CRM, CS-507

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CUSTOMER RELATIONSHIP

MANAGEMENT IN UFONE
(FINAL PROJECT REPORT)
Presented By:
KULSUM WAHEED 80
ABDUL REHMAN 23
SAQIB ANJUM 22
SAADIA MAZHAR 131
ARSHIMA MEHBUB 64
ZUBAIR

Presented To:
Sir Salman Shahid

1
ACKNOWLEDGEMENT

We first of all thank Allah


Almighty for supporting us,
then our respectable associate
dean and teachers, the Ufone
employees and our family
members and class friends for
providing us support to
complete this project.

2
EXECUTIVE SUMMARY

3
(Customer Relationship Management) An integrated information system that is used to
plan, schedule and control the presales and postsales activities in an organization.

Ufone is a brand of PTML (Pakistan Telecommunication Mobile Limited), which is a PTCL’s fully
owned subsidiary. This subsidiary was incorporated in 1998, but started to commence its
operations on 29th January 2001 as a GSM 900’s service provider. It has improved its financial
performance, and since the outset, it has expanded its coverage and customer base at a rapid
pace and established itself as one of the leading cellular service providers in Pakistan.

Ufone has progressed a lot and currently has 20% market share, where as Mobilink has 33%
being at the highest level, telenor being the second with 24% share in market.

To constantly improve its performance, Ufone provides various types of trainings to its personnel
like internal trainings, outsourced trainings, specified and general trainings. From “salam” to
“thanks for visiting Ufone”, every thing is documented and is taught to the employees. This
quality maintenance is done by a special department that monitors the relationship of personnel
with customers, co-workers, seniors and subordinates.

Ufone retains its loyal customers by providing them bonuses on revenues earned from them. A
special department consisting of personal executives provides door to door services to such
customers. Customers become loyal after a predefined time period and amount.

Ufone attains its competitors customers by launching ad campaigns with attractive offers for
them. Also it makes sure that customers are fully satisfied with its products and services. Call
centre records the calls for maintaining quality assurance standards.

Empowerment is the transfer of authorities from a senior to a junior or we can say delegating
powers to another person is empowerment. Ufone is a very friendly employer and lets every
personnel work efficiently. It lets every individual have the authority of taking decisions and
performing tasks at his own level in the best possible way. This freedom creates a sense of
ownership in each employee and he becomes more concerned about his job. When the freedom
level is created, employees feel happy to work with the organization and hence interact in a
friendly way with the customers, thus enhancing the organization’s goodwill.

However, Ufone needs to provide more support to its customers when they face any problem. It
should also provide its services in now and far areas and should minimize its network issues just
as mobilink does. We will recommend Ufone to first concentrate on improving its network
reliability. This will increase Ufone’s goodwill and just like Mobilink, Ufone can acquire more
customers than it has today.

Ufone needs to focus on the weaknesses and offer such products to the market, which may beat
its direct competitors and future competitors. It should use its strengths to minimize its
weaknesses, overcome the threats and avail the opportunities which its competitors have not
availed yet.

4
TABLE OF CONTENTS
1. Introduction to CRM
A. Definition And Origin Of CRM 7
B. Features Of CRM 8
8
C. Benefits Of CRM 8
9
D. Types Of CRM 9
E. Pareto’s Law 10
F. CRM And Communication 11
G. People And CRM 12
12
H. Moments Of Truth 12
I. Characteristics Of An Excellent CRM 13
J. Essential CRM Focus 13
K. Achieving Good CRM 14
14
L. CRM As A Process 14
M. Customers Expectations 14
N. Generating A Customer Focused CRM 15
O. CRM’s Impact On Organizations 15
P. Conditions Of CRM 15
Q. Customers Wants And Demands 16
R, Why Do Organizations Undertake CRM?
S. Customer Orientation
T. Steps For Effective CRM
U. Customer Management In CRM 17
19
2. Introduction to Ufone 19
21
A. Origin 21
B. Logo And Mission Statement 21
C. Products And Value Added Services 24
D. Marketing Strategies 25
E. Target Market 26
F. Market Share
G. Competitive Edge
H. Market Ranking
I. SWOT Analysis

5
3. Research Done

A. Attitude/Interaction Of Ufone With Customers 28


B. Customer Management 29
C. Training Of Personnel 30
D. Benefits Provided To Loyal Customers 30
E. Strategies To Maintain Customer Satisfaction 31
F. Measurement Of Customer Satisfaction 31
G. CRM Laws/Rules/Methods Followed 32

4. Conclusion 32

5. Recommendations 32

6. Empowerment In Ufone 32

7. Bibliography 33

6
1. Introduction To Customer Relationship Management:

Definition And Origin Of CRM:

(Customer Relationship Management) An integrated information system that is used to


plan, schedule and control the presales and postsales activities in an organization.

CRM embraces all aspects of dealing with prospects and customers, including the call center,
sales force, marketing, technical support and field service. The primary goal of CRM is to
improve long-term growth and profitability through a better understanding of customer behavior.
CRM aims to provide more effective feedback and improved integration to better gauge the
return on investment (ROI) in these areas.

Sales force automation (SFA), which became available in the late 1980s, was the first
component of CRM. SFA, call center and automated field service operations were on parallel
tracks in the 1990s and began to merge with marketing in the late 1990s to become CRM. Like
ERP, CRM is a very comprehensive system, and a myriad of packages provide a myriad of
options.
According to Glen Petersen, author of "ROI: Building the CRM Business Case," the most
successful CRM systems are found in organizations that realign their business model for
profitability, not just redesign their information systems.

7
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. The overall goals are to find, attract, and win new
clients, nurture and retain those the company already has, entice former clients back into the fold, and
reduce the costs of marketing and client service. Customer relationship management describes a company-
wide business strategy including customer-interface departments as well as other departments.

Features Of CRM:
The old viewpoint in industry was: 'Here's what we can make - who wants to buy our product?'
The new viewpoint in industry is:
• 'what exactly do our customers want and need?' and
• 'what do we need to do to be able to produce and deliver it to our customers?'
This is a significant change of paradigm and a quantum leap in terms of how we look at

Benefits of effective CRM:


There are significant business benefits which accrue from an effective, integrated Customer
Relationship Management approach. These include:
• Reduced costs, because the right things are being done (ie., effective and efficient
operation)
• Increased customer satisfaction, because they are getting exactly what they want (ie.,
exceeding expectations)
• Ensuring that the focus of the organization is external
• Growth in numbers of customers
• Maximization of opportunities (E.g., increased services, referrals, etc.)
• Increased access to a source of market and competitor information
• Highlighting poor operational processes
• Long term profitability and sustainability
Forward thinking organizations understand the vital need to maintain a strategic focus on CRM
and to resource and manage it appropriately.

Types Of CRM:
When it comes to application of CRM, three broad classifications are possible. They are:
• Operational CRM
• Analytical CRM
• Collaborative CRM

8
Pareto's Law ('The Pareto Principle'):
Pareto's Law is commonly known as the 80:20 rule. Typically in any organization:
• 20% of customers account for 80% of your turnover
• 20% of customers account for 80% of your profits
• 20% of customers account for 80% of your service and supply problems
It is important to know is which customers fit into which category and then to manage them
accordingly.
Highly satisfied customers who perceive a high value in your products and services commonly
make excellent advocates for your organization - nurture these customers and give the special
treatment.
Dissatisfied customers who perceive a low value in your products and services are potential
saboteurs. These customers could have little or no loyalty and may actively 'engage' against
your organization. Therefore you should seek to rebuild relationships and trust, and a new basis
for a future relationship, or manage the separation with dignity, professionalism and integrity.

CRM And Communications:


Communication is central to any successful relationship. In terms of Customer Relationship
Management, communication needs to be consistent and high quality; as determined by:
• on time
• focused
• relevant
• reliable
• coherent
9
Importantly also, for effective communications it's the message and meaning that is
received that counts, irrespective of what the communicator thinks they've said, or written.
Communications must be judged most vitally by the reaction of the receiver. If the reaction is not
good then the communication is poor.
The information contained in a CRM system allows communication to be directed at the correct
audience, in the correct way. The communication system must also encourage and facilitate
honest and actionable feedback.
Feedback from customers - especially complaints - are essential for good organizational
performance and ongoing development. Most organizations avoid, discourage and hide from
complaints. Don't. Complaints are free guidance for improving your quality, and free
opportunities to increase customer loyalty.

People And CRM:


As with any other business process your people have a huge impact on the success of the CRM
process.
Successful and effective Customer Relationship Management people tend to display the
following key characteristics:
• positive attitude
• people orientation
• organizational skills
• analytical skills
• customer focus (natural empathy)
• understanding of the link between CRM and profitability
On the subject of empathy: Empathy is about understanding, not necessarily agreeing.
Effective customer focus enables the organization and its staff to see both sides, and to work
with the customer to arrive at a mutually satisfactory and sustainable solution. Agreement alone
amounts to capitulation, which is neither practicable nor sustainable.

10
Moments Of Truth:
'Moments of truth' are encounters with customers which cause them to form a view of the
organization based on how they are engaged, particularly compared to their expectations.
Expectations can be met, exceeded or disappointed. Moments of truth can therefore be positive,
in the case of meeting and exceeding expectations, or negative, in the case of disappointment.
Monitoring the 'moments of truth' allows the company to focus on improving areas responsible
for negative customer experiences.
Remedial action to prevent repetition is crucial. A single mistake is forgivable. A repeat rarely is.
If you put things right your customers will see that they are important to you. Put things right and
you will be seen as a supplier who knows how to manage quality.
Organizations that fail to put right things that go wrong, might as well say to the customer, "You
are not important to us". Failing to put things right and to prevent reoccurrence says of the
organization "We are not capable of managing quality service."
Bear in mind also that research has proven time and again that when an an issue of poor
service to a customer is satisfactorily resolved by a supplier, the customer increases their loyalty
to the supplier to a higher level than existed prior to the problem.
An approach to managing 'moments of truth' involves 'continuous improvement'. This entails
processes that continually monitor, check and resolve negative moments of truth by ensuring
alterations happen to the customer process, and integrating theses changes into 'business as
usual'. Here are the elements of such an approach:
• define the cycle of service
• identify negative moments of truth
• define the reasons (ie., root causes - not symptoms)
• develop solution/s
• test solution(s)/review/amend
• implement
• monitor impact on the cycle of service
This is similar to the EPACA model - the helix of continuous improvement.
Negative moments of truth carry a lot of weight with the customer and will adversely affect the
relationship.
To maximize positive moments of truth - set standards in your processes.
Standards using SMART criteria Standards (which may also be objectives) can be established
using the SMART framework.
• Specific
• Measurable
• Agreed
• Realistic
• Time-bound

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Characteristics Of Excellent CRM:
The following characteristics are associated with delivery of excellent CRM:
• reliability
• responsiveness
• accessibility
• safety
• courtesy
• consideration
• communication
• recognizing the customer
• competence

Focus On Building Relationships:


The essential CRM focus of any organization should be on developing core competencies, and
an overall strategy of building customer relationships. In this way, all efforts in the organization
can be aligned to:
• customers and the culture of exceeding of customer expectation
• understanding and managing the people impact on the culture of the organization
• customers being recognized and treated as partners
• the value of relationship-building being valued
• service being seen as a value-adding activity
• reward and recognition being based on customer focus ie., 'going the extra mile'
• evidence of corporate support for service activity

Achieving Good CRM:


Achieving effective Customer Relationship Management requires many organizations to adopt a
new perspective. Consider the following:
• traditional customer service is something you 'do to' the customer
• modern Customer Relationship Management is 'done with' the customer
The second statement is emphasises the big differences between conventional traditional
customer service, and the modern progressive CRM approach.
Your relationships with customers should be ongoing, cooperative, and built for the long term.
Organizations who have many transitory relationships with customers consequently have to
spend a lot of money on finding new customers.
The cost of keeping existing customers is a tiny fraction of the cost of acquiring new customers.

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CRM As A Process:
CRM can be regarded as a process, which has:
• identifiable inputs
• identifiable components
• identifiable characteristics, which define CRM for your organization and customer base
• capacity for improvement and evolution over time

Customers' Expectations:
If an organization cannot at least meet its customers' expectations it will struggle.
Ideally a business organization should exceed its customers' expectations, thereby maximising
the satisfaction of its customers, and also the credibility of its goods and services in the eyes of
its customers.
Customers normally become delighted when a supplier under-promises and over-delivers. To
over-promise and under-deliver is a recipe for customers to become very dissatisfied.
Rule No 1 - You cannot assume that you know what a customer's expectations are ... You must
ask.
Rule No 2 - Customer expectations will constantly change so they must be determined on an on-
going basis.
The expectations of different customers for the same product or service will vary according to:
• social and demographic factors
• economic situation
• educational standards
• competitor products
• experience
Therefore, given all these variable factors, it is no surprise that one size certainly does not fit all.
Ask your customers what is important to them. Find out why your customers do business with
you. There are a wide variety of relationship drivers. For example:
• quality
• price
• product
• location
• customer service
When you ask you might discover some factors that you'd perhaps never even considered, for
example:
• health and safety support
• systems compatibility

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• contract structure
• distribution flexibility

• technical support
• troubleshooting and problem-solving, to name just a few

Generating A Customer Focused CRM Solution:


So what do we need to make this quantum leap of customer integration?
A new way of thinking:
• change in paradigm
• change in the messages sent and received
• change in the overall culture
And a new way of doing things:
• processes that are capable and effective
• structures and systems that support a business centred on its customers
• connectivity (end-to-end processes) both internally and externally (eg., with suppliers)

How CRM Impacts On The Organization:


CRM can have a major impact on an organization through:
• shifting the focus from product to customer
• streamlining the offer to what the customer requires, not want the organization can make
• highlighting competencies required for an effective CRM process

CRM conditions:
The organization and the customers both have sets of conditions to consider when building the
relationship, such as wants and needs of both parties;
• organizations need to make a profit to survive and grow
• customers want good service, a quality product and an acceptable price
Good CRM can influence both sets of conditions.

Customers Wants And Demands:


Most obviously, and this is the extent of many suppliers' perceptions, customers want cost-
effective products or services that deliver required benefits to them. (Benefits are what the
products or services do for the customers.) Note that any single product or service can deliver
different benefits to different customers. It's important to look at things from the customer's
perspective even at this level.
More significantly however, customers want to have their needs satisfied. Customers' needs are
distinctly different to and far broader than a product or service, and the features and benefits
encompassed. Customers' needs generally extend to issues far beyond the suppliers'
proposition, and will often include the buying-selling process (prior to providing anything), the
way that communications are handled, and the nature of the customer-supplier
relationship.
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Modern CRM theory refers to the idea of 'integrating the customer'. This new way of looking at
the business involves integrating the customer (more precisely the customer's relevant people

and processes) into all aspects of the supplier's business, and vice versa. This implies a
relationship that is deeper and wider than the traditional 'arms-length' supplier-customer
relationship.
The traditional approach to customer relationships was based on a simple transaction or trade,
and little more. Perhaps there would be only a single point of contact between one person on
each side. All communication and dealings would be between these two people, even if the
customers' organization contained many staff, departments, and functional requirements
(distribution, sales, quality, finance, etc).
The modern approach to customer relationship management is based on satisfying all of the
needs - people, systems, processes, etc - across the customer's organization, such as might be
affected and benefited by the particular supply.

Why do organizations undertake CRM?


CRM is a new concept to many organizations. If it's new to you, here's why most forward-
thinking organizations devote lot of energy and resources to the set up and management of a
CRM capability.

Steps For Effective CRM:


Successful organizations use three steps to build customer relationships:
• determine mutually satisfying goals between organization and customers
• establish and maintain customer rapport
• produce positive feelings in the organization and the customers

Customer Orientation:
A firm in the market economy survives by producing goods that persons are willing and able to
buy. Consequently, ascertaining consumer demand is vital for a firm's future viability and even
existence as a going concern. Many companies today have a customer focus (or market
orientation). This implies that the company focuses its activities and products on consumer
demands. Generally there are three ways of doing this: the customer-driven approach, the
sense of identifying market changes and the product innovation approach.

In the consumer-driven approach, consumer wants are the drivers of all strategic marketing
decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of
a market offering, including the nature of the product itself, is driven by the needs of potential
consumers. The starting point is always the consumer. The rationale for this approach is that
there is no point spending R&D funds developing products that people will not buy. History
attests to many products that were commercial failures in spite of being technological
breakthroughs.

A formal approach to this customer-focused marketing is known as SIVA (Solution, Information,


Value, Access). This system is basically the four Ps renamed and reworded to provide a
customer focus.

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The SIVA Model provides a demand/customer centric version alternative to the well-known 4Ps
supply side model (product, price, placement, promotion) of marketing management.

Product → Solution

Price → Value

Place → Access

Promotion → Information

If any of the 4Ps had a problem or were not there in the marketing factor of the business, the business
could be in trouble and so other companies may appear in the surroundings of the company, so the
consumer demand on its products will become less.

Customer Management:
Why manage customers? Customers are the usual source of income for an organization. (If not
then they will certainly leverage your income, as in the case of readers of a free publication
which is funded by advertising. As such there are two types of customers: the readers and the
advertisers).
Customers are also an exceptional source of information - information which is vital to enable a
business to succeed; ie., giving customers what they want.
Managing customers entails:
• knowing what customers want and need - which enables you to focus your production
and service efforts
• knowing which products or customers have most growth potential - which enables you to
focus on developing highest potential
• knowing which products or customers are most or least profitable - which enables you to
focus on maximising profit
• knowing which customers will be advocates and supporters - which enables you to
provide references, case studies, and to safely test new products and services

16
2. Introduction To Ufone:
Origin:
Pak Telecom Mobile Limited (PTML) is a wholly owned subsidiary of...Pakistan
Telecommunication Corporation Limited (PTCL) that started its operations in January 2001under
the brand name ‘Ufone’. As a result of PTCL’s privatization, Ufone became a part of the
Emirates Telecommunication Corporation Group (Etisalat) in 2006.

Since its inception, Ufone has focused on the people of Pakistan, empowering them with the
most relevant communication modes and services that enable them to do a lot more than just
talk, at a price that suits them the most. Along with the claim of lowest call rates, clear sound and
best network, Ufone offers its customers simplified tariffs with no hidden charges. With a strong
and uniquely humorous communication direction that has now become Ufone’s signature across
all advertising media, Ufone gives its customers many reasons to smile.

This customer focus and best offering has allowed Ufone to build a subscriber base of
over 20 million in less than a decade. Ufone has network coverage in 10,000 locations and
across all major highways of Pakistan. Ufone currently caters for International Roaming to more
than 288 live operators in more than 160 countries. Ufone also offers Pakistan’s largest GPRS
& BlackBerry Roaming coverage available with more than 200 Live Operators
across 122 countries. More recently, Ufone has become a focused and intensive leader in VAS,
constantly introducing innovative services, which have been the first of their kind in the Pakistani
cellular industry. According to recent Ufone’s position analysis done by PTA, it has a subscriber
base of 23.26 million customers(2010).

As the world of telecommunications advances, Ufone promises its customers to stay ahead,
developing and evolving, to go beyond their expectations, because at Ufone, it’s all about U.

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Pakistan Telecommunciation Mobile Ltd. (PTML),
Ufone

Type Private

Industry Telecommunication

Genre Subsidiary

Founded January 29, 2001

Founder(s) Pakistan Telecommunication Company Ltd

Headquarters Islamabad, Pakistan

13-B, F-7 Markaz

Area served 2336 cities of Pakistan, GT Road, Super Highway &

Motorway

Key people Abdul Aziz, CEO

Products Pre Pay, Post Pay

Revenue Rs.5.1 billion PKR (first quarter 2006-07).

Parent PTCL Pakistan

Website www.ufone.com

18
Logo And Mission Statement:
Ufone shows the “You Attitude” through its logo and mission statement, which means that it
treats its customer as a king and thinks to maximize its efforts to the maximum level and provide
maximum satisfaction to the customers and retain them. Ufone’s mission statement states that
“to be the best cellular option for U”, and its logo says “its all about U”.

Products And Value Added Services:

The main products are PREPAY and POSTPAY. When Ufone was launched, it offered AIMS
connections. With the advancement in technology, it started to offer GSM based services to its
customers from 2002 onwards.

19
When Ufone got a positive feedback from its customers, who could give more revenue to Ufone,
it started to offer its POSTPAY services as well. Currently, its earning more revenue from
PREPAY customers.

Ufone offers 11 packages of different rates. It provides basic VAS like ULoan, UShare, UTopup,
UTunes, Song Catcher, Song Dedicator, Ufone SMS Buddies, Awaz SMS, Ufone Phonebook
Saver, Conference Call, Call Block Service, Music Station, Collect Call, Ur EDGE etc.

Also, Ufone offers products like blackberry phones along with solutions, accessories, Ufone
Application portal etc. Currently, Ufone is the biggest Blackberry Solutions provider in Pakistan.
Also its all sms and call packages are economical and highly affordable and meet customers
requirements. Ufone also provides high speed net for mobile phone browsing.

20
Marketing Strategies:

Ufone uses advertisements, campaigns, broachers, or sends calls and messages to customers,
to let them know about the new products and offers. Currently Ufone is advertising after every
15days about its new promotions and products. Ufone uses direct approach in which it directly
tells to its competitors that Ufone can compete with them and defeat them very well. Ufone
provides quality services to its customers and has a separate department for check and balance
of quality.

Target Market:

Ufone’s target market is not limited to one person or similar type people. It offers products that
satisfy all the basic needs of customers. For youth it has launched the Uth package, ghanta free
package and super ghanta offer. For youngsters and elders it provides packages like prepay life,
U Circle etc. Ufone keeps into consideration that all age groups must take maximum benefit from
Ufone. By doing so they help Ufone to increase its goodwill.

Market Share:

Ufone is constantly earning revenues. As per PTA following is the growth ratio of various cellular
companies in Pakistan.

Province Wise Subscriber Share:

As of December 2009, as per PTA’s quarterly report, Ufone had following number of subscribers
in four provinces:

• Punjab: 10,982,829
• Sindh: 4,746,935
• Khyber Pakhtoon Khawan: 2,071,866
• Balochistan: 540,675

21
Voice Traffic:
In last six months, Punjab naturally contributed highest share of outgoing voice traffic, i.e. 54
percent followed by Sindh that shared 28 percent. Khyber Pakhtoon Khawan generated 13
percent of total voice traffic for Ufone with Balochistan standing last with 5 percent traffic share.

22
Voice Revenues

Following Graph Shows average revenue generated for one outgoing minute. It varies in different provinces
because of different selection of tariff plans in different regions.

23
Note: Revenues’ details are for Voice traffic only. It does not include SMS, GPRS and other details.

As evident from last graph that Punjab and Sindh share lower ARPUs, that’s apparently because
higher SMS usage and intelligent tariff plan selection (Reference: outgoing
minutes/revenues/per minute revenues details)

Competitive Edge:
Following table tells about the differences between various networks in Pakistan.

Network Mobilink Telenor Ufone Warid Zong

Packages 6 8 11 6 6
3 (talkshawk), 5 5, 10 (Glow 1 5, 10 (Free
FNF 3 (Djuice) 5 and 2) Package)

Peak Time 7am-11pm 7am-11pm 7am-12am 7am-11pm


-

Off Peak Misc. For Free


Time 11pm-7am 11pm-7am 12am-7am 11pm-7am Packege

Tameerati Bank HBL


Bank Links No (Easy (Upayment) No No
Paisa)

10Rs. Per 10Rs. Per 10MB for Rs. 10 Rs. Per


Internet MB 10 rs. Per MB. MB 35 Hour

31.45 M 24.01 (Oct 20.19 (Oct 17.16 (Oct 7.78 (May


Subscribers (Oct 2010) 2010) 2010) 2010) 2010)

24
Ufone gets a competitive edge over its competitors when we compare its packages with other
network packages. Also it offers more VAS (value added services) than any network does
assuring maximum services quality. Moreover it is competing strongly with its strong competitors
like Mobilink and Telenor. It has a thoughtful approach whenever it offers any new product in
the market. Either the product contains unique features, or follows low cost leadership and focus
strategy, or it offers the same products as its competitors do. However mostly it prefers to launch
those products which are unique in their features. It has a separate department that monitors its
quality, and regularly trains its employees to ensure that services are provided with maximum
quality.

Market Ranking:

As far as market ranking is concerned, according to PTA, mobilink comes at the first number,
telenor at the second, ufone at the third, warid at the fourth and zong at the last number. This
rating is done according to the number of subscribers, the churn rate (port in/port out ratio) of
these cellular companies and the customer satisfaction with the services and network.

25
Mobilink remained the largest cellular company with a 33 per cent market share while Telenor
was the fastest growing player by gaining 2 percentage points to 24 per cent, according to data
released by the Pakistan Telecommunications Authority.
Ufone’s share declined to 20 per cent in fiscal 2010 which ended in June.
Telenor firmed its second place in market share during fiscal 2010 and bridged a difference of 4
percent with its rival Ufone, which had held the position for many years. Telenor and Ufone had
almost the same market share in fiscal 2009.

The data revealed that 1.18 million new cell phone users were added in the month of June, an
increase of 1.21 per cent on monthly basis.
Slowing pace of tariff cuts indicates that cellular companies are shifting focus towards bundling
and value-added services.
Product bundling involves offering several products for sale as one combined product.
Focus on less penetrated rural areas should lift subscribers by 14 per cent to 13 million in fiscal
year 2011, said KASB analyst Muhammad Saqib Sajjad in his research report. Ufone added the
most new users in June with 388,000 while Warid added 286,000 and Mobilink 219,000.

Annual and quarterly reports of PTA reveal the progress rates of these companies. Research
reveals that people are more satisfied with Mobilink and Telenor due to their network’s signals
quality. Due to improved technology because of privatization of PTML, many positive changes
are seen in Ufone, like development of CRM department etc., which results in giving more good
services than any other network does.

26
SWOT Analysis:

Following is the SWOT analysis review of Ufone as per the research is concerned.

Strengths:

1. Good packages
2. Highest number of prepay subscribers
3. Constant revenues generation
4. Employees are given benefits like motivation by boss, bonuses, promotions and other
benefits etc.
5. Special Personal Executives department for loyal customers door to door services.
6. More reserves for advertisements, campaigns etc.
7. Special training to employees from “Assalamu Alaikum” to “Thankyou for visiting Ufone”.
8. Satellite based technology.

Weaknesses:

1. Lack of access in now and far areas.


2. Slow net speed.
3. Network issues are seen frequently.
4. Less manual guidance provided by helpline.
5. Some products are expensive (e.g. UCircle).
6. No MSN MESSENGER and YAHOO MESSENGER support.

Opportunities:

1. Banking Sector (bills payment and service like EASY PAISA)


2. Car Tracking
3. To link up industries
4. Coverage in now and far areas

Threats:

1. Offers of same type by Ufone’s competitors, mobilink and telenor.


2. Warid may become a future competitor.
3. Presently telenor is the challenge for Ufone.
4. Network issues.
3. Research Done:
We have done research about the working of Ufone, its environment, its treatment with its
employees and their treatment with customers.

We acquired basic information regarding CRM from Ufone’s manager main regional office
branch located on mini market side on 31st December 2010.

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We were warmly welcomed by the manager and found everyone cooperative there to provide us
all the information we needed for our project.

We found that Ufone had 5 people on the front desk who were directly dealing with customers
by listening to their problems, satisfying them and were dealing the aggressive customers
patiently and were providing solutions to the customers and the customers got satisfied from
them as soon as they left the Ufone office. Following is a review of the questions we asked from
Ufone manager and the answers that we got from him.

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Mr. Usman Mahoon
Manager Sales & Services Center UFone

Research Question: CRM In Ufone


Interaction/Attitude Of Ufone Personnel With Customers:

Ufone gives proper training to its staff to focus on the communication skills, to have patience
element in them and have guts to convince the customers to become the loyal customers by
always send them satisfied as they leave the office. This is important because if ufone loses one
customer, then it loses more 100 customers. Everything from a “Salam” said by a guard, to
“Thanks for visiting Ufone” by a customer relationship manager is pre-recorded in a documented
form. Ufone gives employment to those people who are efficient in communication skills like
clearly speaking the words, avoiding usage of vague words and using the words which are
easily understood by the customer, carefully selecting words while communicating anything to
the customer because the employee represents his company while talking to the customer,
having tolerance level to avoid aggressiveness while dealing with hyper customers, having good
listening skills to understand the words spoken by customer as he has originally intended, etc.

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This means that Ufone wants everything to be perfect. UFONE is constantly working hard to
introduce its Value Added Services to the market for maximum customer satisfaction. And as the
diagram shows, Ufone has personnel directly interacting with customers, who send the
customers satisfied to their homes before leaving UFONE office..

Customer Management:
Ufone focuses on the 10 commandments rule it has posted on its office wall. Ufone believes in
“SERVICE FIRST” rule and trains to its employees (personnel) to follow this rule. It treats its
customers as a king because one dissatisfied customer dissatisfies the other customers as well.

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Training Of Personnel Training:

Personnel mean all levels of management. Ufone has its own trainers who provide training to all
levels of management. This type of training is called internal training. It also calls foreign trainers
for maintaining international standards. This type is called outsourced training. Specific training
focuses on the important things needed to be taught to the personnel. This means that this
training differs from person to person. Where as general training is given to every individual
working at Ufone, like personality grooming etc.

Following things are taught to Ufone’s personnel.

a. Soft skills
b. How to handle difficult customers?
c. How to deal customers in a good way?
d. Communication skills
e. CRM software usage
f. Personality grooming.

Benefits provided to loyal customers:


Ufone has set a specific time period and amount spent for declaring customers as “Loyal
Customers”. When the customers spend that particular amount of money, be it be prepay or
postpay customers, or they use their Ufone SIM(system integrated module) for a particular time
period, then Ufone calls them its “Loyal Customers”.

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When customers become loyal to the company, they avail door to door services from a specially
maintained department consisting of Personal Executives.

These customers are provided bonuses from the revenues earned from them. Also they are
allowed to participate in certain campaigns and promotion programs of Ufone. These customers
also avail special offers like discount on bills, free SMS and calls.

Strategies To Maintain Customer Satisfaction:

Ufone personnel are taught to deal with the customers with the courteous attitude. Also
promotion policies are developed from time to time to retain the customers lost. This is done by
giving discounts on calls rates, giving free SMS bundles, free minutes etc., to the customers who
don’t use their SIMs for 2 to 3 months. Call centre records the calls done by customers to
maintain quality assurance. Greeting messages are sent to customers on religious events. Also,
birthday messages or cards are sent to the loyal customers. Door step services are provided to
the customers. These services give a competitive edge to Ufone.

Measurement Of Customer Satisfaction:

Ufone measures its customers satisfaction by recording their calls as they call the help line.
Also, it conducts surveys, campaigns etc., that help it to know what do the customers want, what
are their basic needs, and to how much extent they are satisfied. It has a special department
which takes necessary steps from time to time to constantly improve its quality. The best thing in
Ufone is, that it accepts the complains going against it, and satisfies the customers, that those
pointed out issues will be solved. This department measures the churn rate (port in/port out
ratio). It finds out the reasons that why are its customers shifting from Ufone to any other
network. Then it analyses the faults in its network and takes necessary steps to minimize them.

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CRM Laws/Rules/Methods Followed:

Ufone focuses on the basic definition of CRM, which measures the satisfaction level of
customers. No specific rules or laws are applied. However, Ufone uses a custom built software
for maintaining the customers records, their complains, and any suggestions or solutions
provided to them. Ufone keeps a proper check and balance on its personnel. For any problem
due to personnel, necessary steps are taken against such problem creating employees.

4. Conclusion:
Ufone is continuously striving to compete in terms of its market share from 20% to more than
33%, which is the market share of Mobilink. However the SWOT analysis of Ufone tells, that
there are still many weaknesses in it which should be minimized. This can be done by offering
unique products to the market that follow the focus strategy. Also Ufone should provide such
offers that provide maximum features to the youth like messenger support etc.

5. Recommendations:
Following are the recommendations by us for the research we have done regarding CRM in
Ufone:
i. Call centre executives must provide complete information regarding any problem faced by the
customer rather than sending them reference SMS.
ii. Ufone must enhance its network by using latest satellite based technology, so that the
customers remain satisfied from the company.
iii. Ufone must focus on providing latest products to the customers.
iv. Ufone should keep on improving its products and services from time to time and follow the
cost leadership and differentiation strategies.

6. Empowerment In Ufone:

Empowerment is the transfer of authorities from a senior to a junior or we can say delegating
powers to another person is empowerment. Ufone is a very friendly employer and lets every
personnel work efficiently. It lets every individual have the authority of taking decisions and
performing tasks at his own level in the best possible way. This freedom creates a sense of
ownership in each employee and he becomes more concerned about his job. When the freedom
level is created, employees feel happy to work with the organization and hence interact in a
friendly way with the customers, thus enhancing the organization’s goodwill.

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4. Bibliography
References are taken from websites, whose details are as under:

1. Topic: Ufone Introduction:


Year: 2010

Author: Ufone, Wikipedia

URL:http://www.ufone.com/about.aspx

http://en.wikipedia.org/wiki/Pakistan_Telecommunication_Company_Ltd

2. Topic: Other Networks


Year: 2010

Author: Wikipedia,

URL:http://en.wikipedia.org/wiki/Telenor

3. Topic: List Of Operating Networks In Pakistan

Year: 2010

Author: Wikipedia, PTA website

URL:http://en.wikipedia.org/wiki/List_of_telephone_operating_companies#Pakistan

http://en.wikipedia.org/wiki/List_of_mobile_network_operators_of_the_Asia_Pacific_region#Pakistan

4. Topic: Ufone’s profile and outlook

Year: 2010

Author: tecompk

URL:http://telecompk.wordpress.com/2006/11/12/ufone-profile-and-outlook/

5. Topic: Ufone’s Market Share

Year: 2010

Author: Kinn
URL:http://kninn.blogspot.com/2010/04/market-share-of-ufone.html

6. Topic: Telenor Pakistan Results for Q3 2010: Market Share 23%, Subscribers 24M

Year: 2010

Author: Babar Bhatti

URL:http://telecompk.net/2010/10/28/telenor-pakistan-results-for-q3-2010-market-share-23-subscribers-24m/

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7. Topic: Mobilink Losing Ground To Telenor And Ufone

Year: 2010

Author: Alaiwah

URL:http://alaiwah.wordpress.com/2010/12/29/mobilink-losing-ground-to-zong-and-ufone/

8. Topic: Telecom Report

Year: 2010

Author: Zoha N Quratulain

URL:http://www.slideshare.net/ZOHANQUR/telecommunication-survey-2010/download

9. Topic: Mobile companies progress

Year: 2010

Author:

URL:http://www.pakreviews.com/business/update/financial-insight-pakistan-cellular-industry-%E2%80%93-2010

10. Topic: Telecom Updates


Year: 2010

Author: The Express Tribune

URL:http://tribune.com.pk/story/40007/mobile-phone-users-cross-99m-mark/

11. Topic: Ufone SWOT ANALYSIS

Year: 2010

Author: Adam

URL:http://www.freeswotanalysis.com/telecommunication-companies-swot-analysis/101-ufone-swot-analysis.html

12. Topic: Ufone Outshines Once again

Year: 2010

Author: Yasir Ameen

URL:http://www.telecomrecorder.com/2010/12/03/ufone-outshines-once-again-records-profits-up-92-revenues-up-16-in-1qfy10/

13. Topic: Ufone Province Wise Traffic And Revenues Details

Year: 2010

Author: Amir Ataa

URL:http://propakistani.pk/2010/07/07/ufones-province-wise-voice-revenues-details/

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14. Topic: Competitve Edge of Ufone

Year: 2010

Author: JS GLOBAL ONLINE

URL:http://www.jsglobalonline.com/researchReports/Pakistan%20Telecom.pdf

15. Topic: Empowerment:

Year: 2004

Author: Wikipedia

URL:http://en.wikipedia.org/wiki/Empowerment

16. Topic: Customer Relationship Management

Year: 2010

Author: Anonymous

URL:http://www.answers.com/topic/customer-relationship-management#ixzz1BDAR5Ond

17. Topic: Types Of CRM Solutions

Year: Not Available

Author: Not Available

URL:http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1075422944&type=RESOURCES

18. Topic: Types Of CRM

Year: 2010

Author: Wikipedia

URL:http://www.tutorial-reports.com/software/crm/types.php
19. Topic: CRM - principles, strategy, solutions, applications, systems, software, and ideas for effective
customer relationship management

Year: 2010

Author: Not Available

URL:http://www.businessballs.com/crmcustomerrelationshipmanagement.htm

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