Post on 04-Apr-2018
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CRM STRATEGIES AND COMPARISON
Submitted to: Submitted by:
Pardeep Bawa Satbir Singh
11100024
SP223
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Customers are more demanding than ever before. Increased choice andaccess to more information on alternatives make it harder than ever before
to win new customers and retain existing clients in the face of stiff
competition. Customer Relationship Management (CRM) is all about
understanding people: what makes them talk to you, what makes them buy
from you, what products and services they are most likely to be interested in,
and what makes them come back to buy from you again and again. To satisfy
customers and achieve commercial success, organisations need to collect,
organise and share all the information they have about their customers
throughout their business in a consistent, efficient way.
As per the requirements of the assignment, the industry which has been
identified to study is the telecom industry, in which I have identified two
prominent companies i.e. Airtel and Vodafone to highlight and compare,
CRM Strategies of these two companies, Methods used for Acquisition of
data, Customization methods used by companies, Customer Privacy
Policies of Companies.
OVERVIEW OF CRM OF AIRTEL
AIRTEL is one of Asias leading providers of telecommunication services
with presence in all the 22 licensed jurisdictions (also known as Telecom
Circles) in India. They serve an aggregate of 134 million customers. Theyare the largest wireless service provider in the country, based on the
number of customers. They offer an integrated suite of telecom solutions to
customers, in addition to providing long distance connectivity both
nationally and internationally.
Airtel has also recognised the importance of customer relationship
management and so have adopted the framework for creating a long time
relations with customers and have been got creative at capturing customer
information. They have been innovative in developing better communities
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around their brands giving customers more incentives to identify
themselves with those brands and exhibit higher levels of loyalty.
CRM practices by the company could be stated asThe company believes that one way developing an improved focus on
CRM is through the establishment or consideration of splitting the
marketing manager job into two parts: one for acquisition and one for
retention. The kinds of skills that are need for the two tasks are quite
different. People skilled in acquisition have experience in the usual tactical
aspects of marketing: advertising, sales, etc. However, the skills for
retention can be quite different as the job requires a better understanding
of the underpinnings of satisfaction and loyalty for the particular productcategory. In addition, time being a critical scarce resource company makes
it difficult to do an excellent job on both acquisition and retention.
As a result, Airtel has appointed a chief customer officer (CCO) whose
job focuses only on customer interactions. In this organization, the person
overseeing the companys marketing activities, the VP-Marketing, has both
product management and the CCO as direct reports. The CCOs job is to
provide intelligence to the VP from marketing research and the customer
database for use by product managers in formulating marketing plans and
making decisions. In addition, the CCO manages the customer service
operation. Although it would perhaps seem more logical for the CCO to
report to product management, the reporting arrangement to the VP-
Marketing is a signal to the company of the prominence of the position.
The CCO also interacts with other company managers whose operations
may have a direct impact on customer satisfaction.
The notion of customer satisfaction is being expanded to change CRM to
CEM, Customer Experience Management. The idea behind this is that with
the number ofcustomer contact points increasing all the time, it is more
critical than ever to measure the customers reactions to these contacts and
develop immediate responses to negative experiences. These responses
could include timely apologies and special offers to compensate for
unsatisfactory service. The idea is to expand the notion of a relationship
from one that is transaction-based to one that is experiential and
continuous.
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In today's competitive telecommunications market, for AIRTEL
customer service is the number one differentiator for companies. Customer
relationship management (CRM) applications improve the relationship
between the company and its customers.
Timely service provisioning,
Response to customer queries, and
Reporting on network performance
Are aspects of CRM. With GIS, call center operators can access all the
information on a customer and the associated network based on location.
Databases containing information on outside plant infrastructure, signal
quality, and equipment can be integrated using GIS and made available
using a corporate Intranet.
In CRM, Tier 1 handling means the customer's issue is resolved with the
initial call. Tier 2 calls require initiating a trouble-ticket and obtaining
additional information. Carriers who have successfully implemented GIS
support for CRM achieve higher Tier 1 handling and customer service is
performed more quickly and economically. GIS improves the speed and
quality of contact handling, augments customer satisfaction, and reduces
churn.
OVERVIEW OF CRM IN VODAFONEVodafone Essar, usually referred to simply as Vodafone, is a cellular
operator in India that covers 23 telecom circles in India. It was formerly
known as Hutchison Essar. It is the second largest mobile phone operator
in terms of revenue behind Bharti Airtel, and third largest in terms of
customers. The company now has operations across the country with over113.77 million customers.
Vodafone is the worlds leading international mobile communications
company. It now has operations in 25 countries across 5 continents and 40
partner networks with over 200 million customers worldwide. Vodafone is
able to offer the right solution to meet the needs of every client, driving
measurable improvements in business processes, enabling closer
relationships with customers and supporting the achievement of new
levels of profitability.
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Through supporting consistent best practice processes Customer
Relationship Management from Vodafone helps customers make the most
of interactions across multiple touch points.
Vodafone ads play a great role in building up CRM. The ads having the
pug, two friends, Zoozoos, etc have made a mark on the customers.
The Vodafone outlets help their customers in dealing with the problems by
attending to every customer and by providing them with info or solution.
Strategies and ComparisonBoth the companies are in same sector so both of them are facing same
privacy concerns. The privacy policies of both the enterprises are similar to
one another. Still the basic essentials of both the companies are mentioned
below:
Privacy policy of Vodafone
Vodafone India Limited is committed to protecting customerspersonal information. They have created Privacy Policy to help customers
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understand how they collect, use and protect their information when
customers visit companys web and WAP sites and use companys products
and services.
This Privacy Policy covers the following topics:
1. What personal information does Vodafone collects?Vodafone holds information relating to customers that they have
provided to Vodafone (such as on an application or registration form) or
that company may have obtained from another companys (such as
companys suppliers or from marketing organisations and credit agencies).
This information includes, customers name, address, telephone numbers,
information on how customer use companys products and services, the
location of customers mobile phone from time to time, lifestyle
information and any other information collected in relation to customers
use ofcompanys products and services.
2. How does Vodafone use customers Personal Information?The information that Vodafone collect from customer is held in
accordance with applicable laws and regulations in India. It is used by
company for a number of purposes connected with companys business
operations and functions, which include: Processing customer orders or applications. Carrying out credit checking and scoring. Providing customer with products and/or services requested. Billing customer. Dealing with requests, enquiries or complaints and other customer
care related activities.
Carrying out market and product analysis and marketing companysand companysgroup companies products and services generally;
Contacting customer (including by post, email, fax, short textmessage (SMS), telephone) about company and products and
services and the products and services of carefully selected third
parties which Vodafone think may be of interest to customer.
Registering customer details and allocating or offering customerrewards, discounts or other benefits and fulfilling any requests or
requirements customer may have in respect of companys and
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companys group companies' loyalty or reward programmes and
other similar schemes.
Inclusion in any telephone or similar directory or directory enquiryservice provided or operated by company or by a third party.
Carrying out any activity in connection with a legal, governmental orregulatory requirement or in connection with legal proceedings,
crime or fraud prevention, detection or prosecution.
.
3. Sharing customer Personal InformationThere may be times when Vodafone need to disclose customer personal
information to third parties. If Vodafone do this, Vodafone will only
disclose customer information to: Companys group companies; Those who provide company products or services that support the
services that Vodafone provide, such as companys dealers and
suppliers;
Credit reference agencies who may share customer information withother organisations and who may keep a record of the searches
Vodafone make against customer name;
If someone else pays customer bill, such as customer employer
Those providing telephone and similar directories or directoryenquiry services
Anyone Vodafone transfer companys business to in respect of whichcustomer are a customer or a potential customer.
Anyone who assists company in protecting the operation of theVodafone India networks and systems, including the use of
monitoring and detection in order to identify potential threats, such
as hacking and virus dissemination and other security vulnerabilities; Persons to whom Vodafone may be required to pass customer
information by reason of legal, governmental or regulatory authority
including law enforcement agencies and emergency services;
Any person or organisation as authorised by laws and regulationsapplicable in India.
Vodafone also provides customer personal information to carefully
selected third parties who Vodafone reasonably believe provide products
or services that may be of interest to customer and who have contracted
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with Vodafone to keep the information confidential, or who are subject to
obligations to protect customer personal information.
4. Protecting customer personal informationVodafone is taking reasonable steps to ensure that the personal
information Vodafone collects, uses or disclose is accurate, complete, up-to-
date and stored in a secure environment protected from unauthorised
access, modification or disclosure.
5. Internet useVodafone makes every effort to maintain the security of companys
internet connections, however for reasons outside of companys control,
security risks could still arise.
Vodafone uses cookies and other interactive techniques such as web
beacons to collect non-personal information about how customer interact
with companys website, and web-related products and services, to:
Understand what customer like and use aboutcompanys website; Understand what customer do not like and do not use on companys
website;
Provide a more enjoyable, customised service and experience, and Help company develop and deliver better products and services
tailored to companyscustomers interests and needs.
PRIVACY POLICY OF AIRTEL
Airtel is committed to protect the customers personal information and/or
sensitive personal data and strive to maintain the privacy of personalinformation. Airtel does collect customers personal information for a
variety of regulatory and business purposes. These include, but are not
limited to:
Verify customers identity
Complete transactions effectively and bill for products and services
Respond to customers request for service or assistance
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Perform market analysis, market research, business and operational
analysis
Provide, maintain and improve products and services
Anticipate and resolve issues and concerns with products and
services
Promote and market products and services which airtel consider may
be of interest to customer and may benefit customer.
Ensure adherence to legal and regulatory requirements for
prevention and detection of frauds and crimes.
1. Collection of personal informationAirtel and its authorized third parties collect information pertaining to
customers identity, demographics, and related evidentiary documentation.
They also collectcustomers personal information when they use company
services or websites or otherwise interact with company during the course
of relationship.
2. Disclosure and transfer of personal informationAirtel and its employees may utilize some or all available personal
information for internal assessments, measures, operations and related
activities. The same information can be passed to external parties as well.
3. Security practices and proceduresAirtels security practices and procedures limit access to personal
information on need-only basis. Airtel takes adequate steps to ensure that
third parties adopt reasonable level of security practices and procedures to
ensure security of personal information.
4. Internet UseAirtel maintains the security of our internet connections. However for
reasons outside of our control, security risks may still arise.
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Both the companies have the same sections in their privacy policies, in one
or the other way, may it be regarding personal information, usage. Both of
them ensure the security of the personal information of the customers and
have adopted reasonable security practices and procedures, in line with
international standard IS/ISO/IEC 27001, to include, technical, operational,
managerial and physical security controls in order to protect customers
personal information from unauthorized access, or disclosure while it is
under their control.
Both the companies cannot control the external threats to the data as both
are not liable to the information provided by customer to external resources.
Customisation
Customization is the art of creating different services for different types
of customers. Both the companies have differentiated products and
services, both tend to satisfy different types of customer segments. The
companies provide different services to different types of customers.
They provide services like:
Customized recharges: Airtel and Vodafone both provide recharges like
Bonus recharges and others. For high paying customers they provide extra
benefits.Differentiation in services of post-paid, pre paid, or easy post paid
customers
Data Acquisition
The companies use various techniques for data acquisition
1. Data collection by itself: The companies collect customer data bytheir own, when they provide services to customer or at the time oftransaction.
2. Third Parties: Both Airtel and Vodafone, collect the data ofcustomers through research agencies or third parties which they
have collected at various times.