Telkom has demonstrated notable success in the device insurance sector, serving approximately 1% of its customer base. This achievement emphasises the substantial growth potential within this market.
Currently, Telkom boasts 161,612 device policies, generating an impressive R284.5 million in revenue.
Despite this success, there remains ample opportunity for Telkom to expand its reach.
By signing up more customers, Telkom can aspire to the levels of market penetration seen by competitors such as Vodacom and MTN, who have achieved significantly higher penetration rates in the device insurance market.
The current figures reflect a promising start but also highlight the untapped potential within Telkom’s existing customer base.
As Telkom continues to focus on expanding its device insurance offerings, it can look to the successes of Vodacom and MTN as benchmarks.
Vodacom South Africa has 44.2 million customers with 2.6 million device policies, and generating R1.2 billion in revenues, while MTN South Africa has 36.5 million subscribers with 400 000 device policies and generating R400 million in revenues.
By employing strategic initiatives aimed at increasing customer awareness and adoption, Telkom is well-positioned to capture a larger share of this lucrative market.
“We will grow in insurance device insurance and complementary offerings by taking a phased approached, expanding offerings to build on our strong foundation,” Makgosi Mabaso, Telkom Consumer Business Managing Executive: Home and Business Solutions, said recently.
“We are building the Telkom of tomorrow through creating exciting offerings that will accelerate growth in non-connectivity revenue,”
“Telkom has shown impressive performance in device insurance, but there are opportunities to increase our momentum by onboarding more of our customer base.”
Devices to be insured include mobile phones, tablets, laptops and fixed-line routers.
In conclusion, Telkom’s initial success in device insurance is a strong indicator of future growth potential. With a robust strategy in place, the company has the opportunity to significantly increase its market penetration and revenue in this sector.
Also read: GUGU LOURIE: Consumer business could be a gold mine for Telkom
