CHAPTER I

ORIGIN OF CRM:
Relationships are the essence of life. It is difficult to think about any society or organization
to survive without relationships. They are the invisible threads, which build a unique bond
between individuals and organizations. On the one hand these bonds may be as strong as iron
pillars lasting for lifetime, whereas on the other hand they are as delicate as feather which
may be broken within no time. Managing relationships is a very difficult and complex
phenomenon. Organizations are realizing the importance of the vital role played by
relationships in achieving and maintaining the cutting edge at the marketplace.
Long ago Peter F.Drucker had advocated that the purpose of any business is to create
customers. It is the customer, which gives an opportunity to the organization to serve him or
her. The success of any organization primarily depends upon the sustaining the customer
advantage that is retaining the customers for lifetime. Growing complexities and uncertainties
at the market place along with intensifying global competition are forcing the business
organization to invest in building customer relationships. New and sophisticated marketing
tool kits are being designed to attract, satisfy and retain customers for achieving sustainable
competitive advantage.
CRM has recently emerged as a strategic solution to modern business problems. It has its
roots in the age old business philosophy which recognizes that all business activities must
revolve around customers.
The term CRM was first coined in the early eighties by academics at various business
schools. One of the first on the scene was Dr. Jagdish Sheth who was at the Goizeta
Business School at Emory University in Atlanta.
CRM: Customer relationship management as coined by the Gartner Group, it compasses
sales, marketing, customer service, and support applications.
While the CRM term is fairly recent, it grew from a combination of terms like Help Desk,
Customer Support, ERP, Data mining. It evolved because none of the previous terms could
cover the topic well enough and because some of the terms (ERP) have grown to be met with
a great deal of distaste in the mouths of the business world.
CRM DEFINED:
Customer Relationship Management (CRM) is the strategic application of people, processes,
and technology in an organization-wide focus on improving the profitability of customer
relationships - DM Martin and AM Peel, The Pace Setter Group, 2001

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 The infrastructure that enables the delineation of and increase in customer value, and the
correct means to motivate valuable customers to remain loyal, to buy back again. - Jill
Dyche, The CRM Handbook, 2000
CRM (Customer Relationship Management): A strategy (technology-enabled) in response
to, and in anticipation of, actual customer behavior. From a technology perspective, CRM
represents the systems and infrastructure required capturing, analyzing and sharing all facets
of the customer’s relationship with the enterprise. From a customer care perspective, it
represents a process to measure and allocate organizational resources to those activities that
have the greatest return and impact on profitable customer relationships.
EVOLUTION OF RELATIONSHIP MARKETING

Competition PRODUCT
Forces FOCUS

Sharper CUSTOMER
Marketing FOCUS

Recognition that database and FULL CUSTOMER

Contact lack coordination FOCUS

Figure 1. Evolution of Relationship Marketing

FULL
Database integrated RELATIONSHIP
internally and externally MAKETING

Enterprise boundaries ENTERPRISE

blur, New digital RELATIONSHIP
products and Services MARKETING
emerge

Stage 1: Product Focus

In the early stages of the cycle, the leading supplier has the products or services that are
significantly better than those of its competitors. Customers are happy enough to obtain them.
It gains share and profitability. No matter how the other companies try to compensate for the
product or service weakness by relationship management, they will lose.

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Stage 2: Customer Focus
The high profits earned now attract competition, so several other companies begin offering a
similar product or service. Competition intensifies in the areas of features and price.
Companies try to maintain differentiation through the feature mix and through branding. In
consumer markets advertising expenditure increases dramatically.
Stage 3: Full Customer Focus
Initially, customer service focuses on the aspects such as product maintenance or customer
training. Eventually it moves to the areas of customer care. Here the aim is to ensure that the
benefits from the product or service are delivered reliably from the first point of contact. This
is not quite customer relationship marketing, since the customer may still be approached by
the same organization in a different guise with an attempt to sell the same product.
Stage 4: Full Relationship Marketing
After branding and customer service the suppliers must aim to manage all aspects of their
relationship with customers in a coordinated way. It is now important to recognize that the
diversity in relationships with the customer must be given due importance.
Stage 5: Enterprise Relationship Management
The relationship marketing approach now has to permeate everything the enterprise does.
Observing customers closely, working directly with them to address their needs and
requirements.
From Selling to Relationship Marketing
Conventionally, the ‘supplier/buyer interface tends to be fairly limited with the one real
contact on a continuous basis between sales person and person responsible for purchasing
within the customer’s business. It is an interface between where both parties seek to
maximize the outcome in their favour, and rarely results in a win-win situation. This type of
relationship is given in the figure below. There is a single point of contact as two triangles
that only connect to a single point. It is a relationship that is easy for competitors to break
because it tends to be based on cost rather than business development.
Customers can be divided into three zones:
1. Zone Of Defection: where customers are extremely hostile and have the lowest level of
satisfaction.
2. Zone Of Indifference: where customers are not sure. They have a medium level of
satisfaction and loyalty towards the company.
3. The third level of Customers is in the Zone Of Affection described as “Apostles”.
CRM focuses on bringing customers from level 1 to level 3 and retaining apostle customers.

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Customers’ demands for customization are increasing with every passing day. This has made
companies shift their focus from “mass production” to “mass customization”. The present
scenario of customers using “poorly implemented” multi channel strategies for living upto the
expectations of customers is bringing both customer satisfaction and customer loyalty down
the ladder.
2.4 THE BENEFITS OF CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
A recent article by the Harvard Business Review reported that increasing customer retention
rates by 5% increased profits by 25% to 95%! In fact, it determined that customer retention is
the key to increasing profits. The article continued by stating that quality customer support is
one of five primary determinants of loyalty. The number one reason why customers defect is
the perception of poor service.
Customer Relationship Management is, however, even broader in scope than improving
customer service: CRM is also about increasing revenue. In years past, businesses were
scrambling to implement costly Enterprise Resource Planning solutions (ERP), which were
mainly about the bottom line, cutting costs by improving the flow of data and interaction
between business and customer. But understanding how technology can increase revenues
through better customer interaction is far more difficult.
Effective CRM enables sales reps, service reps, and administrative staff and often, accounting
and executive personnel, to do their job better, faster, and with less wasted paper and time.
Prospects can be followed up quickly, and sales reps have instant access to the exact data
needed for effective closing. Marketing can be analyzed for workability and improved to
create the highest return possible on the marketing dollar. In service, customers can be
handled rapidly, and the exact nature of a problem can be quickly located and handled.
The right CRM solution enables data to flow easily and quickly within an organization, and
in most cases includes the entire organization. The net result is higher sales, happier
customers and a much-improved bottom line. The reduction in costs due to improved
personnel productivity, better sales follow up, improved marketing and service, and an
overall impressive growth in general organizational efficiency sometimes produces almost
immediate economic benefits.
The figures that corporations report of increased profits due to successful CRM
implementations range from 25% to 95%, attributable in many cases to less wasted time and
double work, and better organized schedules and data flows from staff in every division of
the company.

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CRM and Executive Management
Managing the customer relationship enables a business to identify the right customers, target
them with the right offers at the right time, and deliver that information using the right
channel; for instance, via an email campaign, direct mail, phone calls, trade shows, etc. CRM
software enables a business to retain valuable information and then use that information to
increase sales, handle specific customer service issues, and create databases of information
that reflect the specific consumer traits of its public.
Many people assume CRM is all about technology. That's only part of the story: CRM is also
about the data an organization has and the wealth of information in that data, and how an
organization's people process and leverage that data. While it is true that certain basic
formulas exist for successful sales and marketing, nevertheless, the variance between
different business models can vary hugely. A guitar manufacturer and a copier manufacturer
do, indeed, share many management points in common, but the sales cycle, the service cycle,
and the customer relationships of each are quite varied.
Forethought needs be given to setting up the system in a logical and consistent method,
enabling an organizational entity to weave its own business plan into the framework of the
software application. In this way the management of the company directs the application to
do its bidding, although the application must be flexible enough to enable it.
CRM, Sales and Marketing
The phrase, "know your customer, help your business," certainly applies to marketing and
CRM.
Without a doubt, a key component of CRM database analysis and implementation is
marketing. To be effective, one would hope to have marketing that reaches the right customer
with the right message at the right time using the right medium. But without having the data
available regarding one's public and buying patterns, marketing often becomes a black hole
for wasted money.
So an effective CRM application, one that enables an organization to easily gather critical
sales and marketing information, not only pays for itself very quickly, it becomes a valuable
resource for improving both the top (revenue) and the bottom (profit) lines. The top line is
improved by increasing sales through better data management, and improving marketing
effectiveness by collecting, analyzing, and using valuable customer information. The bottom
line is improved by reducing service times and costs, and by improving the general
productivity of the staff as a direct result of the CRM solutions of task management and

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contact management and, in some cases, the interface to other software programs, such as
accounting applications.
Today's economy is demanding: as margins get squeezed, quality can deteriorate. Customers
don't want to spend hours on hold. Prospects often want a quote or invoice on the spot.
Without accurate record storage and quick access to information, sales reps get far behind on
their call lists and once "hot prospects" turn ice cold. Speed of particle flow and speed of
delivery is vital factors for survival, so access to data -- the same data, from a variety of
positions -- is a must. Sales, shipping, service, accounting and even the executive branch
must all have the same data, and often at the same time. CRM dictates that anyone who
touches a customer shares the same information and that information should be easy to access
by others.
CRM and Service
Regarding service in general, the size of the organization has nothing to do with the need to
give its customers improved service. Although larger corporations do seem to "get away"
with poor service more easily than small to medium-sized businesses, most of whom are
battling stiff competition as the world becomes more automated and the choices more
plentiful, even some of the near monopolies will get the wake-up call from smaller, more
aggressive, more service-oriented companies who may wind up taking away significant
shares of their business.
People love friendly, prompt, and courteous service. It's what keeps customers coming back
year after year. And CRM software does play a significant role in not only providing timely
and effective service, but in doing so at a price that most organizations can easily afford.
When a service call is handled the specific problem and its solution can be added to the
database. Next time the same incident occurs the service rep can locate the item and quickly
provide the solution.
CRM software enables you to record each customer service as a Service Work Order,
including detailed records of how the Service Work Order was resolved. The system provides
flexible methods of billing, including by the hour, the month, the year, or by the Work Order
(service incident). Contracts can be written for service or service and materials. Equipment
can be tracked by warranty and serial number. And a flexible service-scheduling feature
enables you to easily add, view, and delete scheduled service appointments. (For more
detailed information about this product, download the "Service Manager" tutorial and the live
"Service Manager" demo.)

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Service reps have easy access to sales, warranty, order, billing and inventory information,
enabling them to evaluate data and respond quickly to a customer's needs.
Purchasing a CRM application is a decision that takes some thought and consideration. Some
of the key elements that comprise CRM
 More effective reach and marketing
 Improved customer service and support
 Enhanced customer loyalty
 Greater efficiency and cost reductions
 Improved company communication and networking through better access to quality
information
 A better stand against global competition
CRM STRATEGIES
Benefits

Reduce costs through an optimal mix of channels and streamlined customer service
operations.
 Strengthen customer loyalty and increase sales by delivering more personalized
service and information.
 Improve customer service by providing representatives with integrated, up-to-date
information about each customer – from recent transactions to current service
problems.
 Better manage the complete customer lifecycle across all touch points.
 Increase revenues by identifying and leveraging cross-selling opportunities that are
rooted in accurate customer data and solid employee training.
 Enhance profitability by gaining better insights into how the client’s customer
approach is helping – or hurting – the bottom-line.
THE ROLE OF INFORMATION TECHNOLOGY IN CRM
In considering how CRM should be implemented, information technology has a pivotal role
to play in enabling companies to maximize profitability through more precise targeting of
market segments and the micro segments within them. We are now in a new era of
technology-enabled marketing, which involves leveraging relationships through the use of
technology. Powerful new technological approaches involving the use of databases, data
marts, data warehouses, data mining and one-to-one marketing are now assisting
organizations to increase customer value and their own profitability.

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Technology can greatly assist in managing the data required to understand customers
so that appropriate CRM strategies can be adopted. In addition, the use of IT can enable
the necessary data to be collected to determine the economics of customer acquisition,
retention and lifetime value.
Given the dramatic effect that improved customer retention can have on business
profitability, organizations need an approach that leads to greater customer loyalty, enhanced
retention and profitability.
To improve customer retention; three steps are needed:
 Measurement of customer retention,
 Identification of root causes of defection and related key service issues;
 The development of corrective action to improve retention.
Measurement of existing customer retention rates is the first critical step in the task of
improving loyalty. This involves measuring retention rates and profitability analysis by
segment. Managers should determine the impact on profitability of various factors related to
customer retention and acquisition. These include changes in: the cost of acquisition, the
number of new customers acquired, the profitability of retained customers, and the
retention rate.
Besides acquisition and retention, lifetime value will need to be identified by market segment
and needs to address how to improve it. Clearly improving retention can have a huge impact
on lifetime profitability. The business will also need to consider how they will get the greatest
benefit from their acquisition activities. To facilitate improved acquisition, retention and
lifetime value, companies need to utilize the appropriate technology tools to assist this
process.
In the business-to-business context an example of this would be sales force automation -
creating an information empowered sales force, which increases the sophistication of
customer management. This can dramatically improve sales force productivity and
significantly enhance the bonds with the customer.
In business-consumer organizations who are dealing with a large number of customers, a
critical issue will be increasing the quality of customer contact through tools such as
sophisticated call centers and electronics commerce.
Organizations will need to determine the appropriate customer management strategy and then
develop the appropriate information technology platform to suit their requirements, now and
in the future. This may involve a creative blending of a range of information technology
infrastructures starting with databases and then progressively moving towards data marts,

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enterprise data warehouse and integrated CRM solutions using electronic commerce. It may
also involve using approaches such as data-mining, event-driven marketing and channel
optimization. The ultimate objective of this will be to identify opportunities for increased
profitability through enhanced customer acquisition, improved customer retention and
targeted cross selling.
DEVELOPING APPROPRIATE METRICS
Central to achieving success will be the development of new metrics to measure performance
in CRM across the business. It is increasingly being recognized that there are linkages
between employees satisfaction, employee retention, customer satisfaction, customer
retention, sales and profitability. A number of academics and consultants have developed
models based on these linkages.
CRM IMPLEMENTATION ISSUES
Customer Relationship Marketing is being increasingly viewed, as a major element of
corporate strategy, there is confusion about what it means in practice. Further, many
organizations are adopting CRM practices on a fragmented basis through a range of activities
such as direct mail, help desks, call centres and loyalty cards. These activities are often not
properly integrated.
Where CRM is well understood as a concept, many board-level managers are still unclear as
to how a particular CRM approach should be cost-effectively implemented and what
technology options should be adopted.
The starting point for introducing or further developing CRM must be determined from a
strategic review of the organization’s current position. Companies need to address four broad
issues: what is our core business and how will this evolve in the future; what form of CRM is
appropriate for our business now and in the future; what IT infrastructure do we have and
what do we need to support the future organization needs; and what vendors and partners do
we need to choose?
An organization should first examine its core business and consider how will it evolve in the
future. It then needs to consider the form of CRM that is appropriate for their business now
and in the future and what organization resources does it have to support the business now
and in the future.
Having identified the present and future focus of CRM, the organization then needs to
address the appropriate information architecture to enable their CRM strategy to be
implemented. Stated simply the task is how can we exploit technology for improved CRM.

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As organizations increase their sophistication they will need to creativity integrate these
technologies. “Planned evolution” is a good way of summarizing the technology approach to
building the backbone to support the relevant CRM strategy that has been mapped out for the
business.
An essential element of achieving successful implementation is to ensure that their strategy is
underpinned by viable and appropriate technology architecture. This involves the selection of
vendors and partners based on issues of customization capability and other appropriate
commercial factors including both technological and commercial criteria.
The new millennium, Customer Relationship Management will have advanced considerably
and we will have reached much more sophisticated level of one-to-one marketing and data
mining. There is now an enormous opportunity for organisations to improve their ‘customer
ownership’ by building a co-ordinated and integrated set of activities which address all the
key strategic elements of CRM. Ultimately, however, organisations’ success in CRM will
involve creating an appropriate strategic vision for the future, making the appropriate choice
of applications, creatively using appropriate analytical techniques to exploit the data, and
choosing the right vendor for supply of the technology solution.
ELEMENTS FOR SUCCESS OF CRM
To ensure the success of CRM the following things need to be kept in mind:
• Define fewer high-priority business requirements.
Focus on the most pressing goals, such as reducing attrition among your most valuable
customers, or increasing revenue per customer. Only after these goals have been achieved
should the initiative be spread across the enterprise.
• Communicate these immediate objectives to every member of the team.
Regardless of department, employees should clearly understand the business rationale and
desired results. Managers should include incentives, making the project a top priority.
• Do something near-term that demonstrates payback.
The most common complaint from business managers about software development is that
results – if they come at all – are not available until all the money has been invested. The
greatest complaint from developers is that business managers don’t understand that they can’t
have results until the software has been built. To maintain the support of senior management
and key investors, achieving a succession of short-term goals, with measurable results, is
crucial in moving forward with the long-term goal of true relationship marketing.

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 The Elements of CRM
Sales Force Customer Service/Call Marketing
Automation Center Management Automation
Call centers
Call center telephone sales managing aspects Campaign
of customer contact management

E-commerce

Web-based Content
Field sales
self service management

Retail
Data analysis
Third-party brokers,
Field services and business
distributors, agents
and dispatch intelligence tools

Figure 4. Elements OF CRM

Source: Computer world Jan’02.
BENEFITS OF A WELL DEFINED CRM INFRASTRUCTURE
A well-designed CRM infrastructure will enable you to:
 Integrate and coordinate multiple customer touch points (e-mail, call center, direct
sales, POS, direct mail, etc.)
 Extend the definition of a customer or program without negatively impacting
application design;
 Add new system components and applications without redesign;
 Define new business processes and data;
 Add new data sources without compromising performance; and
 Support simultaneous users and add new business units.
Benefits of a well-constructed CRM infrastructure include:
 Reduced deployment capital and expense costs;

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 Reduced ongoing management costs;
 Additional revenue-generating opportunities and
 Customizable systems that leverage your existing CRM technology investments.
RELATIONSHIP MARKETING AND CUSTOMER LIFETIME VALUE FOR
CELLULARS
Relationship marketing is not about having a "buddy-buddy" relationship with your
customers. Customers do not want that. Relationship Marketing uses the event-driven tactics
of customer retention marketing, but treats marketing as a process over time rather than
single unconnected events. By molding the marketing message and tactics to the LifeCycle of
the customer, the Relationship Marketing approach achieves very high customer satisfaction
and is highly profitable.
The relationship marketing process is usually defined as a series of stages, and there are many
different names given to these stages, depending on the marketing perspective and the type of
business.
For example, working from the relationship beginning to the end:
Interaction > Communication > Valuation > Termination
Awareness > Comparison > Transaction > Reinforcement > Advocacy
Suspect > Prospect > Customer > Partner > Advocate > Former Customer
Using the relationship marketing approach, you customize programs for individual consumer
groups and the stage of the process they are going through as opposed to some forms of
database marketing where everybody would get virtually the same promotions, with perhaps
a change in offer. The stage in the customer Lifecycle determines the marketing approach
used with the customer.
A simple example of this would be sending new customers a "Welcome Kit", which might
have an incentive to make a second purchase. If 60 days pass and the customer has not made
a second purchase, you would follow up with an e-mailed discount. You are using customer
behavior over time (the customer LifeCycle) to trigger the marketing approach.
Customer Lifetime Value for Cellular
We all know that today, marketing programs must include a measurable customer
understanding in order to be successful. One element that helps quantify our understanding of
customer profitability is Customer Lifetime Value (CLV). If carefully calculated, and with
widespread organizational buy-in, it becomes the first metric to turn to for all customer
marketing and planning.

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However the Life Time Value concept has been misunderstood over the last several years. It
may not be necessary to figure out an absolute Life Time Value for a customer or wait "a
lifetime" to find out the exact value to use the concept in managing customer value in order to
develop successful marketing campaigns that effect the bottom-line quickly.
CLV as It Applies to Cellular
The obvious goal is keeping the customers with highest CLV as long as possible and
determining the attributes of those high CLV customers for use with prospects.
Basically, there are three main components to the CLV formula: revenues, customer tenure
and expenses.
1. Revenue: Revenue formulas of past behavior used to determine future revenues.
2. Tenure: Retention modeling used to understand leading indicators for customer "churn."
3. Expenses: The major difficulty in computing CLV is not in computing customer income;
it's the expense. It is difficult to determine how to apply various departmental company
expenses to individual customers.
Unfortunately, almost ALL of the relatively "constant" figures that help calculate CLV in
other industries literally change as soon as they are calculated when it comes to cellular
services:
1. Phone Equipment Costs and Revenue. The negotiated sales rates form the various
phone vendors changes based on supply, consumer demand and buying ability of the
telecommunications vendor.
2. Service Rates and Rate Plan Structures. Rates change almost monthly for most
carriers. Even the rate plan structures change as soon as you (and the consumers)
understand them. For instance, AT&T wireless's "all-you-can-eat" and Cingular's "roll-
over Minutes" rate plan structures obviously put a dent into calculating meaningful
Customer Lifetime Valuation.
3. Mobile Phone Features and Usage. Everything from the amount of "Roadside
Assistance" packages to the incredible early mistakes of WAP pricing demonstrate just
how volatile these features can be to calculating anything resembling accurate CLV.
4. Service Contract Models. Tenure based on consumer contracts that vary from one to
three years; technology that changes as soon as the contract is signed, phone number
transportability issues, and more.
Additionally, most consumers have been affected by one of the consolidations, mergers, or
corporate "buys" that the industry has been witnessing recently.
As a result, consumer brand loyalty is at an all-time low.

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SCOPE OF CRM:
Customer Relationship Management (CRM) is developing into a major element of corporate
strategy for many organizations. CRM, also known by other terms such as relationship
marketing and customer management, is concerned with the creation, development and
enhancement of individualized customer relationships with carefully targeted customers and
customer groups resulting in maximizing their total customer life-time value.
Industry leaders are now addressing how to transform their approach to customer
management. Narrow functionally based traditional marketing is being replaced by a new
form of cross-functional marketing - CRM. The traditional approach to marketing has been
increasingly questioned in recent years. This approach emphasized management of the key
marketing mix elements such as product, price, promotion and place within the functional
context of the marketing department.
The new CRM approach, whilst recognising these key elements still need to be addressed,
reflects the need to create an integrated cross-functional focus on marketing - one which
emphasizes keeping as well as winning customers. Thus the focus is shifting from customer
acquisition to customer retention and ensuring the appropriate amounts of time, money and
managerial resources are directed at both of these key tasks. The new CRM paradigm reflects
a change from traditional marketing to what is now being described as ‘customer
management’.
The adoption of CRM is being fuelled by recognition that long-term relationships with
customers are one of the most important assets of an organisation and that information-
enabled systems must be developed that will give them 'customer ownership'. Successful
customer ownership will create competitive advantage and result in improved customer
retention and profitability for the company.
In many companies there is still confusion as to what CRM is all about. To some it is about a
loyalty scheme, to some it is about a help desk. To others it is about a relational database for
key account management and for others it is about mass profiling the customer base without
undertaking detailed segmentation. Relatively few organizations have implemented an
integrated approach, which addresses all the key strategic elements of CRM. Only a small
number of businesses have a clear idea what should be done with information technology in
order to successfully implement CRM.
Traditional marketing is no longer enough. The amount an organisation spends on marketing
is not necessarily related to its marketing effectiveness. Some organizations undertake

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relatively little marketing activity and as a result have a fragmented customer base, poor
market positioning and low levels of marketing effectiveness.
Other organizations have been successful with relatively little expenditure on marketing. For
companies such as Virgin Atlantic, The Body Shop and First Direct, public relations and
word-of-mouth marketing have been very important to them, so that despite fairly low levels
of advertising spend they are highly effective in their marketing.
Many organizations, despite heavy investment in marketing departments and marketing
activities, have achieved poor results from their marketing effects; quite a number of financial
services companies fall into this category. We call this “marketing trappings” marketing.
Relatively few organizations have adopted relationship marketing and CRM approaches to
effectively harness the tools of marketing to deliver real increased customer value and, with
the help of technology, developing appropriate long-term relationships with customers.
To achieve success, businesses need to have the appropriate measurement systems and
marketing metrics in place to ensure there are effective in terms of their use of customer-
focused resources. Over the past two decades businesses have developed sophisticated
approaches to measurement in other functional activities within their business - in
Operations, Finance, IT and Human Resources. However, the Marketing function may be the
last bastion of inadequate and inappropriate metrics
Traditional marketing activities, which emphasize customer acquisition, are no longer
sufficient. CRM recognizes that marketing starts after the sale is over, not when the sale is
completed.
In future marketing will need to create much stronger metrics so that strategies can be
evaluated rigorously.
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.

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  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.
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.
VISION
• To make mobile communications a way of life and be the customers' first choice’.
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

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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.
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.”

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 EVOLUTION OF CELLULAR INDUSTRY
 In 1991, Government of India (GOI) announced its intentions to liberalize the
telecommunication Industry.
 As part of the liberalization process, two licenses for Cellular Services and one license for
Basic Services to be awarded to the private sector for each telecom circle.
 In 1992, GOI invited bids from private players for operating Cellular Services in the 4 metro
circles.
 The licenses were to be awarded on the basis of a tender in which the license fees had been
announced beforehand and the selection was on the basis of services to the subscriber and
rentals.
 Due to legal issues related to the awarding of the licenses, the process got delayed and
licenses to operate services in metro circles awarded in December 1994.
 The Do T announced the National Telecom Policy, which set out the objectives to increase
the availability & quality of telecommunications services in India by inviting the private
sector into basic telecom services.
The Objectives of NTP 94 were to:
 Ensure availability of telephones on demand as early as possible
 Achieve a telecom service that conforms to international standards
 Assist the manufacture and export of telecom equipment
 Protect national defense and security interests
 In January 1995, GOI invited bids for cellular services
 In 20 non-metro circles, categorizing them into A, B and C circles based on
geographic attractiveness and demographic size.
 169 bids were received from 32 consortia for 18 circles
 In August 1995, the Do T placed a 3 circle cap on category and B circles per
bidding consortium
 In September 1995, Bharti Cellular Ltd. launched
 Cellular Services in Delhi.
 Licenses were awarded in December 1995, with 2
 Licenses per circle awarded to the 2 highest bidders.
New Telecom Policy – 1999
 Existing structure of a fixed License fee to be replaced by a one-time entry fee
and a revenue sharing agreement to be recommended by the TRAI.

18 | P a g e
 Strengthening of the TRAI through the separation of the Do T’s service provision
functions from its policy and licencing functions. The DoT as service provider will be
subject to the directions of the TRAI and as the licensing authority will be required to seek
TRAI’s prior recommendation.
 Interconnectivity with service providers in different License areas to be announced as part
of the structure for opening up national long distance-this will allow cellular operators
to act as long distance carriers and provide a valuable upside.
 Cellular licensees will be allowed to directly interconnect with VSNL. This will provide
cellular carriers with access to the valuable international long distance market
 Cellular licenses to be for a period of 20 years.
 Entry of MTNL/DOT as a service provider will be in a time bound manner and shall be
based on the recommendations of the TRAI-entry of MTNL/Do T and other operators will be
phased in giving the existing incumbents an advantage.
 Traditional Fixed Line penetration is low at 2.15% as on 31st March 2000.
 High unsatisfied demand as reflected by Do T waitlists – 13.9% of installed capacity as
of 31st March 2000
 Lowering of entry barriers for consumer – Falling handset prices.
 Lowering of recurring charges – Falling Airtime Tariff.
 Improved Accessibility – Increased Rollout into newer circles.
 Growth in Cellular Subscriber base by 52% year on year. Large part from Prepaid.
Bharti Cellular Ltd – An Introduction
BCL is a company launched by well-established and reputed companies across the global
with the remarkable track record in Telecom Industry, particularly with excellent knowledge
of cellular network operations in UK, Sweden and Mauritius.
Bharti Cellular Ltd was granted the license to provide cellular mobile telephone services in
New Delhi by the DoT on 29th November 1994 on a non-exclusive for the next ten years.
BCL is a customer oriented company, whose goal is to position itself in the market as a
serious enterprising supplier of reliable, easily available mobile telephone services of high
quality, thus promoting opportunities for the business community and allowing private users
to enjoy efficient, safe and cost effective mobile communication. Bharti has successfully
accomplished this task over the last five years of operation with the help of its well-
developed global systems for mobile communication.

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 THE EVOLUTION OF BCL
1992Government invites bids for providing Cellular Mobile Telephony – Bharti Enterprises
forms a joint venture with CGE, EMTEL, Millicom and MSI. UK – BHARTI CELLULAR is
born.
1993 Bharti Cellular granted license to provide Mobile Phone Services in Delhi and
NCR, Ghaziabad, Faridabad, Guragaon, Noida and Ballabgarh.
Mar 1995 Bookings for AirTel opened.
Aug15, 1995 Air Tel launches Cellular Services in Delhi.
Nov15, 1995 Cellular Services AIRTEL commercially launched in Delhi.
Nov 1995 AirTel crosses 10000 customers – one million-call mark. The first AirTel
Connect opens in Delhi.
Sept 1996 AirTel installs second Switch – installed capacity reaches 200000 lines.
Nov 1996 AirTel crosses 50000 customers – hundred million-call marks.
Dec 1996 Manual roaming launched.
Jan 1997 British Telecom joins hands with Bharti Cellular.
April 1997 Multi IMSI roaming launched.
May 1997 Mega – Millennium Network launched.
Aug 15, 1998 Smart roaming facilities launched.
Jan7, 1999 IN Network commissioned; Bharti launches Magic – prepaid card.
Dec 1999 Smart Net facilities launched.
June 2000 Bharti buys acquired 44% of stake of British telecom.
July 2001 World’s First SMS chat launched.
July 9, 2001 Bharti bags cellular services in M.P. circle.
July 15, 2001 Bharti acquired Modi’s promoted spicecell.
July 16, 2001 Bharti bags license for cellular operating in 5 new circles. With this BCL is
the only cellular operator to operate in all 4 metros (Delhi, Mumbai, Kolkata, Chennai)
with its operationsin Bangalore & Hyderabad too.
AirTel – An Unflinched Brand
AirTel, a part of Bharti Cellular Ltd., was conceived and nurtured under the adages of the
Bharti and was born on the 14th day of November 1995, as the original licensee to provide
Cellular Telephony to the customer base in the national capital New Delhi.
Since its inception in 1995, Air Tel has never looked back and has changed the way true
leaders of Delhi talk, communicate, work and indeed live. It has consistently been the leader

20 | P a g e
with its undisputed “Power to keep in Touch” and has been chalking up a number of first in
its journey to commanding the heights of the cellular industry.
Its belief to leverage the latest technologies and to deliver value to its customers was manifest
within a span of a year and a half of its launch. It expanded its network with the installation
of its second MSC (Mobile Switching Center) raising its capacity 5,00,000 lines, thereby
becoming the first Cellular Operator in the country to have done so. This was further
enhanced with the introduction of SDH (Synchronous Digital Hierarchy) and the CCS7
Signaling. The Bharti Group is pulling out all the stops to ensure that Air Tel maintains its
leadership over Essar & Dolphin in the Delhi Market. This is crucial as Bharti Cellular has
almost 3,25,000 subscribers, but with Hutchison taking a 49% stake in Essar – promoted
Sterling Cellular and planning to roll out its Orange Brand in the city, the gap between the
two operators could narrow.
It has put at the disposal of its subscribers a wide array of convenience enhancing Value
added Services like:
Web Message
Smart Mail,
Short Message Service,
Fax Facility,
Call Conferencing,
Call Hold,
Call Forwarding
Call Waiting,
Calling Party line Identification and several other on line services available to its customers.
Wireless Application Protocol Service
SMS Chat
As a duty to retain its valuable customer base, as well as efforts to bring the churned
customers, AirTel has launched its AirTel Leadership Retention Program to provide
various privileged facilities and discounts along with points earning.
Air Tel ushered in anytime, anywhere, simple cellular telephony in Delhi with the launch of
Magic Ready Cellular Card in January 1999. This competency of Magic Dalo, say Hello!
Has further increased AirTel Power to keep in touch! It is based on the Intelligent Network
and is compatible with all GSM handsets.
Consequently for three years 1997, 1998 and 1999, AirTel has been voted as the Best
Cellular Provider in the country and won the coveted Techies Award.

21 | P a g e
Technology at AirTel
The company uses GSM technology as prescribed by the DoT. The network has been
supplied and installed on turnkey basis by Ericsson, Sweden, which is the world leader in
cellular technology. The local office of Ericsson provides support and maintenance services.
The network audit is carried out from time to time association with Mobile System
International, UK to ensure better coverage and speech quality. The billing system has been
provided by SEMA, UK.
The Intelligent Network (IN) installed from Ericsson, Sweden would enable the company to
offer products like Virtual Private Network (VPN) Solution, On Demand Services etc,
apart from flexibility in tariffing.
The company has almost 157 Base stations providing almost 1005 coverage in the service
area and flat terrain in the city has initially helped the quick roll out in record time. The
Company has 2 MSCs in the city, on in the Southeast and the other in NorthWest. The
company has also laid 75km of OFC in the city to provide SDH rings to augment the existing
base station network call handling capacity. The company was initially granted 4.5 MHz of
frequency bandwidth by the DoT, which has now been increased o 6 MHz.
Themarketing strategy at AirTel has always been to identify and attract a high usage
subscriber base through a strong brand identity for the AirTel brand name and to associate
the name with high quality customer service, a full range of network services and
competitive pricing. A strong customer support through 24 hrs day helplines and operator
assistance on matters ranging from features usage to billing queries.
AirTel provides its customer service personnel with subscriber, product and billing
information to enable them to respond promptly. The data generated from the exit interviews
conducted with those subscribers who have terminated services, is used for the process to
improve services where warranted.
DISTRIBUTION
The company uses direct and indirect channels to market its services. The direct sales force
caters to the corporate and to the existing high-end subscribers to provide maximum
satisfaction. The franchisees are the exclusive AirTel shops throughout a particular license
area. These AirTel Connects sell SIM Cards and handsets, handles customer’s applications
and customers queries and receive monthly payments, besides activation of new connections
and recharge of SIM cards at the designated shops. The standardization of these AirTel
Connects is down the line and this should provide a greater identity and magnify the AirTel

22 | P a g e
 footprint. This also reinforces the brand awareness and enhance the visibility of the brand
throughout the city.
With the opening up of Distributors and outlets (including 24 hour outlets), the Magic is now
being sold as an FMCG, a product that is available within the walking distance from any
customers’ office/home.
AirTel in HP is expanding within the mighty Himalayas in its service areas and has launched
its Smart Roam Service.
MILESTONES
 First to launch cell to cell services in Delhi;
 First to launch commercial services;
 First to put through ten million calls mark;
 First network in India to cross the 50,000 customer base;
 First to offer a wide range of Value Added Services;
 First to offer roaming facility;
 First network to cross 1,50,000 customer base in India;
 First network to expand capacity and install the 2nd MSC;
 First to launch the Web Messaging Service;
 First to launch Mega Millennium Network, EFR Network, IN Network;
 First and till date only profitable Cellular Operations in India;
 First to launch IN Services in India;
 Winner of the Techies Award (Conferred by Communications World) for being the best
cellular Service provider in the country for three consecutive years in a row – 1997, 1998 &
1999, 2000.
 Winner of the Award for the most innovative HR Practices for the year 1999, awarded by
Asia Pacific HRD Conclave, 2000, 2001
 The Golden Peacock National Training Award for excellence in Training Practices – 2000
 Golden Peacock National Quality Award 2001
So the first choice of the Corporate Leaders. The first mover’s advantage after all gives the
subscriber an easy way and power to keep in touch!

23 | P a g e
 CHAPTER II
Research Methodology:
Methodology is a way to systematically solve the research problem. It may be understand as
a science of studying how research is done scientifically. Research Methodology is a step by
step study of a problem. Physical activities involved in the study are:
 Developing the questionnaire regarding the customer satisfaction of the product

 Optimum respondents as a sample size are chosen for the activity to resemble the
entire population.

 Get the questionnaire filled by the customers in the place through interview or
personal interaction.

 Analysis of data on computer with special market research statistical package called
SPSS.

In this research questionnaire is framed in such a way management wants to know

how the customers are taking things that they had done to them and to find out the
expectation of the customers thus it will impact in policy making of the firm in the current
fiscal year.
The questionnaire designed had closed question to find the respondents actual feeling
as well as their opinion rating about the satisfaction regarding the product.
The methodology followed for conducting the study includes the specification of
research design, sample design, questionnaire design, data collection and statistical tools used
for analyzing the collected data.
RESEARCH DESIGN:
The research design is the conceptual structure within which research is conducted. It
constitutes the blueprint for the collection, measurement and analysis of data.
Descriptive research
This study is descriptive in nature where the data is collected through well structured
questionnaire and from the information taken from the customers.
Sampling Design/Techniques:
Sampling is the process of selecting a sufficient number of elements from the
population, so that a study of the sample and an understanding of its properties or
characteristics would make it possible for us to generalize such properties or characteristics to
the population elements.

24 | P a g e
 Sampling design is to clearly define set of objects, technically called the universe to
be studied. The sampling design used in this study is probability sampling. Sampling
technique used is Simple Random sampling.
Population:
Population for this research is set as costumers who are using AIRTEL
Sample size:
The research was conducted in Mumbai with 50 respondents.

Objectives
 To find out if they are satisfied and aware of the services and offers provided

 To recommend measures for improving the product

HYPOTHESIS

In pursuit of the objective of identifying the effectiveness and workability of corporate social

responsibility the following hypothesis have been formulated, which intend to test in the

course of this study:

Ho: The organization involvement in social responsibility does not have an effect on the

company and its host community.

Ha: The organizations in social responsibility activities have an effect on the company and its

host community.

Ho: Airtel Telecom corporate social responsibility programme does not enhance

organization-societal relationship.

Ha: Airtel Telecom corporate social responsibility programme enhances organization-societal

relationship.

We also intend to answer the following research questions to collaborate with the above

hypothesis.

25 | P a g e
 CHAPTER III
3.1 Literature Review
 Cho (1998) points out the reasons for which reforms were made in Indian capital
market stating the after reform developments. Shah (1999) describes the financial
sector reforms in India as an attempt at developing financial markets as an alternative
vehicle determining the allocation of capital in the economy.
 Shah and Thomas (2003) review the changes which took place on India’s equity and
debt markets in the decade of the 1990s. This has focused on the importance of crises
as a mechanism for obtaining reforms.
 Mohan (2004) provides the rationale of financial sector reforms in India, policy
reforms in the financial sector, and the outcomes of the financial sector reform
process in some detail.
 Shirai (2004) examines the impact of financial and capital market reforms on
corporate finance in India. India’s financial and capital market reforms since the early
1990s have had a positive impact on both the banking sector and capital markets.
Nevertheless, the capital markets remain shallow, particularly when it comes to
differentiating high-quality firms from low-quality ones (and thus lowering capital
costs for the former compared with the latter). While some high-quality firms (e.g.,
large firms) have substituted bond finance for bank loans, this has not occurred to any
significant degree for many other types of firms (e.g., old, export-oriented and
commercial paper-issuing ones). This reflects the fact that most bonds are privately
placed, exempting issuers from the stringent accounting and disclosure requirements
necessary for public issues. As a result, Company remain major financiers for both
high-and low-quality firms. The paper argues that India should build an infrastructure
that will foster sound capital markets and strengthen Company’ incentives for better
risk management.
 Chakrabarti and Mohanty (2005) discuss how capital market in India is evolved in
the reform period. Thomas (2005) explains the financial sector reforms in India with
stories of success as well as failure.
 Bajpai (2006) concludes that the capital market in India has gone through various
stages of liberalization, bringing about fundamental and structural changes in the
market design and operation, resulting in broader investment choices, drastic
reduction in transaction costs, and efficiency, transparency and safety as also
increased integration with the global markets. The opening up of the economy for

26 | P a g e
 investment and trade, the dismantling of administered interest and exchange rates
regimes and setting up of sound regulatory institutions have enabled time.
 Gurumurthy (2006) arrives at the conclusion that the achievements in the financial
sector indicate that the financial sector could become competitive without involving
unhealthy competition, within the constraints imposed by the macro-economic policy
stance.
 Mohan (2007) reviews India’s approach to financial sector reforms that set in process
since early 1990s. Allen, Chakrabarti, and De (2007) concludes that with recent
growth rates among large countries second only to China’s, India has experienced
nothing short of an economic transformation since the liberalisation process began in
the early 1990s.
 Chhaochharia (2008) arrives at the conclusion that India has a more modern
financial and banking system than China that allocates capital in a more efficient
manner. However, the study is skeptical about who would emerge with the stronger
capital market, as both the country is facing challenges regarding their capital
markets.
 Prasad and Rajan (2008) argues that the time has come to make a more
coAGHAIed push toward the next generation of financial reforms. The study
advocates that a growing and increasingly complex market-oriented economy and its
greater integration with global trade and finance will require deeper, more efficient,
and well-regulated financial markets. The survey and review of literature about the
financial sector reforms in India reveals that the reforms have been pursued
vigorously and the results of the reforms have brought about improved efficiency and
transparency in the financial sector. The reforms also brought into inter-linkage of
financial markets across the globe leading to new product development and
sophisticated risk management tools. Derivatives in general perform as an instrument
to hedge the risk arising from movement in prices not only in commodity markets but
also in securities market.
 Bose, Suchismita conducted research on (2006) found that Derivatives products
provide certain important economic benefits such as risk management or
redistribution of risk away from risk-averse investors towards those more willing and
able to bear risk. Derivatives also help price discovery, i.e. the process of determining
the price level for any asset based on supply and demand. These functions of
derivatives help in efficient capital allocation in the economy. At the same time their

27 | P a g e
 misuse also poses threat to the stability of the financial sector and the overall
economy.
 Routledge, Bryan and Zin, Stanley E of Carnegie Mellon University conducted
research on “Model UAGHAIainty and Liquidity” in year 2001. Extreme market
outcomes are often followed by a lack of liquidity and a lack of trade. This market
collapse seems particularly acute for markets where traders rely heavily on a specific
empirical model such as in derivative markets.
 Sen Shankar Som and Ghosh Santanu Kumar (2006) studied the relationship
between stock market liquidity and volatility and risk. The paper also deals with time
series data by applying “Cochrane Orchutt two step procedures”. An effort has been
made to establish a relation between liquidity and volatility in their paper. It has been
found that there is a statistically significant negative relationship between risk and
stock market liquidity. Finally it is concluded that there is no significant relationship
between liquidity and trading activity in terms of turnover.

28 | P a g e
 CHAPTER IV
Data Analysis
Q 1. Airtel gives you prompt services.
70

60
60

50

40

30

20
20

10 10
10

0
Disagree Can't Say Agree Strongly Agree

Figure: 5: Prompt Services

Analysis:
On the basis of the responses obtained from the people it was found that 60% of the
respondents agree that Airtel gives prompt services and 20% strongly agree on this point thus
indicating that in terms of service delivery, Airtel has a high rating. There are some people i.e
only 10% who disagree on this and 10% responded by not saying anything on this aspect.

29 | P a g e
Q 2. Employees at Airtel are always willing to help you.

80
75

70

60

50

40

30

20

10 10
10
5

0
Disagree Can't Say Agree Strongly Agree

Figure: 6: Employees willingness to help

Analysis:
75% of the respondents agree that Employees at Airtel are always willing to help the
customers and 10% strongly agree to this point. Only a 5% of respondents disagree on this
point and 10% people did no want to say anything on this particular aspect. Thus, we can say
that the employees at Airtel are willing to help the people indicating the responsiveness of the
company.

30 | P a g e
Q 3. Your queries and complaints are handled immediately by the Customer Care
Department.

70

60
60

50

40

30

20
15
13 12
10

0
Disagree Can't Say Agree Strongly Agree

Figure: 7:Immediate handling of queries and complaints

Analysis:
About 60% of the respondents agree that the customer care department handles their
complaints immediately. 15% of the people strongly agree on this point. 12% of the
respondents can’t say anything on this aspect as they did not feel the need to complain and
only 13% of the respondents disagree on this point, probably due to some kind of delay in
their complaint being handled. Thus we can say that Airtel people are responsive enough and
make attempts to handle the complaints on time.

31 | P a g e
Q 4. Airtel provides its services at the time it promises to do so
90
84
80

70

60

50

40

30

20
10
10 6

0
Disagree Can't Say Agree

Figure: 8: On time services

Analysis:
About 84% of the respondents feel that Airtel delivers the services at the time it promises to
do so. Around 6% of them disagree on this particular aspect and only a 10% were not sure as
to what could be said abut this. Thus, we can say that Airtel is a reliable service provider and
provides the services at the time it promises to do so.

32 | P a g e
Q 5. Airtel keeps its customers informed about all its services and how they will be
delivered.

90

80 78

70

60

50

40

30
22
20

10

0
Agree Strongly Agree

Figure: 9: Keeping customers informed

Analysis:
On the basis of the responses received, it was found that 22% of the people strongly agree
that Airtel keeps its customers well informed about the services it offers and 78% of the
people agree to this point. There were no respondents who disagree on this aspect. Most of
the people feel that Airtel has very good advertising and also Airtel makes people aware of all
its services from time to time by means of giving them regular calls also.

33 | P a g e
Q 6. When you have a problem, the company shows a sincere interest in solving it.
90
80
80

70

60

50

40

30
20
20

10

0
Agree Strongly Agree

Figure: 10: Company’s interests in solving problem

Analysis:
On the basis of the responses, it was found that 80% of the respondents agree that the
company shows a sincere interest in solving their problems and 20% strongly agree to this
point. There were no respondents to disagree on this aspect thus indicating that the company
is highly responsive and empathetic towards its customers

34 | P a g e
Q.7 Airtel gives you individual attention.
70

60 58

50

40

30
30

20
12
10

0
Can't Say Agree Strongly Agree

Figure: 11: Individual attention

Analysis:
On being asked about whether the company gives individual attention to its customers, we
see that about 58% of the people were not in a position to say anything on this particular
aspect. 30% of the people agree to this point and 12% strong agree. Thus, we can say that
most of the people either did not feel the need for individual attention or are not aware of it.
But, nobody wanted to disagree on this aspect.

35 | P a g e
Q 8. The employees at Airtel understand your individual needs and offer flexibility in
the services as per your requirements.
50
45
45

40

35

30
25
25

20
17
15 13

10

0
Disagree Can't Say Agree Strongly Agree

Figure: 12: Flexibility in services

Analysis:
The results here show that 45% of the respondents agree that the company offers flexibility in
their services as per individual needs and 25% strongly agree on this point.25% of the people
can’t say anything on this and 13% of the people disagree with this statement. Thus, we can
say that most of the people feel that there is flexibility in service as per individual needs.

36 | P a g e
Q 9. The web site of Airtel is interactive and user-friendly

60
56

50

40

32
30

20

12
10

0
Can't Say Agree Strongly Agree

Figure: 13: Interactivity of Airtel’s website

Analysis:
Around 56% of the people did not feel the need to visit the website of Airtel so they could not
say any thing about how interactive it was. There were 32 % respondents who felt agreed to it
and 12% who strongly agree with this.

37 | P a g e
Q 10. Airtel uses the latest technology in its services.
45
40
40

35
32
30

25 24

20

15

10

5 4

0
Disagree Can't say Agree Strongly Agree

Figure: 14: Latest technology

Analysis:
On asking about the opinion of the people in terms of the technology being used by Airtel
40% of the people did not want to comment on the technology aspect. 32% of the people
agreed that Airtel uses the latest technology and 24% of them strongly agreed on this aspect.
Only a small 4% of people disagreed, probably because they feel Airtel should be using some
other technology.

38 | P a g e
Q 11. You feel that the employees at Airtel are courteous with you.

60
55

50

40

30
24
20
12
10 9

0
Disagree Can't say Agree Strongly Agree

Figure: 15: Courteous employees

Analysis:
55% of the respondents agree to the statement that the employees at Airtel are courteous and
24% of them strongly agree to it. 12% of the respondents did not say anything about this
whereas a 9% of the people disagree with it. The reason could be some kind of bad
experiences that they had with the employees.

39 | P a g e
Q 12. Employees at Airtel have the knowledge to answer your questions.

80
70 67

60
50
40
30
19
20 14
10
0
Disagree Agree Strongly Agree

Figure: 16: Knowledgeable employees

Analysis:
Talking about the knowledge of the employees in handling customer queries, we can say that
most of the people agree that Airtel has the employees who are trained well to answer the
queries of the customers. 67% of the respondents agree to this and 19% strongly agree with
this. A very few people disagree with this statement. The reasons for this could vary from
individual to individual. Thus, overall we have the expression that the employees are good
and knowledgeable also.

40 | P a g e
Q 13. Airtel takes care of the confidentiality and the privacy of its customers.

70
63
60

50

40
34
30

20

10
3
0
Can't say Agree Strongly Agree

Figure: 17: Confidentiality and privacy

Analysis:
Most of the respondents agreed on the aspect that the confidentiality and privacy of the
customers is maintained. The percentage of the people who agree to this was as high as
63%. 34% strongly agree to this point and only 3% of the people disagree with it. Thus, we
can say that the company is responsive enough and we can rely on it.

41 | P a g e
Q 14. Rate the following on a scale of 1 to 5 in terms of the quality of service offered by
each service provider.
1. Airtel.
2. Hutchinson Essar.
3. Idea.
4. MTNL.

AIRTEL
45
41
40
NO. OF RESPONDENTS

35
30
25 23
20
16
15 14

10
6
5
0
1 2 3 4 5

RATINGS

Figure: 18: Service quality of Airtel

HUTCHINSON ESSAR
40 38
NO. OF RESPONDENTS

35
30
25 22 22
20
15
15
10
5 3
0
1 2 3 4 5

RATING

Figure: 19: Services quality of Hutch

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 IDEA
50 47
NO. OF RESPONDENTS
45
40
35
30
25 21
20 18
15 10
10
4
5
0
1 2 3 4 5

RATING

Figure: 20: Service quality of Idea

Chart Title
40 37
35
NO. OF RESPONDENTS

30

25 22
20 19

15 12
10
10

0
1 2 3 4 5

RATINGS

Figure: 21: Service quality of MTNL

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 Analysis:
From the comparisons of the ratings given to the different service providers we find that
Airtel has got the highest number of respondents giving it a rating of 4 or 5.
In case of Idea, 47 respondents have given it a rating of 3 whereas MTNL has got a rating of
3 by 37 respondents. Around 38 respondents have given Hutch a rating of 2. From this
comparison we can conclude that Airtel has a higher rating in terms of quality of service
offered in comparison with other service provides

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Q 15. How would you rate Airtel on a scale of 1-5 on the following parameters.
1. Instant connectivity. 5. Billing
2. Clarity Of Voice. 6. Latest Schemes and offers.
3. Network Coverage 7. Behaviour of employees.
4. Activation 8. Value added services

50 AIRTEL
45

40

35

1
30
2
3 25
NO OF RESPONDENTS

4
20
5

15

10

0
INSTANT CONNECTIVITY

CLARITY OF VOICE

NETWORK COVERAGE

ACTIVATION

LATEST SCHEMES AND OF...

BILLING

BEHAVIOUR OF EMPLOYEES

VALUE ADDED SERVICES

PARAMETERS
Figur
e: 22: Rating for Airtel’s service
Analysis:
From the figure 22 we find that the Airtel has a very good rating in terms of the parameters
used to evaluate the kind of service it is offering. In terms of network coverage most of the
respondents have given it a rating of 5. In terms of latest schemes, value-added services and
clarity of voice; most of the respondents have given it a high rating of 3, 4 or 5.
In terms of activation, billing and behaviour of the employees the ratings are comparatively
lower.

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Q 16. If given a choice, would you like to switch over to some other cellular service.

90

80

70

60

50

40

30

20

10

0
Yes No

Figure23: Switching to other cellular services

Analysis:
Most of the respondents were happy with the services being provided by Airtel and were not
interested in switching over to some other service provider. 83 % of the people wanted to
continue availing the service of Airtel and only 17 % of the people wanted to switch over to
some other service providers. The reasons for this varied from cheaper airfares to better
connectivity etc.

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 LIMITATIONS
 The study was limited only to Delhi region due to constraint of time.

 The sample size taken for the study was small as the time allotted for the study was very less .

 Problems were faced in getting the appointments of the employees of Customer Care

Division of Airtel.
 The employees at Airtel were not willing to disclose the details about the functioning of the

CRM database.
 At times the customers using Airtel services were not willing to respond, hence lots of efforts

were made to convince them to fill the questionnaires.

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 CONCLUSION
 The initiatives taken by Airtel in CRM have helped Airtel to achieve a great amount of
success.
 On measuring the effectiveness of the services provided by Airtel in terms of
responsiveness, reliability, empathy, assurance and tangibles it was found that the overall
perception about its service quality is quiet high.
 Born a leader, the first cellular service in Delhi, AirTel has maintained leadership through
constant innovations, which have redefined standards of cellular services in India.
 Airtel being the 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, has been able to achieve the title of best cellular
service provider for five consecutive years.
 By means of relationship marketing Airtel has been able to reduce the rate of churn. The
Net Churn has gone down to 3782 people in January ‘2003 from 15,000 people in
October 2002.
 Airtel is making use of the latest technology and focusing on building long term
relationship with the customers as a result of which most of the people perceive Airtel as
the best cellular service provider in Delhi.

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 BIBLIOGRAPHY
BOOKS
 Balachandran , S.(1999), “Customer Driven Service Management”, Response Books.

 Burnett, K. (2001), “Handbook Of Key CRM” Addison Wesley Longman , Delhi.

 Greenberg Paul (2001), “CRM At The Speed Of Light” Tata McGraw Hill Publishing

Company, New Delhi

 Seth Jagdish N & Parvatiyar ( 2002) “Handbook Of Realationship Marketing” , Response

Books.

JOURNALS AND ARTICLES:

 Jain Rajnish & Jain Sangeeta , Journal Of Service Research (0ctober ’02- March ’03)

“Measuringb Customer Relationship Management”, pp: 97-107.

 Jaiswal M.P & Sharma Anjali, “The Business And Strategic Need”, e-Commerce (January

2002).

WEB SITE LINKS

 www.CRMassist.com

 www.adaptcrm.com

 www.crmcommunity.com

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