2. BT click&buy - The Business
Proven:
• Launched on 2nd September 2002 - now 180+ content
partners.
• First in the “Ten to Watch” for 2003 - New Media Age.
• Winner of New Media Age Effectiveness Awards 2003 for Best
New Business and Grand Prix.
• National Business Awards 2003 Finalist.
• Quoted by the FT as “the UK market leader” 16 September
2003.
• BT click&buy are only successful if our content partners are
successful.
3. BT click&buy - Statistics
• 3.1 million global click&buy users
• 180+ content partners
• 20% - 75% revenue growth generated for content partners
• 40% uplift on subscriptions for several content partners
• 0.6% charge-backs due to BT’s active account management and
fraud processes
• BT click&buy account holder split
46% credit card, 32% direct debit, 22% BT phone bill (credit
card % is high due to overseas customers)
• BT click&buy newsletters have generated up to 300% revenue
growth
4. Benefits to Partners: Incremental
Revenues
• BT Brand - ensures trust and stimulates purchases
• Widest range of payment choices including credit/debit card, Direct
Debit and BT phone bill (19 million)
• Network effect
• Customer experience
• Repeat purchases
• Marketing support
2004 Parks Associates
5. Benefits to Partners: Reduced Costs
• Fully managed flexible payment solution including
- technology, marketing, finance and customer service
• Systematic prevention of charge-backs and fraud
• Pursuit of failed payments
• No hardware or software investment required - reduced
administration costs
• No on-going overhead/development costs
- one-off setup fee + revenue share
• Transaction value from 25p upwards
• High repeat purchases (username + password to purchase)
6. BT click&buy - Key benefits to the
Consumer/Business
• One-off simple and secure registration.
• Security - consumers trust the BT brand which greatly
promotes purchases.
• Widest choice of payment options
• Only username and password required to purchase any
online content.
• Detailed and real-time transaction statements.
• Dedicated Call Centre providing full customer support.
8. BT click&buy High Conversion Rates
Our experience has shown that when consumers are given the widest choice
of payment options, the majority choose the BT Phone Bill or Online Direct
Debit.
We attribute this to the BT trusted brand, and consumers reticence to put
financial details over the web, especially as no financial details are required to
use the BT Phone Bill option.
Across all BT click&buy account holders the payment choice is:
- 22% BT Phone Bill, 32% Direct Debit, 46% Credit/Debit Card (April-July’04)
33%
However, GMTV and Granda see a greater % for the BT Phone Bill
32%
GMTV - 68% choose Granada - 73% choose
BT Bill or Direct Debit BT Bill or Direct Debit
33% 35%
32% 27%
35%
35% 38%
Credit Card Direct Debit BT Phone Bill
9. BT click&buy Account Holders - Payment Choice
across all Content Partners
BT Phone Bill
22% Credit card
46%
Note: These %’s differ
Direct debit based on types of content,
32% i.e. for geneology content
60%+ of the 51+ age group
choose BT phone bill.
(April - June’04)
10. Payment option chosen by Age Group across
all Content Partners
•Direct Debit is much more popular with the younger audience
•The BT phone bill popularity increases with age
Payment Option by Age
60.0%
50.0%
40.0% Direct Debit
Credit Card
30.0%
Blue Bill
20.0%
10.0%
0.0%
18-20 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61+
Age
Credit card stats also include Debit cards. Statistics upto July 2004.
11. Age Profile of Account Holders across all
Content Partners
Age Profile of BT click&buy Account Holders
Over 60
50-59 5%
11% 18-29
31%
40-49
20%
30-39
33%
18-29 30-39 40-49 50-59 Over 60
(July 2004)
12. BT click&buy delivers new customers
% of existing BT click&buy account holders who have
become new customers for the following web sites
30 27
24 22
25 19.3
20
15 12
9 10
10
5
0
13. BT click&buy - Any Type of Digital Content
• Articles (current / archive)
• Classified Advertising
• Competitions
• Reports / Newsletters
• Dating / Horoscopes • Pay per view
• Ring tones
• Subscriptions
• Images / Pictures
• Mobile content (SMS/MMS) • Membership
• Webcasts • Timed access
• Video clips • Trial Periods
• Electronic Tickets (Free/Discounted)
• Vouchers
• Online courses
• Screen savers etc
• Any online transaction
16. BT click&buy - Key benefits to you the
Content Partner
• Flexibility to sell any digital content or service, packaged in
numerous ways.
• Pricing managed in real-time giving you complete control.
• Statistics allow detailed demographic profiles and targeted
content development.
• Dual branded so users never leave your web site.
• BT click&buy can work alongside existing payment solutions.
• No merchant ID required, therefore no cost to you.
• Secure system with complex fraud checking processes.
17. BT click&buy - Case Studies
BT click&buy partners speak for themselves.
• The Independent - Combining “pay-per-view” with subscriptions to
maximise revenue
• AdTrader - How BT click&buy overcomes credit card drop-off to stimulate
revenue growth
• Partymob.com - Why buying online makes sense for mobile content
• dotmusic - How “fee” can compete with “free”
• Workthing - Instant online revenues without the hassle
• Channel 4: The Salon - Maximising online revenues from TV response
18. Revenue Share and Set Up
Charges
• Monthly recurring Revenue share on Content Charges
• One-off Set Up Fee
Monthly revenues £50+ £10.00- £5.00- £2.50- £1.00-£2.49 50p to
£49.99 £9.99 £4.99 £0.99
UP TO £ 10,000 8% 11% 17% 25% 29.5% 32%
£10,000-£50,000 5.5% 7% 10% 23% 27.5% 30%
Above £50,000 5% 6% 9% 20% 24.5% 27%