Bce Inc. · TSX:BCE
Bce — BMO Nesbitt Burns 2003 Telecom Conference
13 slides from Bce's conference presentation, Sep 16, 2003
Slide 1: Focusing on the Small Business Customer
Focusing on the Small Business Customer Karen Sheriff President, Small & Medium Business BMO Nesbitt Burns 2003 Telecom Conference September 16, 2003
Slide 2: Safe Harbor Notice
Safe Harbor Notice Certain statements made in the attached presentation are forward-looking statements and are subject to important risks, uncertainties and assumptions. The results or events predicted in these statements may differ materially from actual results or events. The forward-looking state
Slide 3: Small/Medium Business (SMB) Market
Small/Medium Business (SMB) Market Canadian SMB Addressable Market (Ont/Que) Wireless $0.6B 15% - 20% $0.8B ! Over 450K SMB 1% - 2% Customers ! Generates approx. $2B Wireline $3.3B $3.3B of revenue for Bell 2002 2003E A lucrative but heterogeneous $4B market growing at 3% to 4% 3
Slide 4: SMB Market has distinct needs
SMB Market has distinct needs Small Businesses are heterogeneous... ! SMB market defined as follows: > 20 employees − Small Business: < $30,000 in annual 5–19 telecom spend employees − Medium Business: $30,000 to 1-4 $300,000 in annual telecom spend employees ! Competition is being shaped by three t
Slide 5: SMB Segmentation driven by current value, future value and industry/vertical
SMB Segmentation driven by current value, future value and industry/vertical New- ! Lifetime value generally determined by initial contact Ins ! Pilots confirming value of treating as a separate entity ! Little early adoption of technology and low switching potential Small Mass ! Need to drive produ
Slide 6: Segmentation objective is mass customization
Segmentation objective is mass customization Meeting individual customer needs Key Focus Areas New-Ins Insight Mass High-Potential ! Segment-specific initiatives ! Driving new growth Differing Experience ! Channel efficiencies Value Investment Comm’ns/ Sales Proposition* Level Channels Approach ! Ma
Slide 7: SMB Focus
SMB Focus ! Significantly ramp up cross-sell for high potential customers ! Rationalize sales coverage to match customer value ! Simplify and improve the customer experience ! Deliver productivity improvement by reducing cost for low value customers ! Evaluate potential of delivering material growth
Slide 8: Clear SMB Demand for Integrated Service Offering
Clear SMB Demand for Integrated Service Offering Survey* highlights key … and actions they will take attributes customers want … ! Service reliability ! 74% likely to subscribe to a bundle ! Easy-to-understand pricing ! 62% willing to switch ! Value for money suppliers for a good bundle ! Supplier t
Slide 9: Significant opportunity exists for cross-sell
Significant opportunity exists for cross-sell ! Deliver growth through high potential customers ! 9% of SMB customers buy all key services (wireline, ! Offer the right solutions Mobility, Internet) ! Realign sales resources to tap under–penetrated − Untapped potential accounts ! Teach sales people h
Slide 10: Ongoing piloting efforts
Ongoing piloting efforts ! Tested approach on small Business Queue Best group Performer Pilot ! Provide sales reps with systematic call flows, targeted Changing sales techniques questions to model best performers ! Route new customers to the top reps Pilot produced increases in ! Simpler package off
Slide 11: Align sales coverage to match customer value and opportunity
Align sales coverage to match customer value and opportunity Customer Sales % Sales Segment group Coverage Growth Top 5% High 13 Large Next 35% Average 20 Enterprise The Rest Very Low -8 Top 5% High 16 Medium Next 35% Average -3 Business The Rest Very Low -15 Small Top 20% Average 4 Business The Res
Slide 12: Segmentation will help drive simplification and productivity
Segmentation will help drive simplification and productivity Segmentation enables: !For New-In customers, product offering has been streamlined !Improved customer insight, to drive with three targeted packages focused solution development −Total Communications !Focused sales teams who understand −Bu
Slide 13: In summary …
In summary … !! Key Keyfocus focusisison oncross-sell, cross-sell,up- up- sell and retention sell and retention !!SMB SMBsegmentation segmentationwill willlead leadto: to: !! Need Needto tofocus focusmarketing marketingactivity activity on: –– Improved Improvedmarketing marketing on: –– Increasing e