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CRM System in VODAFONE AGENDA

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CRM System in VODAFONE AGENDA CRM System in VODAFONE AGENDA I. Introduction – Vodafone III. Benefits to Vodafone from CRM a. Company Profile b. Vodafone in India IV. Issues Faced in CRM Implementation c. Market Shares in India a. Program b. People II. Gartner’s Eight Building Blocks c. Processes a. CRM Vision d. Technology b. CRM Strategy c. Valued Customer Experiences V. Consumer Research d. Collaborative Efforts e. CRM Process VI. Best CRM Practices in the 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) 2nd largest telecom company in the world (subscriber base) after China Mobile Public limited company Operations in 31 countries & partner networks in another 40 countries Listed on NYSE Founded : 1983 as RACAL TELECOM, Demerged from Racal Electronics (parent company) in 1991 and named VODAFONE HQ : Newbury, England Revenues : US $ 69 bn (2008) Profits : US $ 6.75 bn (2008) Employees : ~ 79,000 Source : WIKINVEST Important 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 INDIA 2005 : Acquired a 10 % stake in Bharti Airtel 2007 : Acquired a controlling 67 % stake in Hutchinson Essar for US $ 11.1 bn. Sold back 5.6% of its Airtel stake back to the Mittals & retained 4.4% In September, Hutch was rebranded to Vodafone in India. Source : WIKINVEST MARKET SHARE IN INDIA Others 1% Reliance Airtel 19% 24% Aircel 5% Idea 11% Vodafone 18% Tata 9% BSNL / MTNL 13% Source : TRAI Report JUN’09 VODAFONE’S OFFERINGS Global Managed Enterprise Telecom Device Mobility Central1 Management2 3 4 Portfolio Services Mobile Vodafone Vodafone Vodafone Money Connect to 5 Live6 Mobile7 8 Transfer Connect Friends Vodafone Vodafone At Vodafone Vodafone9 Freedom10 11 12 Passport Home Media Packs Systems Source : vodafone.com II. GARTNER’S MODEL 1st Block CRM Vision 2nd Block CRM Strategy 3rd Block Valued Customer Experience 4th Block Collaborative Efforts 5th Block CRM Process 6th Block CRM Information 7th Block CRM Technology 8th Block CRM Metrics 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 Consistency Reliability Flexibility Responsiveness I 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 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 : Easy e-recharge E-recharge using SMS Premium SMS Ringback Tones International Voice & Data Roaming Vodafone plans to bring ULTRA LOW COST handsets to India. Introduced VODAFONE LIVE! In India. Introduced BALANCE TRANSFER for the first time. Introduced UNIQUE OFFERS FOR MULTINATIONAL CORPORATE ACCOUNTS. Introduced SINGLE BILLING SYSTEM in 2007. Comprehensive approach across call centers, retail, internet & automated systems. Industry leading PROCESS IMPROVEMENT based on extensive customer research. (iv) COLLABORATIVE EFFORTS The program was built on 4 major pillars : Strategy I T COLLABORATIVE Process EFFORTS 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 Vodafone’s ability to chart out an average life cycle allows it to market different services. It prospects aggressively through advertizing. 2nd stage combines provisioning and verification. Vodafone activates a customers account and makes a first rating of the customer based on the application. Vodafone’s well planned welcome process includes a call informing clients of the Vodafone help line & various value added services. At the end of this stage their first bill is generated. The first collection marks the start of up-selling and cross selling. Analytical module steps in, CRM has to make every attempt count since clients can only be approached only a fixed number of times. This stage may see a client wishing to leave. To keep churn down , Vodafone uses retention policies and loyalty processes to bring clients back to the fold. Many clients are won back. (vi) CRM INFORMATION Custom analytics provide meaningful insight for personalized customer communications & interactions. Now, VODAFONE can: Identify customers’ value segments Understand customer needs and preferences Create targeted marketing & sales campaigns for specific customer segments Monitor customer responses Apply experience to future campaigns Steer customers’ buying behavior (vii) CRM TECHNOLOGY Pricing Price Components Taxes Profile Affiliates Credit Profile Org. Structure SRs Sales Pipeline Customer Pipeline Quantity Pipeline Loss Analysis Conversion Ratio Applications Profile 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. 14. Customer Categorization. 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 questions and information as needed, guiding agents through a sequence of steps based on customers’ individual requirements. IV. ISSUES FACED PROGRAM • Difficult to change existing technical and organizational structures PEOPLE • Need to work harder to create processes and re-engineer systems around new implementation. • Training for all related employees. PROCESS • Integration of services across all 23 circles. • Maintaining existing service levels at the time of transition. TECHNOLOGY • Integration of independent systems. • Porting data from each system which went into terabytes. • Design proper work flow automation. • Facilitating and enabling knowledge sharing. ISSUES FACED POST IMPLEMENTATION Monitoring how customers interact using various modules of CRM. Visibility of business transactions across India. Monitor Service Level Agreements. Maintenance and modification of CRM system. Inconsistent data flow sometimes. Change Management. Aligning CRM to Vodafone’s vision and growth objectives. Finding the right CRM managers in India. THANK YOU.
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