CUSTOMER RELATIONSHIP MANAGEMENT

TERM 5 | PGDM 2017-19

Study

On

Customer Relationship Management at Telecom Industry

Submitted by:

Group 3

Sl No PGDM No. Name

1 17010 Deepti PS
2 17032 Sahana Devi
3 17055 K J Aiyappa
4 17080 Regina Vaz
5 17105 Basappa Sagar K S
6 17128 Rakesh Kumar

Submitted to:

Prof. Sugant R

Associate Professor – Marketing

SDMIMD, Mysuru
Contents

3 Customer satisfaction and loyalty in telecom ..................................................................... 3

3.1 Influence of Service Quality Dimensions on Customer Satisfaction ............................... 3
3.2 Factors affecting customer loyalty ................................................................................... 3
3.3 Customer service .............................................................................................................. 3
3.4 Switching cost .................................................................................................................. 3
3.5 Sales promotion ................................................................................................................ 4
3.6 Coverage and signal strength ........................................................................................... 4
4 Managing Customer Life Cycle in Telecom ....................................................................... 4
4.1. Value of Customers ......................................................................................................... 5
4.2 Welcoming ....................................................................................................................... 5
4.3 Getting to Know Customers-............................................................................................ 5
4.4 Customer Development .................................................................................................... 5
4.5 Managing Problems.......................................................................................................... 6
4.6 CRM at Zain ..................................................................................................................... 7
4.7 Comparison between Airtel and Zain............................................................................... 7
4.8 Findings ............................................................................................................................ 8
3 Customer satisfaction and loyalty in telecom
Telecom industries in the recent past have been facing intense competition. In order to curb
this quality of service provided plays a dominant role to keep the customers satisfied. Service
quality dimensions like tangibility, empathy, tangibility, assurance and responsiveness
influence the customer satisfaction greatly. For any organisation, it is important to see if the
perceived expectations regarding quality is met.

3.1 Influence of Service Quality Dimensions on Customer Satisfaction

Satisfied customers will always be loyal. To satisfy the customers it is important to understand
the needs of the customers. Customer satisfaction is not a onetime process. Organisations are
required to strive every day to have a pool of satisfied customers. (Phaneendra, Jyothsna, &
Mahalakshmi, 2016)

3.2 Factors affecting customer loyalty

Factors that influence customer satisfaction in a telecom industry are, call rates, network
coverage and sales promotions. Where call rates, signal strength and value-added services are
the major factors for customers to switch brands.

3.3 Customer service

The customer service staff is expected to communicatee effectively with the customers and
troubleshoot their problems. They must be able to analyse the needs of the customers and
inform about the new offerings. Customer complaint must be handled effectively.

3.4 Switching cost

The higher the switching barriers, the more the customer to loyal to the current brand. There
are three types of switching barriers:

 Interpersonal relationships – the strong bond developed between the employees of

the supplier and the customers.
 High switching cost – the customers perception of time, money and effort associated
with the switching the supplier.
 Attractiveness of alternatives – This refers to whether viable alternatives exist in the
market.
3.5 Sales promotion
Promotions can create a positive impact on its customers. It can influence the buying decision
like brand choice and brand switching. Organisations use promotions as a tool to convince
customers to purchase their product.

3.6 Coverage and signal strength

Communication is about staying connected throughout the world. The coverage is generally
better in urban areas than in rural areas. If the telecom company fail to provide adequate
coverage, it may lead to dissatisfied customers. (Shahzad Khan, 2012)

4 Managing Customer Life Cycle in Telecom

It has been found that acquiring customers is much more expensive than keeping them. One of
the ways in which operators are trying to improve customer relationship management is by
focusing on the customer lifecycle. In order to ensure that all relevant areas of CRM are covered
in this study the customer lifecycle this model was used as a framework, during the interviews
with MNOs in Sri Lanka and Bangladesh. The following section gives a brief description of
the practices of Sri Lankan and Bangladeshi mobile operators at each stage of the lifecycle.

Targeting >> Enquiry Management>> Welcoming>> Getting to know Customers >>

Customer Development >> Managing problems>> Win back >> Back to Targeting
(Continued process)

Focusing in both Sri Lanka and Bangladesh portable administrators focused on their potential
client base basically through regular publicizing strategies, for example, daily papers, radio,
TV, shop marking and so on. They likewise depended on client referrals. It is unlawful to do
similar publicizing against different administrators in Bangladesh, however Social Network
Analysis is lawful, where numerous administrators dissect their client call 2 Based on BTRC
meet in Dec 2012.

Examples to recognize high esteem clients from different systems who are then given
uncommon offers to switch. This training is done routinely and is a typical in Bangladesh. To
such an extent, that in a few occasions even CXO level staff have been drawn closer
(unconsciously) with offers to change to a contender arrange. In Sri Lanka breaking down
clients' call designs is illicit. In any case, unscrupulous practices that involved some type of
primer call design examination were accounted for Targeting of BOP and micro-entrepreneurs
4.1. Value of Customers: Generally customers are segmented according to their usage and age
on network (AoN).Highest value customers are served sooner while other customers are served
on a first-come-first-served basis.
4.2 Welcoming- Administrators in both Sri Lanka and Bangladesh for the most part pursue
comparative techniques to enlist new clients on their systems. When obtaining a prepaid
association a distinguishing proof report (e.g. international ID, national character card) and
appropriately filled enrolment frame are required. For post-paid associations confirmation of
location is required furthermore. . In Sri Lanka service bills (e.g. power or water charges, bank
explanations) can be utilized for this reason. Nonetheless, because of issues concerning
manufactured documentation, in Bangladesh an outsourced party sends 'sprinters' to physically
visit the location and affirm authenticity. This issue is likewise the reason with respect to why
pre initiated SIM cards are not sold. The SIM is just actuated subsequent to affirming
legitimacy of documentation and can take up to three days. For corporate/SME/ME
associations Registration and Trade licenses are additionally required.

4.3 Getting to Know Customers-With the increase of competition in the mobile telecom
sector, it is necessary to understand customer behaviour and respond accordingly. Most
operators in both countries segment their customer base according to the average monthly bill
and age on network (AoN). Other operators also segment the customer base according to
prepaid and post-paid and treat them differently.

Almost all operators conduct customer surveys (often outsourced to independent parties to
minimize biases) to find out their customers’ perceptions on network coverage, payment
methods, VAS, contact centre, show room experience etc. Sometimes they commission all
operator surveys so as to understand where they stand compared to other operators. Some
operators also conduct selective customer surveys about a specific product or service soon after
it has been launched.

4.4 Customer Development- The next logical step in the lifecycle is developing one’s
customer after having analysing the customer base to identify cross selling and up-selling
opportunities.

Most MNOs in Bangladesh do itemized client call examination and miniaturized scale division
to run focused on pilot crusades that are later stretched out to the entire portion in view of its
prosperity. For instance, pertinent advancements are sent to clients who got to the Internet by
means of their cell phones yet who did not keep on utilizing it. The utilization of advanced
mobile phones (recognized by the IMEI) and the absence of information utilize is another case
of client conduct that triggers an information driven limited time battle. Most Sri Lankan
administrators intermittently direct example examination to comprehend client conduct.
Crusades are outlined around the discoveries of this examination and advancements are
conveyed day by day, week after week or month to month. For instance, torpid prepaid clients
are offered free talk time or longer credit periods on the off chance that they begin reusing the
administration. There are diverse strategies on the quantity of battles per client every month as
steady SMSes from the administrator is frequently thought of as a threat. The quantity of
crusade SMSes sent to clients contrast from administrator to administrator, the range in Sri
Lanka is 3 messages every month to 15 messages per day.

4.5 Managing Problems- Reacting to client objections is a pivotal part of client care. Most
MNOs have an incorporated framework that consequently sends grumblings entered in to the
framework to alarm specialized staff. Indeed, even with less modern frameworks, the data and
process stream pursues a comparative course. Consistently the principal purpose of contact (the
client contact focus official) attempts their best to determine any issue, coming up short which
it is heightened to a senior and from there on to specialized staff after an appraisal of the idea
of the issue.

While some MNOs have a committed group of specialized staff who calls might be heightened
to, different MNOs prepare the contact focus benefit agents on conceivable specialized
inquiries. All Sri Lankan MNOs concurred that a blame repair requiring a specialist's visit to
the client commence is exceptionally uncommon as most issues can be settled remotely. An
assessment on the connection with the contact focus is asked for from the client through SMS.
While rehearses and inner procedures contrast by MNO, it was fascinating to take note of that
a Bangladeshi MNO proliferates the message of 'client is lord' by having the CXO level staff
make individual calls to arbitrarily chosen clients who have stopped grievances and assume
individual liability to guarantee the issue is settled.6. Win-back- Most operators in Bangladesh
do not have proactive win back strategies. They will try to retain post-paid customers who have
requested disconnection by offering fee waivers or additional services. In the case of prepaid,
a service notification such as ‘5 days to expiry’ is automatically sent to customers through a
system before their prepaid card expire and special offers are made if they top up before expiry.
Sri Lankan operators take ‘win-back’ to another level, in the sense that most MNOs have
dedicated teams whose main goal is to reduce the churn rates. (Gunaratne, 2013)
4.6 CRM at Zain
Almost all large companies have a formal CRM program. However, CRM programs may be
implemented in a variety of ways due to the large number of tools available. Zain's commitment
goes beyond developing the telecom market, but seeks to have an active participation and
contribution in developing areas, nurturing the communities and reaching out for the
disadvantaged. Zain actively supports projects and initiatives that contribute to the
development of various sectors and benefit young people, particularly in the area of education,
sports, and health. In order to increase its market share, Zain tries to improve its capabilities to
compete with rivals, acquire new customers and to retain the best of them. Zain implemented
online and off line CRM activities. Zain in Jordan built a convenient website for customer
development that saves time and increases productivity by providing quick information access
and efficient transaction processing. Each customer that registers to Zain’s website, needs to
submit his/her personal information. The type of personal information that the company
collects includes, for example, person’s name, address, date of birth, gender, telephone and fax
number, e-mail address.

Zain is collecting customers’ demographic data and other information in order to use data
mining and data warehousing tools that convert this huge volume of data into useful
information, which can be used for making business decisions later. The company may use
such information to notify Zain customers about: new features, products, services, special
offers, and to inform customers of any products and services offered by other companies that
Zain thinks may be of interest to them. Customers can choose to opt in this service and to
receive this information. Other usages of personal information that the company provides is
personalized services that meet customers' needs on their website. Subscribers reach the
application from the account page of Zain's website using their mobile phone numbers and a
password that can be easily obtained via SMS for free. Once they enter, the system greets them
by their name and informs them about offers available

4.7 Comparison between Airtel and Zain

Some of the important points for the comparison between the two companies to know the
position and strength of the companies and to find out which company is performing better.
Customer Base Bharti Airtel has about 243.336 million subscribers worldwide—232.95
million in India and South Asia and 50.949 million in Africa as of the end of December 2011.
The numbers include mobile services subscribers in 19 countries and Indian Telemedia services
and Digital services subscribers. Zain has commercial presence in 8 countries across the Middle
East and North Africa with about 42.7 million customers as of 31 December 2012

Revenue

 Total Revenue 2971.34 billion in 2012. (Airtel)

 Total Profit 47059.39 million in 2012. (Airtel)

 Total Revenue 4.58 billion in 2012. (Zain)

 Total Profit 902 million in 2012. (Zain)

Area Served

 Zain has its presence in 8 countries in the Middle East and North Africa.

 Airtel has its presence in South Asia, Africa and channel Island.

Employment

 Zain Company has 6000 employees.

 Airtel provide employment to 21300 people

4.8 Findings
1. Airtel implement CRM in their company whereas Zain also implemented CRM and e-CRM
in their company to retain their customer’s because the both of the companies know the value
of customer.

2. For their Customer’s Airtel divided its CRM into four parts according to the profile of the
customer Whersay in Zain they had no divided it CRM.

3. Zain provide free SMS to its customer on every recharge whereas Airtel do not provide such
facility to its customer

4. According to customer base and revenue, Airtel is way ahead from Zain.

5. Zain provide employment to 6000 people while Airtel provide employment to 21300 people.
6. Airtel purchased Zain mobile operation in 15 countries.

From the study it is very well may be looked at that Airtel is route ahead in business, client
base, audit and has separated its CRM with four sections thus is superior to Zain. Zain and
Airtel comprehends the significance of monitoring client needs and responding to them viably.
The CRM and e-CRM ventures encourage Zain and Airtel to comprehend, predict and react to
the necessities of its clients which eventually will prompt enhanced client execution. Zain and
Airtel currently offers broadened administrations to clients with different necessities and
desires; the outcome is reinforced client reliability. From the above examination and study
unmistakably Airtel is doing great from client base however Zain giving great administrations
to the client and its client reliability is progressively and less individuals leave the
administration on the grounds that Zain give great support of their client as well as give
additional advantage at no expense. While in Airtel on the off chance that we see that the client
are at some point chafe from their concern which they are confronting and client care
administrators are not ready to encourage them and they didn't give the answer for their client
quickly. On the off chance that we discuss CRM Zain is great then Airtel. Be that as it may, in
entire Airtel is far from Zain in light of the fact that it is third biggest media transmission benefit
on the planet and it additionally buy Zain activity in a portion of the nations. (Mohammed,
2013).
Bibliography
Gunaratne, S. Z. (2013). Customer Lifecycle Management practices in the telecom sector in
Bangladesh and Sri Lanka: Supply side perspective. Colombo: LIRNEasia.

Mohammed, M. F. (2013). Customer Relationship Management (Telecommunication.

International Journal of Business and Management Invention.

Phaneendra, D., Jyothsna, M., & Mahalakshmi, S. (2016). Influence of Service Quality
Dimensions on Customer Satisfaction of Telecom Services. Hyderabad: Journal of
Marketing Vistas.

Shahzad Khan, S. A. (2012). Determinants of Customer Satisfaction in Telecom Industry.

Journal of Basic and Applied.