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    CRM System in Vodafone

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    Prashant Lokhande
    Vodafone is a global telecommunications company headquartered in England with operations in over 30 countries. In India, Vodafone acquired Hutchison Essar in 2007, becoming the second largest mobile network operator. Vodafone's CRM strategy in India focuses on providing a valued customer experience through innovative services, low pricing, and a comprehensive customer care approach to increase customer satisfaction and retention. Key aspects of Vodafone's CRM system include customer analytics to segment and target customers, calculating customer lifetime value, and conducting consumer research to improve service responsiveness.

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    CRM System in Vodafone

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    Prashant Lokhande
    302 views18 pages
    Vodafone is a global telecommunications company headquartered in England with operations in over 30 countries. In India, Vodafone acquired Hutchison Essar in 2007, becoming the second largest mobile network operator. Vodafone's CRM strategy in India focuses on providing a valued customer experience through innovative services, low pricing, and a comprehensive customer care approach to increase customer satisfaction and retention. Key aspects of Vodafone's CRM system include customer analytics to segment and target customers, calculating customer lifetime value, and conducting consumer research to improve service responsiveness.

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    Vodafone is a global telecommunications company headquartered in England with operations in over 30 countries. In India, Vodafone acquired Hutchison Essar in 2007, becoming the second largest mobile network operator. Vodafone's CRM strategy in India focuses on providing a valued customer experience through innovative services, low pricing, and a comprehensive customer care approach to increase customer satisfaction and retention. Key aspects of Vodafone's CRM system include customer analytics to segment and target customers, calculating customer lifetime value, and conducting consumer research to improve service responsiveness.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    302 views18 pages

    CRM System in Vodafone

    Uploaded by

    Prashant Lokhande
    Vodafone is a global telecommunications company headquartered in England with operations in over 30 countries. In India, Vodafone acquired Hutchison Essar in 2007, becoming the second largest mobile network operator. Vodafone's CRM strategy in India focuses on providing a valued customer experience through innovative services, low pricing, and a comprehensive customer care approach to increase customer satisfaction and retention. Key aspects of Vodafone's CRM system include customer analytics to segment and target customers, calculating customer lifetime value, and conducting consumer research to improve service responsiveness.

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    CRM System in VODAFONE

    Presented by : PRASHANT LOKHANDE

    COMPANY PROFILE
    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

    VODAFONE IN INDIA
    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.

    MARKET SHARE IN INDIA


    Reliance 19%

    Others 1% Airtel 24%

    Aircel 5%

    Idea 11%

    Vodafone 20%

    Tata 9%

    BSNL / MTNL 13%

    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
    C o n s i s t e n c y
    R e l i a b i l i t y F l e x i b i l i t y

    R e s p o n s i v e n e s s
    I n n o v a t i v e S e r v i c e s

    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.

    Enriching serviceEnriching experience Service


    Experience
    Exit Easy un-subscription. Product development Solve business problems

    Care Online resolution Call center support.

    Promotion & Communication Web

    Billing & payment Billing accuracy Online payment options. Product experience Ease of use Stability & availability

    Pricing & purchase experience Cost saving Virtual/ online.

    VODAFONES CUSTOMER STRATEGY IN INDIA

    VALUED CUSTOMER EXPERIENCE


    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

    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.

    CRM PROCESS
    Vodafones 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.

    Vodafones 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. 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.

    CRM INFORMATION
    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

    CALCULATING CUSTOMER LIFETIME VALUE


    Year 0 Number of Customers Revenue / Customer Variable Cost / Customer
    100

    Year 1
    90 1,200 840

    Year 2
    80 1,320 864

    Year 3
    72 1,440 900

    Year 4
    60 1,500 912

    Margin / Customer
    Acquisition Cost / Customer TOTAL PROFIT Present Value
    100 -10,000 -10,000

    360
    32,400 29,455

    456
    36,480 30,150

    540
    36,480 27,410

    588
    35,280 24,100

    CLV =
    t=1

    mrt (1+i)t

    Where m = margin for time t i = discounting rate for time t

    CUSTOMER CATEGORIZATION

    800 2000 /- for 10 consecutive months

    > 2000 /- for 10 consecutive months

    < 200 /- for 10 consecutive months

    200 800 /- for 10 consecutive months

    CONSUMER RESEARCH
    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.

    Recommendations
    1. Cases to be on the closed same day.

    2. Conduct surveys in terms of updating newly innovative schemes of the competitors.


    3. Focus on the customers having spend time for more than 2 years.

    THANK YOU

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