Why MTT “forever” takes a free step towards the SMB market

IT NewsTelecom Market News

Gennady Belash | 06/04/2020


On June 3, MTT Telecommunications Company officially announced the launch on the market of a tool to support the C2C segment of this market – the VDele mobile application, with and without a city number
subscription fee.

VDele application – is a virtual telephone exchange on a smartphone with important functions for small businesses and self-employed: free landline number, call management, flexible call forwarding,
the ability to record conversations, track missed calls, voice mail. In addition to telephony, the application has additional features: analytics of call efficiency, notification and
conference call.

Why did MTT decide to provide a city number and a mobile application for free, didn’t she, like many television companies, decide to give an application useful for microbusiness for a while, and
when users “get involved”, transfer it to a paid basis? Well no, Denis Shirokiy, Deputy General Director of MTT, said that this product will be free forever.
So what is MTT going to make money from?


It seems that this company has previously conducted a serious marketing research, which was later discussed by Denis Shiroky. According to Denis, there is such a market for C2C services, when the self-employed,
professionals, sole traders and small teams provide direct services to customers. In 2017, according to MTT, Avito and DataInsight, this market amounted to 10 million people.


This is a fairly large percentage of the working age population of Russia, the number of orders in this market exceeded 2 billion, and in monetary terms, this market exceeded 5 trillion rubles, and this is enough
a large amount for the Russian economy.


MTD’s VDele product is precisely aimed at this part of the SMB market. 3.2 million people will be self-employed from this market, they are considered, in terms of marketing and advertising, the most
“Clumsy.” However, studies have shown that half of the self-employed nonetheless pay for advertising and all of them are placed on professional sites such as Avito, PROFI.RU, Yule and others.
What do the data from these studies say? This is a fairly active market, in summary we can say that out of 10 million people pay 4 million for advertising, attracting customers. Advertising budget
self-employed makes up an average of 18% of their monthly revenue.


They place their ads on the Internet, on leaflets, on the radio, in newspapers, and use outdoor advertising. Naturally, for the self-employed, customer acquisition is critical and is the most important.
component in their labor activity. As can be seen from the diagram, 20% goes to flyers, 10% to outdoor advertising, etc.

“What is practically the only way to communicate with a client with this kind of advertising?” – Denis Shiroky asked a question and he answered it himself. – As you may have guessed, take orders by
“Telephone is the main channel for 10 million people who are actively working in this area in Russia.”

According to MTT, more than 500 million calls are lost monthly in the SMB segment. This figure is calculated from year to year, but the proportion of these calls does not grow due to the development of telecommunication technologies. At
choosing a supplier or contractor for a client – waiting is a serious problem. If the SMB market makes its potential customers wait, then every 15 minutes the probability that they
sell something, falls by 10%. After an hour of waiting, the loss is already 40%. In 70% of cases, customers choose as the contractor the one who first called back. According to the results of two MTT polls, 85%
respondents are more likely to trust companies with a landline number, businesses with city numbers and PBX receive 4 times more calls than those with only mobile numbers.

One of the key reasons people miss calls and answer them for so long is the difficulty in separating personal and work communication. In most cases, a C2C market representative
the same phone is used, which is called by both clients, relatives and friends.

Then he took the floor Vladimir Toropetskiy, Head of Product Development, MTT, he told what problems a representative of the C2C market has (see.
next slide).


This is what a typical potential customer looks like for MTT. During the development of the VDele product, the company interacted with more than 1,500 respondents, conducted more than 50 in-depth interviews, more than 20
different polls, and at the stage of interface development, she conducted usability testing. The result of these studies was the conclusion that mobile communication has insufficient functionality, solutions in the form
Virtual PBX has redundant functionality. All respondents agreed that the most convenient for them is a mobile application, without complex settings and it would be ideal if this
service was free forever. Such a solution was created by VDele MTT, its functionality is presented on the next slide.


According to Vladimir Toropetskiy, the confusion in personal and working communications was solved simply: all working communications appear in the mobile application and now do not confuse personal calls with
workers. As for the choice of a city number, then according to Vladimir Toropetskiy, Already products are available “in the 14 most popular cities in Russia”, all numbers are multi-channel, this
means that 2nd and 3rd simultaneous calls will not be missed. The interface will also tell you which calls were not processed. There is a Do Not Disturb mode and all calls in this case will be transferred to
voicemail Forwarding will redirect the call to your mobile phone in case of unstable Internet.

The call management function will distribute calls between the business owner and employees, and the “Conference” mode will expand the opportunities for communication with the team and customers. There is also a function
recording conversations. Voicemail records voice messages to all incoming calls after hours. Online call efficiency analytics has also been added.

So what is MTT planning to make money on? According to Ramil Bikkuzhin, Commercial Director MTT, the company offers a completely free city number. Those customers who
receive calls, MTT, as a telecom operator, receives money for incoming interconnect, customers who have begun to actively use the service will be able to acquire additional functionality for money,
such as packets of outgoing minutes to any numbers in Russia, and the MTT package does not have a statute of limitations, in addition, you can buy additional numbers.


Interregional TransitTelecom | MTT


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