CRM System in Vodafone
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Transcript of CRM System in Vodafone
CRM System in VODAFONE
Presented by : PRASHANT LOKHANDE
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
COMPANY PROFILE
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.
VODAFONE IN INDIA
Airtel 24%
Vodafone20%
BSNL / MTNL13%
Tata 9%
Idea11%
Aircel5%
Reliance19%
Others1%
MARKET SHARE IN INDIA
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 Cons i s tency
Re l i ab i l i t y
F lex ib i l i t y
Respons iveness
I nnova t i ve Se rv i ces
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.
EnrichingService
Experience
Enriching service experience
Product development• Solve business problems
Promotion & Communication•Web
Pricing & purchase experience•Cost saving •Virtual/ online.
Product experience•Ease of use•Stability & availability
Billing & payment•Billing accuracy•Online payment options.
Care •Online resolution•Call center support.
Exit•Easy un-subscription.
VODAFONE’S CUSTOMER STRATEGY IN INDIA
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
VALUED CUSTOMER EXPERIENCE
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.
Vodafone’s 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.
Vodafone’s 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.
CRM PROCESS
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.
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
CRM INFORMATION
Year 0 Year 1 Year 2 Year 3 Year 4
Number of Customers 100 90 80 72 60
Revenue / Customer 1,200 1,320 1,440 1,500
Variable Cost / Customer 840 864 900 912
Margin / Customer 360 456 540 588
Acquisition Cost / Customer 100 - - - -
TOTAL PROFIT -10,000 32,400 36,480 36,480 35,280
Present Value -10,000 29,455 30,150 27,410 24,100
CALCULATING CUSTOMER LIFETIME VALUE
CLV = ∑
Where m = margin for time t
i = discounting rate for time t
mrt
(1+i)t
∞
t=1
800 – 2000 /- for 10 consecutive months
> 2000 /- for 10 consecutive months
200 – 800 /- for 10 consecutive months
< 200 /- for 10 consecutive months
CUSTOMER CATEGORIZATION
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.
CONSUMER RESEARCH
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