Evolution of CRM practices and systems

in the Indian Cellular Telecom Industry

Team 2
Avnish Kamal Kshatriya
Kavitha Narayanan
Kingshuk Biswas
Siva Subramanian M.C
Vivek M Dipali
The Indian Telecom Industry

Indian Telecom Industry – Facts

 One of the fastest growing cellular  Total telecom subscribers – 225.21

markets in the world in terms of million (June 2007)
number of subscriber additions –  Tele density – 19.86 percent (June
19.35 million in 3 months (April to
2007)
June 2007)
 Number of new mobile subscribers
 Expected to reach total subscriber
added every month – 7.34 million
base of about 500 million by 2010
(June 2007)
(i.e., more than one phone for every
household)  ARPU for GSM – USD 6.6 per month

 Annual growth rate of the telecom  Telecom equipment market – USD

subscribers – 47 percent (2006–07) 17,100 million (2006–07)

 More GSM subscribers than fixed-line  Handset market – USD 4,750 million
subscribers (2006–07)
Drivers of growth

 Structural Reforms to Accelerate Economic Growth

 Proactive Policies: Key to Future Growth

 Cellular Subscribers and Revenues for Robust Growth

Key Trends in Telecom Industry
Landscape
 Higher acceptance for wireless services.
 Shift from Supply-side economics to demand-side economics.
 Built-up of overcapacities.
 Lower barriers to entry (especially foreign players)
 Attractive offers - higher customer switching
 Telecom based commerce & messaging (banking, trading,
SMS etc)
 Convergence of technologies.
 Rise in customer expectations: price, performance, network
coverage
 Strategic partnerships for higher share in value-chain
 Evolution of packaged CRM application vendors and system
integrators
 Evolution of business intelligence & analytics due to next
generation data processing and handling capabilities
Challenges in Telecom Industry
 Unprecedented business challenges as a result of industry
consolidation and technology convergence.
 Increased competition - Lower prices.
 Demand for enhanced customer experience.
 High rate of customer churn.
 Saturated markets leave little room to maneuver, debts stifle
capital investment, and rolling out new services is often
prohibitively expensive.
 But delivering on new strategic goals – profitability, lower
churn, higher customer satisfaction, reduced costs, and
competitive edge – is a must.
Business Drivers for CRM
implementation in Telecom Industry
 CRM implementation provides a single-view of customers.
 High operating leverage.
 Relatively lower switching costs for customers.
 Approximately 50% of customers are profit-drains.
 CRM implementation could help differentiate the quality of
services provided.
 Price wars.
 Marketing function could use existing information within
CRM.
 Fierce competition within telecom industry.
 Infrastructure allocations made by government
Existing CRM Practices in Telecom
Industry

 Existing CRM applications provide communications service providers

—including local, long-distance, broadband, cable, satellite, wireless,
Internet, and media content providers—with comprehensive family of
multichannel modules that enable them to create a single source of
customer information that makes it easier to sell to, market to and
service customers across multiple channels, including web, call
centres, field sales etc
Existing CRM Practices in Telecom
Industry - Modules
 Web Module
 E-Mail Response Module
 Call Centre Module
 Account Management Module
 Profiles Module
 Agreement and Entitlement Module
 Assets Module
 Billing Module
 Sales Module
 Field Service Module
 Marketing Module
 Partner Relationship Management (PRM) Module
Prevalent packaged CRM Solutions
 Siebel e-Communications Business application is the most
comprehensive CRM solution available in the market.

 Other solutions being used by this industry include Clarify, Vantive,

SAP etc.

 A few service providers who have developed their own CRM

solution coupling it tightly with their other systems.
CRM Permeates across
Organizational Operations
 Information systems (IS) personnel are charged with the primary
responsibility for technological improvements associated with other
functional areas, such as sales, marketing, customer service, or
general management.

 IS professionals recognize the need for the IS department to work

in harmony with the diverse organizational units involved in
implementation.

 Inter-functional cooperation is critical to achieve effective CRM

solutions.

 Pursue common goal of CRM Implementation.

Implementing CRM, Successfully.
There are five specific steps that can make the biggest impact
on CRM success

 Step 1: Use CRM to Clarify and Communication Business

Goals
 Step 2: Integrate CRM Tools into Communication Systems
 Step 3: Offer Routine Training on CRM Software
 Step 4: Leverage Hosted CRM Tools for Improved Work/Life Fit
 Step 5: Benchmark CRM Success
 Recommendations
The telecom industry can learn from other industries with regard to
CRM practices.
Harrah's "Total Rewards" loyalty program entitles members to entertainment, food and
hotel vouchers. In return, the casino operator is able to collect those customers' spending
Casinos and usage patterns and combine them with demographic information to identify its
valuable customers.
Online chat can help motivate customers to use a Web site. They know someone will be
Retail there to help if they have problems.
Don't bulldoze people into Web-based self-service. Instead of charging a fee for using a
Banking call centre, a more gentle approach is to disconnect its toll-free number.
Airline reservation systems are at least as complex as telco back offices. Yet that industry
Airlines has managed to section off Sabre so that customers have access to flight information
without having to go into the guts of the system.
Implement CRM systems incrementally. American Express deployed its CRM strategy for
Financial Services under $1 million, rolling it out in a few key markets first.
Thank You!