we are you


How we helped one of South Africa’s premier credit providers add value to the lives of their customers – and became part of them in the process

Intro


African Bank Limited is one of the country’s biggest credit providers. Currently serving over 1.1 million customers, the bank intends to grow the base to 2.5 million by 2021 and aims to do so through a variety of mechanisms. One of these avenues for growth and real customer empowerment is through technology.

The Challenge


One of the key obstacles to achieving disruptive innovation is the expense, skill and time required to build new channels for market acquisition. So, we needed to help ABL reach current and new consumers who are not able to afford tech devices such as laptops through traditional retail or retail credit providers.

The Solution


We approached African Bank with the idea of a new loan offering to enrich the lives of their current customers, as well as provide a platform to enrich new customers, through access to technology.

By bundling essential devices with loans, we could redefine loan products from being perceived as a cash-only offering into a “customer technology access” loan coupled with value-adds. In this case, it was designed to enable access to education.

While African Bank focused on their core competencies, we developed an end-to-end solution that encompassed marketing, training, logistics and after-sales support. The result offered customers the ability to purchase devices on credit through add-ons to their existing loans or as stand-alone technology loans.

The objectives


To develop a product offering that projects the core values of technology enrichment, i.e.:


1

Provide access to connectivity

2

Provide educational content in bundles that will enrich the end user

3

Provide an after-sales solution that will allow the customer and African Bank to have peace of mind

4

Deliver and service the full value proposition from order to customer delivery

5

Ensure the best “price to client” proposition through each product bundle

6

Upskill through training of African Bank call centres and branch network

7

Ensure a full understanding of the value proposition through all consumer channels

8

Increase new client attraction and client retention while showing a positive impact on revenue and growth for African Bank


Our idea was to create bundles that would appeal to the African Bank customer base, with the intention to create maximum value for the customer. Not only did we develop the bundle, we also sourced the data and technology to go with it – from the device itself to the accessories.

We also developed and implemented an integrated process, from procurement to delivery, servicing, customer queries and warranty fulfilment. This, along with a strategic marketing effort, was instrumental in the early sales push.

Services Offered



1

Procurement of product at zero risk (African Bank only pays for the product on successful delivery)

2

Digital Planet assumes all stock risk

3

Merchandising and bundle creation with strategic partners (Microsoft, Vast, HP, Mecer, etc)

4

Order management through Digital Planet’s order management system

5

Client-address verification before delivery

6

Full warehousing of all products

7

Courier management and end-consumer delivery facilitation

8

Call centre for all product and delivery queries

9

Product warranty and management of all after-sales services

10

African Bank national branch training and field sales management

11

Procurement of vendor funding for marketing initiatives

12

Full 360-degree fulfilment and product management solution

The Results


We assisted in increasing client acquisition and retention, as well as building a larger credit book for the bank. This resulted in a four-year (and counting) partnership in which we’ve enabled African Bank to grow, while making a REAL difference to the lives of their customers.

Launch Result

    • increase in client acquisition per branch in the first three months25%
    • staff participation on adopting the technology loan offering93%
    • growth month on month on technology loan sales in the first three100%

Current results since inception in 2014:

    • increase in loan acquisition from technology loans10%
    • An overall increase in low- to low-med-risk client acquisition6%
    • increase in applications based on customers wanting the technology loan19%
    • Increase in the average loan size when technology products are requested0%