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