Media Release
Skinny launches game changing new business model - Skinny Direct
Skinny launches pure online model for mobile sales and service
AUCKLAND NZ – Skinny Mobile has launched Skinny Direct, an innovative new online mobile platform that will change the
way people buy and use their mobile in New Zealand.
Skinny Direct is a completely new approach to mobile for New Zealand. Built from the ground up over the past 12 months,
it offers customers a pure online model for sales and service. Skinny Direct aims to break the current high churn, high
cost prepaid model, increasing profitability while giving customers the flexibility that they want.
Ross Parker, GM of Skinny comments, “Skinny Direct fills a gap in the market for customers who are data-loving
smartphone users, want low prices and are happy to manage their mobile account online. It is a direct response to
customer feedback which showed that our happiest customers are those that manage their mobile account purely online."
A new online platform
Skinny’s recently developed technology stack allows the business to be highly nimble in new product development. It is
this relative agility that has allowed the telco to develop Skinny Direct.
Skinny Direct is accessible via a new website and app. Customers sign up online, bring their own device, and can choose
to bring their existing number. There are no top-ups, no prepaid balances, no vouchers and no standard rates. Customers
will benefit from easy ‘one-click’ purchase functionality and pay by credit card.
Parker explains, “We think Skinny Direct will offer an amazing experience for customers – while significantly reducing
our costs. Our online-only model means there will be no physical points of sale, no top up commissions, no device
subsidies and auto-renewing plans. Everything is done simply and seamlessly online."
“The simplicity of this model means Skinny Direct can deliver mobile data at a price previously unavailable in the NZ
market."
More data at winning prices
New Zealanders’ appetite for the internet is growing with mobile data usage increasing by 88% in the past 12 months and
future projections pointing to exponential growth of mobile data usage.
Skinny Direct will offer the richest combination of data, NZ minutes and text in New Zealand, including unlimited NZ
calling and texting on all combos.
Combinations will include unlimited NZ voice calling (including voicemail). There will be no overage and no standard
rates. Two combos will be offered: 3GB will be available for $30; and 6GB for $50.
Customers will be able to purchase add-on data $10 for 1GB. These combos can only be used with a Skinny Direct SIM.
With super low prices and a no-frills approach, Skinny Direct will appeal to data-loving smartphone users, who have an
existing phone and want to manage their mobile usage themselves.
In a major milestone for a business operating in the highly competitive telco market, this financial year Skinny passed
200,000 active mobile customers (based on a 30-day activity measure) with Kiwis citing Skinny’s super low prices, award
winning customer service and no frills approach as reasons for choosing the market challenger.
The launch of Skinny Direct is just one more reason for Kiwis to choose New Zealand’s best value telco.
-ENDS
Notes to Editor
About Skinny
Skinny Direct is run by the team at Skinny Mobile and is a division of Spark New Zealand Trading Limited. Skinny
challenges the mobile market with a low price, no-frills approach in the prepay sector, and uses the Spark network for
its great coverage.
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SKINNY DIRECT – FAQ
Is Skinny Direct different to Skinny Mobile?
Both Skinny Mobile and Skinny Direct offer super low prices to kiwis But Skinny Direct is different – It is a pure
online model (from activate, buy, renew, use and pay) So Skinny Direct can strip out costs and pass on the benefits to
customers in the form of super rich combos Skinny Direct has a different SIM, different logo, different website,
different app. There is no need to top up,.
And there are no standard rates. And you need to bring your own mobile, Yes Skinny Direct is different to Skinny Mobile Is this an evolution of the Skinny Brand?
Yes. Skinny has always stood for a no-frills approach. This takes it one step further with an even more no-frills
approach (by going direct) to drive cost down. This has been on our roadmap for some time, it’s been in development for
12 months.
Does this replace Skinny Mobile?
No. Skinny Direct is one of the choices we offer our customers and it’s not right for everyone. Skinny Mobile will
continue under its current business model.
Are these just old plans with more data/mins/texts?
No. Skinny Direct is a whole new product that is only available online. You can’t be a Skinny Mobile customer and use
Skinny Direct. You must switch to Skinny Direct completely.
Skinny Direct products are very data focused. With voice / text revenues declining how much growth do you
forecast in data for the NZ market?
New Zealanders’ appetite for the internet is growing with mobile data usage increasing by 88% in the past 12 months and
future projections pointing to exponential growth of mobile data usage.
Won’t the online model mean less customer service?
We believe the type of customer that will use Skinny Direct are tech-savvy people who would prefer to self serve. They
don’t want to call us, as they are happy using an app and self serve Skinny Direct will still have a call centre for
those who get really stuck but there is really no need given our online dashboard and app.
How does the extra credit add on works?
The 'Extras Credit' is what you use to pay for the little things that aren’t included in our awesome Combos. For
example, you might want to send a PXT, call an 0900 number, or make an international call that doesn't come under any of
our International Calling Add-Ons. You can buy Extras Credit by using your registered card. There are four options to
choose from: $5, $10, $20, and $50. Extras Credit lasts 365 days.
How can customers switch to Skinny Direct?
It’s easy! Do it all online at skinnydirect.co.nz and you can bring your current phone number over at the same time.
How is Skinny using data to meet customers needs?
From a data perspective, we noticed customers are using lots more data over time. We totally understand that given the
rise of social media and video streaming via the phone. So our plans offer data rich.
From a service perspective we noticed customers who transacting with us on-line tended to stay longer with us and be
happier. While our call centre is fabulous, we understand this, given everyone is busy and time is precious! So we
developed Skinny Direct. An online model that allows customers to self serve easily and in return, customers get awesome
combo value What percentage of Skinny Mobile’s business is currently made up of online sales?
Skinny currently only sell less than 10% online. This is on par with our competition. However, we know that from
existing customers an online experience yields a better customer NPS & customer tenure.
New Zealand telco providers have so far failed to overcome the 10% online signup barrier. How will Skinny
Direct be different?
The market moves quickly. And trends on how kiwis are adopting online services is changing rapidly (consider the likes
of Uber etc). But we accept that a pure online model is not right for everyone, right now As a newer player to the
market, Skinny is an agile business. This means we are well positioned to adapt our business to meet our customers’
changing needs. We’ve built Skinny Direct as an online channel that is easy and low cost to manage and maintain.
How do you think your competitors will react to Skinny Direct?
How do you think your competitors will react to Skinny Direct?
We don’t have a view on what our competitors are going to do as a result of the launch of Skinny Direct.
Evidence from telcos around the world shows it’s hard to sell mobile online within the traditional model of selling
mobile services. And around the world, we’re seeing online only mobile platforms springing up in a number of markets.
The launch of Skinny Direct is a first in New Zealand: we’re delivering amazing value and a great customer experience by
asking our customers to come to us directly.