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Vodafone Italy Customer Operation

CRM Goals

CRM Vision
Deliver the best treatment to each customer at the right time through the most suitable channel at the appropriate cost
Corporate Strategy
Delight our customers Achieve global scale and scope Extend our core business Build the best workforce Exceed shareholder expectations Live good corporate citizenship

Brand Strategy
Vodafone helps people enjoy richer communication, anywhere, anytime Always reliable Always easy Always great value Passionately delivered

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Vodafone Italy Customer Operation

CRM Vision more in detail

Maximizing the value of each customers relationship with Vodafone, from both the consumers and the companys perspective.

Vision

Delight the customer

Maximize customer value

Manage costs (people, process and technology)

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Vodafone Italy Customer Operation

Our evolution
Service Delivery to Value Delivery

"Value Delivery"
Points of sales Customer Call Centre (Direct) Marketing

Customer Lifetime Management

"Service Delivery"
Customer Call Centre

Pure Service

Reactive, pret--porter approach Service delivered to customer as a duty Splitted processes and IT supports It manages costs and operating efficiency Service Provider culture

Proactive, tailor-made approach, segmented by customer needs It use contacts with customers to generate value for the customer and the company Integrated processes and IT supports It manages Profitability and customer satisfaction Company representative culture

Contact Centres

Multichannel Perspective

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Vodafone Italy Customer Operation

Our goals
In a context of highly competitive market to still keeping leadership, we need to invest in relationship with every customer because our goal is

GENERATE VALUE

TO VODAFONE

TO CUSTOMER

Needs and expectations satisfaction

Churn reduction To feel unique in the relationship with Vodafone Loyalty
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Profitability increase

Market context (1/2)

Focus on Customer Base Mature Market Management

Start up

Growth

1996/1997
Commercial Start up Reporting + basic segmentation

1998/2000
Leadership Achievement Profiling and segmentation Based on CRM: Customer Value Score Churn propensity

2001
Leadership Consolidation 360 Customer view: Customer segmented by attitudes and ways of life Propensity to use VAS NBA Model

Strategy

Customer Insights

Activations
Traffic/kind of calls Customer demographic profiling

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Vodafone Italy Customer Operation

Market Context (2/2)

Segmentation

What does segmentation mean?

To divide customer base in heterogeneous customers group with distinguishable needs and behaviours that allow to direct them custom-made marketing propositions.

Why segmentation?

Segmentation helps financial resources to be used in a more effective way improving profitability and investment revenues.

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Vodafone Italy Customer Operation

Multimarket Segments
Business
International Business Travellers
Travel extensively (especially International) - need to be contactable everywhere. Keeps phone on all the time - doesn't want to miss opportunity. Work is primary focus- leads to work/life imbalance High mobile Usage and very high ARPU Embrace technology for efficiency and productivity

Consumer
Teens
Need to belong - need constant contact. Need fun, entertainment and relief from boredom. Highly social - very image conscious 17 and under - still at home and at school. Budget constrained, very low ARPU.

Young Active Fun

Ultimate pleasure seekers - with friends, entertainment and enjoyment as priorities. Have freedom and desire for spontaneity -now can really live life to the full. Typically younger adults - in education or early stages of career. Budget constraints disappearing but still price/value conscious. Positive attitude to technology in general Manage a hectic life and want to be in control Mobile for security and family contact - not core to their life and only used when away from fixed line. Lower comfort and interest in technology Value driven - cautious money managers who rely on tried and trusted brands. Typically middle aged, in established families.

Company Paid
Company pays for business (and often personal) calls low price sensitivity Chooser relationship Contactable when he needs/wants to be - not 24/7. Works hard and plays hard - knows when to switch off. Typically Senior/middle managers in large/medium companies Embrace technology for efficiency and productivity

Adult Personal User

Self Choosers for Work

Business needs but consumer sensitivities to price/value Pays own bill Need mobile for business and social- mobile as life manager Job is important, so is social life Keeps phone on all the time - doesn't want to miss opportunity Uses functional products that help them stay in touch

Mature Basics
Typically older aged, empty nesters Mobile for security/emergencies. Mainly voice, with low ARPU - risk avoiders and cost conscious Low technology engagement.

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Vodafone Italy Customer Operation

Winning team has to control complexity...

Customer Care in Vodafone

Organisation structure
Customer Operations

Customer Operations Ferruccio Borsani

Operational Planning & Analysis Marco Gillone

Consumer Customer Operations Manlio Costantini

Business Customer Operations Antonio Turroni

Credit & Risk Management (Bus./Cons. Cust.) Ortenzio Bibbo

Web Services Paolo Lucibello

North West Customer Care Giovanni Orestano

North East Customer Care Alessandro Varotto

Centre Customer Care Maria P. Masturzo

South Customer Care Paolo Patrucco

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Vodafone Italy Customer Operation

COPS: data overview*

8 call centers operating in Italy and 2 outsourcing call centers 35,6 million live calls to 190 queues

3 million live calls to Business queues

*FY: April 2005 to March 2006

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Vodafone Italy Customer Operation

Call Centers Vodafone Italy

8 CC

Milano Roma Ivrea Napoli Padova Pisa Catania Bologna

August 1995 October 1995 February 1996 April 1996 March 1997 October 1998 December 1998 July 1999

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Vodafone Italy Customer Operation

North East Customer Care

Director
Train & Knowledge Manager

Tot. 1.100 employees

Planning Manager

Formazione

Audit & KM

Analisi & Costing

Planning & Scheduling

Manager Cc Padova
Area Manager HIS & FL
8 Team Leader

Manager Cc Bologna
Area Manager HIS & NM
12 Team Leader

Manager Cc Business
Area Manager Acquisizione
7 Team Leader

Area Manager FL
8 Team leader

Area Manager FL
12 Team leader

Area Manager FL
7 Team leader

15 Rep x Team

15 Rep x Team

15 Rep x Team

15 Rep x Team

15 Rep x Team

15 Rep x Team

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Vodafone Italy Customer Operation

Goals implementation: guide lines

Operating guide lines
one rep solution integrated management trading management blended management

Professional identity
rep as usual work work management oriented work focused on customer needs

Technological platforms
workflow and commitment management management focused on all media interfunctional processes management knowledge management activity based on routing team reporting management

Microorganizing Structure
team management As operational results ... As knowledge development

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Vodafone Italy Customer Operation

I processi
Engineering Delivery Execution

KPIs
Improvement
Engineering: progetta e mette a punto i processi, i contenuti e gli strumenti con cui gestiamo i servizi ai clienti Delivery: diffonde i contenuti, le competenze e gli strumenti alla struttura operativa

Execution: fornisce i servizi al clienti, monitora le performance operative e laderenza ai metodi / processi di lavoro
Improvement: raccoglie i suggerimenti e migliora processi, strumenti e informazioni KPI determina gli indicatori per misurare lefficienza ed efficacia dellintero processo

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Vodafone Italy Customer Operation

Engineering
Engineering Delivery KPIs Improvement Execution

Tracciando in modo sistematico lo storico dei prodotti e dei processi in un

Database prodotti, otteniamo una sorta di conoscenza incrementale da utilizzare ad esperienza nelle future implementazioni. Progettazione dei contenuti e dei processi di servizo con fasi di test e

valutazione che coinvolgono i REP prima del rilascio finale

Lay out delle informazioni su KMS a supporto del REP durante le chiamate

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Vodafone Italy Customer Operation

Delivery
Engineering Delivery KPIs Improvement Execution

Erogazione della formazione Canvass da parte della Formazione di Zona Regole comuni per lerogazione della formazione (es. team briefing introduttivi) e per la definizione di piani di recovery Strumenti pi flessibili per il training (es. WBT modulari) Monitoraggio sistematico e tempestivo dellefficacia del training Azioni di gap reduction comuni e strutturate Strumenti per segnalare e monitorare la diffusione degli aggiornamenti su KM (Bacheca, Pop up, etc.)

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Vodafone Italy Customer Operation

Execution

Engineering

Delivery KPIs

Execution

Improvement

Strumenti di gestione dei clienti Strumenti di monitoraggio omogenei (mistery e affiancamenti, reporting orario KPIs) Azioni di gap reduction omogenee

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Vodafone Italy Customer Operation

Improvement
Engineering Delivery KPIs Improvement Execution

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Momenti di capturing dei suggerimenti (team briefing, affiancamenti,

tavole rotonde) Form standard di raccolta proposte di miglioramento (Improvement Request) Processo formalizzato di selezione delle proposte e di canalizzazione vs HQ Tracciamento sistematico delle proposte e feedback personalizzati

Vodafone Italy Customer Operation

KPIs

Engineering

Delivery KPIs

Execution

Improvement

Customer Satisfaction Index / On Line Livello di Servizio a 20 sec

Tasso di Abbandono
Produttivita Media per Agente % Next Best Activity % Recall

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% Knowledge Mgm
% Blending

Vodafone Italy Customer Operation

Pianificazione day Modello lineare calcolo agenti necessari

AVG Day

OFFERTE % Chiamate non risposte

15119 4% 6% 13700 60 414 420 100

Q u e u e

% Risposte < y secondi GESTITE PRODUTTIVITA' GIORNO Minuti Giorno Lavorati FABBISOGNO FTE AGENTI MEDI DAY

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Vodafone Italy Customer Operation

Simulazioni di calcolo della copertura agenti

http://www.erlang.com/calculator/call/
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Esempio di un giorno tipo

180 160 140 120 100 80 60 40 20 0 8 10 12 14 16 18 20 22

lineare

invision

erlang c

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Vodafone Italy Customer Operation

Customer Satisfaction Index - CDI

Customer Care CSI-CDI

90

(Italy-Mobile Market)

CDI
85 81 80 80 78 75 75 80 80 79 78 79 76 78 75 75 71 69 71 68 65 70 71 69 66 79 80 78 80 77 74 80 78 76 71 70 80 78 80 77

74
74

77

73

72

70

72 71 71

72

71 69

72 68

IX-04

XI-04

IX-05

XI-05

III-04

III-05

I-05

VII-04

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Vodafone Italy Customer Operation

III-05 test

VII-05

V-04

V-05

I-06

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