27698738 CRM System in Vodafone

CRM System in VODAFONE

Under guidance of Dr Chabbi Sinha ChavanUnder guidance of Dr Chabbi Sinha ChavanUnder guidance of Dr Chabbi Sinha ChavanUnder guidance of Dr Chabbi Sinha Chavan

I. Introduction – Vodafonea. Company Profileb. Vodafone in Indiac. Market Shares in India

II. Gartner’s Eight Building Blocksa. CRM Visionb. CRM Strategyc. Valued Customer Experiencesd. Collaborative Effortse. CRM Processf. CRM Informationg. CRM Technologyh. CRM Metrics

AGENDA

III. Benefits to Vodafone from CRM

IV. Issues Faced in CRM Implementation

a. Programb. Peoplec. Processesd. Technology

V. Consumer Research

VI. Best CRM Practices in the Industry

I. INTRODUCTION

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

Public limited company

Operations in 31 countries & partner networks in another 40 countries

Listed on NYSE

Founded : 1983 as RACAL TELECOM, Demerged from Racal Electronics (parent

company) in 1991 and named VODAFONE

HQ : Newbury, England

Revenues : US $ 69 bn (2008)

Profits : US $ 6.75 bn (2008)

Employees : ~ 79,000 Source :

WIKINVEST

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.

Source : WIKINVEST

Vodafone UKVodafone EssarVodafone AustraliaVodafone IrelandVodafone New ZealandVodafone EgyptVodafone Italy

Vodafone SpainVodafone PortugalVodafone TurkeyVodafone GermanyVodafone NetherlandsVodafone HungaryVodafone Sweden

Important Subsidiaries :

VODAFONE IN INDIA

MARKET SHARE IN INDIA

Source : TRAI Report JUN’09

VODAFONE’S OFFERINGS

Source : vodafone.com

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II. GARTNER’S MODEL

SnapshotSnapshot

(i) CRM VISION(i) 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 Consistency

Reliability

Flexibility

Responsiveness

Innovative Services

We will make this happen in an enriching environment of trust, cooperation and mutual respect.

VODAFONE’S CRM PHILOSOPHY

Involving Customers as Co-innovators

(ii) CRM STRATEGY(ii) CRM STRATEGYBROAD CRM OBJECTIVES

EnrichingService

Experience

VODAFONE’S CUSTOMER STRATEGY IN INDIA

(iii) VALUED CUSTOMER EXPERIENCE(iii) 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

Ringback 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.

(iv) COLLABORATIVE EFFORTS(iv) COLLABORATIVE EFFORTSThe program was built on 4 major pillars :

Strategy

I T

Culture

Process

Senior Managers of Vodafone personally supervised the FEEDBACK COLLECTION from customers which they used to prioritize customer related issues, and reinforced the CRM vision of “ANTICIPATING NEEDS & THEREBY CREATING SUPERIOR VALUE”.

INDUS TOWERS are operating at 95,000 sites !Network Expansion : 2,600 sites per month !Vodafone is committed to its objective of providing low cost services to its customers. For this it is expanding network aggressively to reduce its total cost of network ownership.

Vodafone’s ability to chart out an average life cycle allows it to market different services. It prospects aggressively through advertizing.

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.

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.

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.

(v) CRM PROCESS(v) 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.

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.

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.

(vi) CRM INFORMATION(vi) 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

(vii) CRM TECHNOLOGY(vii) CRM TECHNOLOGY

ProfileAffiliates

Credit ProfileOrg. Structure

SRs

ProfileAffiliates

Credit ProfileOrg. Structure

SRs

Sales PipelineCustomer PipelineQuantity Pipeline

Loss AnalysisConversion Ratio

Applications

Sales PipelineCustomer PipelineQuantity Pipeline

Loss AnalysisConversion Ratio

Applications

ProfilePersonal Profile

Credit ProfileSRs

ProfilePersonal Profile

Credit ProfileSRs

PricingPrice Components

Taxes

PricingPrice Components

Taxes

(vi) CRM METRICS(vi) CRM METRICS1. Cases closed same day.

2. Number of cases handled by agent.

3. Number of service calls.

4. Average time for resolution.

5. Average number of service calls per day.

6. Percentage of service renewals.

7. Customer satisfaction level. (CLTV)

8. Complaint time-to-resolution.

9. Average number of service requests by type.

10. Percentage compliance with service-level agreement (SLA).

11. Revenue coming from Commercial Partners.

12. Complaints handling (e-mail/letter).

13. Brand image.

14. Customer Categorization.

CALCULATING CUSTOMER LIFETIME VALUE

CLV = ∑

Where m = margin for time t

i = discounting rate for time t

If margins and retention rate stay constant over time then :

mrt

(1+i)t

∞

t=1

CLV =

Where is the margin multiple.

m r ( 1 + i – r )

r ( 1 + i – r )

Discount Rate

Margin Multiple :

Retention Rate

800 – 2000 /- for 10 consecutive months800 – 2000 /- for 10 consecutive months

> 2000 /- for 10 consecutive months

> 2000 /- for 10 consecutive months

200 – 800 /- for 10 consecutive months200 – 800 /- for 10

consecutive months< 200 /- for 10

consecutive months< 200 /- for 10

consecutive months

CUSTOMER CATEGORIZATION

III. BENEFITS ACHIEVED

The main and overall result is that the new CRM solution has helped Vodafone to REDUCE ANNUAL CUSTOMER CHURN BY ~ 7 %. ASIAN E-BUSINESS MARKET WATCH

CRM solution has helped Vodafone employees to synchronize & coordinate all customer interactions across multiple channels, including telephone, e-mail, face to face, post & fax.

The CRM solution has also enabled employees to improve customer service, increaseproductivity and maximize revenues.

The workflow automation capabilities of the CRM solution have enabled the company to manage each and every one of these calls efficiently and professionally. Sales agents are now automatically connected to customers and prospects based on product & service expertise, named account, availability and geography. They can also check the status of a calling subscribers’ request or inform him/her of the status of the request.

Call scripting and profiling further improved agent productivity. A workflow-based user interface presents the appropriate questions and information as needed, guiding agents through a sequence of steps based on customers’ individual requirements.

IV. ISSUES FACED

ISSUES FACED POST IMPLEMENTATION

V. CONSUMER RESEARCH

20 Vodafone customers were surveyed. Response format chosen : 5 point likert scaleRESULTS : 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.

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VI. BEST CRM PRACTICES

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