On overview of (1) the mobile phone market segment for seniors (2) the Seniors Segment in Australia

1. The Senior Market Segment
Australian Seniors
Andrew Batchelor, General Manager Australia
November 2011

2. Doro’s Mission
We help people who face the challenges of
ageing to live an easier, safer and more
fulfilling everyday life
by developing products
especially adapted to their
needs

3. Mobile Operators
Selling to Seniors

4. Mobile Operators
Increase Sales
• New customers – finally a handset for me
• Increased traffic with existing customers
• Increased ARPU
– an adapted handset is more often on
– more incoming calls increases revenues with
other users and reduces termination cost
– more outgoing calls
• Additional Services and content sales
• Seniors are loyal customers = high CLV
– stay for a long time
– low cost to retain
– no win back cost
ARPU = Average Revenue Per User
CLV = Customer Lifetime Value

5. Beyond ARPU/CLV:
Revenue In Social Entities
An adapted senior handset
+ an adapted calling plan
+ rebates for friends and family
= stable important customer that will benefit
from the fact that his/hers near and dear
have the same operator, generating:
• more customers in the senior‟s social &
family network
• less churn and win back cost among the
seniors friends and families
• 1 senior = 10 loyal customers!

6. Understanding Seniors

7. The Senior Segment
Tip: when speaking to customers (eg in media) we typically avoid using
Seniors as a label, we prefer Easy to Use mobiles, not mobiles for Seniors…
there is less stigma attached to this style of messaging.

8. A very diverse group
• “Stop putting us between 60 and
107 in the same basket, thinking
that we are all alike. We are all
unique.” Tullia von Sydow, senior
member of the Swedish Parliament
• Doro has made significant
investment in understanding
Seniors' needs, in product
design and in segmenting the
target group.
Tullia von Sydow

9. Summary – The Doro Senior Segmentation groups
” It’s new, it’s
”It is a functional technologically innovative,
tool and it should it gives pleasure and it’s
work when I need it” the future – I want it ”
1. Functional
1. Functional
” I actually don’t
have a real need
for it, but if I buy
one it must be 3. Pioneers
cheap”
”It looks good,
provides me with
the right image and
it is convenient – I
2. Unengaged will buy it directly”
”It is very easy, has
”It is easy, has very few functions,
many functions, tailor made for seniors
tailor made for and I could use it
seniors and I could everywhere”
use it everywhere”
6. Image
4. Modern
5. Traditionalist

10. The Doro Senior Segmentation model
High Techno involved
Pioneers
Modern
Planning and Spontaneous
utility driven and pleasure driven
Functional Image
Traditionalist
Unengaged
Low techno involvement
Based on the results from the Doro Usage and attitude study . National
representative sample of population age 65 + in Sweden, France, the UK, the
US and Germany in February 2010. Result based on 2500 telephone interviews.

11. Who we target
• Seniors with mild to severe impairments
and/or feelings of insecurity
• Common impairments*
– 82 % have vision related problems
– 29 % with hearing loss
– 42 % have problems gripping or handling
– 46 % feel insecure
* European figures

12. In the minds of seniors to be
• When do we begin to see ourselves as seniors?
– when we approach retirement
– when we become grandparents
– when we admit to ourselves that we need
assistive aids, e.g. hearing aids

13. Understanding seniors
from their perspective
• Through crucial research we find out what is important to seniors
• We also consider the factors that separate seniors when developing
products for bringing them „more of life‟
– Values
– Physical needs
– Social & cultural situations

14. Understanding seniors
from their perspective
• How to communicate
• What language to use and not use
• When is a person prepared to admit that he/she has a special need?

15. A product easy to use
- will be used
• Attitudes towards new technical products and services
• 46% are scared or feel insecure with new technology

16. Few GSM functions used
• Voice and SMS
usage is totally
dominating
• Current usage of
different mobile
services/have used
during the last 2
weeks
%

17. Key values and aspirations
for seniors
• This group is very safety and stability oriented.
• The home and the family is very important to them.
• They are basically uninterested and uncertain about new technology
and often can find reasons for not using it.
• They hold strong values of equality and fairness where they believe
that everybody should be treated fair and alike.

18. Key values and aspirations
for seniors
• They are suspicious towards the market and they willingly listen to
experts (Government ,consumer agencies, different institutes,
magazines, etc).
• They hold a very rational attitude towards Telecom and may be
attracted by simple, transparent products and services that can
improve their daily lives.
• They are loyal as consumers and do not often change supplier.

19. Ongoing Research & Development

20. Amplification – Handset loud and clear sound
40 dB level compared with competitors
35
35
30 29 29 29 29
25 24
22
20
15 13
10
5
0
Doro Doro Doro Doro Doro Competitor Competitor Competitor
338gsm 342gsm 345gsm 410gsm 334gsm A B* C
* Competitor B market and sold as an amplified phone.
The Swedish Association of Hard of Hearing People recommends
Doro PhoneEasy® 410gsm for people with hearing aid.

21. Project ‘Technology for elderly
people’
Collaboration between Ergonomidesign, Doro and The Ministry of
Health and Social Affairs for The Swedish Institute of Assistive
Technology
The aim of the project was to design and develop an user-friendly
graphical user interface for Doro‟s easy to use mobile phones.
Test method
– 15 individual user tests : 54 – 83 years.
Individually perform 10 tasks without user guide.
– Focus group

22. 1.Turn the phone Off/On
2.Answer a Call & Adjust the volume
3.Receive & Read a SMS
Tasks to perform within 1 4.Call a number
hour and without user 5.Call a contact
manual. 6.Write & Send a SMS to a contact
7.Add a contact
Overall the respondents thought that Doro
phones were „Easy to understand‟, „clear‟ and 8.Set the alarm
„simple‟. 9.Adjust the Radio frequency
10.Turn the flashlight On/Off

23. General Positive Findings
• The overall impression of the phones are that they are clear,
simple and easy to understand.
• Users are generally positive to the overall shape and size of
the phone.
• Users like the keypad; size and legibility of numbers and
distance between buttons.
• Users like the menu icons and understand their meaning.
• Users are positive to the menu navigation and found it easy to
find the different functions.

24. The study resulted in a number of recommendations
which ALL have been implemented!
Please visit http://www.teknikforaldre.se/

25. Australian Seniors

26. 3,079,370
or 13.2% of Australians are 65 or older
Six million or 40% of the voting population, are over 50
Australian Bureau of Statistics

27. Doro’s Synovate Study
Doro invests significant time and money on research and
development to understand the needs of seniors. An
example is an independent study conducted by Synovate.
Key findings:
• 71% of seniors have access to a mobile phone
• 90% of the 65-74 have a mobile phone
• Two-thirds of the 75+ have a mobile phone
• Seniors use their mobile phone mostly to make calls (82%)
and secondly for text messages (35%)
• 42% still feel intimidated and hesitant of new technology
More than 2,000 telephone interviews in USA, Germany, UK, France and Sweden
by Synovate. The people interviewed were all 65 or older.

28. Why do Seniors have difficulty with
‘normal’ mobile phones?
Common age related impairments
– 82 % have vision related problems*
– 50 % with hearing loss**
– 42 % have problems gripping or handling *
– 46 % feel insecure *
* European figures
** Australian figures

29. Seniors as Mobile Users
• Seniors are sold or given mobile phones they cannot use:
– The screens are too small, too cluttered, too confusing
– The keypad is too small, not comfortable with touch
screens
– The ringer & speaker arent loud enough, not the best HAC
– Too many functions they dont understand or use
• When a Senior uses a Doro Easy Phone they find it:
– Easy to Use
– Easy to See
– Easy to Hear
– Gives them a sense of Security

30. Visual Impairment
Over 2,000,000 Australian
Seniors suffer from
visual impairment
Doro is Easy to See

31. Doro – Easy to See
• Separated keys in contrast colour.
• Sharp display with good contrast
between text and background.
• Large text everywhere.
• Possible to adjust font size.
• Possible to adjust display brightness.
• Possible to adjust background
colour/themes.

32. Hearing Loss
3,550,000 Australians suffer
from hearing loss
2nd most prevalent health concern in Australia
50% of the over 60’s find communication difficult
due to hearing loss
Better Hearing Australia
Doro is Easy to Hear

33. Doro – Easy to Hear
• Easy to adjust sound level.
• Very loud and clear sound.
• Best Hearing Aid Compatible (HAC)
M3/T4.
• Tone curve adjustment.
• High ringtone and strong vibration.
• Ring signal with both high and low
frequency components.

34. 1,300,000
Australian Seniors have issues with dexterity (approx)
Doro is Easy to Use

35. Doro – Easy to Use
• Ergonomic and user-friendly design.
• Easy to handle menu system.
• Charging cradle.
• No key-lock hassle
(due to clam design or separate key lock button).
• Direct keys ; for your 3 most important
contacts, SMS and camera.
• Block out unwanted functions.

36. Doro – A Sense of Security
• Activate the emergency key function on the back. Press and get loud
signal to get attention as well as text and voice call to key persons.
(Easy to activate and deactivate).
• Up to 22 days standy time
• ICE (In Case of Emergency).

37. Doro Mobiles – Adapted for Seniors

38. What ‘DESIGN BY DORO OF
SWEDEN’ really means
User-adapted Smart form Total experience
design and function of quality

39. User-
adapted
design
User-adapted design

40. Smart
form and
function
Smart form and function
Bringing users these key benefits
easier to read
easier to understand and use
better adapted to the user
easier to hear
helpful for remembering
easier to handle
improving the user‟s safety

41. Total
experience
of quality
Total experience
of quality