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A Study on Customer Retention at
AIRTEL
DESERTATION REPORT
On
CUSTOMER RETENTION STRATEGY ATAIRTEL,
BANGALORE.
In partial fulfillment of the requirement
Of award of MBA degree
Submitted By
Arjun sagar.K.
(Reg No. 06KXCM6001)
Under the guidance of
Sri. Jeevananda.S.
Master of Business Administration
Bangalore University
Surana College PG Centre
Bangalore - 560060
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2006-08
DECLARATION
I hereby declare that the research work embodied in the dissertation entitled
Customer Retention Strategy at AIRTEL, Bangalore, has been carried
out by me under the guidance and supervision ofSri. Jeevananda.S,
Surana p.g centre Bangalore
I also declare that this dissertation has not been submitted to any
University/Institution for the award of any Degree/Diploma.
Place: Bangalore
Date: (ARJUN SAGAR.K)
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ACKNOWLEDGEMENT
I am happy to express my deep sense of gratitude to Dr.V.Prabhudev(Director, Surana p.g centre, Bangalore), andMr. Jagadeesh. R.S(Assistant
Sales Manager, Airtel) for their encouragement, guidance and many valuable
ideas imparted to me for my project.
I extend my sincere thanks to Mr. Jeevananda.S (Internal Guide,
Surana p.g centre, Bangalore) for providing me all the information required
and the guidance through out the project without which this project would
not have been possible.
I have gained a lot of knowledge, both theoretical and practical,
throughout the course of carrying out this project; I also learnt a lot about the
intricacies of the actual business world.
With special regards I would also like to sincerely thank all my
lecturers and friends for their help in completing my project successfully.
Place: Bangalore
Date: (ARJUN SAGAR.K)
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CONTENTS
Chapters Title Page no
Chapter-1 Introduction 1-13
Background of the study.
Components of life time value of customer:
Integrated Customer RelationshipManagement
Current scenario of customer retention.
Stratifies For Retaining Customer
Chapter-2 Research Methodology 14-17
Statement of the problem.
Scope of the study:
Objectives of the study
Research Design:
Sampling Technique.
Actual collection of data.
Limitation of the study.
Chapter-3 Review of literature 18-28
Purpose of review.
Methodology of literature review.Conclusions from literature review.
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Chapter-4 Company profile 29-46
Introduction
Key strengths & Future plans
Vision , mission
Bharthi valuesAirtel Advertising
Chapter-5 Data analysis and inferences 47-71
Chapter-6 Summary of findings, suggestion &conclusion 72-79
Bibliography 80
Annexure 81-84
LIST OF TABLES
Table. No. Table depicting Page. No.
1 Table showing data based on age. 47
2Table showing data based on rating of call quality.
483 Table showing data based on rating of the network
coverage.49
4 Table showing data based on concern of call dropping 50
5 Table showing data based on ability to call at the firstattempt
51
6 Table showing data based on the calls made to thecustomer care help line in the last one-month.
52
7 . Table showing data based on finding the InteractiveVoice Response System (IVRS) user friendly
53
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8 Table showing data based on finding the executivesfriendly with a helpful attitude
54
9 Table showing data based on rating the ability to giveinformation about various rate/plans/schemes/offers
55
10 Table showing data based on the registration ofquery/complaint in the last one month
56
11 Table showing data based on the rating the ability to listenand understand the query/concern
57
12 Table showing data based on answering mode of thequery/concern satisfactorily
58
13 Table showing data based on getting a follow up call toresolve the query/concerns
59
14 Table showing data based on communication about thelaunch of new rates plans/schemes/offers in time
60
15 Table showing data based on communication about the
procedure/mode to upgrade the rate plans/schemes/offers
61
16 Table showing data based on finding theAIRTELadvertisement relevant and easy to understand
62
17 Table showing data based on receiving the monthly billswell in advance before the due date
63
18 Table showing data based on finding the payment reminderthrough SMS/calls useful:
64
19 Table showing data based on finding the bills error free 65
20 Table showing data based on rating of the AIRTELservices.
66
21Table showing data based on rating of the AIRTEL overallservices 67
22 Table showing data based on the activation/cancellation ofoffers/services like roaming STD/ISD etc taking placewithin the time committed
68
23 Table showing data based on the plan changes taking placewithin the time committed
69
24 Table showing data based on rating the time taken forservice restoration in case of barring/suspension
70
25 Classification of the data based on preference betweenprepaid and postpaid cellular service of AIRTEL
71
List of chart
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Chart. No. Chart depicting Page. No.
1 Chart showing Airtel user based on age group. 47
2 Chart showing Rating of call quality 48
3 Chart showing Rating of the network coverage 49
4 Chart showing concern of call dropping 50
5 Chart showing ability to call at the first attempt 51
6 Chart showing call made to customer care in the last onemonth.
52
7 Chart showing user friendliness of the Interactive VoiceResponse System (IVRS).
53
8 . Chart showing ability to information about various plans 54
9 Chart showing ability to information about various valueadded services
55
10 Chart showing registration of query/concern in the last onemonth
56
11 Chart showing ability to listen and resolve the query. 57
12 Chart showing answering the query/concern satisfactorily 58
13 Chart showing follow up of call to resolve thequery/concern
59
14 Chart showing communication about the launch of new
plans /schemes
60
15 Chart showing communication about the procedure toupgrade the new plans
61
16 Chart showing finding the AIRTEL advertisement relevant 62
17 Chart showing receiving the bill on time 63
18 Chart showing finding the payment reminder throughSMS/calls useful.
64
19 Chart showing finding the bills error free 65
20 Chart showing rating of the AIRTEL Services 66
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21 Chart showing rating of the overall AIRTEL Services 67
22 Chart showing Activation/Cancellation of services 68
23 Chart showing plan changes taking place within the timecommitted
69
24 Chart showing rating of the time taken for service
restoration.
70
25 Chart showing preference between Prepaid and Postpaid. 71
Executive Summary
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Topic: Customer retention strategy at Airtel
Customer retention is the key business issue. Effective churnmanagement allows the company to stay ahead of its competitors,
increases profitability and improves investor confidence.
There are no simple solutions; must adopt aggressive strategies
which cut across the customer lifecycle and underpin all business
processes. Customer Retention is not given the attention due to it, by
most firms. It has been found that customer retention has more impacton profits than market share, economies of scale and other variables
that are considered to provide competitive to a firm.
In fact, it has been found that companies, which reduce
customer defections by 5 per cent, could boost profits from 25 per cent
to 85 per cent.
The whole gamut of Customer Relation Management strategies
center around the basic idea of RETENTION so as to get the mass out
of their existing or potential customers.
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CHAPTER-1
INTRODUCTION
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Background of the study.
The premise of the telecommunications business is simple- there is no billing, no
revenue and hence, no profit, with the usual threat of survival. In the highly competitiveand growing Indian market, Bharti Tele-Ventures Limited Group Company is the leading
wireless access, data solutions, and long distance services provider. it has well
understood that the only way it can sustain and grow is by being price competitive, with
services that meet customer expectations for quality and continuous availability.
The whole gamut of Customer Relation Management strategies center around the
basic idea of RETENTION so as to get the mass out of their existing or potential
customers. Retention rate is a very good indicator of repeat buying behavior and is a
fairly good indicator of future behavior. Retention rate is a good indicator - not of loyalty
but of the lack of it; in other words, a low retention rate can signal that the customers are
not loyal, but a high retention rate does not necessarily indicate a strong loyalty.
Improving customer retention rate leads to significant increase in profits; profitability is
determined by three factors:
Industry retention rate:
First an assessment of average industry retention rate is required; the lower the
industry retention rates, the lower the leverage effect on profits. Current industry
retention rates have a direct impact on long-term customer value. When retention rates
are 50% or below, the average customer stays with the firm for two years or less. If a
firm improves its retention rates from 50% to 55%, the average retention increases to 2.2
years from 2.0 years. In contrast, if average retention rates in an industry are relatively
high, in the order of 75% or greater, then an increase of 5% in customer retention has a
far greater impact. The key to estimating average retention rates is to examine switching
cost in the industry. It is recognized that in industries with low average retention rates
individual firms may, through inventive strategies and service excellence programs,
improve their retention rates to significantly higher levels than the industry average.
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Segmentation issues:
Basic segmentation issues need to be addressed to determine if viable segment
exist and can be identified; otherwise there may be more profitable avenues for the firm
to pursue. _Attracting and keeping the highest-value customers is the corner stone of a
successful marketing program_. Underlying this statement is the necessary condition that
the market can be segmented and that identifiable segments vary in customer value. The
direct way to test this necessary condition is to apply volume segmentation to the market.
When high, medium, low and non-user segment exists and can be identified; the potential
rewards from focusing customer retention programs on the high users can be substantial.
Retention improvement for this segment could lead to significant increase in profits .An
insightful approach is one that combines volume segmentation and margins by customer
group.
Benefit segmentation is another approach, which may assist in determining the
viability of retention strategies. In particular, the firm is seeking to identify and measure
segments that value benefits beyond economy (i.e., the price sensitive segment). Benefits
such as reliability, responsiveness, confidence, and security offer the firm the opportunity
to establish a relationship with a particular segment. Customer seeking economies do not.
Components of life time value of customer:The firm needs to assess its ability to calculate the long-term value of a customer
or segments; in many case the necessary information may not available. Long-term
customer value (LTV) is based on the concept of customers as sources or streams of
profitable revenue, resulting from both their own increasingly knowledgeable usage and
the patronage of others whom they recommend their service supplier. The revenue curve
is determined by the degree to which each of the components-customer acquisition cost,
base profit, profits from increased purchases and higher balances, reduced operating cost,
profit from referrals, and profit from prices premium-contribute to profits over time.
LTV is likely to be significant when the following characteristics are present:
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1. High marketing expenses to obtain a new customer.
2. High administration cost to enter the customer into the firms system.
3. Relatively low servicing costs.
4. Reasonable margins on sales
5. High sales volume per customer.
6. High word of mouth.
The presence of the above factors will enhance the LTV of customers. The
individual firms needs to assess the degree to which these factors are present in
determining the potential of increasing profits through customer retention.
Customers of today are becoming smarter, more price conscious more demanding, that
led the customer to churn. We can categories the customers based on churn-frequency:
The habitual churner: who likes to change suppliers frequently? The benefits of
change.
Exploring the Value of Customer Retention
Customer retention is not only a cost effective and profitable strategy, but in
today's business world it is necessary. This is especially true when we remember that
80% of our sales come from 20% of your customer and clients. With these statistics we
need to address the question: why most marketing and sales campaigns are designed for
the new customers.
Sophisticated technology and database equipment have made it possible for
specialized firms to make attempts towards customer retention through database
marketing programs. Establishing a detailed client database will allow these companies to
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keep track of personal information and individual preferences of all their customers.
This enables them to provide better service and value. Just like the corner grocery
store owner keeps information on 200 customers in his head, the large superstore can
now keep track of 20,000 customers through its customer database. With effective
implementation of customer databases, companies will be able to re-establish contact
with customers, and will be able to work successfully towards increasing customer
retention, repeat sales, and customer referrals.
Churn: the loss of customers and the resulting loss in revenue for service
providers to achieve the objectives of the database and customer retention programs, the
entire campaign should be designed and carried out with the customer in mind. The
exercise will only be effective if the customer recognizes and associates some value with
being part of our database.
When Do Prospects Become Customers?
As the focus of our program shifts from acquisition to retention, the goals become
those of establishing loyalty, advancing the relationship and building a sense of
community, participation and affinity. As with prospecting, however, the data strategy
should also help determine whether customers do or do not meet the
Companys criteria for retention.
We need to look for factors that will feed back into the acquisition cycle to
reduce marketing costs, increase success rates or both. We also need to look for trends in
the length of customer relationships and determine if steps can be taken to avert the loss
of customers at critical points along theway. Even a small improvement in retention can
result in a significant rise in profitability and our overall ROI. Since all organizations
continually update customer data, reviewing and analyzing the data will identify
opportunities where up selling, cross- selling and service sales can be increased.
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The development of the data strategy as it relates to retention issues should
address suchquestions as:
What characterizes our best customers, and what keeps them loyal?
How do the information and service needs of new customers differ from those of
established customers?
Is it necessary to keep all prospect information once a customer relationship is
established?
What changes does the organization need to make as the relationship goes along?
How many service calls did customers place?
Why does one group or class of customers respond to opportunities when another
does not?
Choice of a CRM Platform
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A companys choice of a CRM solution will affect its ability to collect, analyze
and use the data. A balanced CRM solution should offer thefunctionality the organization
needs and provide the agility to help users address changing demands in the marketplace.
The ideal CRM solution should be timely in that it is quick to install and deploy, and it
should be cost-effective from its initial deployment through its long- term use.
All information about a particular customer should be in one database (not
separate databases for marketing, sales or support), and everyone in the organization
should be looking at the same data. Universal access to information by all departments
makes it possible to present a unified face to each customer.
In addition, the CRM solution should be customizable to reflect the unique
business outlook and preferences of the organization using it. It should be readily
reconfigurable to record new types of information or to discontinue collecting
information that is no longer relevant or is not useful. In short, it should be adaptable to
new requirements as the needs of the organization evolve.
Todays Internet technology enables companies to use customized relationshipmanagement services hosted by application service providers (ASPs). An Internet-based
solution can make it easy for prospects and customers to use self-service tools and
information request forms via the Web. The CRM solutions offered by the best ASPs
include management and administrative tools to monitor application usage and provide
expected levels of service.
Developing an effective data strategy for the CRM process is a way to develop the
information you need to better run your company. Ultimately, it comes down to deciding
whom we intend to pursue as prospects and retain as customers. The CRM solution
should provide us with the tools and flexibility to support that quest on an ongoing basis.
Intelligent analysis of data can indicate whether a companys activities are in line
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with its goals for customer acquisition and retention. It can be crucial to both the speed
and the quality of the companys response, and it can influence the future direction of the
product and service offerings.
Most importantly, a well-developed data strategy and its effective use
in concert with the
CRM system will allow us to be selective in the types of customers with
whom we choose to deal.
Integrated Customer Relationship Management
The development of the Customer Relationship Management
(CRM) marketing practice has made more and more people realize the
importance of strong customer relationship in building sustainable
competitive advantages in their market competitions and in generating
sustainable profits in the long run.
However, the currently popular CRM marketing practice often
produces disappointing outcomes. Surveys after surveys, a surprisingly
high rate of failure have been reported for CRM practices. The failure
rate of CRM systems ranges from 50% to over 80%. The major CRM
system developers received much lower customer satisfaction scores
than companies in other industries did. The more popular this
marketing practice gets, the more people realize that the current CRM
practice hardly manages customer relationship.
Integrated Customer Relationship Management (ICRM) is the
latest marketing strategy developed to meet the challenges raised
from daily marketing consulting services, as the existing marketing
theories and practices fail to solve the problems companies have in
their efforts to build strong customer relationship.
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Integrated Customer Relationship Management (ICRM) provides
a theoretical framework to define and to construct customer
relationship under market competitions. ICRM also provides a practical
guideline for the practice of effective Competitive Customer
Relationship Management.
The business philosophy behind ICRM is to put customer needs in
the center of marketing practices and integrates all major marketing
functions (including database marketing) into the Customer
Relationship Management process. The ultimate goal of the ICRM
practice is to help companies achieve sustainable competitive
advantages through strong customer relationship.
Current scenario of customer retention.
In the cellular sector, churn rates in the region of 30% are not
unusual, but a fewCompanies have managed to achieve rates of around 15%. Churn
management products are profiled and a model shows the typical cost
reductions available from a churn management programme.
No single measure will effectively combat churn. An approach is
required which focuses effort on each business area, most valuable
customers, and maximizing return on investment is required.
Key strategies include:
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Incentives and tariff bundles which target the most profitable
customers.
Loyalty schemes which are appropriate to the value of the business
saved.
Acquisition strategies which attract the right type of customer,
reducing fraud and bad debt.
Proactive customer service.
Customer retention solutions combine award-winning data
warehousing and analytics, consulting services, and industry-specific
data architectures to offer:
Accurate reporting on who is leaving your company.
Insights into the major factors influencing the decision to leave.
Industry-leading accuracy for predicting which customers are likely to
churn in the near future.
Proactive, rules-based analysis of account behavior.
An accurate early-warning alert system.
Flexible and scalable technology that can keep up with the
company's growth .
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Benefits Of Customer Retention
Customer retention affects both revenues and costs in the
equation of profitability:
Profit =Revenue Cost
Revenues are enhanced due to increased sales and costs are lowered
due to lesser generation and marketing costs of such revenues.
Scholars have outlined six economic benefits of customer
retention:
a) Saving on customer acquisition or replacement costs,
b) A guarantee of base profits as existing customers are likely to
a minimum spend per period,
c) Growth in per customer revenue over time,
d) A reduction in relative operating costs as firms can spread the
cost over many more customers and over a longer period,
e) Free of charge referrals of new customers from existing
customers, and
f) Price premiums as current customers usually do not wait for
promotions or price reduction before they make their purchases
Certain non-economic benefits from customer retention are:
increased customer trust, commitment and cooperation.
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Stratifies For Retaining Customer
In service marketing, customer retention has been
conceptualized as resulting from customer perceptions of services
quality and customer satisfaction. Scholars have advocated four steps
as essential to retain customers:
a) Define the market structure,
b) Segment the customer base and determine segment value,
c) Identify the segments service needs, and
d) Implement a segmented service strategy.
Seven Tips to CRM Success
1. Define your business objectives and goals against which results can
be measured
2. Given each CRM product, focus on three dimensions: People,
processes and technology.
3. Establish systematic approach to product management includingteam development, IT, marketing, services, sales management as well
as software.
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4. Clearly identify corporate and customer needs. research the
requirements and behavior of customers and guideposts to an
effective delivery of services.
5. Manage organizational change effectively. the human factor is
imperative to a projects success.
6. Invest in training-more essential than any piece of software.
7. Focus on proactive selling, relationship building so as to effectively
up sell and cross-sell.
Goals of CRM
To provide better customer service.
To make call centers more efficient.
To cross sell products more effectively.
To help sales staff close deals faster.
To simplify marketing and sales processes.
To discover new customers.
To increase customer revenues
.
What are the keys to successful CRM implementation?
Break CRM project down into manageable pieces by setting up
pilot programs and short-term milestones. Pilot project should
incorporate all the necessary departments and groups that get
projects rolling quickly and should be small and flexible enough
to allow make changes during implementation.
CRM plans should include a scalable architecture framework.
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The system should be flexible and expandable according to
data it might collect in future.
What data is collected and stored should be measured
carefully. The impulse will be to
Grab and then store EVERY piece of data, but there is often no
reason to store data. Storing useless data is waste of time and
money.
Recognize the individuality of customers and respond
appropriately. A CRM system
should, for example, have built-in pricing flexibility.
What causes CRM projects to fail?
Lack of an interactive communication among everyone in the
customer relationship chain can lead to technology being implemented
without proper support or buy-in from users. For example, if the sales
force is not completely sold on the systems benefits, they may not
input the kind of demographic data that is essential to the programs
success. One Fortune 500 company is on its fourth try at CRM
implementation, primarily because its sale force resisted all the
previous efforts to share customer data.
... A Few Thoughts worth Remembering About Customer
Retention:
"A customer service program must hold everyone in the organization
accountable."
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"The way we treat our employees is directly related to how they in turn
treat customers."
(Joe Sperry, Consultant to the telecommunications industry)
"In cellular, 1% churn can be translated into roughly $500,000 in
revenue."
"...96% of customer churn is lost with no feedback to provider."
"...A company has to determine its customer's definition of quality
service and then measure its performance against those expectations."
"One bad-mouthing customer can cost you 10 new customers." (Larry
Harris, President, Crico Communications paging company)
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CHAPTER-2RESEARCH
METHODOLOGY
Statement of the problem.
How can a service firm evaluate when retention strategies pay-
off?
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How does a service firm identify right strategies to retain
customers rather than acquiring the new customers?
This is more expensive as the saying goes that It is five times more
profitable to spend your marketing dollars to retain the customers that
you have than to use the dollars to beat the bushes for new
customers?" most people would agree with this statement.
Scope of the study:
For many firms improving customer retention rates can lead to
significant increase in profitability; 5% increase in retention can
increase profitability from 25% to over 85%. the more customers the
firm can retain over time, the more likely the firm will achieve greater
profitability and growth. recognizing the benefits of customer
retention, many firms are investing substantial resources in
relationship management programs to improve profitability.
Customer retention is not only a cost effective and profitable
strategy, but in today's business world it is indispensable. this is
especially true when we remember that 80% of our sales come from
20% of our customer and clients.
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Objectives of the study
To examine the current customer retention strategies being
deployed by AIRTEL.
To identify the faults/deficiencies in the existing customer
Retention Strategies.
To understand the importance of the components of Life Time
Value of Customers.
To understand the intricacies of Customer Relationship
Management.
Research Design:
This study employs systematic, objective and quantitative Research techniques using a
well-structured questionnaire. Customer Retention Strategies have been studied
extensively in the mobile service industry. the research investigation is restricted to the
existing/potential customers of AIRTEL in the Bangalore Metropolitan Area. the primary
data was collected using a well structured questionnaire. the descriptions also involve
cross analysis of respondents from different consumer segments entailing age, preference,
and usage as variable parameters.
Separate tables were furnished under specific headings, these were analyzed with
the help of descriptive analysis and percentage, and the data was analyzed and
interpreted. Detailed charts are developed showing the data obtained from the
respondents; the data collected from the respondents were organized, processed and
tabulated to depict the results.
Since our research investigation is highly qualitative in nature, the research data
has not been subjected to rigorous quantitative treatment. it is our belief and conviction
that the qualitative analysis is as useful as quantitative analysis in drawing significant
inferences and making projections.
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Sampling Technique.
Since the population for the study is quite large and since the study is limited by
the constraints of resources and time, complete enumeration of the population by census
method was not possible. hence, the project used random sampling technique.
Respondents were mostly selected from the youth segments, who were the major
respondents of the survey. the advantage of this technique is that it is both economical
and reasonably reliable.
Sample size.
The sample size comprises 100 respondents. the sample size of 100 respondents is
considered by us to make reasonable projection in the study of this kind.
Sample description.The sample description includes customers of Airtel in both prepaid and postpaid
sections. the youth segment was taken as the respondents because they are more prone to
switch to different service providers and usually they are the trendsetters. hence it is our
strong belief if we could develop strategies to retain them, its easier to retain the other
segments too.
Instrumentation technique.
Structured questionnaire.
Observation technique.
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Tables/charts.
Actual collection of data.
Data has been collected from various sources, there is a combination of both
primary and secondary data that has been used in this research. a well administered
questionnaire has formed the main profitable source of the primary data collection. this
enabled us to capture a first hand insight into the actual findings of the research.
Published articles relating to customer retention in the mobile service industry and
also papers submitted by renowned people have formed the source of secondary data.
Articles have been sourced from magazines and journals dealing with current issues in
mobile service industry. Internet has been a major secondary source for the extraction of
the experts opinion.
Limitation of the study.
This study was restricted to the city of existing customers of
AIRTEL in Bangalore
Metropolitan Area and therefore the results of this study can not
be generalized.
Due to the time constrain, an extensive research could not be
undertaken, therefore the sample size was restricted to 100
respondents only.
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Analysis of the data obtained from the questionnaire was done
on the assumption that the respondents gave the correct
information to the best of their knowledge.
Preferences and responses of customers could change over a
period of time necessitating periodical surveys.
CHAPTER-3
REVIEW OF LITERATURE
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Purpose of review.
The purpose of literature review is to explore the historical and
current scenarios of the customer retention rate in the mobile service
industry and general industry as a whole to retain customer.
Over and above, the purpose of the literature review is to
understand in totality the foundation of the research problem. The
abstracts in the following pages are some of the key literature
reviewed in this project:
SAS Powers Churn Management At Bharati Cellular
Using Enterprise Miner software and OLAP technologies, Bharti
built models that predict the customer propensity to churn and provide
information to drive product strategy. Every time a customer calls to
complain about network congestion, Anil Nayar knows that he/she's
only a drop call away from switching over to a rival cellular services
provider. that's a big reason why Anil Nayar, President (Mobility),
Bharti Tele-Ventures doesn't wait for complaints before starting to
troubleshoot.
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Instead, Nayar and his team pick up the truck load of data that
they maintain on their 7.37 lakh subscribers, crunch it to find out who's
most likely to dump Bharti's AirTel in favor of a rival operator. that
done, the next step is to figure out how to keep these potential
'churners' from leaving.
But does churn management work? Sure, says Nayar, pointing
out that prior to its implementation, the churn ratio at Bharti touched a
peak of 3 percent, but now it's a little over 2 percent. Still, that's not
really the point Nayar wants to make. Says he: If we hadn't done
anything about it, the rate could have gone beyond 3 percent.
considering that the average cost of customer acquisition in the mobile
business is as high as INR 3000, retention directly impacts the bottom
line.
Bharti cottoned on to churn management way back in November
1999, when in one of its quality meetings it was noticed that the
single-biggest factor in opportunity cost (or nonconformance in
telecom-speak) was churn. immediately, the company set about
pulling in all the data it had on it's customers. the idea was to melddiscreet bits of data into an intelligent whole, why customer
retention is important and its benefits of to the company something
that would betray the churner. was it poor service, network
congestion, or ill suited tariff plans that the customer was most
complaining about? If the probability of churn could be predicted
accurately, then not only could glitches in service be fixed, but the
bottom line could be improved.
As Bharti started dialoguing and looking for ways and means to
make sense of customer data, it led to American data mining major
SAS' churn management solution. Its software tools allow the user
to sift through enormous quantities of data that the business generates
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to find hidden trends and patterns that will help in customer retention.
Explains Gourish Hosangady, CEO & Managing Director, SAS
India, the online application enables a company to build a 360
degree view of its customers, and create customer specific strategies
for greater loyalty.
Customer retention, however, is only one part of churn
management. it also makes the overall organization much more
effective by identifying potential problems and opportunities.
Bharti was able to optimize its coverage by studying customer
complaints and usage behavior. In another busy commercial market, it
was prompted to set up extra powerful transmitters because an
analysis of the complaints revealed that there were more users
operating out of basement offices.
The end result of such analysis is that it allows Bharti to manage its
network investment much more effectively.
So how do the churns tools work? It starts with a search
database, where information is stored in a structured manner. Data
mining software pulls together all the raw data in whatever forms it is
held into one system and combs through it using artificial intelligence
techniques or complex mathematical models. the SAS data mining
techniques predict a customer's likelihood of cancellation or switchover
by scoring them on a scale of 0 to 1. if a customer scores 0.73 it
means there's a 73 percent chance of his/her churning. Ergo, the lower
the score, the more contented the customer. Once you know the
scores, it is easy to figure out which customers (like defaulters) to let
go.
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Bharti did not stop at churner identification. It went a step ahead
and used the data warehousing tool to launch new products. For
example, when statistics showed that a number of pre-paid subscribers
in Delhi were not locals, but business visitors who subscribed to AirTel
back in their hometowns, Bharti launched regional roaming for pre-
paid subscribers. Says Nayar, Data is a powerful resource, and it is up
to you to find business insights in it.
'Telcos Have To Minimise Customer Churn'
It's a fiercely competitive market, and for mature entrants in any
sector whether it is telecom, banking, insurance or retailing
retaining profitable customers is now the number one business plan.
SAS, a leader in business intelligence tools, provides operational
and analytical CRM (customer relationship management) solutions for
companies such as Citibank, Stan Chart, Orange, Good lass Nerolac
and BPL. these help in gathering data at the various multi-channel
customer contact points and in planning, targeting, acting and learningfrom the data generated. Recently, SAS implemented its customer
retention solutions at AirTel to reduce a big problem telecom carriers
are facing today churn. That means losing customers to another
carrier.
Gourish Hosangady, managing director and CEO, SAS India,
explains how IT solutions can help tackle churn, the common
denominator in the worlds liberalised telecommunications industry,
which is now hitting India too.
How bad is the problem of churn, and why is the telecomindustry more vulnerable than the other sectors?
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Customer acquisition and retention has been a concern for all
industries, but more so for the highly liberalized telecom sector. The
entry of the fourth cellular operator has fiercely increased competition
in this industry and so it is imperative to understand the reasons for
churn and to contain them. In India, the month on month churn is
estimated at 3.5%.
Churn costs European and US telcos close to $4 billion each year.
The annual churn rates globally of 25% to 30%. Carriers at the upper
end of this spectrum get no return on investment on new subscribers
because it takes typically three years to pay back the cost of replacing
each lost customer with a new one.
In your experience, what are the commonest reasons for
customers to switch from one service provider to another?
Some of the common driving factors for churn are poor performance,
poor customer care, rate plans and handset issues. Weve for instance
found that contact centers can drive away customers to a rival serviceprovider if a customer has to wait long before his problem is looked
into.
Globally, handset issues have made a difference too for instance, a
Telco not being able to provide GSM or CDMA service. Regarding
churn, something interesting thats been noticed is that its much
higher in the case of pre -paid services, with a churn rate of 8:1, than
in post-paid service where the rate is 3:1.
The idea of pre-paid cards is that the customer will mature to
become a post-paid one and so it pays to retain him too. After all, its
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five times more expensive to acquire a new customer than to retain an
existing one.
What are the best ways to prevent these high rates of
customer churn?
Effective customer service could be a deterrent to churn.
Branding and service differentiators also help in taking customers
away from competitors. All this wouldnt be difficult if you have proper
operational and analytical CRM tools in place that would help segment
and analyses customer behavior and predict their propensity to churn.
In a rapidly changing telecom market, it is necessary to
proactively strategize and service customers so as to retain the high
value ones. Analytical customer retention solutions would help identify
the high-, mid- and low-value customers and the valuable ones who
are most likely to cancel services, and their reasons for doing so. They
would also help in better campaign targeting and a more focused
strategy.
In the case of a client such as Sprint, what kind of demands
would a company thats a global leader in the telecom industry
have and how would CRM solutions help?
Our solutions give Sprint a central repository that makes things
easy for its marketers. The multidimensional data base (MDDB) thatSprint has, let internal sales and marketing groups research customer
information from their desktops via the Sprint intranet.
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Cellular Operators Turn To Software To Check Churn *
Indians may not change their mobile handsets too often, but
when it comes to cellular service providers, churn rates here are one of
the highest in the world --- 5-6 per cent per month, which largely
occurs in the pre-paid segment.
With the going slated to get tougher as fourth operators swinginto action, existing players have started harnessing software tools to
enable better churn predictions. The reasons for churn differ with each
market. Airtel, the Bharti groups cellular service, found dropped calls
and wrong tariff plans to be the chief culprits in Delhi. BPL Mobile in
Mumbai makes a distinction between voluntary churn, for reasons like
change of city or loss of handsets, and involuntary churn, prompted by
issues like large unsettled bills where the customer becomes
untraceable.
India being an emerging market has higher churn rates as
compared to developed markets like Australia and Hong Kong,
according to research firm Gartner. Says Gartner analyst Kobita Desai,
Developed markets like Australia and Hong Kong have a monthly
churn rate of 3 per cent, which usually occurs in the post-paid
segment. India, being an emerging market, is driven by the pre-paid
segment.
Airtel has been one of the earliest adopters of software to control
churn in the Indian market. the company implemented SAS Institutes
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customer retention solution a year ago in Delhi and plans to do the
same for Mumbai, when it launches services. BPL Mobile (Mumbai)
president and COO Deepak Verma said the company is in talks with
both SAS and computer associates to adopt a similar solution. its rival
Orange is also expected to follow suit.
While software solutions predicting churn are suddenly popular
with Indian companies now, they have been in use for about five years
in Europe and the US, said SAS India CEO and managing director
Gourish Hosangady. BPL currently uses an in-house software package
to predict churn. With volumes increasing, we need a more
specialized package which will build in more parameters to monitor
customer behavior. it will also help us to target the right customers
when we acquire subscribers, since this would have an impact on long-
term retention. Retention costs are at least five time lower than new
acquisitions, says BPLs Verma.
BPL puts the annual industry churn rate at 48 per cent in the pre-
paid segment and 30 per cent in the post-paid segment. BPLs case forgetting focused on churn solutions seems logical in the light of Airtels
imminent entry in the Mumbai market. In Delhi, Airtel has implemented
the SAS solution only in the post-paid segment, but plans to extend it
to the pre-paid segment as well, according to Mohit Deora, chief
marketing officer, Airtel (Delhi).An example of how the solution helps
is with respect to tariffs plans. We were able to realign tariff plans best
suited to customers and rationalize their billing cycles, said Deora
* Times news network [Thursday, July 18, 2002 7:58:43 am]
Customer Retention: Integrating Lifetime Value into Marketing
Strategies. *
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Everyone wants to retain their existing customers. few
companies, however, are implementing positive strategies aimed at
retention. Most companies are organized for acquisition.
Their advertising and sales programs are designed to find and
promote their products and services to new customers. the companies
are organized on a product or brand basis, not on a customer segment
basis. while they all have customer service departments, and most
have a customer service toll free number, they lack an integrated
marketing strategy that is directed at retention, and that defines
retention as the measurement of success. in this article, we will
explore the meaning of a retention strategy, showing how it can be set
up, and how lifetime value can be used to measure it.
You have often heard it said that "It is five times more profitable
to spend your marketing dollars to retain the customers that you have
than to use the dollars to beat the bushes for new customers." most
people would agree with this statement, even though they have no
way of proving it. Indeed, the majority of large American and Canadian
firms today are experimenting with database marketing programs
aimed, in large part, at retention. most of these companies are not yet
sure whether their experiments will be successful. a significant number
of the programs will fail and ultimately be scrapped. how do such
programs work? Lets look at the theory. I like to go back to the old
corner grocer. Prior to 1950, most groceries in the US and Canada weresold in small grocery stores. The proprietor would meet you at the
door. he knew you by name. He knew your preferences. He would put
things aside for you. he built his business through recognizing his
customers and doing favors for them. Customers were loyal to these
stores because of the recognition and personal attention they received.
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these small stores have been virtually wiped out through the advent of
supermarkets. Supermarkets have a much wider variety of goods.
The average grocery store had 800 SKUs on their shelves.
Supermarkets today have 30,000 SKUs. Mass marketing took over.
Prices came down. variety increased. food purchases fell from 31% of
the average family budget in 1950 to about 10% today; yet the food
we buy with that 10% is better in quality and quantity to what we
bought with 31% in 1950. We have all gained.
At the same time, we have lost something valuable. Companies
today have tens of thousands in some cases millions-- of customers.
we do not know who they are. We cannot recognize them and talk to
them as the old corner grocers did. Loyalty has disappeared.
Customers are loyal until tomorrows newspaper, when they see a
coupon for something at another store and whoosh, they are gone.
what is true of grocery stores is also true of department stores, drug
stores, hardware stores, office supply stores, banks, movie theatres
virtually every sales organization today.
What has begun to change this picture has been the advent of
computers. In the years, computers have become so sophisticated and
powerful, and their prices have become so inexpensive, that it is
possible to keep in a computer today the kind of information that the
old corner grocer kept in his head, and to use that information to
recognize and do favors for our customers. by setting up a customer
database, and using it to start a dialog with their customers, some
companies have been able to reestablish contact with their customers
designed to build loyalty, referrals and repeat sales. Retention building
is possible.
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There is one key principle at work here, however. database
marketing only works to build retention if the customer benefits from
the retention strategies. It works if the customer says to herself, "Im
glad that Im on that database, because" The company running the
database has to complete the sentence by designing and running
programs that capture the loyalty of their customers. if the customer
does not see some value to herself in the database activities, she will
chuck out your newsletters unread. She will ignore your
communications.
She will leave your gold cards in her top bureau drawer. for the
database program to be successful, the marketer must design the
program from the customers point of view. if you can come up with a
strategy that makes customers happy, then they will reward you with
something that you want, but which costs them next to nothing:
loyalty. What are these strategies?
Membership cards and membership programs Welcome and thank you communications
Satisfaction surveys, followed up by phone calls and letters
Beefed up customer service, empowered to solve problems
Enhanced technical support with follow up satisfaction calls
Frequent buyer programs which permit customers to build up equity
Event driven communications that are meaningful to the customers
lives
Databases that keep track of customers purchases, preferences,
complements and complaints, which are used to carry out loyalty
building services and dialogs.
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Integrated marketing programs where the advertising, direct
communications, customer service, database marketing and sales
programs are all orchestrated together and designed to build loyalty.
Segmentation of the customer base by lifetime value groups, and
different marketing programs designed for each segment. Article by:
Arthur Middleton Hughes
Methodology of literature review.
Methodology of literature review encompasses different facets of
information sources concerning customer retention. It started withsearch in the Management Magazines, Text Books, and lots of other
Marketing Text and Journals.
Information on customer retention strategies were mostly
available on the web sites, lots of articles and presentation on the web
sites were analyzed and used in the research for better understanding
of the topic. (A list of website has been provided in the Annexure)
Conclusions from literature review.
After an extensive literature review, the study has revealed the
following conclusions:
Everyone wants to retain their existing customers; it is five times
more profitable to spend the marketing dollars to retain the
customers than to use the dollars to beat the bushes for new
customers.
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SAS' churn management solution. It is software tools that
allow the user to shift through enormous quantities of data that
the business generates to find hidden trends and patterns that
will help in customer retention.
The online application enables a company to build a 360-degree
view of its customers, and create customer specific strategies for
greater loyalty.
The SAS data mining techniques predict a customer's likelihood
of cancellation or switchover by scoring them on a scale of 0 to
1.
It is necessary to proactively strategize and service customers so
as to retain the high value ones.
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CHAPTER-4
COMPANY PROFILE
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Bharati Tele-Ventures Ltd. (BTVL)
The premise of the telecommunications business is simple- there is no billing, no
revenue and hence, no profit, with the usual threat of survival. In the highly competitive
and growing Indian market, Bharti Tele-Ventures Limited Group Company is the leading
wireless access, data solutions, and long distance services provider. it has well
understood that the only way it can sustain and grow is by being price competitive, with
services that meet customer expectations for quality and continuous availability.
Bharti Tele-Ventures Ltd (BVTL) was incorporated on July 7, 1995 as a public
limited company. BTVL is a leading private sector provider of telecommunications
services. By the end of April 2004, it had an aggregate of 7.6 million customers, out of
which over 7 million were mobile customers. Among the 23 circles in India, the company
offers mobile services in sixteen, it also provides fixed line services in 5 circles.
The company complements its mobile and fixed-line services with national and
international long distance service. it has a submarine cable landing station at Chennai,
which connects the submarine cables between Chennai and Singapore. By leveraging its
nation-wide fibre optic backbone, last mile connectivity in fixed line and mobile circles,
VSATs, ISP and international bandwidth access through the gateways and landing
stations, the company provides reliable end to end data and enterprise services including
VSAT and internet services to the corporate customers.
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Business is conducted through its subsidiaries. the company holds 99.7% in
Bharti Cellular Limited mobile circles except the circles of Punjab, AP, Karnataka, where
it holds 100%.
It even holds 100% in Bharti Infotel Limited which operates in fixed line, long
distance and group data services. Finally, Bharti Aquanet Ltd. holds 51% and also owns
landing station in Chennai. base. this has made Bharti the largest GSM mobile service
provider in the country
Fixed-Line: Bharti was the first private sector operator to provide fixed-line services in
India. Currently they provide fixed-line services in the circles of Madhya Pradesh,
Chattisgarh, Haryana, Delhi, Karnataka, and TamilNadu. the circles have high
telecommunications revenue potential especially for carrying data traffic.
Long-distance, group data and enterprise services: Long distance and enterprise
services gets enormous support from the submarine cable landing station at Chennai. this
also facilitates the company to offer best value to the customers. the company matches
the mobile and fixed-line services with national and international long distance services
and provides these services across India.
Mobile footprint
The company believes that the demand for mobile services in India will continue
to grow rapidly as a result of the following factors:
Lower tariffs and handset prices over time.
Constant growth in the category of Pre-paid customers
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Continued development of Indias economy leading to greater economic growth.
Greater variety and usage of value added services.
Strategies of the Company
Capture maximum telecommunications revenue potential with minimum
geographical coverage.
Position itself to tap Data transmission opportunities and offer advanced mobile
Data services.
Focus on satisfying and retaining customers by ensuring high level of customer
satisfaction.
Leverage strengths of its strategic and financial partners
Emphasizes on Human Resource Development to achieve operation efficiencies.
Focus on Telecommunication to enable the company to better anticipate industry
trends and capitalize on new telecommunications related business opportunities.
Human Resources
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It has been ranked as the 14th best employer amongst the top 25 companies in
India. It is also the only company whose HR Department has received a special award for
aligning People Systems to business need.
Their strong beliefs that people are the key differentiators and make the biggest
difference for a successful business has encouraged and made them to create an
organization powered by unique structure, systems and leadership style.
The company nurtures an environment where people are respected and their
uniqueness is valued. This has resulted in a vibrant, productive, people oriented and
progressive workplace.
Their business and people philosophy is guided with a framework of strong values
and has resulted in differentiating them as an employer of choice in todays market place.
Formal job description documents are issued to all the employees clearly
mentioning key results area. They believe that an individual can be effective only when
he/she knows what is expected of him/her.
This has helped the company in setting goals, communicating to each of the
employees about the expectations from them and also in establishing role clarity.
Key Strengths
Bharti Tele-Ventures have created strong brand name recognition and a reputation
for offering high quality services to its customers. Not only does it have a quality
management team with a vision and proven execution skills, it also has strong
relationships with international strategic and financial investors. Some of them are:
Sins Tel, Warburg Pincus, International Finance Corporation, Asian Infrastructure
Fund Group and New York Life Insurance.
Future Plans
The company is considering the proposal of pumping in Rs.2,000 cr in
the current fiscal, out of which around 65% of the investment is
expected in the mobility business and the balance in fixed-line
services. The company has also plans to list on the NASDAQ in 2005-5,
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which is likely to be another trigger. In terms of top line revenue,
mobile telephony services are expected to fetch about 60% and the
rest is expected to come from fixed-line services. The company is also
planning to acquire companies in East Asia, West Asia and Africa. It
also intends to raise Rs.3, 000cr through a planned overseas listing.
Following its recent acquisition of Hexacom in Rajasthan, the Bharti
Group firm is considering the acquisition of one more company in the
country by the end of this financial year.
Company-AIRTEL
Airtel comes to us from Bharti Cellular Limited - a part of the
biggest private integrated telecom conglomerate, Bharti Enterprises.
Bharti provides a range of telecom services, which include Cellular,
Basic, Internet and recently introduced National Long Distance. Bharti
also manufactures and exports telephone terminals and cordless
phones. Apart from being the largest manufacturer of telephone
instruments in India, it is also the first company to export its products
to the USA.
Bharti Enterprises has been at the forefront of technology and
has revolutionizedTelecommunications with its world class products and services.
Established in 1976, Bharti has been a pioneering force in the telecom
sector with many firsts and innovations to its credit. Bharti has many
joint ventures with world leaders like Singtel (Singapore Telecom);
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Warburg Pincus, USA; Telia, Sweden; Asian infrastructure find,
Mauritius; International Finance Corporation, USA and New York Life
International, USA.
Bharti is the leading cellular service provider, with a footprint in 15
states covering all four metros and more than 7 million satisfied
customers.
Airtel's the leading mobile service provider is now present across 135
towns in Karnataka and is available over 58 showrooms and 13000
outlets .To help serve the customer better Airtel Karnataka has three
offices, one each in Bangalore (Bangalore Zone), Hubli (North
Karnataka) & Mangalore (South Karnataka).
Vision
T o make mobile communications a way of life and be the customers'
first choice.
Mission
To meet the mobile communication needs of customers through:
Error- free service delivery
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Innovative products and services
Cost efficiency
Unified Messaging Solutions
BHARTI VALUES
Innoventuring
Generate and implement entrepreneurial and innovative ideas, which
will continuously create new growth engines.
Customer First
Committed to delivering service beyond the expectations of the
customer. The quality of customer responsiveness clearly differentiates
us from others.
Performance Culture
Benchmark the processes and performance against world-class
standards. Distinguishing between performers and non-performers andby valuing achievement at the individual as well as the team level. A
culture of inclusiveness where feedback, learning and ideas are
actively encouraged, sought and acted upon.
Valuing Partnership
Committed to building exemplary relationship with the partners,
which stand on the principles of mutual trust and mutual growth.
Valuing People
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Nurture an environment where people are respected and their
uniqueness is valued. Belief that people are the key differentiators.
Responsible Corporate Citizenship
Committed to making a positive and proactive contribution to the
community. as a responsible corporate citizen the company will
contribute to and abide by environmental and legal norms.
Ethical Practices
Uphold the highest ethical standards in all internal and external
relationship. The company will not allow misuse or misrepresentation
of any kind.
Awards:
Consecutively for four years 1997, 1998, 1999 and 2000, AirTel has
been voted as the Best Cellular Service in the country and won the
coveted Techies award.
The Asia Pacific Award for the Most Innovative HR practices-2000
The Golden Peacock National Training Award for excellence in
Training practices-2000
The Golden Peacock National Quality Award-2001
Airtel & Visual Identity
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For a brand to be successful, it must build enduring relationships
with its different audiences. Integral to this relationship is the visual
image of the brand the consumer carries in his/her mind. The Airtel
brand image is created through the consistent application of a
carefully developed visual identity, which helps Airtel distinguish itself
in a cluttered market. Airtel's visual identity helps create instant brand
recall and strengthens the relationships that its audiences have with it.
The Airtel visual identity has different elements that work
together to create a strong and consistent identity for the brand. The
most important of these are:
The Airtel Logo
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The Airtel logo is a strong, contemporary and confident symbol
for a brand that is always ahead of the rest. It is a specially drawn
wood mark.
The Airtel Image style
It incorporates two solid, red rectangular forms whose counter form
creates an open doorway.
The Airtel Typographical style
The title case lettering with its capital 'A' was deliberately chosen
to reinforce the brand's leadership position. The red dot on the
letterform 'I' cues Airtel's focus on innovation. The words 'Express
Yourself' are wreintt in Humanist 777 BTtypeface, very much part of
the brand identity.
The Airtel Color Palette
The lettering is grey so that the pure black of Airtel is visually
unharmed.
Airtel Advertising
The relationship between advertising and visual identity is a
complex one and must be understood clearly. Campaigns are born in
response to market trends, to competitor activity, to new product
launches. Unlike visual identity, advertising must be constantly
reinvented to engage target audiences and garner mind share. yet,
applications in this area entail large budgets and are surely the most
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visible of all brand identity channels. they present extremely powerful
opportunities to reinforce Airtels visual identity and therefore can be
equally dangerous if they misuse or dilute it. remember that the way
an ad looks does not constitute Airtels visual identity.
The brand's visual identity is made up of the logo, the
typographical style, the color palette and the image style.
Services
Airtel Prepaid
Airtel Prepaid, the Ready Cellular Card from Airtel comes from
Bharti Enterprises, India's leading integrated telecom service provider.
Going mobile with Airtel Prepaid is a new way of life.
With a host of great features, also simple to use, Airtel Prepaid
makes everything that are dreamt and believed, possible
Aisi azadi aur kahaan?
Airtel Prepaid, the Ready Cellular Card from Airtel comes to you
from Bharti Enterprises, India's leading integrated telecom service
provider.
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Freedom Of Speech Redefined.
Going mobile with Airtel Prepaid is a new way of life. Some of the
many advantages that a customer will enjoy with Airtel Pre-paid.
Total Cost Control
Enjoy the liberty of total cost control with Airtel Pre-paid! Re-
charge as much as the customer feels the need to! This is called a
complete freedom!
No Rentals
Buy an Airtel prepaid card without having to pay any rentals!
No deposits
The Airtel prepaid card comes without having to pay heafty
deposits!
STD/ISDfacility till the last rupee
Now experience complete freedom like never before with Airtel!
The STD/ISD facility allows the customer to make long distance calls in
India and Overseas from the cellular phone!
Instant Balance Inquiry
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Check the talk-time instantly by calling the toll-free number!
60-second pulse
Airtel provides the customer with a 60-second pulse rate!
Freedom for the customer to experience like never before!
Instant Recharge
The customer can avail themselves of instant recharge on the
pre-paid card with just a few simple steps!
24-hour recharge facility
With the round-the-clock recharge facility, the customer
recharges Airtel prepaid card anytime, anywhere!
Caller Line Identification
Call Line Identification gives the customer the power to know thephone number of the calling party even before they answer the call,
thus giving them the choice to either reject or take the call. It provides
the added advantage of saving the incoming number directly in the
Handset Phone Book, so that the next time the customer want to call
the same person, they do not need to retype his/her number, simply
they can use the phone book.
Call Divert, Call Hold and Call Wait
The customer can avail themselves of special services like call
waiting, call hold and call divert all with their Airtel prepaid card!
Short Messaging Service (SMS)
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With Airtels Short Messaging Service (SMS), the customer can
send messages and jokes to their friends and colleagues, anytime
anywhere!
SMS based Information Services
With Airtel's SMS based information services, the customer can
get upto-the-minute cricket scores, order flowers as well as send
couriers or check their daily horoscope!
Voice Mail service
Voice Mail lets the customer receive messages even when their
handset is switched off or when they are outside the coverage area.
They can listen to their messages whenever they feel like, from
anywhere in the world. Voice Mail can store up to 75 messages, with
each message of two-minute duration.
Airtel Postpaid
Airtel welcomes the customers to a vibrant world of unlimited
opportunities. More exciting, innovative yet simple new ways to
communicate, just when they want to, not just through words but
ideas, emotions and feelings; to give them the unlimited freedom to
reach out their special people in your special way.
Experience complete freedom
The Airtel Post-paid customer can enjoy the following facilities -
Easy Billing
The luxury of viewing details of their last 3 billing cycles and the
convenience of paying their Airtel bill online!
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Call Divert, Call Hold and Call Wait
Special services like call waiting, call hold and call divert all
with the Airtel
Postpaid connection!
Short Messaging Service (SMS)
With Airtel's Short Messaging Service (SMS), the customer sends
unlimited messages and jokes to their friends and colleagues, anytime
anywhere!
Caller Identification
Call Identification gives the customer the power to know the
phone number of the calling party even before they answer the call,
thus giving them the choice to either reject or take the call. it provides
the added advantage of saving the incoming number directly in theHandset Phone Book.
Voice Mail
Voice Mail lets the customer receive messages even when their
handset is switched off or when they are outside the coverage area.
They can listen to their messages whenever they feel like, from
anywhere in the world. Voice Mail can store up to 75 messages, with
each message of two-minute duration.
STD/ISD Facility
The STD/ISD facility allows the customer to make long distance
calls in India and Overseas from their cellular phone!
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Roaming (National and International)
Airtel's Roaming service allows you to use your mobile phone to
make or receive calls from almost anywhere in India and abroad! Enjoyroaming within the country as well as across international destinations!
Airtel MTV Card
The best offers and the coolest of bargains on the hippest stuff
on the market, download the hippest tunes from the hottest new tracks
and dress up your phone with the latest wallpapers, ring tones, picture
messages, screensavers and backgrounds! All this and loads more!
Only with the MTV Airtel SIM!
Airtel Roaming gives the customer two great options:
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Airtel National
The customers can enjoy roaming in India across 42 partners networks and over
750 cities.
Airtel International
The customer can roam across international destinations, in nearly 119 countries
including USA, Canada, and UK etc. with 284 partner networks.
Long Distance
The National Long-Distance facility allows the customers to make long distance
calls in India and Overseas from their cellular phone. This service is applicable to both
Postpaid and Prepaid customers
Specials:
E a s y C h a r g e
Recharge as and when customers like! New Airtel Prepaid brings to the nation a
never before 'Azadi'. Giving every Indian the right to be unconditionally, completely
free! Free to never run out of words, explore every opportunity, reach out to anyone,
anywhere and express themselves. the customers can discover the world of New Airtel
Prepaid; discover freedom like never before!
Other Value added services with Airtel
To subscribe for this service the customers can simply fill in the online AirTel
form. Once the form has been processed they will be contacted at the earliest to complete
the remaining formalities. if the customer wish they could walk up to any of the AirTel
showrooms across their city to apply for a connection and get activated instantly by
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paying in cash/ credit card.
Airtel Positioning-Repositioning
From _Touch Tomorrow_ top _ Live Every Moment_
In late 2002, Bharti Cellular Ltd. (Bharti), Indias largest cellular telephone
company released a television Commercial (TVC), which despite using the oft-repeated
celebrity endorsement route
was unusual in terms of its
celebrity selection. Instead of
using the usual movie
stars/sports celebrities, it
chose one of the countrys
most successful musiccomposers, AR Rahman to
promote its brand.
The campaign
attracted considerable media attention because this was the first time Rahman had agreed
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to do a television commercial and also because, Rahman had been paid Rs.10 mn for the
campaign, a sum usually unheard of, for celebrity endorsers in India. The campaign
received brickbats as well as bouquets in the media, both for the selection of Rahman and
the TVCs execution. However, Bharti claimed to have scored an ace in terms of getting
Rahman to compose five exclusive Symphonies downloadable as rind tones for Airtel
users.
The TVC was a part of the brand repositioning and restructuring efforts for Airtel,
as part of which, Bharti changed the brands tagline in early-2002 from touch tomorrow to
live every moment. thee company also decided to undertake a compressive brand-
building program and choose the slogan unlimited Freedom for the same. commenting on
these changes, company source said, Airtels brand identity and campaign will now have a
new younger and international look and feel that builds on the earlier positioning.
Bhartis massive media expenditure plans were no surprise, considering the fact
that it was the largest cellular telecom company in the country reaching over 600million
people in 16(out of 29) states in India. the company posted revenue of Rs.8.48 billion and
a net loss of Rs.1 billion in the financial year 2000-01. the Airtel brand (and the prepaid
card services brand, Magic) and top-of the mind recall amongst cellular phone users and
enjoyed a leadership position in most markets. Industry observers attributed it to Bhartis
strong brand and positioning strategies.
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Repositioning Airtel _ Once again!
Owing to consistent marketing efforts, the Airtel and Touch Tomorrow Campaign
became very popular. therefore Bhartis decision to withdraw this campaign (Touch
Tomorrow) in 2002 came as a surprise to many. the new campaign was accompanied by a
change in the logo as well.
The data behind the new logo was to give Airtel a younger look. the logo
symbolizes innovation, energy and friendliness.
As a part of its restructuring and repositioning exercise, Bharti unveiled new
brand Architecture. the proposed two-tiered architecture has categories under two head
wired and wireless. all the wireless products were placed under the Airtel brand, which
also included tango, free net and magic. according to company sources, the objective of
this new architecture was to establish Bharti as a global telecom company.
The company reportedly allocated Rs.1 for media coverage and other brand
building activities. Commenting on the new brand identity of Airtel, a Bharti
spokesperson said, Airtels brand identity and campaign will now have a new younger and
international look and feel that builds on the earlier position of _Touch Tomorrow_
injected with renewed energy and heightened optimism.
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CHAPTER-5
DATA ANALYSIS ANDINFERENCES.
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Quantative Data With Inferences And Observations
The quantitative data have been reinforced with our observations through personal
enquiry notes and inferences have been derived accordingly.
Table.No.1
Showing prepaid and postpaid customers based on age:
Source: primary data
Interpretation: more no. of users is in prepaid between the age group of 22-27 the
average the total percentage of both prepaid and postpaid is 50%.
Graph.No.1
Prepaid and postpaid customers based on age
0
510
15
20
25
30
35
40
45
50
prepaid postpaid total percentage
18-22
22-27
28-35
Source: Table no. 1
Inference: Maximum no. ofAIRTEL service user are in the age group of 22-27 and
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Age Prepaid Postpaid Total Percentage
18-22 24 15 39 39%
22-27 26 24 50 50%28-35 5 6 11 11%
TOTAL 55 45 100 100%
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majority of them uses prepaid services. Also retention rare is high in this age group.
Table.No.2
Showing prepaid and postpaid customers based on rating of the call quality:
Category Prepaid Postpaid Total Percentage
Excellent 18 15 33 33%Very good 11 13 24 24%Good 20 14 34 34%Average 5 2 7 7%Poor 1 1 2 2%Total 55 45 100 100%
Source: primary data
Interpretation: 34% of both prepaid and postpaid customers rate the call quality as good