CUSTOMER RELATIONSHIP

MANAGEMENT
AT
AIRTEL

Submitted By:
Navya Sardana
Roll
Session 2015-17
MFM 1st Semester

INTRODUCTION
Bharti Airtel Limited ,usually referred to simply as "airtel", is a Indian telecommunications
company that operates in 19 countries across South Asia, Africa and the Channel Islands. It
operates a GSM network in all countries, providing 2G or 3G services depending upon the
country of operation. Airtel is the fifth largest telecom operator in the world with over 200
million subscribers as of October 2010. It is the largest cellular service provider in India, with
over 143 million subscribers as of September 30, 2010. Airtel is the 3rd largest in-country mobile
operator by subscriber base, behind Mobile and China Unicom. It has a 29.00% market share of
the GSM mobile service in India.
Airtel also offers fixed line services and broadband 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 this Cisco Gold Certification. To earn Gold Certification, Bharti
Airtel had to meet rigorous standards for networking competency, service, support and customer
satisfaction set forth by Cisco. The company also provides land-line telephone services and
broadband Internet access (DSL) in over 96 cities in India. It also acts as a carrier for national
and international long distance communication services. The company has a submarine cable
landing station at Chennai, which connects the submarine cable connecting Chennai and
Singapore.
It is known for being the first mobile phone company in the world to outsource everything except
marketing and sales and finance. Its network (base stations, microwave links, etc.) is maintained
by Ericsson, Nokia Siemens Network and Huawei., business support by IBM and transmission
towers by another company (Bharti Infratel Ltd. In India) Ericsson agreed for the first time, to be
paid by the minute for installation and maintenance of their equipment rather than being paid up
front. This enabled the company to provide pan-India phone call rates of Rs. 1/minute
(U$0.02/minute). Call rates have come down much further. During the last financial year [200910], Bharti has roped in a strategic partner Alcatel-Lucent to manage the network infrastructure
for the Telemedia Business.
The company is structured into four strategic business units - Mobile, Telemedia, Enterprise and
Digital TV. The Telemedia business provides broadband, IPTV and telephone services in 89
Indian cities. The Digital TV business provides Direct-to-Home TV services across India. The
Enterprise business provides end-to-end telecom solutions to corporate customers and national
and international long distance services to telcos.

VISION
To be globally admired for telecom services that delight customers.

MISSION
We will meet global standards for telecom services that delight customers
through:
Customer Service Focus
Empowered Employees
Innovative Services
Cost Efficiency

SELECTING AND MEASURING THE RIGHT COMPONENTS FOR

A SUCCESSFUL CRM STRATEGY

Examine the role of Data mining to create differentiators

Determine how CRM is applied in a prepaid business
Using Call Center technologies for one to one relationships
The role of the Front line in CRM success
Measuring the Return on Investment of CRM after its implementation

BEST PRACTICES FOR ANALYTICAL APPLICATIONS IN THE

TELECOM INDUSTRY

Designing your analytical applications to facilitate:

Useful segmentation methodology and techniques
Effective churn analysis and prediction
Successful cross and up-selling
Targeted acquisition
Accurate price plan analysis

STRATEGIES ADOPTED
Focus on maximising revenues and margins;
Capture maximum telecommunications revenue potential with minimum
geographical coverage;
Offer multiple telecommunications services to provide customers with a
"one-stop
shop" solution;
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; and
Emphasize on human resource development to achieve operational
efficiencies.

TECHNOLOGY FROM WORLD LEADERS

The company has partnered with telecom majors like Siemens, ECI, Lucent
and Duraline for its network. While Siemens has provided the digital
switching system (Siemens EWSD) with CCS-7, a signaling protocol for faster
connectivity, the billing software (Keenan Arbor) has been sourced from
Lucent. The Synchronous Digital Hierarchy (SDH) equipment is sourced from
ECI.

SERVICE GUARANTEE
Service guarantee is a first-of-its-kind scheme and underlines Airtels
commitment to
provide error free services Services right the first time and every time.
The service
guarantee scheme entails:
Repair of any dead phones within 8 working hours of receiving a
complaint
Error Free billing.
The scheme is a culmination of Airtels efforts in continuously setting new
benchmarks inquality by adhering to best quality practices including SIXSIGMA. In the unlikely event of any failure in this promise, the company will
give STD/ISD pre paid calling card worth Rs. 100/- to the customers.

VALUE ADDED SERVICES

Besides providing world-class voice products and data services, Airtel
Broadband &
Telephone Services also provides a host of value added services to its
customers. These services, which add a whole new dimension to the
meaning of fixed line telephony, include services like Voice Mail Service,
Directory Assistance, Call Completion Busy Subscriber, Delayed Hotline,
Centrex and the like. The company also provides a host of customized
premium services to its customers such as live astrologers, cricket updates,
sending jokes and greeting in celebrity voices, music messaging service etc.

WORLD CLASS CUSTOMER CARE

Apart from the state-of-the-art infrastructure, Airtel - Broadband & Telephone
Services is the first to provide a dedicated 24-hour call centre. The company
is planning to have a 250 seater call center equipped with the best ACDs,
IVRs and Call loggers to provide
world class after sales support.

Customer Relationship
Management
Customer Relationship Management is a comprehensive strategy
and process of
acquiring, retaining and partnering with selective customers to
create superior value for the company and the customer.

Several factors have contributed to the rapid development

and evaluation of CRM. These include :
1. The growing de-intermediation process in many industries due to the
advent of sophisticated computer and telecommunication technologies that
allow producers to directly interact with end-customers. For example, in
many industries such as airlines, banks, insurance, computer program
software, or household appliances and even consumables, the deintermediation process is fast changing the nature of marketing and
consequently making relationship marketing more popular.
2. The de-intermediation process and consequent prevalence of CRM is also
due to the growth of the service economy. Since services are typically
produced and delivered at the same institution, it minimizes the role of the
middlemen. A greater emotional bond between the services provider and the
service user also develops the need for maintaining and enhancing the
relationship.
3. Another force driving the adoption of CRM has been the total quality
movement. When companies embraced Total Quality Management (TQM)
philosophy to improve quality and reduce costs, it became necessary to
involve suppliers and customers in implementing the program at all levels of
the value chain. This needed close working relationships with customers,
suppliers, and other members of the marketing infrastructure.
4. With the advent of the digital technology and complex products,
systems selling approach became common. This approach emphasized the
integration of parts, supplies, and the sale of services along with the

individual capital equipment. Customers liked the idea of systems integration

and sellers were able to sell augmented products and services to customers.
These measures created intimacy and cooperation in the buyer-sellers
relationships. Instead of purchasing a product or service, customers were
more interested in buying a relationship with a vendor.
5. In the current era of hyper-competition, marketers are forced to be more
concerned with customers retention and loyalty (Dick and Basu 1994;
Reicheld 1996). As several studies have indicated, retaining customers is less
expensive and perhaps a more sustainable competitive advantage than
acquiring new ones. Marketers are realizing that it costs less to retain
customers than to compete for new ones. There is greater opportunity for
cross-selling and up-selling to a customer who is loyal and committed to the
firm and its offerings.
6. Customer expectations have rapidly changed over the last two decades.
Fueled by new technology and growing availability of advanced product
features and services, customer expectations are changing almost on a
daily basis. Consumers are less willing to make compromises or trade-off in
product and service quality.
7. Today, many large internationally oriented companies are trying to
become global by integrating their worldwide operations. To achieve
this they are seeking cooperative and collaborative solutions for global
operations from their vendors instead of merely engaging in transactional
activities with them.

A CRM PROCESS FRAMEWORK

We develop a four-stage CRM process framework. The broad framework
suggests that CRM process comprise of the following four sub-process:
customer relationship formation process; relationship management and
governance; relational performance evaluation process; and CRM evolution
or enhancement process.
I. CRM FORMATION PROCESS
The formation process of CRM refers to decisions regarding initiation of
relational
activities for a firm with respect to a specific group of customers or with
respect to an
individual customer with whom the company wishes to engage in a
cooperative or

collaborative relationship. Hence, it is important that a company is able to

identify and
differentiate individual customers. In the formation process, three important
decision
relate to defining the purpose (or objectives) of engaging in CRM, selecting
parties (or
customer partners) for appropriate CRM programs; and developing programs
(or
relational activity schemes) for relationship engagement with the customers.
II. CRM Purpose : The overall purpose of CRM is to improve marketing

productivity and enhance mutual value for the parties involved in the
relationship. CRM has the potential to improve marketing productivity and
create mutual value by increasing marketing efficiencies and/or enhancing
marketing effectiveness. By seeking and achieving operation goals, such as
lower distribution costs, streamlining order processing and inventory
management, reducing the burden of excessive customer acquisition costs,
and through customer retention economics, firms could achieve greater
marketing
efficiencies. Thus, stating objectives and defining the purpose of CRM in a
company helps clarify the nature of CRM programs and activities that ought
to be performed by the partners. Defining the purpose would also help in
identifying suitable relationship partner who have the necessary
expectations and capabilities to fulfill mutual goals.
III. CRM Programs : A careful review of literature and observation of
corporate
practices suggests that there are three types of CRM programs : continuity
marketing; one-to-one marketing; and, partnering programs. These take
different forms depending on whether they are meant for end-consumers,
distributors customers, or business-to-business customers.
a) Continuity Marketing Programs: Given the growing concern to retain
customers as well as emerging the knowledge about customers
retention economics have led many companies to develop continuity
marketing programs that are aimed at both retaining customers and
increasing their loyalty (Bhattacharya 1998, Payne 1995). For
consumers in mass markets, these programs usually take the shape of
membership and loyalty card programs where consumers are
often rewarded for their members and loyalty relationships with the
marketers. For distributor customers, continuity marketing programs
are in the form of continuous replenishment programs ranging
anywhere from just-in-time inventory management programs to
efficient consumer response initiatives that include electronic order
processing and material resource planning. In business-to business
markets these may be in the form of preferred customer programs or

in special sourcing arrangements including single sourcing, dual

sourcing, and network sourcing, as well as just-in-time sourcing
arrangements. The basic premise of continuity marketing programs is
to retain customers and increase loyalty through long-term special
services that has a potential to increase mutual value through learning
about each other.
b) One-to-one Marketing: One-to-one or individual marketing approach is
based on the concept of account-based marketing. Such a program
is aimed at meeting and satisfying each customer's need uniquely and
individually (Peppers and Rogers 1995). In the mass market
individualized information on customers is now possible at low costs
due to the rapid development in information technology and due to the
availability of scalable data warehouses and data mining products. By
using online information and databases on individual customer
interactions, marketers aim to fulfill the unique needs of each massmarket customer. Information on individual customers is utilized to
develop frequency marketing, interactive marketing, and after
marketing programs in order to develop relationship with high yielding
customers. For distributor customers these individual marketing
programs take the shape of customer business development. In the
context of business-to-business markets, individual marketing has
been in place for quite sometime. Known as key account
management program, here marketers appoint customer teams to
husband the company resources according to individual customers
needs. Often times such programs require extensive resource
allocation and joint planning with customers.
c) c) Partnering Programs: The third type of CRM programs is
partneringrelationships customers and marketers to serve end users
needs. In the mass markets,two types of partnering programs are most
common: co-branding and affinitypartnering. In co-branding, two
marketers combine their resources and skills to offer advanced
products and services to mass-market customers. Affinity partnering
program is similar to co-branding except that the marketers do not
create a new brand rather use endorsement strategies. Usually affinitypartnering programs try to take advantage of customer memberships
in one group for cross-selling other products and services.
d) In the case of distributor customers, logistics partnering and
cooperative marketing efforts are how partnering programs are
implemented. In such partnerships the marketer and the distributor
customers cooperate and collaborate to manage inventory and supply
logistics and sometimes engage in joint marketing efforts. For
business-to-business customers, partnering programs involving codesign, co-development and co-marketing activities are not uncommon
today .

ABOUT AIRTEL
3.1 COMPANY PROFILE
Airtel comes to you from Bharti Cellular Ltd. A consortium of giants in the
telecommunication business.

Airtel launched it's services in Delhi on November 14,1995. It has at present

over Six lakh fifty thousand customers in it's seven years of pursuit of
greater customer satisfaction, Airtel has redefined the business through
marketing innovations, continuous technological up gradation of the
network, introduction of new generation value added services and the
highest standard of customer care.
Airtel has consistently set the benchmarks for the Indian cellular industry to
follow.
First to launch cellular service in Delhi on November 1995.

First operator to revolutionize the concept of retailing with the

inauguration of AirTel Connect (exclusive showrooms) in 1995. Today
AirTel has 20 Customer Care Touch points called "Connects" and
over 350 dealers in Delhi and NCR towns.
First to expand it's network with the installation of second mobile
switching center in April, 1997 and the first in Delhi to introduce the
Intelligent Network Platform First to provide Roaming to its subscribers by
forming an association called World 1 Network.
First to provide roaming facility in USA. Enjoy the mobile roaming across
38

partner

networks

&

above

700

cities

Moreover

roam across

international destinations in 119 countries including USA, Canada, UK etc

with 284 partner networks.
3.2 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.
BCL is first mobile communication service provider in India to be certified
for ISO 9001:2000 and 1st in world certified by British Standards
Institution for Mobile Communication.
Born a leader, the first cellular service in Delhi, AirTel has maintained
leadership through constant innovations that have redefined standards of
cellular services in India.
First to introduce a wide array of value added services like Smart mail, Fax
facility, Call Hold, Call waiting, Web message, Information services etc. to
enhance the convenience of its subscribers.
3.3 VISION
To make mobile communications a way of life and be the
customers' first choice.
3.4 MISSION

We will meet the mobile communication needs of our customers

through:
Error- free service delivery
Innovative products and services
Cost efficiency
Unified Messaging Solutions
3.5 BHARTI VALUES
Innoventuring
We will generate and implement entrepreneurial and innovative ideas,
which will continuously create new growth engines.
Customer First
We are committed to delivering service beyond the expectations of the
customer. Our quality of customer responsiveness clearly differentiates us
from others.
Performance Culture
We benchmark our processes and performance against world-class
standards. We distinguish between performers and non-performers by
valuing achievement at the individual as well as the team level. Ours is a
culture of inclusively where feedback, learning and ideas are actively
encouraged, sought and acted upon.

Valuing Partnership
We are committed to building exemplary relationship with our partners,
which stand on the principles of mutual trust and mutual growth.
Valuing People
We nurture an environment where people are respected and their
uniqueness is valued. We believe that people are our key differentiators.
Responsible Corporate Citizenship
We are committed to making a positive and proactive contribution to the
community. As a responsible corporate citizen we will contribute to and abide
by environmental and legal norms.
Ethical Practices
We will uphold the highest ethical standards in all internal and external
relationship. We will not allow misuse or misrepresentation of any kind.
3.6 AIRTEL QUALITY STATEMENT
We will deliver error free "Mobile Communication Services" through Customer
Service Attitude, Employee Empowerment, Speed, Creativity and Continuous
Improvement.
3.7 RECENT ACHIEVEMENTS
AirTel has won the prestigious Techies Award for Best Cellular Phone Service
in the country for the third year in a row!

This award is a tribute to the faith that you repose in us. It is your
expectations that have encouraged us to constantly improve so that we can
deliver the highest standards of service to you - always.

CRM AT AIRTEL
4.1 ANALYSIS AND FINDINGS FROM THE CUSTOMER CARE DEPARTMENT
On talking to the employees of the customer care department the following
things were found out:
Airtel started its CRM programs in May2002.
The main objectives of CRM are as follows:

Personalized and customized service.

Regular updates.

Track of regular interactions.

The major CRM strategy is increased customers through increased

Customer Satisfaction.
The company is making use of e-CRM for customer satisfaction.
A special database of customers is maintained and this database is
updated weekly.
The customers are divided into different segments on the basis of the
amount of billing received from them.
The four categories of customers are:

Corporates-These include the top 200 Corporates, which form

about 40% of the segment of the client base.

Enterprise- These are the customers from the enterprise.

VIPs- These include the top-notch people, the ministers, actors

and other famous people.

Club- These include all the general customers other than those
included in the corporates and the High profile customers with
whom around 60% of the business is done.

The customer care cell has been divided into four departments:

Hotline- This department handles the start-up customers.

Care Touch- This department takes care of the Corporates and

Executive Class for maintaining Customer Relationships.

Retention- This department takes care of the churn and takes

special care to retain the existing customers.

Outbound-

This department takes care of the back-end

processing.
The CRM is implemented through the customer Care Executives. There
are around 100 Customer Care Executives at Airtel.
The effectiveness of CRM is measured through CSMM (Customer
Satisfaction Management and Measurement), an external research
agency, IMRB has been given the task of doing this.
Special Loyalty Programs and incentive schemes are designed for
the privileged and the regular customers. Initially these programs were
for the Upper Base of Customers, Usually the ones from whom the

billing was of more than Rs. 1500 but now these are for all the
customers. One of the recent CRM programs includes Rewarding
Relationships.
There is a special complaint handling system, The Customer Help and
the response time for handling these complaints varies depending on
the nature of the complaint. The maximum time that can be spent on
handling a complaint is 10 days.
Regular suggestions and feedback is incorporated in their service
offering. The people from the Retention Department call up the
customers from time to time to find out their view points.
A special Training is given to the employees at the time of induction.

Also a 4-5 Day training is given to these people on using the e-CRM
systems.
As a result of the CRM initiatives taken by Airtel Net Churn has gone
down to 3782 people in January 2003 from 15,000 people in
October 2002.
Today AirTel has 20 Customer Care Touch points called "Connects"
and over 350 dealers in Delhi and NCR towns