Creating real financial security
Excerpt from the Chief Executives Review (March 2020):
We offer our Partners a smarter way to earn: in their own time, on their own terms. They are one of the key strengths of our business, and certainly our greatest point of differentiation.
Through UW, they can create real financial security for themselves and their families by using their spare time to sign up new Members and introduce our income opportunity to other like-minded people; in doing so, they can earn meaningful short-term financial rewards combined with a long-term residual income. And by communicating the benefits of our unique multi-utility retail proposition to high quality customers who in many cases have never previously switched supplier, they give us a significant competitive advantage – in stark contrast to the routes to market adopted by other suppliers of similar essential household services. (all key to building financial security with UW)
The alignment of financial interest provided by our revenue sharing model and the structure of our compensation plan incentives our Partners to focus on finding creditworthy higher-spending Members who will reap the maximum savings from using our services, and will thus be least likely to churn; by doing so, they maximise their own long-term income. This ensures that cases of mis-selling are both inadvertent and extremely rare.
Our Quick Income Plan enables Partners to accelerate some of their commission payments on high quality customers that they introduce to UW. This initiative is a key driver behind the increasing numbers of new Partners joining each month, and the high quality of new Members they are gathering.
45,000-strong community of UW Partners
We are wholly committed to helping ‘Team Purple’ – our 45,000-strong community of Partners – to achieve their goals through UW, whatever they may be. To this end, we continue to invest in the digital tools we provide to them, further enriching the training and personal development programmes that we run for them, enhancing and simplifying the compensation plan, and running a wide selection of short and medium-term incentives to motivate them to greater levels of activity.
In response to Covid-19 social distancing restrictions, we brought forward elements of our product roadmap
to enable Partners to sign up both new customers and new Partners remotely. We have since developed these
tools further to enable experienced Partners to coach and support new Partners remotely on their first appointments, and remunerate them accordingly. These developments are exciting enhancements to our Partners’ toolkits, and we believe that they will lead to higher levels of Partner productivity and success in due course.
We are encouraged by the recent acceleration in the number of new Partners joining, with over 1,300 joining during the course of last month; this was almost 50% higher than the same period last year.
‘Double Gold’ bundle (Energy, Broadband and Mobile).
Our focus remains firmly on leveraging our multi-service point of differentiation in the residential market. There is a significant difference in average expected customer lifetimes between Members (and therefore in the revenues and profits they will generate) depending on whether they own their own home, and on the number of UW services we are providing to them. The most attractive category are homeowners taking all their services from us through our ‘Double Gold’ bundle (Energy, Broadband and Mobile).
Partners transitioned to remote appointments in response to Covid-19
Our focus and success in attracting this type of Member has been reflected in the consistently high proportion of new Members gathered by Partners who switch all their core services to us.
It is extremely encouraging that since our Partners transitioned to remote appointments in response to Covid-19, this proportion has remained above 60%. Average revenue per Member increased to £1,304 (2019: £1,245) due to a combination of higher energy prices, seasonally normal winter temperatures (the previous year was anomalously mild), a steadily increasing proportion of fibre broadband services within our membership base, and rising mobile ARPU as data usage continues to grow; these were partially offset by a reduction in average landline call spend.
Andrew Lindsay MBE
Chief Executive Officer
15 June 2020
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