Symbiosis Institute of

Management Studies
CRM System
in VODAFONE
Under guidance of Dr Chabbi Sinha Cha

SECTION 2B
Anand Tuteja-40
Ankuj Chaudhury-42
Sunil Albal-61
Nandita Katiyar- 54
Raswinder Singh-31
Rupal Nimbhorkar-33
Shoumen
Choudhury-58
 AGENDA
I. Introduction – Vodafone III. Benefits to Vodafone from
a . Company Profile CRM
b . Vodafone in India IV .
c . Market Shares in V .Issues Faced in CRM
India Implementation
II. a . Program
III. Gartner ’ s Eight Building b . People
Blocks c . Processes
a . CRM Vision d . Technology
b . CRM Strategy V I.
c . Valued Customer V II. Consumer Research
Experiences
d . Collaborative V III.
Efforts IX . Best CRM Practices in the
e . CRM Process Industry
f. CRM Information
g . CRM Technology
h. CRM Metrics
 I. INTRODUCTION
COMPANY PROFILE
Name VODAFONE comes from “ Voice”, “Data” & “Phone”
Largest telecom company in the world (turnover)
2 nd largest telecom company in the world (subscriber base)
after China Mobile
Public limited company
Operations in 31 countries & partner networks in another
40 countries
Listed on NYSE
Founded : 1983 as RACAL TELECOM , Demerged from Racal
Electronics (parent company) in 1991 and named VODAFONE
HQ : Newbury , England
Revenues : US $ 69 bn (2008)
Profits : US $ 6 . 75 bn (2008)
Employees : ~ 79 , 000
mportant Subsidiaries :
Vodafone UK Vodafone Spain
Vodafone Essar Vodafone Portugal
Vodafone Australia Vodafone Turkey
Vodafone Ireland Vodafone Germany
Vodafone New Zealand Vodafone Netherlands
Vodafone Egypt Vodafone Hungary
Vodafone Italy Vodafone Sweden

VODAFONE IN
2005 : INDIA
Acquired a 10 % stake in Bharti Airtel

2007 : Acquired a controlling 67 % stake in Hutchinson

Essar for US $ 11 . 1 bn .

Sold back 5 . 6 % of its Airtel stake back to the

Mittals & retained 4 . 4 %

In September , Hutch was rebranded to Vodafone

MARKET SHARE
IN INDIA

Source : TRAI Report

VODAFONE ’ S
OFFERINGS

1 2 3 4

5 6 7 8

9 10 11 12

Source :
II. GARTNER’S MODEL
Snapshot
 ( i ) CRM VISION
CUSTOMERS FOR LIFE !
To earn our customers' loyalty , we will
anticipate their needs and act to create
superior value in their eyes .

We want to be known for

üC o n s i s t e n c y
üR e l i a b i l i t y
üF l e x i b i l i t y
üR e s p o n s i v e n e s s
üI n n o v a t i v e S e r v i c e s

We will make this happen in an enriching

environment of trust , cooperation and
mutual respect .
 VODAFONE ’ S CRM PHILOSOPHY

Involving Customers as Co - innovators

 ( ii ) CRM STRATEGY
BROAD CRM OBJECTIVES

5 POI NT STR ATE GY FOR CRM IMP LE

 Enriching
Service
Experience
VODAFONE ’ S CUSTOMER STRATEGY IN INDIA
 ( iii ) VALUED CUSTOMER EXPERIENCE
Vodafone has taken advantage of strong presence of Hutch

Essar in Metros .

It has LEADERSHIP IN CONTRACT SEGMENT .

It has STRONG CUSTOMER FOCUS

Mass market PREPAID FOCUS : e.g. low value 10/- sachet recharge.

Innovative Value Added Services :

üEasy e - recharge

üE - recharge using SMS

üPremium SMS

üRingback Tones

üInternational Voice & Data Roaming

Vodafone plans to bring ULTRA LOW COST handsets to India .

Introduced VODAFONE LIVE ! In India .

Introduced BALANCE TRANSFER for the first time .

Introduced UNIQUE OFFERS FOR MULTINATIONAL CORPORATE

ACCOUNTS .

Introduced SINGLE BILLING SYSTEM in 2007 .

Comprehensive approach across call centers , retail ,

internet & automated systems .

Industry leading PROCESS IMPROVEMENT based on extensive

customer research .
 ( iv ) COLLABORATIVE EFFORTS
The program was built on 4 major
pillars :

Strategy

IT COLLABORATIVE EFFORTS Process

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

INDUS TOWERS are operating at 95 , 000

sites !
Network Expansion : 2 , 600 sites per
month !
Vodafone is committed to its
objective of providing low cost
services to its customers . For this
it is expanding network aggressively
to reduce its total cost of network
ownership .
 ( v ) CRM PROCESS

hart out an average life cycle allows it to market different services. It prospec
advertizing.

verification. Vodafone activates a customers account and makes a first rating of t

a call informing clients of the Vodafone help line & various value added servi
generated.

ss selling. Analytical module steps in, CRM has to make every attempt count since

eep churn down , Vodafone uses retention policies and loyalty processes to bring
 ( vi ) CRM INFORMATION
 Custom analytics provide meaningful insight for
personalized customer communications & interactions . Now ,
VODAFONE can :

Ø Identify customers ’ value segments
Ø
Ø Understand customer needs and preferences
Ø
Ø Create targeted marketing & sales campaigns for
specific customer segments
Ø
Ø Monitor customer responses
Ø
Ø Apply experience to future campaigns
Ø
Ø Steer customers ’ buying behavior

( vii ) CRM TECHNOLOGY
 Pricing
Price
Components
Taxes

Profile
Affiliates
Credit Profile
Org . Structure
SRs
Sales
Pipeline
Customer
Pipeline
Quantity
Pipeline
Loss Analysis
Conversion
Ratio
Profile Applications
Personal
Profile
Credit
Profile
SRs
 ( vi ) CRM METRICS
1. Cases closed same day.
2. Number of cases handled by agent.
3. Number of service calls.
4. Average time for resolution.
5. Average number of service calls per day.
6. Percentage of service renewals.
7. Customer satisfaction level. (CLTV)
8. Complaint time-to-resolution.
9. Average number of service requests by type.
10.Percentage compliance with service-level agreement
(SLA).
11.Revenue coming from Commercial Partners.
12.Complaints handling (e-mail/letter).
13.Brand image.
 CALCULATING CUSTOMER LIFETIME VALUE

Year 0 Year 1 Year 2 Year 3 Year 4

Number of Customers 100 90 80 72 60

Revenue / Customer 1,200 1,320 1,440 1,500

Variable Cost / Customer 840 864 900 912

Margin / Customer 360 456 540 588

Acquisition Cost / Customer 100 - - - -

TOTAL PROFIT -10,000 32,400 36,480 36,480 35,280

Present Value -10,000 29,455 30,150 27,410 24,100


∞ t
 CLV = ∑ mr
 t=1 (1+i)t
Where m = margin for time t
 i = discounting rate for time t


If margins and retention rate stay constant over time then :



mr
CLV = (1+i–r)
r
Where ( 1 + i –is the
r )marginmultiple.
 Margin
Multiple :
Discoun

Retention
t Rate 10% 12% 14% 16%
Rate

60% 1.2 1.5 1.11 1.07

70% 1.75 1.67 1.59 1.52

80% 2.67 2.5 2.35 2.22

90% 4.5 4.09 3.75 3.46

 CUSTOMER CATEGORIZATION

800 – 2000 /- for 10 > 2000 /- for 10

consecutive months consecutive months

< 200 /- for 10 200 – 800 /- for 10

consecutive months consecutive months
 III. BENEFITS ACHIEVED

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

CRM solution has helped Vodafone employees to synchronize &

coordinate all customer interactions across multiple channels ,
including telephone , e - mail , face to face , post & fax .

The CRM solution has also enabled employees to improve customer

service , increase
productivity and maximize revenues .

The workflow automation capabilities of the CRM solution have

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

Call scripting and profiling further improved agent productivity .

A workflow - based user interface presents the appropriate
IV. ISSUES FACED
ISSUES FACED POST IMPLEMENTATION
 V. CONSUMER RESEARCH

20 Vodafone customers were surveyed .

Response format chosen : 5 point likert
scale
RESULTS :
Ø50 % rated promptness of service at 5 .
ØSatisfaction levels were rated 5 by
65 %.
ØNo . of calls before problem is sorted
ü 1 to 2 calls by 60 %
ü > 2 calls by 20 % ( area of concern )
Ø20 % people complained that they were
charged for services they had not
subscribed .
VI. BEST CRM PRACTICES

1 2 3 4

5 6 7 8

9 10 11 12
THANK
YOU