Customer Relationship Management

System
In
Cellular Telecom Services

GROUP -2
CRM can be viewed in 4 principal ways

 Firstly it is a contemporary response to the emerging

climate of unprecedented customer churn, waning
brand loyalty and lower profitability.
 Secondly, CRM is central to the task of making an
organization customer centric.
 Thirdly, CRM is the surest symbol embracing IT in
business.
 Fourthly , CRM is the most certain way to increase
value to the customers and profitability to the
practicing organizations.

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  Effective CRM practices can mean the difference between the success
and failure of a business across all industries.
 CRM is a way of differentiation between customers to provide greater
value to more valuable customers. The meaning of more valuable
would be in terms of the monetary spending received from the
customer along with recency and frequency of visit.

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Definition

 “CRM is the business strategy that aims to

understand, anticipate, manage and personalize the
needs of an organization's current and potential
customers" -- PWC Consulting
 Rather it is the IT face of business processes that
aims to establish enduring and mutually beneficial
relationships with customers in order to drive
customer retention, value and profitability up.

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 As an example of the role of CRM , a report
published in the Harvard Business Review identified
that an increase in customer loyalty by 5 % could
increase the profits in telecom by over 50%
(Cockburn, 2000)
 A recent study by ICL for a UK Telco forecasts
through a business model that a 10% churn in the
segment of top customers would reduce the profits
by more than 25%.

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CRM Business Cycle

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 CRM IN HMTL
 Leading cellular operator in India .
 Subscriber base :
Mumbai - 200,000
Delhi - 205, 000
Gujrat - 120, 000
Calcutta - 40, 000
The Customer interactions can be segmented in to various
categories:
Email : 2%
Direct walk in : 5%
Fax / letter : 8%
Calls : 85%
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The customer dynamics of cellular telecom industry
include:
 20% of the customers contribute to 80% of the revenue.
 20% of the customers contribute to 90% of the profits.
 68% of the customer walk away because of poor service.
 A new sales is approximately 5 times more costly than a sale to an
existing customer.

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CRM SCHEME

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 Parameters for measuring the effectiveness
of CRM implementation
 Staffing Cost
 Total activation turnaround time
 Churn prevention
 Easier Handling peak loads
 Customer Service can be improved
 Customer History Records

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Cost parameters

The cost parameters are directly available in the

monetary terms :
 Cost of product acquisition including opportunity
cost and training cost is approximately 5 crore.
 Staffing cost.
 Telephone outcall cost

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 Benefits Parameters

 Improvement in customer service

 Reduced Staffing
 Minimizing churn
 Improved control of peak loads
 Fewer mistakes in billing
 Reduction in number of process steps
 Improved speed of communication

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Benefits of ORACLE CRM
 BENEFITS

 Customer segmentation
 Cross selling and up selling of relevant schemes
 Market analytics like records of customer profiles, profile,
payment history etc
 Generation of accurate leads and SMS bursts that target
only the right customers based on their segmentation is
possible
 First time resolution has increased from 40 % to more
than 90 %.

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 BENEFITS

 Customized and simplified bill formats, payment

collection centers, network deployments, and the
activation process was enabled
 Better value added services were provided
 It facilitated knowledge sharing amongst employees.
 Started e-billing
 Online customer support on new system
 Reduced cost of customer or customer acquisition
cost
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 BENEFITS

 Customized offers based on usage profiles.

– Discounts on reaching threshold
– Recharge offers to low worth users
– Invitations to movie screenings and events
– Up selling of services to select customers

 CRM automatically suggests products to customer

when they announce to leave Airtel.
 Has resulted in savings because of fewer calls.

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e-CRM at Airtel
 e-CRM Initiatives

 After implementation of the Oracle CRM, Airtel now

implementing e-CRM.
 e-CRM implementation partner is IBM
 Would provide a host of services now running on
Oracle CRM
– Online customer support
– Customer profiling
– Web interface
– Sales management for vendors and partners

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 KEEP FOCUS ON WHAT IS IMPORTANT,
RATHER THAN TECHNOLOGY

CRM rapidly evolving from technology-centric to a

business-value effort.

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 THANK YOU

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