Customer Relationship Management

Project on

Submitted To: Submitted By:

Mr. Anil Vashisht Group- 16

Ravi Dahiya

Manisha Bhambu

Shaveta Gupta

Priyanka Dutta

Yogendra P. Singh

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TABLE OF CONTENTS

Particulars Page No.Executive SummaryChapter – I : Introduction-Rationale of the Study- ObjectivesChapter – II : Theoretical Framework-Origin of CRM- CRM Defined- Evolution of Relationship Marketing- Benefits of CRM- CRM Strategies- The Role of Information Technology in CRM- CRM Documentation Issues- Elements for Success of CRM- Relationship Marketing and Customer Lifetime Value - Scope of CRM

Chapter – III : About-Company Profile- Vision- Mission- Bharti Values- Airtel Quality Statement- Recent Achievements

Chapter – IV: CRM at Airtel- Analysis and Findings from the Customer Care Department- Analysis of Customer Surveys

Chapter-V: Market Scenario-Most important market priorities-Market share and are leading in specific niches-Emerging trends-Growth and decline

Conclusion

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Executive Summary:

Bharti Airtel was established as Bharti Tele-Ventures Limited in 1985. Since then it has delivered and produced the best Teleservices and have become a brand to reckon with. It is one of the most well-known Telecom companies of the India and Airtel customers are brand loyal as well as they tend to associate themselves with the brand. This project will talk about the CRM system used in Bharti Airtel.This report is discuss about the CRM system its benefits, Relationship marketing, Customer lifetime value, scope of CRM in the near future, and we also discuss about the CRM System used in Bharti Airtel, process.

Chapter – I: Introduction

RATIONALE OF THE STUDY:

Relationships have proved to be the central element in the success of business since time immemo-rial. They are the invisible threads, which bind all business associates. To remain competitive and to carve a niche in a global market, it has become imperative to manage customers effectively. Organi-zations have realized the lifetime value of a customer. CRM has once again acquired the highest place in every strategist’s priority list. Organizations are redesigning their strategies and sharpening their focus on Customer Relationship Management for achieving sustainable competitive advantage. Sophisticated toolkits, involving latest technology inputs, are being used to implement CRM pro-grammers without proper knowledge of their impact on customers. The biggest Challenge faced by marketers is to know the effectiveness of their CRM programs. Keeping in view the requirements of marketers, it becomes essential to identify the determinants of CRM effectiveness. We see a great usage of CRM in the service industry, especially in the cellular services where each service provider is trying to have an edge over the other by means of enhancing customer satisfaction.

OBJECTIVES:

1.) To identify the customer relationship management programs being run by Airtel.

2.)To study the impact of CRM on Airtel

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Chapter – II: Theoretical Framework

History of CRM :

Customer Relationship Management (CRM) is one of those magnificent concepts that swept the business world in the 1990’s with the promise of forever changing the way businesses small and large interacted with their customer bases. In the short term, however, it proved to be an unwieldy process that was better in theory than in practice for a variety of reasons. First among these was that it was simply so difficult and expensive to track and keep the high volume of records needed accurately and constantly update them.In the last several years, however, newer software systems and advanced tracking features have vastly improved CRM capabilities and the real promise of CRM is becoming a reality. As the price of newer, more customizable Internet solutions have hit the marketplace; competition has driven the prices down so that even relatively small businesses are reaping the benefits of some custom CRM programs.

In the beginning…The 1980’s saw the emergence of database marketing, which was simply a catch phrase to define the practice of setting up customer service groups to speak individually to all of a company’s customers. In the case of larger, key clients it was a valuable tool for keeping the lines of communication open and tailoring service to the clients needs. In the case of smaller clients, however, it tended to provide repetitive, survey-like information that cluttered databases and didn’t provide much insight. As companies began tracking database information, they realized that the bare bones were all that was needed in most cases: what they buy regularly, what they spend, what they do.

Advances in the 1990’s:In the 1990’s companies began to improve on Customer Relationship Management by making it more of a two-way street. Instead of simply gathering data for their own use, they began giving back to their customers not only in terms of the obvious goal of improved customer service, but in incentives, gifts and other perks for customer loyalty.This was the beginning of the now familiar frequent flyer programs, bonus points on credit cards and a host of other resources that are based on CRM tracking of customer activity and spending patterns. CRM was now being used as a way to increase sales passively as well as through active improvement of customer service.

Definition:

Customer relationship management (CRM) is a widely-implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support. Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments.

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Relationship marketing :

Relationship Marketing was first defined as a form of marketing developed from direct response marketing campaigns which emphasizes customer retention and satisfaction, rather than a dominant focus on sales transactions.As a practice, Relationship Marketing differs from other forms of marketing in that it recognizes the long term value of customer relationships and extends communication beyond intrusive advertising and sales promotional messages.Modern consumer marketing originated in the 1950s and 1960s as companies found it more profitable to sell relatively low-value products to masses of customers. Over the decades, attempts have been made to broaden the scope of marketing, relationship marketing being one of these attempts. Arguably, customer value has been greatly enriched by these contributions.The practice of relationship marketing has been facilitated by several generations of customer relationship management software that allow tracking and analyzing of each customer's preferences, activities, tastes, likes, dislikes, and complaints. For example, an automobile manufacturer maintaining a database of when and how repeat customers buy their products, the options they choose, the way they finance the purchase etc., is in a powerful position to develop one-to-one marketing offers and product benefits.In web applications, the consumer shopping profile can be built as the person shops on the website. This information is then used to compute what can be his or her likely preferences in other categories. These predicted offerings can then be shown to the customer through cross-sell, email recommendation and other channels.Relationship marketing has also migrated back into direct mail, allowing marketers to take advantage of the technological capabilities of digital, toner-based printing presses to produce unique, personalized pieces for each recipient. Marketers can personalize documents by any information contained in their databases, including name, address, demographics, purchase history, and dozens (or even hundreds) of other variables. The result is a printed piece that (ideally) reflects the individual needs and preferences of each recipient, increasing the relevance of the piece and increasing the response rate.

Benefits of CRM:

A properly implemented CRM system can bring significant benefits to organizations.1. Shared or distributed data:

as companies realize that customer relationships are happening on many levels (not just through customer service or a web presence), they start to understand the need for sharing all available data throughout the organization. A CRM system is an enabler for making informed decisions and follow-up, on all the different levels.

2. Cost reduction:a strong point in Customer Relationship Management is that it is making the

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customer a partner in your business, not just a subject. As customers are doing their own order entry, and are empowered to find the info they need to come to a buy decision, less order entry and customer support staff is needed.

3. Better Customer Service:All data concerning interactions with customers is centralized. The customer service department can greatly benefit from this, because they have all the information they need at their fingertips. No need to guess, no need to ask the customer for the n-th time. And through the use of push-technology, customer service reps can lead the customer towards the information they need.

4. Increased Customer Satisfaction:

The customer feels that he is more "part of the team" instead of just a subject for sales and marketing (the proverbial number), customer service is better, his needs are anticipated. There is no doubt that customer satisfaction will go up. If the products sold exceed the customer’s expectation, of course, no CRM system can help you with shoddy products. In my opinion, the term satisfaction is a contaminated. Many companies think that if customers are satisfied that this is a good predictor for repeat business. However, this is not the case. Only delighted customers have a great level of loyalty.

5. Better Customer Retention:If a CRM system can help to enchant customers, this will increase customer loyalty, and they will keep coming back to buy again and again, hence customer retention.

6. More repeat business:The repeat business is coming from the delighted customers, who are turned from doubting clients into loyal advocates.

7. More new business:If you are delivering the ultimate customer experience, this will seed the word-of-mouth buzz, which will spawn more new business.

8. More Profit:More business at lower cost equals more profit.

The Role of Information Technology in CRM:

Everything about CRM is information technology-driven. Technology is pervasive from the basic user-friendly interface to complex back-end database and knowledge management systems. Massive databases are the heart of any CRM system. Data is collected from multiple sources ranging from data entry from customer service personnel to online data collection forms

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made available to the customer via a web browser. Sales executives or customer service personnel can access this data via the worldwide web, an extranet relationship with a corporate partners or an internal corporate intranet. Given the rise of PDAs and smart phones, many companies offer CRM mobile applications to sales executives in the field.

Technology ComponentsCRM applications have three primary technology components that are referred to as customer touch points, applications, and data stores: Customer touch points: Customer touch points are the primary human interface with customers. This is the beginning of the sales process. Sales people or customer service personnel communicate with the customer and input data into the system. Or, with the web, this interface could be through an online form where the customer is asking for more information.

Applications: Applications are the software interface between the customer touch points and corporate databases. Data stores: Data stores represent the data stored in the databases as well as the knowledge management systems designed to interpret the data and map out customer buying habits or buying behavior patterns.

Elements for success of CRM:

1. Develop a Customer-Centric StrategyThe first major step in any successful C.R.M. project is the creation of a strategic plan. This plan should clearly define the organization’s goals and objectives for delivering value to customers, and outline the specific actions that will be taken to help achieve them. Employee and client feedback should be solicited to help identify which interactions and services are most important and which are most in need of improvement, as well as to help determine the expected impact of the C.R.M. initiative on the customer base.

2. Create a Customer-Centric Culture:Change management is a crucial component of any C.R.M. project. Once an initial plan has been put together, customer-facing teams and departments must be brought into the loop, to ensure they work collaboratively to deliver the highest quality service and support to both existing and potential customers. This may call for extensive changes in a company’s culture, structure, and behavior, and will likely require resources to be re-allocated, and key customer-facing processes and activities to be re-engineered, so they are aligned with new goals.

3. Harness the Power of Customer Information:

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When it comes to C.R.M., knowledge is power. Ensure that up-to-date customer information flows freely throughout the company, and is readily accessible to all key stakeholders whenever they need it. This can be accomplished by choosing a C.R.M. application that collects data at every critical customer touch-point, and transforms it into vital intelligence that staff in customer-facing roles can leverage to understand customer needs and preferences, and deliver better, more personalized service. 4. Integrate TechnologyIn order for C.R.M. to allow for effective coordination and enhancement of service delivery, it must align the fragmented, disjointed processes and technology systems that likely exist in different departments such as accounting, sales, marketing, call centers, and field support. The C.R.M. solution must integrate with other enterprise applications in the IT environment, to allow for seamless execution of customer-facing processes across the entire business.

5. Conduct Continuous Measurement and ImprovementWithout stringent performance management, any C.R.M. project is likely to deliver below-average results – or even worse, fail. Be sure that, early on in the C.R.M. planning processes, a set of measurable performance metrics (both internal and external) are defined, so the success or failure of the C.R.M. initiative can be periodically assessed. Use those metrics to track actual results against goals, identify areas in need of improvement, and make ongoing enhancements to customer-facing activities.

Customer lifetime value:

Customer Life Time Value: In marketing, customer lifetime value (CLV), lifetime customer value (LCV), or lifetime value (LTV) is the net present value of the cash flows attributed to the relationship with a customer. The use of customer lifetime value as a marketing metric tends to place greater emphasis on customer service and long-term customer satisfaction, rather than on maximizing short-term sales.

Customer lifetime value has intuitive appeal as a marketing concept, because in theory it represents exactly how much each customer is worth in monetary terms, and therefore exactly how much a marketing department should be willing to spend to acquire each customer. In reality, it is difficult to make accurate calculations of customer lifetime value. The specific calculation depends on the nature of the customer relationship. Customer relationships are often divided into two categories. In contractual or retention situations, customers who do not renew are considered "lost for good". Magazine subscriptions and car insurance are examples of customer retention situations. The other category is referred to as customer migrations situations. In customer migration situations, a customer who does not buy (in a given period or from a given catalog) is still considered a customer of the firm because she may very well buy at some point in the future. In customer retention situations, the firm knows when the

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relationship is over. One of the challenges for firms in customer migration situations is that the firm may not know when the relationship is over.

Scope of CRM:

CRM, or customer relationship management, is concerned with the development and maintenance of mutually beneficial relationships with strategically significant partners. Its focus is the creation of long-term value, and not just short-term profits, for the company and all it works with. The scope of CRM can thus be defined according to its constituencies, how long-term value can be created for and with them and the benefits of doing so.

The Customer:

The customer is of key importance because only relationships with customers generate revenues for a company. Establishing a good long-term relationship with customers can take the form of the provision of benefits such as special prices and preferential treatment. Doing so can bring about drastic increases in value due to frequent sales from satisfied customers, positive word of mouth, a reduced need for product sampling and advertising, and increased possibility of cross-selling or purchasing of other products.

The Suppliers:

Suppliers provide input, such as raw materials, technologies, components, investment, human resources and expertise, to the company's value chain. In 2010 companies have tended to shift to a smaller number of suppliers and create and maintain long-term relationships with them. Enhanced performance can result from improved communication and coordination with this set of suppliers. Purchasing costs can be reduced thanks to elimination of the need to constantly seek cheaper sources. With fewer vendors, increased cooperation between the remaining parties in the form of management-information system alignment and customer-information sharing becomes possible.

The Owners:

Companies may remain private for the duration of their lifespan, remaining the property of single proprietors or many owners. Other companies may start out that way, but at certain points may elect to go public and sell shares in order to spread liability or raise funds for future expansion. Whichever category a company may fall under, it is paramount for its management to establish productive relationships with its owners and create value for them in the form of enduring company and stock value in the long run. A poor long-term relationship can result in investors selling out and in drops in stock value or in changes of ownership if the company is sold.

The Employees:

Employees are central to CRM practitioners. Many businessmen, such as Bill Marriott and Richard Branson, claim that their employees or "internal customers" are their most important constituency, not the customers per se. should employees be satisfied and happy with their jobs, and they will be more apt to provide noteworthy service to the company's external customers. In

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short, employee satisfaction drives customer satisfaction. A positive climate for service is less rule-driven, more customer-orientated, and more supportive of personal initiatives.

Other Partners:

Establishing a partnering relationship with another company, such as a strategic alliance or joint venture, is done through sharing complementary strengths such as technological expertise, market reach, supplier networks, customer data and customer bases. Partnering with another firm can thus support the creation and delivery of value through increasing efficiency, sharing product development, marketing and distribution costs, and sharing key resources.

Chapter – III : About

COMPANY PROFILE:

BHARTI AIRTEL:Bharti Airtel was established as Bharti Tele-Ventures Limited in 1985. This telecommunication company is a joint stock holding enterprise headquartered in New Delhi. Bharti Airtel, commonly called 'Airtel' is among largest mobile service operator with a subscriber base of nearly 75 million.Bharti Airtel limited is a leading global telecommunications company with operations in 19 countries across Asia and Africa. The company offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises and national & international long distance services to carriers. Bharti aortal has been ranked among the six best performing technology companies in the world by business week. Bharti Airtel had 200 million customers across its operations.

Airtel has four business divisions: Mobile Services Airtel Telemedia Services Enterprise Services Digital TV Services

VISION:By 2015, Airtel will be the most loved brand, enriching the lives of millions.“Enriching lives means putting the customer at the heart of everything we do. We will meet their needs based on our deep understanding of their ambitions, wherever they are. By having

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this focus we will enrich our own lives and those of our other key stakeholders. Only then will we be thought of as exciting, innovation, on their side and a truly world class company."

By 2020, to build India’s finest business conglomerate.

MISSION:“We at Bharti always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more”.

Core Values: Empowering People : to do their best Being Flexible: to adapt to the changing environment and evolving customer needs Making it happen: by striving to change the status quo, innovate and new ideas with a strong passion and entrepreneurial spirit Openness and transparency: with the innate desire to do good Creating positive impact: with a desire to create a meaningful difference in society

Recent Achievements:

Bharti Airtel’s product and services portfolio includes mobile services, home phones, broad-band, calling cards, DTH, IPTV, MPLS Services, satellite services, data transport solutions and conferencing services.

Bharti Airtel has more than 186 million customers.

Operations in 19 countries across Asia and Africa.

Bharti Airtel’s revenues in the financial year 2008-09 was Rs. 36,962 Crore (Around US $ 7.8 Billion dollars)

Bharti Airtel is

3rd largest in-country mobile operator in the world

6th largest in-country integrated telecom operator in the world

Ranked number 5 in the best performing technology companies in the world by business week

India’s most innovative company by Wall Street Journal

Winner of Gallup great workplace for being one of the best places to work worldwide

Ranked 188 in the FT 500 world’s largest companies 2009 ranked by financial times

  

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Chapter – IV: CRM at Airtel

Analysis and Findings from the Customer Care Department

Data given below is Service Requests which are raised by Customer Care Executives on complainants of customer. When a customer makes a call to customer care for some problem he is facing and which can’t be resolves at that time in that case customer care executive raises a request which is called Service Request (SR) or Airtel Request (AR) and gives the customer a number for the future reference.This Data is for Airtel Postpaid for all over Delhi Circle of September 2010.

TYPEAvg CountContribution%

Avg Barring Barring%

Provisioning 28379 28.0% 757 22.6%Service Related 22297 22.0% 352 10.5%Network 16115 15.9% 542 16.2%Bill Delivery 12050 11.9% 548 16.4%Churn 7746 7.7% 255 7.6%Billing 3879 3.8% 209 6.3%Sales & Marketing 3063 3.0% 75 2.2%Customer Accounting 2506 2.5% 252 7.5%Risk & Credit 2416 2.4% 118 3.5%Data & Devices 1031 1.0% 17 0.5%Refund 943 0.9% 21 0.6%Collections 675 0.7% 195 5.8%Welcome Process 130 0.1% 2 0.1%Total 105090 100% 3340 100%

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Analysis-

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1. Provisioning –Provisioning related AR/SR is raised in case where a customer has a problem regarding his bill plan, activation/deactivation of services, activation/deactivation of VAS i.e. Value Added services or Changing from postpaid to prepaid. In this case there are maximum AR’s are raised which are 28379out of 105090 which is 28% of total AR’s raised and which resulted in temporary disconnection of 757 connections.

2. Service Related-It means that customer had issues for the people he interacted either on service outlet or on customer care itself. In this case total no of AR’s raised is 22297 which is 22.0% of 105090 and which resulted in temporary barring of 352 connections.

3. Network-Customer complains about the fluctuation of network or less network in particular area. This is 3rd maximum reason of customer complains which is 16115 of 105090 and reason of 542 temporary disconnection.

4. Bill Delivery-Many customer complain of non delivery of bill on their address. There are 12050 complains for this particular problem. It’s reason of 548 temporary disconnection.

5. Churn-Many customer want to get their connection permanently disconnected. 7746 AR’s were raised for this problem.

6. Billing-3879 customer had billing amount disputes which caused 209 temporary disconnection.

7. Sales & Marketing-3063 customer had issues with sales and marketing department which had issues of activation or deactivation of VAS even after not getting permission from the customer end. Or false promises made by Sales & Marketing department.

8. Customer Accounting-2506 customer complained for their payment which got submitted in a different account which became a reason of 252 disconnections.

9. Risk & Credit-2416 customers made a request to increase their credit limit which became a reason of 118 temporary disconnection.

10. Data & Devices-1031 complaints were there for their GPRS services not working properly.

11. Refund-

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After 6 months of a new connection every postpaid customer gets his security refunded. Customer thinks that this amount will be credited in his account but a cheque is delivered on his address on customer request. There are 943 requests raised for this particular problem.

12. Collections-675 complain were there due to misbehave of collection department which became a reason of 195 disconnection.

13. Welcome Process-When a new connection is purchased then a small kit is delivered on customer’s addressAnd a field executive goes to know customer’s expectations and to know customer’s problem he faces and to make him aware of the facilities he can avail. After that he receives a call from the same department for congratulating him and for his feedback. Sometimes this process is not followed and customer is puzzled. For this problem he calls the customer care department and CCE raises a complained for this problem. 130 AR’s were raised due to this problem which became a reason of 2 disconnection.

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