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A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MBA DEGREE OF BANGALORE UNIVERSITY.
Submitted By SARALA AGARWAL Reg.No-02XQCM6050 UNDER THE GUIDENCE OF DR.K.V.PRABHAKAR (ADJUNCT PROFESSOR/INTERNAL GUIDE) MR.NEELKANTH (ASSISTANT SALES MANAGER, AIRTEL/EXTERNAL GUIDE)
DECLARATION
I hereby declare that the research work embodied in the dissertation entitled Customer Retention Strategy at AIRTEL, Bangalore, has been carried out by me under the guidance and supervision of Dr.K.V.Prabhakar, Adjunct Professor, M.P.Birla Institute of Management, Bangalore. I also declare that this dissertation has not been submitted to any University/Institution for the award of any Degree/Diploma.
CERTIFICATE
I hereby certify that the research work embodied in this dissertation entitled Customer retention strategy at AIRTEL, Bangalore, has been undertaken and completed by Ms Sarala Agarwal under my guidance and supervision. I also certify that she has fulfilled all the requirements under the covenant governing the submission of dissertation to the Bangalore University for the award of MBA degree.
Place: Bangalore Date: 7th September 2004 (Dr.K.V.Prabhakar) Adjunct Professor MPBIM, Bangalore
CERTIFICATE
I hereby certify that this dissertation is an offshoot of the research work undertaken and completed by Ms Sarala Agarwal under the guidance of Dr. K V Prabhakar, Adjunct Professor, M.P.Birla Institute of Management, Bangalore (Internal Guide) and Shri Neelkanth, Assistant Sales Manager, Airtel, Bangalore (External Guide).
Place: Bangalore Date: 7th September 2004 (Dr.Nagesh.Malavalli) Principal, M.P.Birla Institute Mgmt
ACKNOWLEDGEMENT
I am happy to express my deep sense of gratitude to Dr. Nagesh Mallavali, (Principal, M.P.Birla Institute of Management), and Mr.Neelkanth (Assistant Sales Manager, Airtel) for their encouragement, guidance and many valuable ideas imparted to me for my project. I extend my sincere thanks to Dr.K.V.Prabhakar (Adjunct professor/ Internal Guide) for providing me all the information required and the guidance through out the project without which this project would not have been possible. I have gained a lot of knowledge, both theoretical and practical, throughout the course of carrying out this project, I also learnt a lot about the intricacies of the actual business world. With special regards I would also like to sincerely thank all my lecturers and friends for their help in completing my project successfully.
CONTENTS Page.No
EXECUTIVE SUMMARY 1
Chapters
PART A (THEORITICAL SETTING)
1.
1.1. 1.2. 1.3. 1.4.
INTRODUCTION Background of the study. Statement of the problem. Need and significance of the study. Objectives of the study. REVIEW OF LITERATURE Purpose of review. Methodology. Conclusion. 14 22 22 23 3 13 13 13
2.
2.1 2.2 2.3
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PART C (CONCLUSIONS AND RECOMMENDATIONS) 6. 6.1 6.3 SUMMARY AND CONCLUSIONS. Conclusions from the study. Direction for further Research.
ANNEXURE:
Questionnaire Select Bibliography including websites used.
1. Table showing data based on age. 2. Table showing data based on rating of call quality. 3. Table showing data based on rating of the network coverage. 4. Table showing data based on concern of call dropping. 5. Table showing data based on ability to call at the first attempt. 6. Table showing data based on the calls made to the customer care help line in the last one-month. 7. Table showing data based on finding the Interactive Voice Response System (IVRS) user friendly. 8. Table showing data based on finding the executives friendly with a helpful attitude. 9. Table showing data based on rating the ability to give information about various rate/plans/schemes/offers. 10. Table showing data based on rating the ability to give information about various value added services. 11. Table showing data based on the registration of query/complaint in the last one month 12. Table showing data based on the rating the ability to listen and understand the query/concern. 13. Table showing data based on answering mode of the query/concern satisfactorily. 14. Table showing data based on getting a follow up call to resolve the query/concerns. 15. Table showing data based on communication about the launch of new rate plans/schemes/offers in time. 16. Table showing data based on communication about the procedure/mode to upgrade the rate plans/schemes/offers. 17. Table showing data based on finding the AIRTEL advertisement relevant and easy to understand. 18. Table showing data based on receiving the monthly bills well in advance before the due date.
19. Table showing data based on finding the payment reminder through SMS/calls useful. 20. Table showing data based on finding the bills error free. 21. Table showing data based on rating of the AIRTEL services. 22. Table showing data based on rating of the AIRTEL overall services. 23. Table showing data based on the activation/cancellation of offers/services like roaming STD/ISD etc taking place within the time committed. 24. Table showing data based on the plan changes taking place within the time committed. 25. Table showing data based on rating the time taken for service restoration in case of barring/suspension. 26. Table showing data based on preference between prepaid and postpaid cellular service of AIRTEL.
LIST OF CHART Chart. No. Chart depicting Page.No. 1. Chart showing Airtel user based on age group. 2. Chart showing Rating of call quality. 3. Chart showing Rating of the network coverage. 4. Chart showing concern of call dropping. 5. Chart showing Ability to call at the first attempt. 6. Chart showing call made to customer care in the last one month. 7. Chart showing user friendliness of the Interactive Voice Response
System (IVRS).
8. Chart showing helpfulness of the Customer Care Executive s. 9. Chart showing ability to information about various plans. 10.Chart showing ability to information about various value added services. 11.Chart showing registration of query/concern in the last one month. 12.Chart showing ability to listen and resolve the query. 13.Chart showing answering the query/concern satisfactorily. 14.Chart showing follow up of call to resolve the query/concern. 15.Chart showing communication about the launch of new plans /schemes. 16.Chart showing communication about the procedure to upgrade the new plans 17.Chart showing finding the AIRTEL advertisement relevant. 18.Chart showing receiving the bill on time. 19.Chart showing finding the payment reminder through SMS/calls useful. 20.Chart showing finding the bills error free. 21.Chart showing rating of the AIRTEL Services. 22.Chart showing rating of the overall AIRTEL Services. 23.Chart showing Activation/Cancellation of services. 24.Chart showing plan changes taking place within the time committed. 25.Chart showing rating of the time taken for service restoration. 26.Chart showing preference between Prepaid and Postpaid.
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
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Research technique used: The data for the study are collected both from the primary source and the secondary source. The project employs systematic, objective and quantitative Research techniques using a wellstructured questionnaire, which form the primary information collected. The secondary data sources are magazines, management journals and websites. Using the primary data separate tables were furnished under specific headings, these were analyzed with the help of descriptive analysis and percentage, and the data was analyzed and interpreted. Detailed charts are developed showing the data obtained from the respondents, the data collected from the respondents were organized, processed and tabulated to depict the results. The sample size comprises of 100 respondents. This study was restricted to the city of existing customers of AIRTEL in Bangalore Metropolitan Area only. Findings: Maximum number of Airtel service user are in the age group of 22-27 and majority of them uses prepaid service, they found the call quality and the network coverage to be good. And most of them liked the value added services, and are happy with the communication procedure they use. The postpaid customers found the bill error free. The overall rating given to Airtel was Very Good Suggestions and Recommendation: With effective implementation of customer databases, companies will be able to reestablish contact with customers, and will be able to work successfully towards increasing customer retention, repeat sales, and customer referrals. Reach out to the customers with special offers, or as they discounts, or preferential surveys. Event oriented treatment. After sales satisfaction and communications in which call it, high touch opportunities. Membership cards and programs that entitle your customers to special offers, complaint inquiries and interested. the customer is genuinely
Enhanced and empowered customer, after sales, and technical support. Integrated Customer Relationship Management (ICRM) is the latest marketing strategies that have to be developed to meet the challenges raised from the daily marketing consulting services.
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PART A
(THEORETICAL SETTING)
CHAPTER-1
INTRODUCTION
pursue. Attracting and keeping the highest-value customers is the corner stone of a successful marketing program. Underlying this statement is the necessary condition that the market can be segmented and that identifiable segments vary in customer value. The direct way to test this necessary condition is to apply volume segmentation to the market. When high, medium, low and non-user segment exists and can be identified; the potential rewards from focusing customer retention programs on the high users can be substantial. Retention improvement for this segment could lead to significant increase in profits .An insightful approach is one that combines volume segmentation and margins by customer group. Benefit segmentation is another approach, which may assist in determining the viability of retention strategies. In particular, the firm is seeking to identify and measure segments that value benefits beyond economy (i.e., the price sensitive segment). Benefits such as reliability, responsiveness, confidence, and security offer the firm the opportunity to establish a relationship with a particular segment. Customer seeking economies do not. Components of life time value of customer: The firm needs to assess its ability to calculate the long-term value of a customer or segments; in many case the necessary information may not available. Long-term customer value (LTV) is based on the concept of customers as sources or streams of profitable revenue, resulting from both their own increasingly knowledgeable usage and the patronage of others whom they recommend their service supplier. The revenue curve is determined by the degree to which each of the components-customer acquisition cost, base profit, profits from increased purchases and higher balances, reduced operating cost, profit from referrals, and profit from prices premium-contribute to profits over time. LTV is likely to be significant when the following characteristics are present: 1. High marketing expenses to obtain a new customer. 2. High administration cost to enter the customer into the firms system. 3. Relatively low servicing costs. 4. Reasonable margins on sales 5. High sales volume per customer. 6. High word of mouth. The presence of the above factors will enhance the LTV of customers. The individual firms needs to assess the degree to which these factors are present in determining the potential of increasing profits through customer retention. Page 7
Customers of today are becoming smarter, more price conscious more demanding, that led the customer to churn*. We can categories the customers based on churn-frequency: The habitual churner: who likes to change suppliers frequently. The possible churner: who might move if they are given the right offer at the right time. The sluggish churner: which comprises of old and affluent customers who are cynical about the benefits of change.
*Churn: the loss of customers and the resulting loss in revenue for service providers
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To achieve the objectives of the database and customer retention programs, the entire campaign should be designed and carried out with the customer in mind. The exercise will only be effective if the customer recognizes and associates some value with being part of our database.
What characterizes our best customers, and what keeps them loyal? How do the information and service needs of new customers differ from those of established customers? Is it necessary to keep all prospect information once a customer relationship is established? What changes does the organization need to make as the relationship goes along? How many service calls did customers place? How were they resolved? What was the time to the resolution on those calls? What is the potential for developing other customers such as these? Why does one group or class of customers respond to opportunities when another does not?
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Most importantly, a well-developed data strategy and its effective use in concert with the CRM system will allow us to be selective in the types of customers with whom we choose to deal.
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Incentives and tariff bundles which target the most profitable customers Loyalty schemes which are appropriate to the value of the business saved Acquisition strategies which attract the right type of customer, reducing fraud and bad debt Proactive customer service
Customer retention solutions combine award-winning data warehousing and analytics, consulting services, and industry-specific data architectures to offer:
Accurate reporting on who is leaving your company. Insights into the major factors influencing the decision to leave. Industry-leading accuracy for predicting which customers are likely to churn in the near future. Proactive, rules-based analysis of account behavior. An accurate early-warning alert system. Flexible and scalable technology that can keep up with the company's growth.
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STRATEGIES FOR RETAINING CUSTOMERS In service marketing, customer retention has been conceptualized as resulting from customer perceptions of services quality and customer satisfaction. Scholars have advocated four steps as essential to retain customers: a) Define the market structure, b) Segment the customer base and determine segment value, c) Identify the segments service needs, and d) Implement a segmented service strategy.
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Goals of CRM
To provide better customer service. To make call centers more efficient. To cross sell products more effectively. To help sales staff close deals faster. To simplify marketing and sales processes. To discover new customers. To increase customer revenues.
What are the keys to successful CRM implementation? Break CRM project down into manageable pieces by setting up pilot programs and shortterm milestones. Pilot project should incorporate all the necessary departments and groups that get projects rolling quickly and should be small and flexible enough to allow make changes during implementation. CRM plans should include a scalable architecture framework. The system should be flexible and expandable according to data it might collect in future.
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What data is collected and stored should be measured carefully. The impulse will be to grab and then store EVERY piece of data, but there is often no reason to store data. Storing useless data is waste of time and money.
Recognize the individuality of customers and respond appropriately. A CRM system should, for example, have built-in pricing flexibility.
What causes CRM projects to fail? Lack of an interactive communication among everyone in the customer relationship chain can lead to technology being implemented without proper support or buy-in from users. For example, if the sales force is not completely sold on the systems benefits, they may not input the kind of demographic data that is essential to the programs success. One Fortune 500 company is on its fourth try at CRM implementation, primarily because its sale force resisted all the previous efforts to share customer data. ... A Few Thoughts Worth Remembering About Customer Retention : "A customer service program must hold everyone in the organization accountable." "The way we treat our employees is directly related to how they in turn treat customers." --(Joe Sperry, Consultant to the telecommunications industry) "In cellular, 1% churn can be translated into roughly $500,000 in revenue." "...96% of customer churn is lost with no feedback to provider." "...A company has to determine its customer's definition of quality service and then measure its performance against those expectations." "One bad-mouthing customer can cost you 10 new customers." (Larry Harris, President, Crico Communications paging company)
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How does a service firm identify right strategies to retain customers rather than acquiring
understand the importance of the components of Life Time Value of Customers. To understand the intricacies of Customer Relationship Management. To Customer Relationship Management in action in the service sector. Managerial implication of Customer Relationship Management
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CHAPTER-2
Review of literature.
customer was most complaining about? If the probability of churn could be predicted accurately, then not only could glitches in service be fixed, but the bottom line could be improved. As Bharti started dialoguing and looking for ways and means to make sense of customer data, it led to American data mining major SAS' churn management solution It's software tools . allow the user to sift through enormous quantities of data that the business generates to find hidden trends and patterns that will help in customer retention. Explains Gourish Hosangady, CEO & Managing Director, SAS India, The online application enables a company to build a 360 -degree view of its customers, and create customer specific strategies for greater loyalty. Customer retention, however, is only one part of churn management. It also makes the overall organization much more effective by identifying potential problems and opportunities. Bharti was able to optimize its coverage by studying customer complaints and usage behavior. In another busy commercial market, it was prompted to set up extra powerful transmitters because an analysis of the complaints revealed that there were more users operating out of basement offices. The end result of such analysis is that it allows Bharti to manage its network investment much more effectively. So how do the churns tools work? It starts with a search database, where information is stored in a structured manner. Data mining software pulls together all the raw data in whatever forms it is held into one system and combs through it using artificial intelligence techniques or complex mathematical models. The SAS data mining techniques predict a customer's likelihood of cancellation or switchover by scoring them on a scale of 0 to 1. If a customer scores 0.73 it means there's a 73 percent chance of his/her churning. Ergo, the lower the score, the more contented the customer. Once you know the scores, it is easy to figure out which customers (like defaulters) to let go. Bharti did not stop at churner identification. It went a step ahead and used the datawarehousing tool to launch new products. For example, when statistics showed that a number of pre-paid subscribers in Delhi were not locals, but business visitors who subscribed to AirTel back in their hometowns, Bharti launched regional roaming for pre-paid subscribers. Says Nayar, Data is a powerful resource, and it is up to you to find business insights in it.
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to a rival service provider if a customer has to wait long before his problem is looked into. Globally, handset issues have made a difference too for instance, a Telco not being able to provide GSM or CDMA service. Regarding churn, something interesting thats been noticed is that its much higher in the case of pre -paid services, with a churn rate of 8:1, than in post-paid service where the rate is 3:1. The idea of pre-paid cards is that the customer will mature to become a post-paid one and so it pays to retain him too. After all, its five times more expensive to acquire a new customer than to retain an existing one. What are the best ways to prevent these high rates of customer churn? Effective customer service could be a deterrent to churn. Branding and service differentiators also help in taking customers away from competitors. All this wouldnt be difficult if you have proper operational and analytical CRM tools in place that would help segment and analyses customer behaviour and predict their propensity to churn. In a rapidly changing telecom market, it is necessary to proactively strategize and service customers so as to retain the high value ones. Analytical customer retention solutions would help identify the high-, mid- and low-value customers and the valuable ones who are most likely to cancel services, and their reasons for doing so. They would also help in better campaign targeting and a more focused strategy.
the case of a client such as Sprint, what kind of demands would a company thats a In global leader in the telecom industry have and how would CRM solutions help? Our solutions give Sprint a central repository that makes things easy for its marketers. The multidimensional data base (MDDB) that Sprint has, let internal sales and marketing groups research customer information from their desktops via the Sprint intranet.
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BPL puts the annual industry churn rate at 48 per cent in the pre-paid segment and 30 per cent in the post-paid segment. BPLs case for getting focused on churn solutions seems logical in the light of Airtels imminent entry in the Mumbai market. In Delhi, Airtel has implemented the SAS solution only in the post-paid segment, but plans to extend it to the pre-paid segment as well, according to Mohit Deora, chief marketing officer, Airtel (Delhi).An example of how the solution helps is with respect to tariffs plans. We were able to realign tariff plans best suited to customers
recognizing his customers and doing favors for them. Customers were loyal to these stores because of the recognition and personal attention they received. These small stores have been virtually wiped out through the advent of supermarkets. Supermarkets have a much wider variety of goods. The average grocery store had 800 SKUs on their shelves. Supermarkets today have 30,000 SKUs. Mass marketing took over. Prices came down. Variety increased. Food purchases fell from 31% of the average family budget in 1950 to about 10% today; yet the food we buy with that 10% is better in quality and quantity to what we bought with 31% in 1950. We have all gained. At the same time, we have lost something valuable. Companies today have tens of thousands in some cases millions-- of customers. We do not know who they are. We cannot recognize them and talk to them as the old corner grocers did. Loyalty has disappeared. Customers are loyal until tomorrows newspaper, when they see a coupon for something at another store and woosh, they are gone. What is true of grocery stores is also true of department stores, drug stores, hardware stores, office supply stores, banks, movie theatres virtually every sales organization today. What has begun to change this picture has been the advent of computers. In the past 15 years, computers have become so sophisticated and powerful, and their prices have become so inexpensive, that it is possible to keep in a computer today the kind of information that the old corner grocer kept in his head, and to use that information to recognize and do favors for our customers. By setting up a customer database, and using it to start a dialog with their customers, some companies have been able to reestablish contact with their customers designed to build loyalty, referrals and repeat sales. Retention building is possible. There is one key principle at work here, however. Database marketing only works to build retention if the customer benefits from the retention strategies. It works if the customer says to herself, "Im glad that Im on that database, because" The company running the database has to complete the sentence by designing and running programs that capture the loyalty of their customers. If the customer does not see some value to herself in the database activities, she will chuck out your newsletters unread. She will ignore your communications. She will leave your gold cards in her top bureau drawer. For the database program to be successful, the marketer must design the program from the customers point of view. If you can come up with a strategy that makes customers happy, then they will reward you with something that you want, but which costs them next to nothing: loyalty. What are these strategies? Page 24
Membership cards and membership programs Welcome and thank you communications Satisfaction surveys, followed up by phone calls and letters Beefed up customer service, empowered to solve problems Enhanced technical support with follow up satisfaction calls Frequent buyer programs which permit customers to build up equity Event driven communications that are meaningful to the customers lives Databases that keep track of customers purchases, preferences, co mplements and complaints, which are used to carry out loyalty building services and dialogs.
Integrated marketing programs where the advertising, direct communications, customer service, database marketing and sales programs are all orchestrated together and designed to build loyalty.
Segmentation of the customer base by lifetime value groups, and different marketing programs designed for each segment. * Article by: Arthur Middleton Hughes
Lets look at this last strategy, to illustrate wha t we mean. Here we have divided our customers into five groups (quintiles), from the most profitable to the least profitable. We may then design varying marketing strategies for each group:
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The gold customers should not be bombarded with marketing programs. On the contrary, they should be rewarded with super services. These are 80% (or some other large percentage) of our revenue. We must retain these loyal folks. We spend our marketing dollars on the middle three quintiles: encouraging them to move up, to get in to Gold Heaven. On the other hand, the bottom quintile may be costing you more than they are worth. Dont waste marketing dollars here. We dont want to retain them. How can the success of these programs be measured? The answer is lifetime value.
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Everyone wants to retain their existing customers; it is five times more profitable to spend the marketing dollars to retain the customers than to use the dollars to beat the bushes for new SAS' churn management solution It is software tools that allow the user to shift through . enormous quantities of data that the business generates to find hidden trends and patterns that online application enables a company to build a 360-degree view of its customers, and The SAS data mining techniques predict a customer's likelihood of cancellation or switchover The is necessary to proactively strategize and service customers so as to retain the high value It ones. by scoring them on a scale of 0 to 1. create customer specific strategies for greater loyalty. will help in customer retention. customers.
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CHAPTER-3
COMPANY PROFILE
Fixed-Line: Bharti was the first private sector operator to provide fixed-line services in India. Currently they provide fixed-line services in the circles of Madhya Pradesh, Chattisgarh, Haryana, Delhi, Karnataka, and Tamil Nadu. The circles have high telecommunications revenue potential especially for carrying data traffic.
Long-distance, group data and enterprise services: Long distance and enterprise services gets enormous support from the submarine cable landing station at Chennai. This also facilitates the company to offer best value to the customers. The company matches the mobile and fixed-line services with national and international long distance services and provides these services across India.
Mobile footprint The company believes that the demand for mobile services in India will continue to grow rapidly as a result of the following factors: Lower tariffs and handset prices over time. Constant growth in the category of Pre-paid customers Continued development of Indias economy leading to greater economic growth. Greater variety and usage of value added services.
Strategies of the Company Capture maximum telecommunications revenue potential with minimum geographical coverage. Position itself to tap Data transmission opportunities and offer advanced mobile Data services. Focus on satisfying and retaining customers by ensuring high level of customer satisfaction. Leverage strengths of its strategic and financial partners Emphasizes on Human Resource Development to achieve operational efficiencies. Focus on Telecommunication to enable the company to better anticipate industry trends and capitalize on new telecommunications related business opportunities. Page 30
Human Resources
It has been ranked as the 14th best employer amongst the top 25 companies in India. It is also the only company whose HR Department has received a special award for aligning People Systems to business need. Their strong beliefs that people are the key differentiators and make the biggest difference for a successful business has encouraged and made them to create an organization powered by unique structure, systems and leadership style. The company nurtures an environment where people are respected and their uniqueness is valued. This has resulted in a vibrant, productive, people oriented and progressive workplace. Their business and people philosophy is guided with a framework of strong values and has resulted in differentiating them as an employer of choice in todays market p lace. Formal job description documents are issued to all the employees clearly mentioning key results area. They believe that an individual can be effective only when he/she knows what is expected of him/her. This has helped the company in setting goals, communicating to each of the employees about the expectations from them and also in establishing role clarity.
Key Strengths
Bharti Tele-Ventures have created strong brand name recognition and a reputation for offering high quality services to its customers. Not only does it have a quality management team with a vision and proven execution skills, it also has strong relationships with international strategic and financial investors. Some of them are: Sins Tel, Warburg Pincus, International Finance Corporation, Asian Infrastructure Fund Group and New York Life Insurance.
Future Plans
The company is considering the proposal of pumping in Rs.2,000 cr in the current fiscal, out of which around 65% of the investment is expected in the mobility business and the balance in fixed-line services. The company has also plans to list on the NASDAQ in 2005-5, which is likely Page 31
to be another trigger. In terms of top line revenue, mobile telephony services are expected to fetch about 60% and the rest is expected to come from fixed-line services. The company is also planning to acquire companies in East Asia, West Asia and Africa. It also intends to raise Rs.3,000 cr through a planned overseas listing. Following its recent acquisition of Hexacom in Rajasthan, the Bharti Group firm is considering the acquisition of one more company in the country by the end of this financial year.
COMPANY- AIRTEL
Airtel comes to us from Bharti Cellular Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world class products and services. Established in 1976, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Bharti has many joint ventures with world leaders like Singtel (Singapore Telecom); Warburg Pincus, USA; Telia, Sweden; Asian infrastructure find, Mauritius; International Finance Corporation, USA and New York Life International, USA. Bharti is the leading cellular service provider, with a footprint in 15 states covering all four metros and more than 7 million satisfied customers. Airtel's leading mobile service provider is now present across 135 towns in Karnataka and the is available over 58 showrooms and 13000 outlets .To help serve the customer better Airtel Karnataka has three offices, one each in Bangalore (Bangalore Zone), Hubli (North Karnataka) & Mangalore (South Karnataka).
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9,6,21
T o make mobile communications a way of life and be the customers' first choice.
0,66,21
To meet the mobile communication needs of customers through: Error- free service delivery Innovative products and services Cost efficiency Unified Messaging Solutions
Customer First
Committed to delivering service beyond the expectations of the customer. The quality of customer responsiveness clearly differentiates us from others.
Performance Culture
Benchmark the processes and performance against world-class standards. Distinguishing between performers and non-performers and by valuing achievement at the individual as well as the team level. A culture of inclusiveness where feedback, learning and ideas are actively encouraged, sought and acted upon.
Valuing Partnership
Committed to building exemplary relationship with the partners, which stand on the principles of mutual trust and mutual growth. Page 33
Valuing People
Nurture an environment where people are respected and their uniqueness is valued. Belief that people are the key differentiators.
Ethical Practices
Uphold the highest ethical standards in all internal and external relationship. The compan y will not allow misuse or misrepresentation of any kind.
AWARDS:
Consecutively for four years 1997,1998, 1999 and 2000, AirTel has been voted as the Best Cellular Service in the country and won the coveted Techies award. The Asia Pacific Award for the Most Innovative HR practices-2000 The Golden Peacock National Training Award for excellence in Training practices-2000 The Golden Peacock National Quality Award-2001
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For a brand to be successful, it must build enduring relationships with its different audiences. Integral to this relationship is the visual image of the brand the consumer carries in his/her mind. The Airtel brand image is created through the consistent application of a carefully developed visual identity, which helps Airtel distinguish itself in a cluttered market. Airtel's visual identity helps create instant brand recall and strengthens the relationships that its audiences have with it. The Airtel visual identity has different elements that work together to create a strong and consistent identity for the brand. The most important of these are:
The Airtel logo is a strong, contemporary and confident symbol for a brand that is always ahead of the rest. It is a specially drawn woodmark.
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Airtel Advertising
The relationship between advertising and visual identity is a complex one and must be understood clearly. Campaigns are born in response to market trends, to competitor activity, to new product launches. Unlike visual identity, advertising must be constantly reinvented to engage target audiences and garner mind share. Yet, applications in this area entail large budgets and are surely the most visible of all brand identity channels. They present extremely powerful opportunities to reinforce Airtels visual identity and therefore can be equally dangerous if they misuse or dilute it. Remember that the way an ad looks does not constitute Airtels visual identity. The brand's visual identity is made up of the logo, the typographical style, the colour palette and the image style.
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FREEDOM OF SPEECH REDEFINED... Going mobile with Airtel Prepaid is a new way of life.
Some of the many advantages that a customer will enjoy with Airtel Pre-paid
Total Cost Control Enjoy the liberty of total cost control with Airtel Pre-paid! Re-charge as much as the customer feels the need to! This is called a complete freedom! No Rentals Buy an Airtel prepaid card without having to pay any rentals! No deposits The Airtel prepaid card comes without having to pay heafty deposits! STD/ISD facility till the last rupee Now experience complete freedom like never before with Airtel! The STD/ISD facility allows the customer to make long distance calls in India and Overseas from the cellular phone! Instant Balance Inquiry Check the talk-time instantly by calling the toll-free number!
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60-second pulse Airtel provides the customer with a 60-second pulse rate! Freedom for the customer to experience like never before!
Instant Recharge The customer can avail themselves of instant recharge on the pre-paid card with just a few simple steps!
24-hour recharge facility With the round-the-clock recharge facility, the customer recharge Airtel prepaid card anytime, anywhere!
Caller Line Identification Call Line Identification gives the customer the power to know the phone number of the calling party even before they answer the call, thus giving them the choice to either reject or take the call. It provides the added advantage of saving the incoming number directly in the Handset Phone Book, so that the next time the customer want to call the same person, they do not need to retype his/her number, simply they can use the phone book.
Call Divert, Call Hold and Call Wait The customer can avail themselves of special services like call waiting, call hold and call divert all with their Airtel prepaid card!
Short Messaging Service (SMS) With Airtels Short Messaging Service (SMS), the customer can send messages and jokes to their friends and colleagues, anytime anywhere!
SMS based Information Services With Airtel's SMS based information services, the customer can get upto -the-minute cricket scores, order flowers as well as send couriers or check their daily horoscope!
Voice Mail service Voice Mail lets the customer receive messages even when their handset is switched off or when they are outside the coverage area. They can listen to their messages whenever they
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feel like, from anywhere in the world. Voice Mail can store up to 75 messages, with each message of two-minute duration.
Airtel Postpaid
Airtel welcomes the customers to a vibrant world of unlimited opportunities. More exciting, innovative yet simple new ways to communicate, just when they want to, not just through words but ideas, emotions and feelings; to give them the unlimited freedom to reach out their special people in your special way.
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Voice Mail Voice Mail lets the customer receive messages even when their handset is switched off or when they are outside the coverage area. They can listen to their messages whenever they feel like, from anywhere in the world. Voice Mail can store up to 75 messages, with each message of two-minute duration.
STD/ISD Facility The STD/ISD facility allows the customer to make long distance calls in India and Overseas from their cellular phone!
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Airtel National The customers can enjoy roaming in India across 42 partners networks and over 750 cities. Airtel International The customer can roam across international destinations, in nearly 119 countries including USA, Canada, UK etc. with 284 partner networks.
Long Distance The National Long-Distance facility allows the customers to make long distance calls in India and Overseas from their cellular phone. This service is applicable to both Postpaid and Prepaid customers Specials: EasyCharge Recharge as and when customers like! New Airtel Prepaid brings to the nation a never before 'Azadi'. Giving every Indian the right to be unconditionally, completely free! Free to never run out of words, explore every opportunity, reach out to anyone, anywhere and express themselves. The customers can discover the world of New Airtel Prepaid; discover freedom like never before!
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The TVC was a part of the brand repositioning and restructuring efforts for Airtel, as part of which, Bharti changed the brands tagline in early -2002 from Touch Tomorrow to Live Every Moment. Thee company also decided to undertake a compressive brand-building program and choose the slogan Unlimited Freedom for the same. Commenting on these changes, company source said, Airtels brand identity and campaign will now have a new younger and int ernational look and feel that builds on the earlier positioning.
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Bhartis massive media expenditure plans were no surprise, considering the fact that it was the largest cellular telecom company in the country reaching over 600million people in 16(out of 29) states in India. The company posted revenue of Rs.8.48 billion and a net loss of Rs.1 billion in the financial year 2000-01. The Airtel brand (and the prepaid card services brand, Magic) and topof the-mind recall amongst cellular phone users and enjoyed a leadership position in most markets. Industry observers attributed it to Bhartis strong brand and positioning strategies.
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CHAPTER-4
RESEARCH METHODOLOGY
9 This study was restricted to the city of existing customers of AIRTEL in Bangalore 9 Due to the time constrain, an extensive research could not be undertaken, therefore the 9 Analysis of the data obtained from the questionnaire was done on the assumption that 9 Preferences and responses of customers could change over a period of time necessitating periodical surveys. the respondents gave the correct information to the best of their knowledge. sample size was restricted to 100 respondents only. Metropolitan Area and therefore the results of this study can not be generalized.
PART B
RESEARCH FINDINGS
CHAPTER-5
DATA ANALYSIS AND INFERENCES.
Table.No.1
Classification of data based on age: Age 18-22 22-27 28-35 Total Prepaid 24 26 5 55 Postpaid 15 24 6 45 Total 39 50 11 100 Percentage 39% 50% 11% 100%
Graph.No.1
40% 20% 0%
Source: Field Investigation Inference: Maximum no. of AIRTEL service user are in the age group of 22-27 and majority of them uses prepaid services. Also retention rare is high in this age group. Page 49
Percentage
30
60%
Table.No.2
Classification of data based on rating of the call quality: No. of Respondents Prepaid Postpaid 18 15 11 13 20 14 5 1 55 2 1 45
Total 33 24 34 7 2 100
Graph.No.2
Source: Field Investigation Inference: 34% of the respondent found the call quality good, and 33% of the respondent found it excellent (both the prepaid and the postpaid service users).
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Table.No.3 Classification based on rating of the network coverage: No. of Respondents Prepaid Postpaid 15 14 17 17 17 14 6 0 0 55 0 45
Total 29 34 31 6 0 100
Graph.No.3
"percentage"
Inference: 34% of the respondent found the network coverage very good, (both prepaid and postpaid). Airtel has a plus point of good network coverage.
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Table.No.4
Classification of data based on concern of call dropping:
No. of Respondents Category Yes No Total Prepaid 26 29 55 Postpaid 18 27 45 Total 44 56 100 Percentage 44% 56% 100%
Graph.No.4
No. of respondents
Percentage
Table.No.5
Classification of data based on ability to call at the first attempt:
No. of Respondents Category Yes No Total Prepaid 40 15 55 Postpaid 28 17 45 Total 68 32 100 Percentage 68% 32% 100%
Graph No.5
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Table.No.6
Classification of data based on the calls made to the customer care help line in the last one month:
No. of Respondents Category Yes No Total Prepaid 42 13 55 Postpaid 29 16 45 Total 71 29 100 Percentage 71% 29% 100%
Graph.No.6
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Table.No.7
Classification of data based on finding the Interactive Voice Response System (IVRS) user friendly:
Percentage
Graph.No.7
User friedlyness of Interactive Voice Response System(IVRS) 35 30 25 20 15 10 5 0 Yes Prepaid Source: Field Investigation Inference: 85% of the respondents found the IRVS user-friendly. (Out of which 32 respondents were pre-paid and 28 respondents were post-paid). Caregory Postpaid No Percentage 100% Percentage 80% 60% 40% 20% 0%
No. of respondent
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Table.No.8
Classification of data based on finding the executives friendly with a helpful attitude:
No. of Respondents Category Yes No Total Prepaid 29 13 42 Postpaid 25 4 29 Total 54 17 71 Percentage 76% 24% 100%
Graph.No.8
Source: Field Investigation Inference: 76% of the respondents found the executives customer friendly. 24% of the respondents stated that executives were not customer friendly.
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Table.No.9
Classification of data based on rating the ability to give information about various rate plans/schemes/offers:
No. of Respondents Category Excellent Very Good Good Average Poor Total Prepaid 11 8 14 9 0 42 Postpaid 9 4 11 3 2 29 Total 20 12 25 12 2 71 Percentage 29% 17% 35% 17% 2% 100%
Graph.No.9
Inference: Majority of the respondent (i.e. 35%) found the ability to give information about various plans to be good enough to benefit the customers. Page 57
Table.No.10
Classification of data based on rating the ability to give information about various value added services:
No. of Respondents Category Excellent Very Good Good Average Poor Total Prepaid 10 10 12 8 2 42 Postpaid 4 6 11 6 2 29 Total 14 16 23 14 4 71 Percentage 20% 23% 32% 20% 5% 100%
Graph.No.10
40%
Percentage
Postpaid
Percentage
Inference: 32% of the respondents rated the ability to give information about various value added services to be good.(majority of them belong prepaid segment) Page 58
Table.No.11
Classification of data based on the registration of query/complaint in the last one month:
No. of Respondents Category Yes No Total Prepaid 25 30 55 Postpaid 23 22 45 Total 48 52 100 Percentage 48% 52% 100%
Graph.No.11
Source: Field Investigation Inference: 52% of the respondents did not register any query/complaint in the last one month. Since the complaints or query are not given responses, the customers desist complaints. Perhaps the complaints handling process is cumbersome and not fast enough.
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Table.No.12
Classification of data based on the rating the ability to listen and understand the query/concern:
No. of Respondents Category Excellent Very Good Good Average Poor Total Prepaid 10 4 6 4 1 25 Postpaid 9 4 4 6 0 23 Total 19 8 10 10 1 48 Percentage 39% 17% 21% 21% 2% 100%
Graph.No.12
No. of respondents
Prepaid
Percentage
Source: Field Investigation Inference: 39% of the respondents rated the ability of listen and understand the query/concern to be excellent. (i.e. both pre-paid and post-paid). Page 60
Percentage
50% 40%
Table.No.13
Classification of data based on answering mode of the query/concern satisfactorily:
No. of Respondents Category Yes No Total Prepaid 14 11 25 Postpaid 13 10 23 Total 27 21 48 Percentage 56% 44% 100%
Graph.No.13
Source: Field Investigation Inference: 56% of the respondents who lodged complaints in the last one month, are satisfied with the answering mode of the query/concern by the customer care executives. (i.e. percentage of both pre-paid and post-paid respondents)
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Table.No.14
Classification of the data based on getting a follow up call to resolve the query/concerns:
No. of Respondents Category Yes No Total Prepaid 13 12 25 Postpaid 9 14 23 Total 22 26 48 Percentage 46% 54% 100%
Graph.No.14
Source: Field Investigation Inference: 54% of the respondents did not get follow up call to resolve their query/concerns in spite of lodging complaints. (12 respondents were pre-paid service users and 14 respondents were post-paid service users).
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Table.No.15
Classification of the data based on communication about the launch of new rate plans/schemes/offers in time:
No. of Respondents Category Yes No Total Prepaid 35 20 55 Postpaid 25 20 45 Total 60 40 100 Percentage 60% 40% 100%
Graph.No.15
Source: Field Investigation Inference: 60% of the respondents are communicated about the launch of new rate plans/ schemes/offers in time. (Out of 55 prepaid respondent 35 of them were communi-cated and out of 45 postpaid respondents 25 of them were communicated). Page 63
Table.No.16
Classification of data based on communication about the procedure/mode to upgrade the rate plans/schemes/offers:
No. of Respondents Category Yes No Total Prepaid 30 25 55 Postpaid 27 18 45 Total 57 43 100 Percentage 57% 43% 100%
Graph.No.16
Source: Field Investigation Inference: 57% of the respondents are communicated about the procedure/ mode to upgrade the rate plans/schemes/offers, of which 30 respondents are using pre-paid service and 27 respondents are using post-paid.
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Table.No.17
Classification of data based on finding the AIRTEL advertisement relevant and easy to understand:
No. of Respondents Category Yes No Total Prepaid 43 12 55 Postpaid 33 12 45 Total 76 24 100 Percentage 76% 24% 100%
Graph.No.17
Source: Field Investigation Inference: 76% of the respondents found the AIRTEL advertisements relevant, informative and easy to understand. The prepaid customers mostly found the advertisements relevant and informative. Page 65
Table.No.18
Classification of data based on receiving the monthly bills well in advance before the due date:
No. of Respondents Category Yes No Total Post paid 37 8 45 Total 37 8 45 Percentage 82% 18% 100%
Graph.No.18
Source: Field Investigation. Inference: 82% of the respondents receive the monthly bills well in advance before the due date. (This is applicable only to postpaid service users).
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Table.No.19
Classification of the data based on finding the payment reminder through SMS/calls useful:
No. of Respondents Category Yes No Total Post paid 37 8 45 Total 37 8 45 Percentage 82% 18% 100%
Graph.No.19
Yes No
Source: Field Investigation Inference: 82% of the respondents found the payment reminder through SMS/calls useful for the monthly bills.
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Table.No.20
Classification of the data based on finding the bills error free:
No. of Respondents Category Yes No Total Post paid 30 15 45 Total 30 15 45 Percentage 78% 22% 100%
Graph.No.20
Source: Field Investigation Inference: 78% of the postpaid respondents found the bills error free i.e. 30 respondent out of 45 respondent using post-paid services.( As bills are given only to post-paid customers).
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Table.No.21
Classification of the data based on rating of the AIRTEL services:
SERVICES Category Excellent Very Good Good Average Poor Total SMS 42 32 18 5 3 100 % 42% 32% 18% 5% 3% 100% MMS 17 24 19 7 10 77 % 22% 31% 25% 9% 13% 100% GPRS 20 16 25 11 9 81 % 25% 20% 31% 13% 11% 100% RM/VM 11 15 31 16 7 80 % 14% 18% 39% 20% 9% 100%
Graph.No.21
MMS
GPRS
RM/VM
Inference: The respondents found the SMS services was excellent i.e. 42%, RM/VM was found good i.e. 39% and MMS and GPRS to be average which were 25% and 31% respectively.
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Table.No.22
Classification of the data based on rating of the AIRTEL overall services:
No. of Respondents Category Excellent Very Good Good Average Poor Total Prepaid 14 16 20 4 1 55 Postpaid 12 19 9 5 0 45 Total 26 35 29 9 1 100 Percentage 26% 35% 29% 9% 1% 100%
Graph.No.22
50% 40% 30% 20% 10% 0% Excellent Very Good Good Category
Prepaid Postpaid Percentage
No. of respondents
Average
Poor
Source: Field Investigation Inference: Overall the service is considered to be very good by the respondents both the prepaid and postpaid Airtel service user.(i.e. 35% of the respondent).
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Percentage
Table.No.23
Classification of the data based on the activation/cancellation of offers/services like roaming STD/ISD etc taking place within the time committed:
No. of Respondents Category Yes No Total Prepaid 35 20 55 Postpaid 26 19 45 Total 61 39 100 Percentage 61% 39% 100%
Graph.No.23
Activation/Cancellation of services
No. of Resoondent 40 30 20 10 0 Yes Prepaid Category Postpaid No Percentage 80% 60% 40% 20% 0% Percentage
Source: Field Investigation Inference: 61% of the respondents found the activation/cancellation of offers/ services like roaming STD/ISD etc takes place within the time committed to them.
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Table.No.24
Classification of the data based on the plan changes taking place within the time committed:
No. of Respondents Category Yes No Total Prepaid 35 20 55 Postpaid 28 17 45 Total 63 37 100 Percentage 63% 37% 100%
Graph.No.24
Percentage
Source: Field Investigation Inference: 63% of the respondents found that the plan change takes place within the time committed.
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Table.No.25
Classification of the data based on rating the time taken for service restoration in case of barring/suspension:
No. of Respondents Category Excellent Very Good Good Average Poor Total Prepaid 13 10 15 12 5 55 Postpaid 9 5 20 5 6 45 Total 22 15 35 17 11 100 Percentage 22% 15% 35% 17% 11% 100%
Graph.No.25
Prepaid
Postpaid
Percentage
Source: Field Investigation Inference: 35% of the respondents rated the time taken for service restoration case of barring/suspension to be good of which 15 respondents were pre-paid and 20 respondents were post-paid service users.
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Percentag e
Table.No.26
Classification of the data based on preference between prepaid and postpaid cellular service of AIRTEL.
Graph.No.26
55%
Source: Field Investigation Inference: 55% of the respondents preferred prepaid cellular service to postpaid. Most of the customer in the youth segment prefer prepaid, as they can switch over to different rate plans easily.
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PART C
CONCLUSIONS AND RECOMMENDATIONS
CHAPTER-6
SUMMARY OF CONCLUSIONS AND A SCHEME OF RECOMMENDATIONS
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The churn problem is more prevalent in the prepaid segment, which today accounts for the vast majority of Indian cellular users. The prepaid customer is more price-sensitive than the post-paid one. With rentals as low as Rs 300, customers with low usage prefer prepaid cards. Also, students and those who like to experiment with different networks prefer the prepaid offering.
Periodical survey pertaining to after sales satisfaction and complaint/inquiries. CRM package is not a substitute for either dedicated teams or customer satisfaction Event oriented communications in which the customers are genuinely interested. Enhanced and empowered customer, after sales, and technical support Integrated Customer Relationship Management (ICRM) is the latest marketing strategies that have to be developed to meet the challenges raised from the daily marketing consulting services. CRM is not just a software package, it is a doing business powerfully. More specifically, it is a state of mind. It delivers, only when it company should effectively use the software package to track customer needs. The A customer needs survey should be undertaken to reinforce the software package. Such a survey will bring to light several opportunities not only for customer Effective implementation of customer databases, with which the company will be able to re-establish contact with customers, and will be able to work successfully towards increasing customer retention, repeat sales, and customer referrals. When the company develops a CRM package, care should be taken to see that such a Page 78 retention but also business expansion. is rooted strongly in the companys culture. surveys.
CRM package captures the insights on the customer that the company could leverage to improve its service quality, mere generating huge units of customer data Customer retention through database marketing programs like usage- and destination patterns is not enough.
Implement SASs churn management system to reduce churn and retain valuable Treat each customer differently as per needs. Since the customer needs keep on The customer attributes typically considered in a churn analysis can be broadly categorized into customer demographics, contractual data, technical quality data, in place relationship teams to look after corporate and platinum customers. Put customer stickiness. billing and usage data and events-type data. changing, the product offerings have to be regularly changed too.
The company must introduce a plethora of value-added services to increase Devise more attractive incentives, tariff bundles, loyalty schemes and proactive customer service along with acquisition strategies to attract the right type of Since the company has relatively a large base of customers and is operating in a high- volume scenario, the key to survival in terms of customer retention is standardization of services through computers. At the same time, the key to competitive advantage is differentiation. This is where the customization of service customer service department can be streamlined with performance rating of the The staff on the basis of such parameters as: 9 Responsiveness (Is the staff quick to attend to the customers). 9 Reliability (Does the staff do it right the first time). comes in. customer, thus reducing fraud and bad debt.
9 Assurance (Does the staff inspire trust, comfort and confidence). 9 Empathy (Does the staff come across as caring about the customers).
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complaints handling process needs: The 9 quickly: If the complaint is made during service delivery, time is of the Act essences to achieve a full recovery. When complaints are made after the fact, many companies have established policies of responding within 24 hours or sooner. Even when full resolution is likely to take longer, fast 9 Admit mistakes, but do not be defensive: Acting defensively may suggest that the organization has something to hide or is reluctant to fully explore 9 Show that you understand the problem from each customers point of view: Seeing situations through the customers eye s is the only way to understand what they think has gone wrong and why they are upset. Service personnel 9 Dont argue with customers: The goal should be to gather facts to reach a mutually acceptable solution, not to win a debate or prove that the customer 9 Acknowledge the customers feelings, either tacitly or explicitly (for example, I can understand why you are u pset). This action helps to build 9 Give customers the benefit of the doubt: Not all customers are truthful, and not all complaints are justified. But customers should be treated as though they have a valid complaint until clear evidence to the contrary emerges. It is a good idea to check records to see whether there is a past history of 9 Clarify the steps needed to solve the complaint: When instant solutions are not possible, telling customers how the organization plans to proceed shows that corrective action is being taken. It also sets expectations about the time 9 Keep customers informed of progress: Nobody likes being left in the dark. Uncertainty breeds anxiety and stress. People tend to be more accepting of disruptions if they know what is going on and receive periodic progress reports. Page 80 involved. So firms should be careful not to over promise! dubious complaints by the same customer. rapport, the first step in rebuilding a bruised relationship. is an idiot. Arguing gets in the way of listening and seldom diffuses anger. should avoid jumping to conclusions with their own interpretations. the situation. acknowledgment remains very important.
9 Consider compensation: When customers do not receive the service outcomes they have paid for or have suffered serious inconvenience and/or loss of time and money because the service failed, either a monetary payment or an offer of equivalent service in kind is appropriate. This type of recovery strategy may also reduce the risk of legal action by an angry customer. Service guarantees often lay out in advance what such compensation will be, and the firm should ensure that all guarantees are 9 Persevere to regain customer goodwill: When customers have been disappointed, one of the biggest challenges is to restore their confidence and preserve the relationship in the future. Perseverance may be required to defuse customers anger and to convince them that actions are being taken to avoid a recurrence of the problem. Truly exceptional recovery efforts can be extremely effective in building loyalty and referrals. is also imperative for the company to take a comprehensive view of the retention It strategies of its leading competitors so that some of these strategies can be company has two options in the matter of customer retention: The 9 The company can work to retain all of its customers. companys growth vision. The company can trade-off between these two options with the help of rate of attrition of customers should be reiterated that customer retention is not enough; it should be augmented It with customer loyalty programs that reward the customer for their loyalty. This will enable the company to retain customer even during a price war. Today customers expect rewards for their loyalty when choosing a loyalty program, the company needs to take into account the different types of motivators like reward, philanthropy and customer intimacy and match them to the target customers. There Page 81 benchmarked for the benefits of the company. met.
9 The company can focus only on those customers who fits with the
are many options for inventing loyalty; the company can offer discounts, provide points redeemable for free stuff, offer improved services or priority treatment. As the company looks at its loyalty program, it can determine which rewards appeal most to its customers and then match the reward to their desires. The company should take a fresh look at all those business processes that have a bearing on its basic business objective of providing quality offering to its customer While it is imperative to ensure friendly, unified interaction with the customer at the front end, the real diffentiator is the attitude of the company towards the customer. The company could well have service quality levels of 99%, the customer may have only a clinical perception of its efficiency. This happens when the productivity parameter at the individual level are not synchronize with the business needs of the company. If the intangible warmth is missing there is every likelihood that the Since there is very little difference among the services provided by mobile phone firms, it is imperative for the company to offer unique value proposition to the customers. In our view, this UVP is an effective differentiator. The company can forge this UVP with the help of the following dimensions of service mindedness: 9 Empathetic customer orientation: Ability to understand the customers needs and require from their perspective and realistically applicable whether or not 9 Commitment to excellence: Commitment of meeting the customers goals 9 Responsiveness: Taking responsibility for creating delightful experience for 9 Reliability and trustworthiness: Ability to generate and win confidence of 9 Creative problem solving: Ability to come up with innovative solutions to 9 Timeliness: Ability to accomplish things within the time constraints and deadlines. Page 82 customer problems. customers. the customers. within the given resources. something is do-able. customer will switch at the earliest opportunity. at the lowest cost and in the least amount of time.
9 Tolerance for pressure: Ability to maintain control and poise in the fame of 9 Service recovery mindset: Ability to undo the bad service experience of a customer by taking the corrective action there and then itself. adversity and pressures.
MACRO-LEVEL RECOMMENDATION:
personality of Airtel company is reflected in its positioning. The company may reThe position its service product (as necessitated by the market- forces); in such an event, we recommend that the companys repositioning strategy be based on the brand identity prism. A typical adaptable BIP is given below:
EXTERNALIZATION
LIBERATION REFLECTION RELATIONSHIP
PHYSIQUE
SELF-IMAGE
CULTURE
PERSONALITY
INDIVIDUALISM SELF-INDULGENCE
INTERNALIZATION
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The company should base its current customer-driven philosophy on the Concept of Customer Intimacy. Which tells us that we should not only sell the service product to the customer but at the same time we should see that it is used in the best way. After all, the customers pay us not for the service but for the solution. In the absence of the application of this concept, customers either do not get what they need or they get what company is currently in the paradigm of new genre customers, it therefore, should The address the following questions: the companys customer -centric marketing relatively adequate. Is it designed to give customer delight? Is What switching barrier have it created? they do not need.
the companys CRM program enough to give maximum pay -offs. Is customers defect from competitors and join the company? Will What is companys CRM strategies for future customers?
a corollary to the above, we recommend that the company practise the concept of As Service Heart which is emotion -laden team. What is the anatomy of service heart and what the company can do to attract and keep customers for life? We see the following basic attitudes and actions: Include me: Inclusion of customers in the marketing program not only to capture the creativity of the customers but their commitment and allegiance rise Connect me: Service is more than a process of meeting needs. It is an Teach me: Customers now expect the service provider to educate them and they Show me the trust: Reliability is important to customers. Reliability is what the Help me be strong: Customers desire power in their lives. They are attracted to Delight me: It goes by many handles --- delight, dazzle, and knock the socks off! Services with surprises tugs at the heart strings of most customers. the service provider intent on helping them gain that power. company do to convince the customer, the company can be trusted. expect that service education process to be hassle-free. experience that resonate with the heart. as well.
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patient with me: Customers do not expect the company to be perfect. They The generous: The wisdom of generosity lies in its being laced with authenticity. Be Customers will be benefitted greatly from the initiatives of satisfaction, retention and customization. We also recommend the company to adopt/adapt the Acquisition-RetentionProfitability Model (ARPRO) developed by Reinartz, Thomas and Kumar. The model is given below: do expect the company to care.
Ideal Customers
Retention Potential
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In the sum, our analysis calls for meticulous planning, analyzing and implementation the superior CRM strategies to retain key customers: Planning involves: Identifying key customers and calculate their life time value. Identifying profit opportunities. Analysis involves: Analyzing the key customer segment and find out its revenue potential. Analyzing the defection rates of customers and the implication of it is in the ultimate revenue. Implementation involves: Developing a right a right kind of image, organizational culture and ethos. In our view, the service company that manages to attract, nurture and preserve the customers love will win, and win big. The guided missile is to create oasis of service excellence in the deserts of service mediocrity.
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ANNEXURE
QUESTIONNAIRE
A Study on Customer Retention at AIRTEL
PERSONAL DETAILS: Name: Age: Profession/occupation: Address: NETWORK RELATED 1. How do you rate our networks call quality? Excellent [ ] Very good [ ] Good [ ] 2. How do you rate our network coverage? Excellent [ ] Very good [ ] Good [ ] 3. Do you face concern of call dropping? Yes [ ] No [ ] 4. Are you able to make calls at the first attempt? Yes [ ] No [ ] CUSTOMER CARE HELPLINE 5. Have you call the customer care helpline in the last one month? Yes [ ] No [ ] (If Yes continue, if No go to Q.no-10) 6. Do you find our Interactive voice response system (IVRS) user friendly? Yes [ ] No [ ] 7. Do you find our executives friendly, with a helpful attitude? Yes [ ] No [ ] 8. How do you rate our ability to give information about various rate plans/schemes/offers? Excellent [ ] Very good [ ] Good [ ] Average [ ] Poor [ ] 9. How do you rate our ability to give information about various value added services? Excellent [ ] Very good [ ] Good [ ] Average [ ] Poor [ ] 10. Have you registered a query /complaint in the last one month? Yes [ ] No [ ] ( If Yes continue, if NO go to Q.no-14) 11. How do you rate our ability to listen , understand and resolve your query / concern ? Excellent [ ] Very good [ ] Good [ ] Average [ ] Poor [ ] 12. Were your query /concern satisfactorily answered ? Yes [ ] No [ ] 13. Did you get a follow up call to resolve your query/concern ? Yes [ ] No [ ]
Average [ ] Average [ ]
Poor [ ] Poor [ ]
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COMMUNICATION 14. Is the launch of new rate plans/schemes/offers communicated to you in time ? Yes [ ] No [ ] 15. Is the procedure/mode to upgrade the rate plans/schemes/offers communicated to you ? Yes [ ] No [ ] 16. Do you find our advertisement relevant and easy to understand ? Yes [ ] No [ ] BILLING 17. Do you receive your monthly bills well in advance before the due date ? Yes [ ] No [ ] 18. Do you find the payment reminders through SMS/Calls helpful ? Yes [ ] No [ ] 19. Do you find the bills error free ? Yes [ ] No [ ] VALUE ADDED SERVICES 20. How do you rate our services on the following ? a) SMS b) MMS c) GPRS d) Reach Me / Voice Me Excellent Very good Good Average Poor
21. How do you rate our overall services ? Excellent [ ] Very good [ ] Good [ ]
Average [ ]
Poor [ ]
SYSTEMS 22. Do activations/cancellations of offers/services like roaming, STD, ISD etc takes place within the time committed to you ? Yes [ ] No [ ] 23. Do Rate plan changes take place within the time committed to you ? Yes [ ] No [ ] 24. How do you rate the time taken for service restoration in case of barring/suspension ? Excellent [ ] Very good [ ] Good [ ] Average [ ] Poor [ ] 25. Which cellular service do you prefer ? a) Post-paid [ ] b) Pre-paid [ ] Give reason________________________________ Thank You
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