project report on customer satisfaction on reliance communication

Chapter-1

Introduction

1Beri Institute Of Technology, Training & Research

1.1. Executive summary

The project aims at studying the customer satisfaction of Reliance communication .The

project consists of five sections ,in which first section deals with introduction and

objectives of the company .the second section deals with the study of concept of

customer satisfaction it’s importance, scope and previous researches on customer

satisfaction by various authors .the third section deals with the research methodology .the

fourth section deals with the case study and its interpretation .the last one deals with

conclusion and bibliography .all the sections of the project basically describes how

customers are treated and satisfied by Reliance communication .the case study provided

describes how Reliance satisfies BSES Yamuna ,its one of the customer by introducing

new technology namely WVDPN ,hence completing its very aim of customer

satisfaction. The project also provides us with the knowledge that Reliance

communications ranks amongst the top 5 telecommunications companies in the world by

number of customers in a single country. Reliance Communications corporate clientele

includes 2,100 Indian and multinational corporations, and over 800 global, regional and

domestic carriers.


1.2 Objective

1. To study about Reliance communication.

2. To study the concept of customer satisfaction.

2. To study the technology used by the Reliance for the satisfaction of its customers.

3. To make conclusion in the light of the findings of the study.


Chapter 2

Company Profile


2.1 INTRODUCTION

Reliance Communications Limited is the flagship Company of Reliance Anil Dhirubhai

Ambani Group, India’s third largest business house. Reliance Communications is India’s

foremost and truly integrated Telecommunications service provider. The Company, with

a customer base of over 85 million including over 2.2 million individual overseas retail

customers, ranks. It ranks among the top 5 telecommunications companies in the world

by number of customers in a single country. Reliance

Communications corporate clientele includes 2,100 Indian and multinational

corporations, and over 800 global, regional and domestic carriers. The company has

established a pan-India, next-generation, integrated (wireless and wire line), convergent

(voice, data and video) digital network that is capable of supporting services spanning the

entire communications value chain, covering over 24,000 towns and 600,000 villages.

Reliance Communications owns and operates the next-generation IP-enabled connectivity

infrastructure, comprising over 190,000 kilometers of fiber optic cable systems in India,

USA, Europe, Middle East and the Asia Pacific region. It is among the Top 5 Telecom

companies in the world by number of customers in a single country. Reliance

Communications corporate clientele includes 2,100 Indian and multinational

corporations, and over 800 global, regional and domestic carriers. Reliance

Communications has established a pan-India, next generation, integrated (Wireless and

wire line), convergent (voice, data and video) digital network that is capable of

supporting best-of-class services spanning the entire communications Value chain,

covering over 24,000 towns and 600,000 villages. Reliance Communications owns and

operates the world’s largest next generation IP enabled connectivity infrastructure,

comprising over 277,000 kilometers of Fiber optic cable systems in India, USA, Europe,

Middle East and the Asia Pacific Region. On 19 May 2010, the 3G spectrum auction in

India ended. Reliance Communications paid INR5864.29 Crores for spectrum in 13

circles. The circles it will provide 3G in are Delhi, Mumbai, Kolkata, Punjab, Rajasthan,

Madhya Pradesh, West Bengal, Himachal Pradesh, Bihar, Orissa, Assam, North East, and

Jammu & Kashmir. On 11 June 2010, the broadband wireless access (BWA) or 4G


spectrum auction in India ended. Infotel Broadband, a

subsidiary of Reliance Industries,

won Pan-India license in the auction across 22 circles, the only telecom operator other

than state-owned BSNL/MTNL to do so. Infotel paid the government INR12847.77

Crores for the license. According to Cellular Operators Association of India (COAI)

director general Rajan S. Mathews, Reliance Industries is expected to launch 4G services

in December 2011..Reliance communication offers a wide range of products and services

such as reliance net connect and Reliance Globacomm. They are the new face of

technology in India ,past reliance no organization has been able to introduce such high

technology .fulfilling the numerous needs of customers is the target of the reliance .Airtel

Bharti and idea cellular are the only two that are ahead from reliance. Bharti Airtel and

Idea Cellular still are tough competitors. To establish it’s agenda reliance offer services

that are according to pocket of common Indian public .customer satisfaction being the

priority of reliance also makes it stand at 3rd position .although it has the public brand

MTNL ,which is also the oldest telecommunication service provider .reliance has also

beaten the Tata communication with a huge base margin. The case study provided deals

with the problems faced by BSES Yamuna Power ltd. It tells how reliance counteracted

on their problem of the conventional meter reading. It requires the inspector to visit the

consumer premises and record the meter data for a particular period, either manually in

meter books or in hand held instruments known as MRI. It was a time consuming job to

read each meter and also there was a scope for errors. RCOM has provided BSES with a

unique solution of CDMA AMR on WDVPN technology through which meter reading is

done from a central location without visiting customer premises. Reliance provides

Internet Data Center (IDC) services located in Mumbai, Bangalore, Hyderabad and

Chennai. Spread across 650,000 sq ft (60,000 m2) of hosting space, it offers IT

infrastructure management services to large, medium and small enterprises. It is one of

the leading data center service providers in India and provides services like collocation,

managed server hosting, virtual private server and data security.


2.2. MISSION

Meeting and exceeding Customer expectations with a segmented approach

Establishing, re-engineering and automating Processes to make them

customer centric, efficient and effective

Incessant offering of Products and Services that are value for money and

excite customers

Providing a Network experience that is best in the industry

Building Reliance into an iconic Brand which is benchmarked by others and

leads industry in Intention to Purchase and Loyalty

Developing a professional Leadership team that inspires, nurtures talent and

propagates RCOM Values by personal example


2.3 VISION

By 2015, be amongst the top 3 most valued

Indian companies.

Providing Information, Communication & Entertainment services, and being

the industry benchmark in Customer Experience, Employee Centricity and

Innovation.

By 2015, be amongst the top 10 most valued MNC.

Proving sustainability in the market, by surviving through tough times.

Creating better job opportunities for the uprising youth of India.

Upbringing the customer satisfaction to a new height.


2.4 SERVICES RENDERED BY RELIANCE COMMUNICATION


Globacom Submarine cable Global callNLD/ ILD

Other businessTech services

IT developmentBPO

Utility and mediaRetail

R world

Telecom infrastructureMulti tenancy towers Pan India coverage

Home DTHIPTV

RELIANCE COMMUNICATION

WirelessVASMobileFixed wirelessWireless data Public support

EnterpriseBroadbandLeased line Wi-max.MPLS and VPNOffice Centrex

Reliance Globacomm

RGL owns the world’s largest private undersea cable system, spanning 65,000 km,

seamlessly integrated with Reliance Communications. Over 110,000 km of domestic

optic fiber provides a robust Global Service Delivery Platform, connecting 40 key

business markets in India, the Middle East, Asia, Europe, and the U.S.

Reliance home services

Reliance communication decides to introduce Internet Protocol Television (IPTV). IP TV

is a latest technology which will include more options for users and make their TV

viewing experience even more enjoyable. IPTV equipment uses telephone lines to

transport content to the subscribers through IP technology. In starting, this technology

was presented used in internet telephony for

delivering voice over. IPTV also provide video on demand and digital video recording

services. Reliance communications is forecast to begin it in 10 cities and thereafter

depending upon its popularity and usage, more cities will be included. The software for

IPTV will be provided by Microsoft.

Reliance tech services

Reliance Tech Services is the IT wing of Reliance Anil Dhirubhai Ambani group. It

provides IT consultancy, business process outsourcing and software development for

Reliance Communications and other ADA group companies. It provides services to

industry sectors such as telecommunications, financial services, utilities, entertainment,

infrastructure, BPO operations and health care.


Reliance telecom infrastructure

Reliance Infratel Limited (“RITL”), a subsidiary of Reliance Communications Limited,

was incorporated in 2001 as a private limited company. Reliance Communications

Limited (“RCOM”) had filed a Scheme of Arrangement with the High Court of

Judicature at Bombay on December 5, 2006 for the separation of its wireless towers

assets owned by RCOM and its wholly owned subsidiary Reliance Telecom Limited

(“RTL”). The High Court’s approval was received on March 16, 2007 and the scheme

was affected on April 10, 2007.

Reliance wireless

Reliance Netconnect service offers you Hi-speed wireless internet access across India in

over 24,000 towns and 6 lakh villages, as well as along major highways, railway routes,

airport lounges and remote locations. Reliance's cutting edge CDMA 1x network can give

you high-speed internet access, up to 144kbps.Reliance offers Hi-Speed 1x service

through a suite of Reliance Netconnect products like PCMCIA and USB Modem data

cards as well as data cables for mobile phones and fixed wireless phones. These can be

used to connect to the internet from your laptop and desktop.


Name Last

Price

Market

Cap.

(Rs. cr.)

Sales

Turnove

r

Net

Profit

Total

Assets

Bharti Airtel 261.05 99,134.5241,603.8

05,730.00 63,559.00

Idea Cellular 80.20 26,549.9619,322.3

3576.54 23,072.72

Reliance

Comm48.80 10,072.45

11,110.0

0156.00 73,068.00

Tata Comm 232.25 6,619.13 4,091.77 171.34 8,087.80

MTNL 37.75 2,378.25 3,368.99-

4,018.4512,184.20

TataTeleservic

e11.15 2,115.37 2,488.44 -517.55 4,237.96

Tulip Telecom 80.15 1,162.18 2,704.81 315.18 2,971.39

2.5. COMPETITORS OF RELIANCE

Bharti Airtel Limited, commonly known as Airtel, is an Indian telecommunications

Services Company headquartered at New Delhi, India. It operates in 20 countries across

South Asia, Africa and the Channel Islands. Airtel has GSM network in all countries,

providing 2G, 3G and 4G services depending upon the country of operation .Airtel is the

world's third largest mobile telecommunications company with over 261 million

subscribers across 20 countries as of August 2012. It is the largest cellular service

provider in India, with 186.41 million subscribers as of October 2012. Airtel is the third

largest in-country mobile operator by subscriber base, behind China Mobile and China


http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/tuliptelecom/TT13

http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/tatateleservicesmaharashtra/TTM01

http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/tatateleservicesmaharashtra/TTM01

http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/mahanagartelephonenigam/MTN

http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/tatacommunications/TC17

http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/reliancecommunications/RC13

http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/reliancecommunications/RC13

http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/ideacellular/IC8

http://www.moneycontrol.com/india/stockpricequote/telecommunicationsservice/bhartiairtel/BA08

Unicom. Airtel is the largest provider of mobile

telephony and second largest provider of fixed telephony in India, and is also a provider

of broadband and subscription television services. It offers its telecom services under the

Airtel brand, and is headed by Sunil Bharti Mittal. Bharti Airtel is the first Indian telecom

service provider to achieve Cisco Gold Certification.

Idea, In 2000 Tata Cellular was a company providing mobile services in Andhra Pradesh.

When Birla-AT&T brought Maharashtra and Gujarat to the table, the merger of these two

entities was a reality. Thus Birla-Tata-AT&T, popularly known as Batata, was born and

was later rebranded as IDEA. Then Idea set sights on RPG’s operations in Madhya

Pradesh which was successfully acquired, helping Batata have a million subscribers, and

the license to be the fourth operator in Delhi was clinched. In 2004, Idea (the company

had by then been rechristened) bought over the Escorts group’s Escotel gaining Haryana,

Uttar Pradesh (West) and Kerala — and licenses for three more — UP (East), Rajasthan

and Himachal Pradesh. By the end of that year, four million Indians were on the

company’s network. In 2005, AT&T sold its investment in Idea, and the year after Tatas

also bid good bye to pursue an independent telecom business.

Tata communication is an Indian global telecommunications company located

in Mumbai. It owns a submarine cable network, a Tier-1 IP network, and also rents

data and collocation space. It operates India’s largest data center in Pune. Tata

Communications acquired Teleglobe, a company based in Canada, and DishnetDSL, an


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

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

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

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

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

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

Indian company, and is the largest shareholder in

South African operator Neotel. Tata Communications currently has a cable network of

more than 235,000 kilometers. It was

founded as VSNL (Videsh Sanchaar Nigam Limited) in 1986, VSNL was the first Indian

PSU to be listed in the NYSE in 2000. In 2002 Tata Communications acquired a 45%

stake in VSNL. Then in 2004 VSNL International, the international arm of VSNL was

launched. On 13 February 2008 VSNL, formerly owned by the Government, was taken

over by the Tata Group and renamed Tata Communications Ltd. In 2009 Tata

Communications and TYCO telecommunications complete TGN-intra Asia cable system.

Tata Communications made an agreement for race coverage with Formula 1 Management

in 2012.

Mahanagar Telephone Nigam Limited (MTNL) is a state-owned telecommunications

service provider in the metro cities of Mumbai and New Delhi in India and in the island

nation of Mauritius in Africa. The company had a monopoly in Mumbai and Delhi until

1992, when the telecom sector was opened to other service providers. "Transparency

makes us different" is the motto of the company. The Government of India currently

holds 56.25% stake in the company. In recent years, MTNL has been losing revenue and

market share heavily due immense competition in the Indian telecom sector.


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

Tulip telecom: The Company was started by Lt Col Hardeep Singh Bedi an ex-army

man. After serving the Indian army for 22 years, Lt Col HS Bedi took voluntary

retirement and founded his company Tulip IT Services, then Tulip Software Pvt. Ltd, in

1994 and today it is known as Tulip Telecom Ltd. Bedi started off the company with 4

employees in New Delhi as a software reseller. Later the company explored the field of

Network Integration and implemented World’s largest wireless network in Mallapuram,

Kerala. This was a key milestone in Tulip’s history. The company also explored the field

of wireless and developed India’s largest MPLS VPN network. The Company’s data

network has a reach of over 2,000 locations globally.

Bharti Airtel today is the biggest competitor of Reliance communication .it has a

market capital around Rs 99,134.52. it’s sales turnover is 41603.80 ,which is going to be

the target for next year for reliance .reliance is aiming to become the biggest telecom

service provider by 2015 .idea cellular also is one major competitors of reliance ,it’s

turnover is 80%more than reliance .reliance basically work on the agenda of customer

satisfaction .To establish it’s agenda reliance offer services that are according to pocket

of common Indian public .customer satisfaction being the priority of reliance also makes

it stand at 3rd position .although it has the public brand MTNL ,which is also the oldest


telecommunication service provider .reliance has also

beaten the Tata communication with a huge base margin .

2.6 STRENGTH, WEAKNESSES, OPPURTUNITY AND

THREATS

SWOT Analysis

Strength 1.Flexible plans

2.Good advertising

3.High brand visibility

4.Celebrity brand ambassadors

5.Ability to attract customers with various plans

Weakness 1.Price competition from BSNL and MTNL

2.Untapped Rural Market

Opportunity 1.Fast expanding cellular market

2.Latest and low cost technology

3.Untapped rural market

Threats 1. New entrant's low price offering

2. Saturation point in Basic telephony service

3.Mobile Number Portability


Reliance industries believes in maintaing its true prestige in sense of its very

customer ,reliance believe in enhancing its capacity and devoloping and deafeating their

competitors .in relaince we believe in knowing our weakness and threats and hence

pertains its tag of big dealors .Swot analysis helps in judging the very condition of an

organisation and helps in improving stage by stage .there are some strenghts weakness

oppurtunities and threats of every organisation .realiance telecommunication also

conducts its swot analysis annually On the basis of the prepared swot analysis future

plans of reliance telecommunication are made .strenghts of realiance communication

include celebrity brand endorsement ,flexible planning .weakness are that reliance didnt

tapped the rural indian market which holds a big scope . pricing is also one of the biggest

issue .Oppurtunities for reliance include faster exanping cellular market .latest and low

cost technology .new entrant in the market which offers low and cheap prices on their

products tends to be a great threat to reliance industry .also reliance has reached

Saturation point in Basic telephony service



Chapter 3

Literature Review


3.1 Customer satisfaction is defined as "the number of customers, or percentage of total

customers, whose reported experience with a firm, its products, or its services (ratings)

exceeds specified satisfaction goals In a survey of nearly 200 senior marketing managers,

71 percent responded that they found a customer satisfaction metric very useful in

managing and monitoring their businesses”. Within organizations, customer satisfaction

ratings can have powerful effects. They focus employees on the importance of fulfilling

customers’ expectations. Furthermore, when these ratings dip, they warn of problems that

can affect sales and profitability. . . . These metrics quantify an important dynamic. When

a brand has loyal customers, it gains positive word-of-mouth marketing, which is both

free and highly effective. In researching satisfaction, firms generally ask customers

whether their product or service has met or exceeded expectations. Thus, expectations are

a key factor behind satisfaction. When customers have high expectations and the reality

falls short, they will be disappointed and will likely rate their experience as less than

satisfying. For this reason, a luxury resort, for example, might receive a lower satisfaction

rating than a budget motel—even though its facilities and service would be deemed

superior in 'absolute' terms. The importance of customer satisfaction diminishes when a

firm has increased bargaining power. For example, cell phone plan providers, such as

AT&T and Verizon, participate in an industry that is an oligopoly, where only a few

suppliers of a certain product or service exist. As such, many cell phone plan contracts

have a lot of fine print with provisions that they would never get away if there were, say,

a hundred cell phone plan providers, because customer satisfaction would be way too

low, and customers would easily have the option of leaving for a better contract offer.

Customer satisfaction, a term frequently used in marketing, is a measure of how products

and services supplied by a company meet or surpass customer expectation. Customer

satisfaction is defined as "the number of customers, or percentage of total customers,

whose reported experience with a firm, its products, or its services (ratings) exceeds

specified satisfaction goals." In a survey of nearly 200 senior marketing managers, 71

percent responded that they found a customer satisfaction metric very useful in managing

and monitoring their businesses.


It is seen as a key performance indicator within business and is often part of a Balanced

Scorecard. In a competitive marketplace where businesses compete for customers,

customer satisfaction is seen as a key differentiator and increasingly has become a key

element of business strategy.

"Within organizations, customer satisfaction ratings can have powerful effects. They

focus employees on the importance of fulfilling customers’ expectations. Furthermore,

when these ratings dip, they warn of problems that can affect sales and profitability. . . .

These metrics quantify an important dynamic. When a brand has loyal customers, it gains

positive word-of-mouth marketing, which is both free and highly effective."

Therefore, it is essential for businesses to effectively manage customer satisfaction. To be

able do this, firms need reliable and representative measures of satisfaction.

"In researching satisfaction, firms generally ask customers whether their product or

service has met or exceeded expectations. Thus, expectations are a key factor behind

satisfaction. When customers have high expectations and the reality falls short, they will

be disappointed and will likely rate their experience as less than satisfying. For this

reason, a luxury resort, for example, might receive a lower satisfaction rating than a

budget motel—even though its facilities and service would be deemed superior in

'absolute' terms."

The importance of customer satisfaction diminishes when a firm has increased bargaining

power. For example, cell phone plan providers, such as AT&T and Verizon, participate in

an industry that is an oligopoly, where only a few suppliers of a certain product or service

exist. As such, many cell phone plan contracts have a lot of fine print with provisions that

they would never get away if there were, say, a hundred cell phone plan providers,

because customer satisfaction would be way too low, and customers would easily have

the option of leaving for a better contract offer. There is a substantial body of empirical

literature that establishes the benefits of customer satisfaction for firms.


3.2 Customer

A customer (also known as a client, buyer, or purchaser) is the recipient of a good,

service, product, or idea, obtained from a seller, vendor, or supplier for a monetary or

other valuable consideration. Customer may or may not also be a consumer, but the two

notions are distinct, even though the terms are commonly confused. A customer

purchases goods; a consumer uses them. An ultimate customer may be a consumer as

well, but just as equally may have purchased items for someone else to consume. An

intermediate customer is not a consumer at all. The situation is somewhat complicated in

that ultimate customers of so-called industrial goods and services (who are entities such

as government bodies, manufacturers, and educational and medical institutions) either

themselves use up the goods and services that they buy, or incorporate them into other

finished products, and so are technically consumers, too. However, they are rarely called

that, but are rather called industrial customers or business-to-business customers.

Similarly, customers who buy services rather than goods are rarely called consumers.

Six Sigma doctrine places (active) customers in opposition to two other classes of people:

not-customers and non-customers. Whilst customers have actively dealt with a business

within a particular recent period that depends from the product sold, not-customers are

either past customers who are no longer customers or potential customers who choose to

do business with the competition, and non-customers are people who are active in a

different market segment entirely. Geoff Tennant, a Six Sigma consultant from the

United Kingdom, uses the following analogy to explain the difference: A supermarket's

customer is the person buying milk at that supermarket; a not-customer is buying milk

from a competing supermarket, whereas a non-customer doesn't buy milk from

supermarkets at all but rather "has milk delivered to the door in the traditional British

way". A customer may or may not also be a consumer, but the two notions are distinct,

even though the terms are commonly confused. A customer purchases goods; a consumer

uses them. An ultimate customer may be a consumer as well, but just as equally may

have purchased items for someone else to consume. An intermediate customer is not a

consumer at all. The situation is somewhat complicated in that ultimate customers of so


called industrial goods and services (who are entities such as government bodies,

manufacturers, and educational and medical institutions) either themselves use up the

goods and services that they buy, or incorporate them into other finished products, and so

are technically, consumers too. However, they are rarely called that, but are rather called

industrial customers or business-to-business customers. Similarly, customers who buy

services rather than goods are rarely called consumers. Six Sigma doctrine places (active)

customers in opposition to two other classes of people: not-customers and non-customers.

Whilst customers have actively dealt with a business within a particular recent period that

depends from the product sold, not-customers are either past customers who are no longer

customers or potential customers who choose to do business with the competition, and

non-customers are people who are active in a different market segment entirely. Geoff

Tennant, a Six Sigma consultant from the United Kingdom, uses the following analogy to

explain the difference: A supermarket's customer is the person buying milk at that

supermarket; a not-customer is buying milk from a competing supermarket, whereas a

non-customer doesn't buy milk from supermarkets at all but rather "has milk delivered to

the door in the traditional British way. Tennant also categorizes customers another way,

that is employed out with the fields of marketing. Whilst the intermediate/ultimate

categorization is used by marketers, market regulation, and economists, in the world of

customer service customers are categorized more often into two classes:

1. An external customer of an organization is a customer who is not directly connected to

that organization.

2. An internal customer is a customer who is directly connected to an organization, and is

usually (but not necessarily) internal to the organization. Internal customers are usually

stakeholders, employees, or shareholders, but the definition also encompasses creditors

and external regulators.


The notion of an internal customer — before the introduction of which external

customers were, simply, customers — was popularized by quality management writer

Joseph M. Juran, who introduced it in the fourth edition of his Handbook (Juran 1988). It

has since gained wide acceptance in the literature on total quality management and

service marketing; and the customer satisfaction of internal customers is nowadays

recognized by many organizations as a precursor to, and prerequisite for, external

customer satisfaction, with authors such as Tansuhaj, Randall & McCullough 1991

arguing that service organizations that design products for internal customer satisfaction

are better able to satisfy the needs of external customers.

3.3 Building a company around customer satisfaction

In this world of extreme competition, companies with a total focus on customer are going

to be the winner. Companies must understand importance of customer satisfaction and

then build process around it. A satisfied customer will be a loyal customer. There are

large offering of products and services available in the market then why the customer

should choose a given company’s product. According to various research and studies it

has been confirmed that consumer will purchase products, which given them maximum

perceived value. This value comes from calculating the cost associated with the emotional

level decision like the brand image, corporate brand, sales personnel image and functional

image. This value converts to total customer cost by including purchase cost, time-energy

in evaluation of product and intuitive cost.

Companies are able to achieve this state of total customer satisfaction by incorporating

good business practices. These practices are constructed around stakeholders, business

process, resource and organization. Company’s stakeholders consist of employees,

suppliers, distributors and customers. Earlier focus has always solely been on

shareholders, but now stakeholders need to be satisfied for shareholder’s profit.

Companies need to define boundaries of relation with stakeholders as to get the

maximum value for every participant. To ensure maximum value, companies need to


develop business processes, which understand and

fulfill customer expectations. This can

be achieved by aligning cross functional teams across critical processes, to create one

smooth flow. Companies need to understand its core competencies and develop them,

thereby successfully managing its resources. Organizational structure, design and policies

have to be suitable to facilitate the introduction of total customer satisfaction culture.

Companies through creating and delivering value can develop total customer satisfaction.

Company itself can be considered as a value chain consisting of primary and secondary

activities. Primary activities consist of inbound materials, operation, delivering finished

products, sales/marketing and servicing clients. Secondary activities consist of functional

departments like technology department, procurement department, human resource and

finance department. This value created is delivered to customer through the distribution

channel under the principle of supply chain management.

Customers in the digital age are much more conscious and aware of their need and wants,

making them a difficult lot to please. Companies run marketing campaign highlighting

points of similarity and difference with competitor’s products. The art is not at attracting

the customer, but it is at retaining the customer and creating long term relation with them.

Companies usually suffer from churning effect where customers do not make the

repurchase. Companies need to work hard in identifying reasons behind this churning.

Once reasons are identified separate them on the basis of manageable and non-

manageable issues and then work hard at eliminating manageable issues. Companies need

to develop policies and measure at retaining customers along with attracting new

customers. This art of retention can be achieved through customer relationship

management (CRM). In CRM the task is to develop strong consumer based brand equity,

which is done by converting first time buyer to repeat buyer to a client to a member to

advocates and finally to partners. During these course companies can look forward to

offering financial benefits in terms of discount for frequent buyers or also by association


with a social cause. Companies are able to achieve this

state of total customer satisfaction by incorporating good business practices.

Company’s stakeholders consist of employees, suppliers, distributors and customers.

Earlier focus has always solely been on shareholders, but now stakeholders need to be

satisfied for shareholder’s profit. Companies need to define boundaries of relation with

stakeholders as to get maximum value for every participant. To ensure maximum value,

companies need to develop business processes, which understand and fulfill customer

expectations. This can be achieved by aligning cross functional teams across critical

processes, to create one smooth flow. Companies need to understand its core

competencies and develop them, thereby successfully managing its resources.

Organizational structure, design and policies have to be suitable to facilitate the

introduction of total customer satisfaction culture.

Companies through creating and delivering value can develop total customer satisfaction.

Company itself can be considered as a value chain consisting of primary and secondary

activities. Primary activities consist of inbound materials, operation, delivering finished

products, sales/marketing and servicing clients. Secondary activities consist of functional

departments like technology department, procurement department, human resource and

finance department. This value created is delivered to customer through the distribution

channel under the principle of supply chain management. Customers in the digital age are

much more conscious and aware of their need and wants, making them a difficult lot to

please. Companies run marketing campaign highlighting points of similarity and

difference with competitor’s products. The art is not at attracting the customer, but it is at

retaining the customer and creating long term relation with them. Companies usually

suffer from churning effect where customers do not make the repurchase. Companies

need to work hard in identifying reasons behind this churning. Once reasons are


identified separate them on the basis of manageable

and non-manageable issues and then work hard at eliminating manageable issues.

Companies need to develop policies and measure at retaining customers along with

attracting new customers. This art of retention can be achieved through customer

relationship management (CRM). In CRM the task is to develop strong consumer based

brand equity, which is done by converting first time buyer to repeat buyer to a client to a

member to advocates and finally to partners. During these course companies can look

forward to offering financial benefits in terms of discount for frequent buyers or also by

association with a social cause. Companies are in business to make the profit. Therefore,

it has to identify profitable customers. Profitable customers provide a revenue stream

more than the expense stream on retaining them. And this revenue stream should be

higher for a company to have a competitive advantage. More and more companies are

deploying total quality management approach across the organization to build and deliver

customer satisfaction.

3.4 Satisfaction as part of service profit chain

The service-profit chain establishes relationships between profitability, customer loyalty,

and employee satisfaction, loyalty, and productivity. The links in the chain (which should

be regarded as propositions) are as follows: Profit and growth are stimulated primarily by

customer loyalty. Loyalty is a direct result of customer satisfaction. Satisfaction is largely

influenced by the value of services provided to customers. Value is created by satisfied,

loyal, and productive employees. Employee satisfaction, in turn, results primarily from

high-quality support services and policies that enable employees to deliver results to

customers. The service-profit chain is also defined by a special kind of leadership that

emphasizes the importance of each employee and customer. There are two things about


loyalty which are important to notice. A satisfied

customer is not automatically a loyal customer. It’s only the super satisfied customers

who become loyal. That is why ‘satisfied’ is not enough in a world of abundance which is

the situation for many companies today. Add to that the tough reality that what we

considered fantastic last year is what we expect this year. The expectations of the

customer change all the time. If a company wants to maintain the loyalty it has to get

better and better. Xerox found that

customers that rated those 5 (on a 1-5 customer satisfaction ranking) were six times more

likely to repurchase Xerox equipment versus those at the 4 rating level. Xerox coined the

term "apostles" to characterize the customers that rated them a 5. Just as important is to

avoid creating terrorists: customers that become so upset the make it a point to speak out

about the poor service they received at every opportunity. Loyal customers are more

likely to tell others about their loyalty than just satisfied customers. Excited customers

tell other people about their experiences and create ambassadors for the company. They

become loyal customers and they keep returning. The service-profit chain establishes

relationships between profitability, customer loyalty, and employee satisfaction, loyalty,

and productivity. The links in the chain (which should be regarded as propositions) are as

follows: Profit and growth are stimulated primarily by customer loyalty. Loyalty is a

direct result of customer satisfaction. Satisfaction is largely influenced by the value of

services provided to customers. Value is created by satisfied, loyal, and productive

employees. Employee satisfaction, in turn, results primarily from high-quality support

services and policies that enable employees to deliver results to customers. The service-

profit chain is also defined by a special kind of leadership that emphasizes the importance

of each employee and customer. According to the HARVARD University, The Service-

Profit Chain is a theory and business model evolved by a group of researchers (James L.

Heskett, Thomas Jones, Gary Loveman, W. Earl Sasser, and Leonard Schlesinger) from

Harvard University in the nineties. In their subsequent book: The Service Profit Chain –

How Leading Companies Link Profit and Growth to Loyalty, Satisfaction and Value,

they prove that there is a direct link between superior service experiences, customer

loyalty, and financial performance (profit and growth). The work of Heskett et al was


criticized by a study of Rosa Chun. In an article in the

Strategic Management Journal she argues that they haven't found any hard data

supporting the concept. There are two things about loyalty which are important to notice.

A satisfied customer is not automatically a loyal customer. It’s only the super satisfied

customers who become loyal. That is why ‘satisfied’ is not enough in a world of

abundance which is the situation for many companies today. Add to that the tough reality

that what we considered fantastic last year

is what we expect this year. The expectations of the customer change all the time. If a

company wants to maintain the loyalty it has to get better and better.Xerox found that

customers that rated them 5 (on a 1-5 customer satisfaction ranking) were six times more

likely to repurchase Xerox equipment versus those at the 4 rating level. Xerox coined the

term "apostles" to characterize the customers that rated them a 5. Just as important is to

avoid creating terrorists: customers that become so upset the make it a point to speak out

about the poor service they received at every opportunity.

Loyal customers are more likely to tell others about their loyalty than just satisfied

customers. Excited customers tell other people about their experiences and create

ambassadors for the company. They become loyal customers and they keep returning.

The primary determinant of customer satisfaction is perceived value – which the

customer has gained more from the product than he or she thinks it is worth. Value often

has an emotional aspect that makes an experience particularly memorable for the

customer. The key to create value is the ability to bond emotionally with the customers

and create emotional wow experiences. Underlying this is being very clear about the

targeted service concept for the targeted customers.

3.5 Previous researches

Thomas (2007), in his article describes the contribution made by Telecommunications in

India by the state and civil society to public service, this article aims to identify the

state’s initial reluctance to recognize telecommunications Provision as a basic need as

against the robust tradition of public service aligned to the postal services and finds hope


in the renewal of public service Telecommunications

via the Right to Information movement. The article follows the Methodology of studying

the history of telecommunications approach that is Conversant with the political economy

tradition. It uses archival sources, personal correspondence, and published information as

its research material. The findings of the paper suggests that public service in

telecommunication is a relatively ‘‘new’’ concept in the annals of Indian

telecommunications and that a deregulated environment along with the Right to

Information movement holds significant hope for making public service

telecommunications a real alternative. The article

provides a reflexive, critical account of public service telecommunications in India and

suggests that it can be strengthened by learning gained from the continual renewal of

public service ideals and action by the postal services and a people-based demand model

linked to the Right to Information Movement. All studies done by the researcher suggests

that the right to information movement has contributed to the revitalization of

participatory democracy in India and to a strengthening of public service

telecommunications.

T.H. Chowdary (1999)

Discusses how Telecom reform, or de-monopolization, in India has been bungled. Shaped

by legislation dating back to the colonial era and post Second World War socialist

policies, by the mid-1980s India realized that its poor telecommunications

infrastructure and service needed reform. At the heart of the problem lay the

monopoly by the government’s Department of Telecommunications (DOT) in equipment,

networks and services. The National Telecom Policy 1994 spelt out decent objectives for

reform but tragically its implementation was entrusted to the DOT. This created an

untenable situation in which the DOT became policymaker, licenser, regulator,

operator and also arbitrator in disputes between itself and licensed competitors. He

discusses the question: ‘Why did India get it so wrong? And What India should

do now?


Cygnus Business Consulting & Research Pvt. Ltd. (2008),

In its “Performance Analysis of Companies (April-June 2008)” has analyzed the Indian

telecom industry in the awake of recent global recession and its overall impact on the

Indian economy. With almost 5-6million subscribers are being added every month, and

the country is witnessing wild momentum in the telecom industry, the Indian

telecom industry is expected to maintain the same growth trajectory.

Chapter 4

Research Methodology


Research: Research is formal work undertaken systematically to increase the stock of

knowledge, including knowledge of humanity, culture and society, and the use of this

stock of knowledge to devise new applications

Type of research: Descriptive research

Descriptive research: It is a type of research which is used to describe the data and

characteristics about what is being studied. Descriptive research is the exploration of the

existing certain phenomena.

Type of data: Secondary data

Secondary data: It is a kind of data collected by someone other than the user. Common

sources of secondary data for social science include censuses, surveys, organizational

records and data collected through qualitative methodologies or qualitative research.

Sources of secondary data: Census, housing, social security as well as electoral

statistics and other related databases.


Chapter 5

Case study

Dealing with BSES and BYPL

Client- BSES Yamuna Power Limited (BYPL) and BSES Rajdhani Power Limited

Location- Delhi

No. of Connections- 3000 AMR Modems

LNS Server- Dedicated

Areas Covered- Delhi, NCR (Partial)


BSES Yamuna Power Limited distributes power to an area spread over 200 sq Kms and

BSES Rajdhani Power Limited distributes power to an area spread over 750 sq. km to a

cumulative customer base of 22.6 lakhs, comprising two-thirds of Delhi. Also the BSES

Yamuna Power Ltd supplies electricity to 14 districts of India. Covering an area of

approximately 160 sq km, the functions of the BSES Yamuna Power Ltd are spread over

the central and eastern areas of the capital of India.

The conventional meter reading method required the inspector to visit the consumer

premises and record the meter data for a particular period, either manually in meter books

or in hand held instruments known as MRI. It was a time consuming job to read each

meter and also there was a scope for errors. It was a tedious job which required huge

manpower for reading the meters as these consumers are spread across Delhi. The BSES

was facing a critical problem of time and money management .huge amount of labor had

to be employed just to carry out a simple and easy process .these labor had to be paid also

which also ensures that BSES was suffering from mismanagement of time and

money .the inspector who used to visit the customer premises had to either write the

readings manually or either with the use of machine called MRI .the MRI was a machine

which

had to connected to the meter and the reading of the meter is collected in it as

memory .also in India some people are not able to pay the bills as price per unit is heavy

on their pockets ,so they use some nasty ways to theft the electricity which an MRI was

not able to detect nasty ways .also the meters were much advanced to counter the theft of

electricity .in an area of 200sqft ,7kw of electricity is sufficient but using theft an average

200sqft was consuming around 12 to 13 KW of electricity .it means that they would be

receiving meter units around 100 but the real units consumption will be around 300 to

400 units per month .


In all BSES was facing a huge problem of money and

time management .it was incurring a loss of around two lakhs rupees per day which is

enough to dwell an organization to its end easily. MRI was the only latest technology that

was available to them from Indian government.

Chapter 6


Conclusion

RCOM has provided BSES with a unique solution of CDMA AMR on WDVPN

technology through which meter reading is done from a central location without visiting

customer premises. Reliance WDVPN is a comprehensive CDMA 1 X based connectivity

solution for secure, reliable and high speed data transfer between remote terminals and

the central application servers. It allows remote terminals and mobile workforce to access

the intranet servers such as ERP applications, Email etc. without going to Internet. The

customer servers can be located at Reliance IDC or Customer Data Center.

The remote machine uses any of the CDMA devices such as Fixed Wireless Phone

(FWP) / Fixed Wireless Terminal (FWT), Data Card or built-in CDMA Module to

establish a packet data call with the RCOM network. Physical connectivity can be

through the serial RS-232C port or a USB port with the appropriate cable. The entire


process from meter reading to billing is now fully

automated .It has been incorporated to minimize human interface while downloading of

meter data and to reduce billing as well as accounting errors.

Using WDVPN technology BSES keeps a check on meter tampering thus reducing illegal

abstraction of energy. now the meter were also much advanced and proficient according

to their needs .also there were reduced labor and hence labor cost was also

minimized .now the accounting errors were much less as all the data was collected and

assembled in the database of computer .

RCOM’s WDVPN solution enables quicker, efficient and reliable meter reading which

has increased operational efficiency and reduced cost. All this has led to reduction in the

billing time, improvement in the billing quality and better revenue realization further

leading to consumers’ satisfaction. Now the customer’s satisfaction was good and it was

a better sign of increased profits .Moreover, it helps to analyze customer load patterns

and thus distributing the exact required amount of energy and hence the extra voltages

were saved .it helps in strengthening the customer relationship.

Bibliography

Books:

1. Rao Ajit & Chandra Subhash, The little book of big customer satisfaction

measurement (2007), 2nd edition,

2. Jaiswal, Anand Kumar, Managing service quality (2008), 3rd edition.

Newspapers and journals:

1. The Economic Times


2. The Times of India

3. India Today

Internet:

www.b2binternational.com › Publications ›

www.sitepoint.com/satisfaction-7-steps/ - United States

www.customersatisfaction.com


project report on customer satisfaction on reliance communication

Documents

hand held instruments

gains positive word

increased bargaining power

sigma doctrine places

asia pacific region

huge base margin

reality falls short

bses yamuna power