Safaricom to spend Sh370m on client care shops upgrade

Safaricom has announced a Sh370 million plan to upgrade its customer care outlets in a move indicative of wider shifts in strategic direction by mobile firms.

The mobile phone firm, which said it was keen to renew its focus on its 12 million-strong customer base, will be revamping its retail outlets to become one-stop gadget and solutions shops.

“We have spent Sh35 million upgrading one facility in the CBD as a flagship. The shop has been developed to be a ‘Premier’ outlet, where we shall cater to the unique needs of our business customers,” said Safaricom Chief Commercial Officer, Mr Peter Arina.

The announcement comes at a time when mobile firms are reallocating their resources to focus on products that will entice and retain subscribers on their networks – a change from the scenario early this year when increased competition led to a vicious price war.

Last year’s price war was largely inspired by the entry of two new players into the market — Essar and Telkom Kenya — who were expected to challenge a market that has been dominated by Safaricom and Zain for the last ten years.

Prices dropped by 40 per cent over the year, which also led to a corresponding decline in revenues earned by the firms. Analysts predict that as the mobile firms move to protect their subscriber bases from cannibalization by each other and shrinking revenues, they will focus on customer retentive solutions.

Ambitious plan
Mr Arina said the outlets formed a key component of the success of Safaricom’s ambitious plan to become a leading Internet Service Provider (ISP) in coming months.

“These are one-stop shops for our customers and will offer converged communication services,” said Mr Arina. Safaricom will use the Sh370 million to upgrade outlets in key urban centres such as Malindi, Nyeri, Machakos and Garissa among others, outfitting them with a range of gadgets in addition to using them as consumer touch points.

In recent months, all four players, Safaricom, Zain, Telkom Kenya and Essar, have shifted their focus to initiatives that will keep their customers on their networks, introducing loyalty programmes and other products that enhance a customer’s relationship with their carrier.

For most, this has meant a renewed emphasis on customer care, customer retention and product development. Last month, Zain Kenya overhauled its retail outlet experience hoping to boost its presence among users in shopping mall environments.

“We believe the customer is key to the future of our success. Our retail centres are a means of transporting the brand closer to our consumers, and an avenue for feedback,” said Mr Meza.
In April, Safaricom opened a Sh800 million contact centre that it said it believed would rectify its flagging reputation on the customer service front.

Essar invested in a similar initiative to the tune of Sh600 million last year in a bid to resolve future customer care capacity issues before it entered the market. The Premier concept is not unique to Safaricom, with retail banker Barclays also using the same name to deliver enhanced customer care services to high tier customers.

According to data form Nuance, a global call centre solution provider, companies worldwide employ more than six million agents and spend more than $100 billion annually in customer care.