CRM System in VODAFONE

Presented by : PRASHANT LOKHANDE

COMPANY PROFILE
Name VODAFONE comes from Voice, Data & Phone

Largest telecom company in the world (turnover)

2nd largest telecom company in the world (subscriber base) after China Mobile Operations in 31 countries & partner networks in another 40 countries Founded : 1983 as RACAL TELECOM, Demerged from Racal Electronics
(parent company) in 1991 and named VODAFONE

HQ : Newbury, England
Revenues : US $ 69 bn Profits : US $ 6.75 bn

VODAFONE IN INDIA
2005 : Acquired a 10 % stake in Bharti Airtel 2007 : Acquired a controlling 67 % stake in Hutchinson Essar for US $ 11.1 bn. Sold back 5.6% of its Airtel stake back to the Mittals & retained 4.4%

In September, Hutch was rebranded to Vodafone in India.

MARKET SHARE IN INDIA

Reliance 19%

Others 1% Airtel 24%

Aircel 5%

Idea 11%

Vodafone 20%

Tata 9%

BSNL / MTNL 13%

CRM VISION: CUSTOMERS FOR LIFE !

To earn our customers' loyalty, we will anticipate their needs and act to create superior value in their eyes. We want to be known for
C o n s i s t e n c y
R e l i a b i l i t y F l e x i b i l i t y

R e s p o n s i v e n e s s
I n n o v a t i v e S e r v i c e s

We will make this happen in an enriching environment of trust, cooperation and mutual respect.

BROAD CRM OBJECTIVES

Increased customer satisfaction. Higher user adoption. Revenue growth. Cost reduction. Streamlined business processes.

Enriching serviceEnriching experience Service

Experience
Exit Easy un-subscription. Product development Solve business problems

Care Online resolution Call center support.

Promotion & Communication Web

Billing & payment Billing accuracy Online payment options. Product experience Ease of use Stability & availability

Pricing & purchase experience Cost saving Virtual/ online.

VODAFONES CUSTOMER STRATEGY IN INDIA

VALUED CUSTOMER EXPERIENCE

Vodafone has taken advantage of strong presence of Hutch Essar in Metros. It has LEADERSHIP IN CONTRACT SEGMENT. It has STRONG CUSTOMER FOCUS Mass market PREPAID FOCUS : e.g. low value 10/- sachet recharge. Innovative Value Added Services : Easy e-recharge E-recharge using SMS Premium SMS

Ring back Tones

International Voice & Data Roaming

Vodafone plans to bring ULTRA LOW COST handsets to India. Introduced VODAFONE LIVE! In India. Introduced BALANCE TRANSFER for the first time. Introduced UNIQUE OFFERS FOR MULTINATIONAL CORPORATE ACCOUNTS. Introduced SINGLE BILLING SYSTEM in 2007. Comprehensive approach across call centers, retail, internet & automated systems. Industry leading PROCESS IMPROVEMENT based on extensive customer research.

CRM PROCESS
Vodafones ability to chart out an average life cycle allows it to market different services. It prospects aggressively through advertizing.

2nd stage combines provisioning and verification. Vodafone activates a customers account and makes a first rating of the customer based on the application.

Vodafones well planned welcome process includes a call informing clients of the Vodafone help line & various value added services. At the end of this stage their first bill is generated. The first collection marks the start of up-selling and cross selling. Analytical module steps in, CRM has to make every attempt count since clients can only be approached only a fixed number of times. This stage may see a client wishing to leave. To keep churn down , Vodafone uses retention policies and loyalty processes to bring clients back to the fold. Many clients are won back.

CRM INFORMATION
Custom analytics provide meaningful insight for personalized customer communications & interactions. Now, VODAFONE can: Identify customers value segments

Understand customer needs and preferences

Create targeted marketing & sales campaigns for specific customer segments Monitor customer responses Apply experience to future campaigns Steer customers buying behavior

CALCULATING CUSTOMER LIFETIME VALUE

Year 0 Number of Customers Revenue / Customer Variable Cost / Customer
100

Year 1
90 1,200 840

Year 2
80 1,320 864

Year 3
72 1,440 900

Year 4
60 1,500 912

Margin / Customer
Acquisition Cost / Customer TOTAL PROFIT Present Value
100 -10,000 -10,000

360
32,400 29,455

456
36,480 30,150

540
36,480 27,410

588
35,280 24,100

CLV =
t=1

mrt (1+i)t

Where m = margin for time t i = discounting rate for time t

CUSTOMER CATEGORIZATION

800 2000 /- for 10 consecutive months

> 2000 /- for 10 consecutive months

< 200 /- for 10 consecutive months

200 800 /- for 10 consecutive months

CONSUMER RESEARCH
20 Vodafone customers were surveyed. Response format chosen : 5 point scale RESULTS : 50% rated promptness of service at 5. Satisfaction levels were rated 5 by 65%. No. of calls before problem is sorted 1 to 2 calls by 60% > 2 calls by 20% (area of concern) 20% people complained that they were charged for services they had not subscribed.

Recommendations
1. Cases to be closed on the same day.

2. Conduct surveys in terms of updating new & innovative schemes of the competitors.
3. Focus on the customers having spend time for more than 2 years.

THANK YOU