1 CUSTOMER SERVICE AT AIRTEL, BANGALORE. A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MBA DEGREE OF BANGALORE UNIVERSITY. Submitted By: Kirandeep Goraya Reg. No-05XQCM6027 UNDER THE GUIDENCE OF: DR. K. V. PRABHAKAR SENIOR PROFESSOR, MPBIM, BANGALORE M. P. BIRLA INSTITUTE OF MANAGEMENT ASSOCIATE BHARTIYA VIDYA BHAVAN. BANGALORE-560001 2005-2007 2 DECLARATION I hereby declare that the research work embodied in this dissertation entitled “Customer Service at AIRTEL, Bangalore”, has been carried out by me under the guidance and supervision of Dr.
V. Prabhakar, Senor Professor, M. P. Birla Institute of Management, Bangalore.
I also declare that this dissertation has not been submitted to any University/Institution for the award of any Degree/Diploma. Place: Bangalore Date: May 2007 (Ms. Goraya Kirandeep) 3 CERTIFICATE I hereby certify that this dissertation is an offshoot of the research work undertaken and completed by Ms Goraya Kirandeep under the guidance of Dr. K V Prabhakar Senior Professor, M. P. Birla Institute of Management, Bangalore. Place: Bangalore Date: May 2007 (Dr. Nagesh. Malavalli) Principal MPBIM, Bangalore CERTIFICATE I hereby certify that the research work embodied in this dissertation entitled “Customer retention strategy at AIRTEL, Bangalore” has been undertaken and completed by Ms Goraya Kirandeep under my guidance and supervision. Place: Bangalore Date: May 2007 (Dr K V Prabhakar) Senior Professor, MPBIM, Bangalore 5 ACKNOWLEDGEMENT I am happy to express my deep sense of gratitude to Dr. Nagesh Mallavalli, Principal M. P. Birla Institute of Management for his encouragement, guidance and many valuable ideas imparted to me for my project. I extend my sincere thanks to Dr. K. V.
Prabhakar for providing me all the information required and the guidance through out the project without which this project would not have been possible. I have gained a lot of knowledge, both theoretical and practical, throughout the course of carrying out this project; I also learnt a lot about the intricacies of the actual business world. With special regards I would also like to sincerely thank all my lecturers and friends for their help in completing my project successfully. (Ms. Goraya Kirandeep) 6 CONTENTS Page. No EXECUTIVE SUMMARY 8 Chapters PART ‘A’ (THEORITICAL SETTING) 9 . INTRODUCTION 1. 1. Background of the study. 1. 2. Statement of the problem. 1. 3. Need and significance of the study. 1. 4. Objectives of the study. 14 15 16 17 18 19 2. REVIEW OF LITERATURE 2. 1 Purpose of review. 2. 2 Methodology. 2. 3 Conclusion. 3. COMPANY PROFILE 4. RESEARCH METHODOLOGY 4. 1 Type of Research. 4. 2 Sampling Technique. 4. 3 Sampling size. 4. 4 Sampling Description. 4. 5 Instrumentation Techniques. 4. 6 Actual collection of data. 4. 7 Limitation of the study. 34 51 52 52 52 52 53 53 53 PART ‘B’ (SURVEY FINDINGS) 5. 1. DATA ANALYSIS AND INFERENCES. 54 55 PART ‘C’ (CONCLUSIONS AND RECOMMENDATIONS) 6. 1. Major conclusions emerging from the study. 6. 2. A scheme of recommendations 72 73 74 ANNEXURE: • Select bibliography including websites used. • Questionnaire • Directions for further research 81 82 84 86 8 EXECUTIVE SUMMARY 9 EXECUTIVE SUMMARY Customer service is the key business issue. Effective churn management allows the company to stay ahead of its competitors, increases profitability and improves investor confidence. There are no simple solutions; must adopt aggressive strategies which cut across the customer lifecycle and underpin all business processes.
Customer service is not given the attention due to it, by most firms. It has been found that customer service has more impact on profits than market share, economies of scale and other variables that are considered to provide competitive to a firm. In fact, it has been found that companies, which reduce customer retention defections by 5 per cent, could boost profits from 25 per cent to 85 per cent. The whole gamut of Customer Relation Management strategies center around the basic idea of retention so as to get the mass out of their existing or potential customers.
Research Focus: Though many service industries are affected by the churn phenomenon the problem is extremely acute in the telecom industry, with customers joining and quitting in short periods. The problem we are addressing here is – what are the innovative services the company can provide to its customers in relation to those needed by the customers so that the company can effectively hook the current customers and acquire new customers? Research Objectives: Objective of the study was to understand the importance of Component of Life Time Value of Customer, examine the current customer services strategies being provided by AIRTEL.
Also to identify the fault deficiencies in the existing Customer service Strategies of Airtel. 10 Research technique used: The data for the study are collected both from the primary source and the secondary source. The project employs systematic, objective and quantitative Research techniques using a well structured questionnaire, which form the primary information collected. The secondary data sources are magazines, management journals and websites. Using the primary data, separate tables have been furnished under specific headings; have been analyzed with the help of descriptive analysis and percentage, and interpreted.
Detailed charts have been developed showing the data obtained from the respondents, the data collected from the respondents were organized, processed and tabulated to depict the results. The sample size comprises of 100 respondents. This study was restricted to the existing customers of AIRTEL in Bangalore Metropolitan Area only. Major Research Findings: Maximum number of Airtel service user are in the age group of 22-27 and majority of them uses prepaid service, they found the call quality and the network coverage to be good. And most of them liked the value added services, and are happy with the communication procedure they use.
The postpaid customers found the bill error free. The overall rating given to Airtel was Very Good. Recommendations: With effective implementation of customer databases, companies will be able to reestablish contact with customers, and will be able to work successfully towards increasing customer retention, repeat sales, and customer referrals. Reach out to the customers with special offers, or as they call it, “high touch” 11 opportunities. Membership cards and programs that entitle your customers to special offers, discounts, or preferential treatment.
After sales satisfaction and complaint inquiries and surveys. Event oriented communications in which the customer is genuinely interested. Enhanced and empowered customer, after sales, and technical support. Integrated Customer Relationship Management (ICRM) is the latest marketing strategies that have to be developed to meet the challenges raised from the daily marketing consulting services. 12 PART ‘A’ (THEORETICAL SETTING) 13 CHAPTER-1 INTRODUCTION 14 1. 1 Background of the study. Customer service (also known as Client Service) is the provision of service to the customers before, during and after a purchase.
Its importance varies by product, industry and customer. As an example, an expert customer might require less pre-purchase service (i. e. , advice) than a novice. In many cases, customer service is more important if the purchase relates to a “service” as opposed to a “product”. Customer service may be provided by a person (e. g. , sales and service representative), or by automated means called self-service. Examples of self service are Internet sites. Customer service is normally an integral part of a company’s customer value proposition.
Customer service may be employed to generate such competitive advantage as a particular service proposition can be harder to copy for competitors. The implementation of a particular customer service proposition must consider several elements of the organization, including • • • • • • culture hiring training incentives processes Support technology A company may attempt to differentiate itself from its competition through the provision of better customer service. The consistent delivery of superior service requires the careful design and execution of a whole system of activities that includes people, technology, and processes.
Although, the rewards will include improved revenue from customers that are impressed with the service provided Segmentation issues: Basic segmentation issues need to be addressed to determine if viable segment exist and can be identified; otherwise there may be more profitable avenues for the firm to pursue. “Attracting and keeping the highest-value customers is the corner stone of a successful 15 marketing program”. Underlying this statement is the necessary condition that the market can be segmented and that identifiable segments vary in customer value.
The direct way to test this necessary condition is to apply volume segmentation to the market. When high, medium, low and non-user segment exists and can be identified; the potential rewards from focusing customer retention programs on the high users can be substantial. Retention improvement for this segment could lead to significant increase in profits . An insightful approach is one that combines volumes segmentation and margins by customer group. Benefit segmentation is another approach, which may assist in determining the viability of retention strategies.
In particular, the firm is seeking to identify and measure segments that value benefits beyond economy (i. e. , the price sensitive segment). Benefits such as reliability, responsiveness, confidence, and security offer the firm the opportunity to establish a relationship with a particular segment. Customer seeking economies do not. When Do Prospects Become Customers? As the focus of our program shifts from acquisition to retention, the goals become those of establishing loyalty, advancing the relationship and building a sense of community, participation and affinity.
As with prospecting, however, the data strategy should also help determine whether customers do or do not meet the company’s criteria for retention. We need to look for factors that will feed back into the acquisition cycle to reduce marketing costs, increase success rates or both. We also need to look for trends in the length of customer relationships and determine if steps can be taken to avert the loss of customers at critical points along the way. Even a small improvement in retention can result in a significant rise in profitability and our overall ROI.
Since all organizations continually update customer data, reviewing and analyzing the data will identify opportunities where up selling, cross- selling and service sales can be increased. The development of the data strategy as it relates to retention issues should address such questions as: • What characterizes our best customers, and what keeps them loyal? • How do the information and service needs of new customers differ from those of established customers? 16 • Is it necessary to keep all prospect information once a customer relationship is stablished? • What changes do the organization need to make as the relationship goes along? • How many service calls did customers place? • How were they resolved? • What was the time to the resolution on those calls? • What is the potential for developing other customers such as these? • Why does one group or class of customers responds to opportunities when another does not? … A Few Thoughts Worth Remembering About Customer service: “A customer service program must hold everyone in the organization accountable. “The way we treat our employees is directly related to how they in turn treat customers. ” ––(Joe Sperry, Consultant to the telecommunications industry) “In cellular, 1% churn can be translated into roughly $500,000 in revenue. ” “… 96% of customer churn is lost with no feedback to provider. ” “… A company has to determine its customer’s definition of quality service and then measure its performance against those expectations. ” “One bad-mouthing customer can cost you 10 new customers. ” –(Larry Harris, President, Crisco Communications paging company)
RESEARCH OBJECTIVES • • • To examine the current level of customer service provided by AIRTEL. To identify the fissures and faults/deficiencies in the existing customer service strategies. To recommend appropriate customer services strategies. 17 We seek to validate the following dissatisfaction cycle as the basis for achieving the above objectives: The Dissatisfaction Cycle satisfaction satisfaction Boredom with the familiar/new comparisons Motivation to search for variety/ better performance dissatisfaction dissatisfaction 18 CHAPTER-2 Review of literature. 19 2. 1 Purpose of review.
The purpose of literature review is to explore the historical and current scenarios of the customer retention rate in the mobile service industry and general industry as a whole to retain customer. Over and above, the purpose of the literature review is to understand in totality the foundation of the research problem. The abstracts in the following pages are some of the key literature reviewed in this project: Source: Google . com SAS POWERS CHURN MANAGEMENT AT BHARTI CELLULAR Using Enterprise Miner software and OLAP technologies, Bharti built models that predict the customer propensity to churn and provide information to rive product strategy. Every time a customer calls to complain about network congestion, Anil Nayar knows that he/she’s only a drop call away from switching over to a rival cellular services provider. That’s a big reason why Anil Nayar, President (Mobility), Bharti TeleVentures doesn’t wait for complaints before starting to troubleshoot. Instead, Nayar and his team pick up the truck load of data that they maintain on their 7. 37 lakh subscribers, crunch it to find out who’s most likely to dump Bharti’s AirTel in favor of a rival operator.
That done, the next step is to figure out how to keep these potential ‘c hurners’ from leaving. But does churn management work? Sure, says Nayar, pointing out that prior to its implementation, the churn ratio at Bharti touched a peak of 3 percent, but now it’s a little over 2 percent. Still, that’s not really the point Nayar wants to make. Says he: “If we hadn’t done anything about it, the rate could have gone beyond 3 percent. ” Considering that the average cost of customer acquisition in the mobile business is as high as INR 3000, retention directly impacts the bottom line.
Bharti cottoned on to churn management way back in November 1999, when in one of its quality meetings it was noticed that the single-biggest factor in opportunity cost (or nonconformance in telecom-speak) was churn. Immediately, the company set about 20 pulling in all the data it had on it’s customers. The idea was to meld discreet bits of data into an intelligent whole, why customer retention is important and its benefits of to the company something that would betray the churner. Was it poor service, network congestion, or ill suited tariff plans that the customer was most complaining about?
If the probability of churn could be predicted accurately, then not only could glitches in service be fixed, but the bottom line could be improved. As Bharti started dialoguing and looking for ways and means to make sense of customer data, it led to American data mining major SAS’ churn management solution. It’s software tools allow the user to sift through enormous quantities of data that the business generates to find hidden trends and patterns that will help in customer retention. Explains Gourish Hosangady, CEO & Managing Director, SAS India, “The online application enables a ompany to build a 360 –degree view of its customers, and create customer specific strategies for greater loyalty”. Customer retention, however, is only one part of churn management. It also makes the overall organization much more effective by identifying potential problems and opportunities. Bharti was able to optimize its coverage by studying customer complaints and usage behavior. In another busy commercial market, it was prompted to set up extra powerful transmitters because an analysis of the complaints revealed that there were more users operating out of basement offices.
The end result of such analysis is that it allows Bharti to manage its network investment much more effectively. So how do the churns tools work? It starts with a search database, where information is stored in a structured manner. Data mining software pulls together all the raw data in whatever forms it is held into one system and combs through it using artificial intelligence techniques or complex mathematical models. The SAS data mining techniques predict a customer’s likelihood of cancellation or switchover by scoring them on a scale of 0 to 1. If a customer scores 0. 73 it means there’s a 73 percent chance of his/her churning.
Ergo, the lower the score, the more contented the customer. Once you know the scores, it is easy to figure out which customers (like defaulters) to let go. 21 Bharti did not stop at churner identification. It went a step ahead and used the data warehousing tool to launch new products. For example, when statistics showed that a number of pre-paid subscribers in Delhi were not locals, but business visitors who subscribed to AirTel back in their hometowns, Bharti launched regional roaming for prepaid subscribers. Says Nayar, “Data is a powerful resource, and it is up to you to find business insights in it. ” TELCOS HAVE TO MINIMISE CUSTOMER CHURN’ source : google. com It’s a fiercely competitive market, and for mature entrants in any sector — whether it is telecom, banking, insurance or retailing — retaining profitable customers is now the number one business plan. SAS, a leader in business intelligence tools, provides operational and analytical CRM (customer relationship management) solutions for companies such as Citibank, StanChart, Orange, Goodlass Nerolac and BPL. These help in gathering data at the various multi-channel customer contact points and in planning, targeting, acting and learning from the data generated.
Recently, SAS implemented its customer retention solutions at AirTel to reduce a big problem telecom carriers are facing today — churn. That means losing customers to another carrier. Gourish Hosangady, managing director and CEO, SAS India, explains how IT solutions can help tackle churn, the common denominator in the world’s liberalized telecommunications industry, which is now hitting India too. 22 How bad is the problem of churn, and why is the telecom industry more vulnerable than the other sectors? Source : Customer acquisition and retention has been a concern for all industries, but more so for the highly liberalized telecom sector.
The entry of the fourth cellular operator has fiercely increased competition in this industry and so it is imperative to understand the reasons for churn and to contain them. In India, the month on month churn is estimated at 3. 5%. Churn costs European and US telcos close to $4 billion each year. The annual churn rates globally of 25% to 30%. Carriers at the upper end of this spectrum get no return on investment on new subscribers because it takes typically three years to pay back the cost of replacing each lost customer with a new one.
In your experience, what are the commonest reasons for customers to switch from one service provider to another? SOURCE. Theses Some of the common driving factors for churn are poor performance, poor customer care, rate plans and handset issues. We’ve for instance found that contact centers can drive away customers to a rival service provider if a customer has to wait long before his problem is looked into. Globally, handset issues have made a difference too — for instance, a Telco not being able to provide GSM or CDMA service.
Regarding churn, something interesting that’s been noticed is that it’s much higher in the case of pre -paid services, with a churn rate of 8:1, than in post-paid service where the rate is 3:1. The idea of pre-paid cards is that the customer will mature to become a post-paid one and so it pays to retain him too. After all, it’s five times more expensive to acquire a new customer than to retain an existing one. 23 What are the best ways to prevent these high rates of customer churn? Effective customer service could be a deterrent to churn.
Branding and service differentiators also help in taking customers away from competitors. All this wouldn’t be difficult if you have proper operational and analytical CRM tools in place that would help segment and analyses customer behavior and predict their propensity to churn. In a rapidly changing telecom market, it is necessary to proactively strategize and service customers so as to retain the high value ones. Analytical customer retention solutions would help identify the high-, mid- and low-value customers and the valuable ones who are most likely to cancel services, and their reasons for doing so.
They would also help in better campaign targeting and a more focused strategy. In the case of a client such as Sprint, what kind of demands would a company that’s a global leader in the telecom industry have and how would CRM solutions help? Source : Theses Our solutions give Sprint a central repository that makes things easy for its marketers. The multidimensional data base (MDDB) that Sprint has, let internal sales and marketing groups research customer information from their desktops via the Sprint intranet. 24 Bharti Airtel Limited: FY 2007 – A Year of Accelerated Growth & Market Leadership
Source: www. bhartiairtel. in Highlights for Full Year ended March 31, 2007 • • • • • • • Overall customer base crosses 3. 9 crore. Highest ever-net addition of 1. 8 crore customers in a year. Market leader with a market share of all India wireless subscribers at 22. 9% (20. 4% last year) Total Revenues of Rs. 18,520 crore (up 59% Y-o-Y) EBITDA of Rs. 7,451 crore (up 72% Y-o-Y). Cash Profit of Rs. 7,307 crore (up 79% Y-o-Y). Net Profit of Rs. 4,257 crore (up 89% Y-o-Y). Highlights for Fourth Quarter ended March 31, 2007 • • • • • Highest ever-net addition of 53 lakh customers in a single quarter.
Total Revenues of Rs. 5,393 crore (up 58% Y-o-Y). EBITDA of Rs. 2,241 crore (up 75% Y-o-Y). Cash Profit of Rs. 2,193 crore (up 82% Y-o-Y). Net Profit of Rs. 1,353 crore (up 98% Y-o-Y). New Delhi, India, April 27, 2007: Bharti Airtel Limited (“Bharti” or “the company”) today announced its US GAAP results for its fourth quarter and full year ended March 31, 2007. It has once again maintained its strong growth momentum. The consolidated total revenues for the quarter ended March 31, 2007 of Rs. 5,393 crore grew by 58% and EBITDA of Rs. 2,241 crore grew by 75% on a year on year basis.
The cash profit from operations of Rs. 2,193 crore grew by 82% over last year. The net profit for the quarter ended March 31, 2007 was Rs. 1,353 crore, a growth of 98% over last year. The revenues & net profit for the full year ended March 31, 2007 was Rs. 18,520 crore and Rs. 4,257 crore, a growth of 59% & 89% respectively, on a year on year basis. Bharti had over 3. 9 crore customers, as on March 31, 2007, an increase in the total customer base of 86%, over the last year and maintained its leadership position through an improved market share of all India wireless subscribers at 22. % as on March 31, 2007, up from 20. 4% last year. Commenting on the results and performance, Mr. Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel Limited, said, “The Indian telecom sector has witnessed an unprecedented growth this year led by the mobile segment. At Bharti Airtel, this has been a year of accelerated growth and market leadership, and we are delighted to be leading the telecom revolution in the country.
The demand for the telecom services across all segments remains buoyant and we believe that this growth momentum can be sustained. We are confident that Bharti Airtel’s professional management team with 25 enhanced empowerment, backed by world-class product offerings is well placed to strengthen our leadership position in the market. ” In line with emerging international practice, the Board of Directors has adopted a rotation policy for statutory and internal auditors for a maximum tenure of five years and rotation of audit partner every three years.
Accordingly, they have recommended the appointment of S R Batliboi and Associates, Chartered Accountants, a member firm of Ernst & Young Global as statutory auditors at the conclusion of the forthcoming annual general meeting on 2 July 2007 and Ernst and Young as auditors for US GAAP for the financial year ending 31 March 2008. The Board has also proposed to appoint Price Waterhouse, Chartered Accountants as internal auditors after conclusion of their tenure as statutory auditors of the company. 6 Bharti Airtel Limited – Summary of Consolidated Financial Statements – represents Consolidated Statement of Income as per United States Generally Accepted Accounting Principles (USGAAP) (Amount in Rs. Crores, except ratios) Quarter Ended Particulars Mar. 2007 Un-audited Total revenues EBITDA Cash from operations Income income taxes profit before 5,393 2,241 2,193 1,507 1,353 Mar. 2006 Un-audited 3,411 1,278 1,205 741 682 58% 75% 82% 103% 98% Y-o-Y Growth Year Ended Mar. 2007 Audited 18,520 7,451 7,307 4,886 4,257 Mar. 2006 Un-audited 11,621 4,337 4,086 2,537 2,257 59% 72% 79% 93% 89% Y-o-Y Growth
Net profit / (loss) Operating Highlights (Figures in nos. , except ratios) Parameters Unit Mar. 2007 37,141 1,871 39,013 31, Dec. 2006 31,974 1,738 33,712 31, Q-on-Q Growth 16% 8% 16% Mar. 2006 19,579 1,347 20,926 31, Y-on-Y Growth 90% 39% 86% Customers on our Network Mobile Services 000’s Broadband & Telephone 000’s Services Total 000’s 27 Airtel brings world-class Broadband & Telephone services to Jaipur Source: www. bhartiairtel. in To drive broadband penetration with exciting deals on PCs and Laptops and offer a complete broadband experience to customers • • Wide range of voice and broadband plans to offer best in class value to consumers Strategic alliance with HCL to offer Airtel broadband with PCs. Existing Airtel landline customers to get special prices on HCL Laptops and PCs Broadband speeds of upto 2 Mbps coupled with rich content such as music downloads and online gaming Jaipur, April 20, 2007: Airtel Broadband & Telephone Services, India’s largest private broadband and telephone service provider, today completed the first phase of rollout of its network in Jaipur.
The Pink City will now form part of Airtel’s network of broadband and telephone services in 94 cities across the country with over 1. 88 million customers. The Company will offer world-class fixed line and broadband services to customers in Jaipur with a variety of plans to choose from. As an endeavour to further promote broadband penetration in the city, Airtel announced a strategic alliance with HCL – wherein a Airtel broadband connection will be offered with every HCL PC. Existing Airtel landline customers buying HCL PCs will also be given a special price on the fastest selling models of HCL PCs, starting from Rs. 9,000 for a desktop and Rs. 29,000 for a laptop. Speaking on the occasion, Mr. Manoj Kohli, President & CEO, Bharti Airtel Limited said, “The Government of India has declared 2007 as the year of broadband and it will be our endeavour to increase broadband penetration in the country and bring world-class services to our customers. In line with our strategy of focusing on key markets for growth, we believe that Jaipur is one of the main cities with huge potential for socioeconomic development and Airtel will be a catalyst in facilitating business, educational and cultural exchanges. Added Mr. Atul Bindal, President, Airtel Broadband & Telephone Services, “At Airtel, our focus is on providing ‘More Value’ to our customers. We believe in providing world-class services that offer a rich broadband and telephony experience to our customers. It is also our endeavour to enable customers to ‘Do More’ with the same telephone connection. We are very happy to introduce these initiatives in Jaipur, which are aimed at driving the PC and broadband penetration further. ” Airtel will offer broadband speeds of upto 2 Mbps to its customers in Jaipur.
The Company also offers its broadband customers a variety of content services such as Games on Demand, [email protected], InTouch and Online Test Preparation packs. Games on Demand in an exciting online gaming service that enables customers to enjoy unlimited access to blockbuster games through the Airtel Broadband Consumer Portal, for just Rs 199 per month. With [email protected] Airtel broadband customers can download high quality 28 full digital tracks at affordable prices. InTouch is a Video Postcard service allows customers to send video messages to their loved ones.
Online Test packs from Airtel offer customers online competitive tests for GRE, GMAT, SAT and MBA. 29 Source: www. bhartiairtel. in Sunil Bharti Mittal conferred Degree of Doctor of Science (Honoris Causa) by G. B. Pant University New Delhi, April 21, 2007: The prestigious Govind Ballabh (G. B. ) Pant University of Agriculture & Technology has conferred the Degree of Doctor of Science (Honoris Causa) on Mr. Sunil Bharti Mittal, Chairman & Group CEO, Bharti Enterprises. The honour has been conferred on Mr.
Mittal for his invaluable contribution for the welfare of society and the nation as a whole, in the field of his profession in particular and other areas of public interest in general. The degree was awarded to Mr. Mittal by the Hon’ble Governor of Uttarakhand & Chancellor of G. B. Pant University of Agriculture and Technology H. E. Shri Sudarshan Agarwal on the occasion of 23rd Covocation of the University held today at its campus in Pant Nagar. Also present at the occasion were the Hon’ble Chief Minister of Uttarakhand Maj. Gen. (Retd. B C Khanduri, Hon’ble Speaker of Uttarakhand assembly Shri Harbans Kapoor, Minister of Agriculture Shri T S Rawat, former Chief Justice of India Shri M N Venkatachaliah and the Vice Chancellor of the University Dr. P L Gautam. Receiving the honour Mr. Mittal said, “I am delighted to receive this singular honour from such a renowned institution. The award of this prestigious degree of Doctor of Science is a testimony to the work that I led through Bharti Enterprises towards some key transformational projects, which have served the nation in a very meaningful manner.
I would like to offer my sincere thanks to the University for having considered me for this high honour”. The honour from the G. B. Pant University is yet another recognition of the immense contribution made by Mr. Sunil Bharti Mittal towards the society and the nation. Mr. Mittal was recently conferred the coveted Padma Bhushan Award by the Government of India for his contribution towards the development of a world-class telecom sector in the country further resulting in the economic development of the nation.
The Institution of Electronics and Telecommunication Engineers (IETE) has also conferred its highest honour ‘The Honorary Fellowship’ for 2006 on Mr. Sunil Bharti Mittal for his scientific vision and invaluable contribution to the progress of electronics & telecommunications. The G. B. Pant University of Agriculture and Technology was established in 1960 as a first Agricultural University in the country. The G. B. Pant University is a symbol of successful partnership between India and the United States.
The establishment of this university brought about a major change in agricultural education, research and extension. It paved the way for setting up of other agricultural universities in the country. 30 Source: www. bhartiairtel. in Bharti Airtel reduces its ISD Tariffs • • • • Rates reduced by 11% on International calling Benefit to over 35 million Airtel mobile users across India Calls to USA, Canada, Europe (fixed line), South East Asia, Australia & New Zealand for as low as Rs. 6. 40 per minute ISD calling from mobile has become more economical than Fixed/Landline phones
New Delhi, April 01, 2007: Bharti Airtel, India’s leading telecom services provider today announced the reduction in International Long Distance Tariffs (ISD) for all its mobile customers in India. This is in line with the company’s endeavour to make International calling more affordable and deliver greater value to its growing number of mobile users. With effect from 1st April 2007, Airtel mobile customers can call USA, Canada, Australia and many other countries (details given in table below) for as low Rs 6. 40 per minute – a reduction of 11% from the earlier rates.
With this, Airtel has made ISD calling from mobile more economical than making ISD calls from Fixed/Landline phones. This spell huge benefits for the mobile user as Airtel continues to lead in driving affordability in the Indian telecom market. “India is a global economic powerhouse today with business interests spanning boundaries. We also have a large and growing base of over 22 million Non Resident Indians. I am happy that Airtel is taking a step further to dissolve these boundaries and bring people closer to connect with their business associates, friends and family internationally.
Being the industry leader, we will continue to be at the forefront in driving affordability and providing greater value to our customers. ”, said Mr. Sanjay Kapoor, President, Mobile Services, Bharti Airtel. The new tariffs are applicable from April 1, 2007. International Calling Destinations USA, Canada, Europe (Fixed Line), Singapore, Hong Kong, Thailand, Indonesia, New Zealand Australia, Malaysia, New tariff Old Tariff in Reduction % in Rs. Rs. 6. 40 7. 20 11% Gulf, Europe (Mobile), SAARC countries, Africa & Rest of the world* * excluding some select countries 9. 20 9. 99 8% 31 Source: www. bhartiairtel. in
Airtel ushers in simplified roaming tariffs Reduces roaming tariffs across India • • • Roam seamlessly with India’s largest mobile network No roaming rental , No roaming surcharge, No security deposit Benefit to over 33. 73 million Airtel mobile users across India New Delhi, February 14th 2007: Reiterating its commitment to driving affordability in the Indian telecom market, Bharti Airtel India’s leading mobile services provider announced a reduction in roaming tariffs that are at par with existing local call tariffs. With effect from February 15, 2007 Airtel mobile users can avail significant lower roaming tariffs.
All local calls while roaming will be charged at Rs 1. 40 per min. , STD calls at Rs 2. 40 per min and incoming calls while roaming will be charged at Rs 1. 75 per minute. These revised tariffs spell huge benefits for the Airtel user as they save close to 55% on local calls and 40% on STD calls. Equally promising are savings on incoming calls while roaming that are around 56%. In addition, the monthly roaming rental of Rs. 49 has been waived off. Mr Sanjay Kapoor, Joint President, Mobile Services, Bharti Airtel Limited, said, “Every Indian travels across the country for work, to meet their social commitments or on vacation.
We now usher in an era of simplified roaming tariffs wherein all Airtel mobile users will benefit from our seamless network and have the opportunity to make calls while traveling anywhere in India. ” Type of Roaming Calls ( Rs. /Min) Rental Outgoing calls Incoming calls SMS National Roaming Local/intra circle calls STD(Inter-circle) calls All National Old Rates Rs 49 2. 89- 3. 09 3. 54 – 3. 99 3. 54 – 3. 99 3. 45 New Rates Nil 1. 40 2. 40 1. 75 2. 00 Savings upto (%) 100% 55% 40% 56% 42% 32 Source: www. bhartiairtel. in Global money transfer pilot project launched in India by Bharti and GSMA
New Delhi, February 12, 2007: Bharti Airtel has joined hands with The GSM Association to launch a pilot programme that will eventually enable over 25 million Indians abroad to remit money to India through their mobile phones. In this initiative for India, Bharti Airtel and State Bank of India have created an innovative public/private partnership to serve Indians at home and abroad. “We believe that this coming together of the mobile and banking industry is a giant leap in mobile commerce,” added Sunil Bharti Mittal, Chairman & Managing Director, Bharti Enterprises; Board Member of the GSM Association, and the board sponsor of this programme. It will revolutionise the money transfer industry with its advantages, such as reach, ease of use, and lower transaction costs and provide immense benefits to 25 million of Indians across the world and their families in India. ” India is the biggest recipient of overseas remittances in the world at $25bn, accounting for around 10% of the world market. The remittances market is growing by 20% in India every year. This programme will enable global Indians to easily and securely send remittances to their dependents, many of whom don’t have bank accounts.
Intent is to enable individuals access to the benefits of a full range of financial services regardless of socio economic level or geographical location using the ubiquity and ease of mobile communications. The programme will complement existing local remittances channels and make transferring money internationally significantly more affordable. Mr. O. P. Bhatt, Chairman, State Bank of India, India’s largest bank, added: “We are happy to partner with the GSM Association in this landmark project.
We piloted a project in a small Himalayan village of Pithoragarh in India with Airtel and have seen the tremendous results in this unbanked village. This project has the potential of transforming the lives and economies across the globe” About the GSMA Programme The pilot programe launched by GSM Association is aimed at tapping the ubiquity and ease-of-use of mobile communications to enable the world’s 200 million international migrant workers to easily and securely send remittances to their dependents, many of whom don’t have bank accounts.
By exploiting the extensive reach of the mobile networks, the programme will complement existing local remittances channels and make transferring money internationally significantly more affordable. Spearheaded by a special group of 19 mobile operators with networks in over 100 countries and representing over 600 million customers, the GSMA believes the programme could double the number of recipients of international remittances to more 33 than 1. 5 billion, while helping to quadruple the size of the international remittances market to more than $1 trillion by 2012. 34
CHAPTER-3 COMPANY PROFILE 35 BHARTI TELE-VENTURES LTD. (BTVL) The premise of the telecommunications business is simple- there is no billing, no revenue and hence, no profit, with the usual threat of survival. In the highly competitive and growing Indian market, Bharti Tele-Ventures Limited Group Company is the leading wireless access, data solutions, and long distance services provider. It has well understood that the only way it can sustain and grow is by being price competitive, with services that meet customer expectations for quality and continuous availability.
Bharti Tele-Ventures Ltd (BVTL) was incorporated on July 7, 1995 as a public limited company. BTVL is a leading private sector provider of telecommunications services. By the end of April 2004, it had an aggregate of 7. 6 million customers, out of which over 7 million were mobile customers. Among the 23 circles in India, the company offers mobile services in sixteen; it also provides fixed line services in 5 circles. The company complements its mobile and fixed-line services with national and international long distance service.
It has a submarine cable landing station at Chennai, which connects the submarine cables between Chennai and Singapore. By leveraging its nation-wide fibre optic backbone, last mile connectivity in fixed line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing stations, the company provides reliable end to end data and enterprise services including VSAT and internet services to the corporate customers. Business is conducted through its subsidiaries. The company holds 99. % in Bharti Cellular Limited mobile circles except the circles of Punjab, AP, Karnataka, where it holds 100%. It even holds 100% in Bharti Infotel Limited which operates in fixed line, long distance and group data services. Finally, Bharti Aquanet Ltd. holds 51% and also owns landing station in Chennai. 36 Business Divisions • Mobile: According to COAI reports by the end of March 31,2004, approximately 90% of India’s total number of GSM mobile customers resided within the Bharti’s mobile customer base which accounts for approximately 25% of the total all India GSM mobile base.
This has made Bharti the largest GSM mobile service provider in the country. • Fixed-Line: Bharti was the first private sector operator to provide fixed-line services in India. Currently they provide fixed-line services in the circles of Madhya Pradesh, Chattisgarh, Haryana, Delhi, Karnataka, and Tamil Nadu. The circles have high telecommunications revenue potential especially for carrying data traffic. • Long-distance, group data and enterprise services: Long distance and enterprise services gets enormous support from the submarine cable landing station at Chennai.
This also facilitates the company to offer best value to the customers. The company matches the mobile and fixed-line services with national and international long distance services and provides these services across India. Mobile footprint The company believes that the demand for mobile services in India will continue to grow rapidly as a result of the following factors: • Lower tariffs and handset prices over time. • Constant growth in the category of Pre-paid customers • Continued development of India’s economy leading to greater economic growth. • Greater variety and usage of value added services.
Strategies of the Company • Capture maximum telecommunications revenue potential with minimum geographical 37 coverage. • Position itself to tap Data transmission opportunities and offer advanced mobile Data services. • Focus on satisfying and retaining customers by ensuring high level of customer satisfaction. • Leverage strengths of its strategic and financial partners • Emphasizes on Human Resource Development to achieve operational efficiencies. • Focus on Telecommunication to enable the company to better anticipate industry trends and capitalize on new telecommunications related business opportunities.
Human Resources • It has been ranked as the 14th best employer amongst the top 25 companies in India. It is also the only company whose HR Department has received a special award for aligning People Systems to business need. • Their strong beliefs that people are the key differentiators and make the biggest difference for a successful business has encouraged and made them to create an organization powered by unique structure, systems and leadership style. • The company nurtures an environment where people are respected and their uniqueness is valued.
This has resulted in a vibrant, productive, people oriented and progressive workplace. • Their business and people philosophy is guided with a framework of strong values and has resulted in differentiating them as an employer of choice in today’s market p lace. • Formal job description documents are issued to all the employees clearly mentioning “key results area”. They believe that an individual can be effective only when he/she knows what is expected of him/her. • This has helped the company in setting goals, communicating to each of the employees about the expectations from them and also in establishing role clarity. 8 Key Strengths Bharti Tele-Ventures have created strong brand name recognition and a reputation for offering high quality services to its customers. Not only does it have a quality management team with a vision and proven execution skills, it also has strong relationships with international strategic and financial investors. Some of them are: Sins Tel, Warburg Pincus, International Finance Corporation, Asian Infrastructure Fund Group and New York Life Insurance. Future Plans The company is considering the proposal of pumping in Rs. ,000 cr in the current fiscal, out of which around 65% of the investment is expected in the mobility business and the balance in ixed-line services. The company has also plans to list on the NASDAQ in 2005-5, which is likely be another trigger. In terms of top line revenue, mobile telephony services are expected to fetch about 60% and the rest is expected to come from fixed-line services. The company is also planning to acquire companies in East Asia, West Asia and Africa. It also intends to raise Rs. 3, 000 Crores through a planned overseas listing. Following its recent acquisition of Hexacom in Rajasthan, he Bharti Group firm is considering the acquisition of one more company in the country by the end of this financial year. 39 COMPANY- AIRTEL Airtel comes to us from Bharti Cellular Limited – a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA.
Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world class products and services. Established in 1976, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Bharti has many joint ventures with world leaders like Singtel (Singapore Telecom); Warburg Pincus, Telia, Sweden; Asian infrastructure find, Mauritius; International Finance Corporation, USA and New York Life International, USA. Bharti is the leading cellular service provider, with a footprint in 15 states covering all four metros and more than 7 million satisfied customers.
Airtel’s the leading mobile service provider is now present across 135 towns in Karnataka andis available over 58 showrooms and 13000 outlets . To help serve the customer better AirtelKarnataka has three offices, one each in Bangalore (Bangalore Zone), Hubli (North Karnataka) & Mangalore (South Karnataka). “To make mobile communications a way of life and be the customers’ first choice. ” To meet the mobile communication needs of customers through: • Error- free service delivery • Innovative products and services • Cost efficiency • Unified Messaging Solutions 40 BHARTI VALUES Inn venturing Generate and implement entrepreneurial and innovative ideas, which will continuously create new growth engines. Customer First • Committed to delivering service beyond the expectations of the customer. The quality of customer responsiveness clearly differentiates us from others. Performance Culture • Benchmark the processes and performance against world-class standards. Distinguishing between formers and non-performers and by valuing achievement at the individual as well as the team level. A culture of inclusiveness where feedback, learning and ideas are actively encouraged, sought and acted upon.
Valuing Partnership • Committed to building exemplary relationship with the partners, which stand on the principles of mutual trust and mutual growth. Valuing People • Nurture an environment where people are respected and their uniqueness is valued. Belief that people are the key differentiators. Responsible Corporate Citizenship • Committed to making a positive and proactive vie contribution to the community. As a responsible corporate citizen the company will contribute to and abide by environmental and legal norms. Ethical Practices • Uphold the highest ethical standards in all internal and external relationship.
The company will not allow misuse or misrepresentation of any kind. 41 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 practices2000 • The Golden Peacock National Quality Award-2001 Airtel & Visual Identity For a brand to be successful, it must build enduring relationships with its different audiences. Integral to this relationship is the visual image of the brand the consumer arries in his/her mind. The Airtel brand image is created through the consistent application of a carefully developed visual identity, which helps Airtel distinguish itself, cluttered market. Airtel’s visual identity helps create instant brand recall and strengthens the relationships that its audiences have with it. The Airtel visual identity has different elements that work together to create a strong and consistent identity for the brand. The most important of these are: 42 The Airtel Logo The Airtel logo is a strong, contemporary and confident symbol for a brand that is always ahead of the rest.
It is a specially drawn wood mark. The Airtel Image style It incorporates two solid, red rectangular forms whose counter form creates an open doorway. The Airtel Typographical style The title case lettering with its capital ‘A’ was deliberately chosen to reinforce the brand’s leadership position. The red dot on the letterform ‘I’ cues Airtel’s focus on innovation. The words’ Express Yourself’ are weren’t in Humanist 777 BT typeface, very much part of the brand identity. The Airtel Color Palette The lettering is grey so that the pure black of Airtel is visually unharmed. 43 Airtel Advertising
The relationship between advertising and visual identity is a complex one and must be understood clearly. Campaigns are born in response to market trends, to competitor activity, to new product launches. Unlike visual identity, advertising must be constantly reinvented to engage target audiences and garner mind share. Yet, applications in this area entail large budgets and are surely the most visible of all brand identity channels. They present extremely powerful opportunities to reinforce Airtel? s visual identity and therefore can be equally dangerous if they misuse or dilute it. Remember that the way an ad looks does not constitute Airtel? visual identity. The brand’s visual identity is made up of the logo, the typographical style, the color palette and the image style. SERVICES Airtel Prepaid Airtel Prepaid, the Ready Cellular Card from Airtel comes from Bharti Enterprises, India’s leading integrated telecom service provider. Going mobile with Airtel Prepaid is a new way of life. With a host of great features, also simple to use, Airtel Prepaid makes everything that are dreamlands believed, possible Aisi azadi aur kahaan? Airtel Prepaid, the Ready Cellular Card from Airtel comes to you from Bharti Enterprises, India’s leading integrated telecom service provider. 4 FREEDOM OF SPEECH REDEFINED… Going mobile with Airtel Prepaid is a new way of life. Some of the many advantages that a customer will enjoy with Airtel Pre-paid… • Total Cost Control Enjoy the liberty of total cost control with Airtel Pre-paid! Re-charge as much as the customer feels the need to! This is called a complete freedom! • No Rentals Buy an Airtel prepaid card without having to pay any rentals! • No deposits The Airtel prepaid card comes without having to pay heafty deposits! • STD/ISD facility till the last rupee Now experience complete freedom like never before with Airtel!
The STD/ISD facility allows the customer to make long distance calls in India and Overseas from the cellular phone! • Instant Balance Inquiry Check the talk-time instantly by calling the toll-free number! • 60-second pulse Airtel provides the customer with a 60-second pulse rate! Freedom for the customer to experience like never before! • Instant Recharge 45 The customer can avail themselves of instant recharge on the pre-paid card with just a few simple steps! • 24-hour recharge facility With the round-the-clock recharge facility, the customer recharge Airtel prepaid card anytime, anywhere! Caller Line Identification Call Line Identification gives the customer the power to know the phone number of the calling party even before they answer the call, thus giving them the choice to either reject or take the call. It provides the added advantage of saving the incoming number directly in the Handset Phone Book, so that the next time the customer want to call the same person, they do not need to retype his/her number, simply they can use the phone book. • Call Divert, Call Hold and Call Wait The customer can avail themselves of special services like call waiting, call hold and call divert – all with their Airtel prepaid card! Short Messaging Service (SMS) With Airtel’s Short Messaging Service (SMS), the customer can send messages and jokes to their friends and colleagues, anytime anywhere! • SMS based Information Services With Airtel’s SMS based information services, the customer can get up-to-the-minute cricket scores, order flowers as well as send couriers or check their daily horoscope! • Voice Mail service Voice Mail lets the customer receive messages even when their handset is switched off or when they are outside the coverage area. They can listen to their messages whenever they feel like, from anywhere in the world.
Voice Mail can store up to 75 messages, with each message of two-minute duration. 46 Airtel Postpaid Airtel welcomes the customers to a vibrant world of unlimited opportunities. More exciting, innovative yet simple new ways to communicate, just when they want to, not just through words but ideas, emotions and feelings; to give them the unlimited freedom to reach out their special people in your special way. Experience complete freedom The Airtel Post-paid customer can enjoy the following facilities • Easy Billing The luxury of viewing details of their last 3 billing cycles and the convenience of paying their Airtel bill online! Call Divert, Call Hold and Call Wait Special services like call waiting, call hold and call divert – all with the Airtel Postpaid connection! • Short Messaging Service (SMS) With Airtel’s Short Messaging Service (SMS), the customer sends unlimited messages And jokes to their friends and colleagues, anytime anywhere! • Caller Identification Call Identification gives the customer the power to know the phone number of the calling party even before they answer the call, thus giving them the choice to either reject or take the call. It provides the added advantage of saving the incoming number directly in the Handset Phone Book. Voice Mail Voice Mail lets the customer receive messages even when their handset is switched off or when they are outside the coverage area. They can listen to their messages whenever they feel like, from anywhere in the world. Voice Mail can store up to 75 messages, with each message of two-minute duration. • STD/ISD Facility The STD/ISD facility allows the customer to make long distance calls in India and Overseas from their cellular phone! 47 • Roaming (National and International) Airtel’s Roaming service allows you to use your mobile phone to make or receive calls from almost anywhere in India and abroad!
Enjoy roaming within the country as well as across international destinations! Airtel MTV Card The best offers and the coolest of bargains on the hippest stuff on the market, download the hippest tunes from the hottest new tracks and dress up your phone with the latest wallpapers,ringtones, picture messages, screensavers and backgrounds! All this and loads more! Only with theMTV Airtel SIM! Airtel Roaming gives the customer two great options: • Airtel National – The customers can enjoy roaming in India across 42 partners networksand over 750 cities. • Airtel International – The customer can roam across international destinations, in early119 countries including USA, Canada, UK etc. with 284 partner networks. Long Distance The National Long-Distance facility allows the customers to make long distance calls in 48 India and Overseas from their cellular phone. This service is applicable to both Postpaid and Prepaid customers Specials: EasyCharge Recharge as and when customers like! New Airtel Prepaid brings to the nation a never before ‘Azadi’. Giving every Indian the right to be unconditionally, completely free! Free to never run out of words, explore every opportunity, reach out to anyone, anywhere and express them.
The customers can discover the world of New Airtel Prepaid; discover freedom like never before 49 Other Value added services with Airtel To subscribe for this service the customers can simply fill in the online AirTel form. Once the form has been processed they will be contacted at the earliest to complete the remaining formalities. If the customer wishes they could walk up to any of the AirTel showrooms across their city to apply for a connection and get activated instantly by paying in cash/ credit card. AIRTEL POSITIONING-REPOSITIONING.
From ‘Touch Tomorrow’ top ‘Live Every Moment’ In late 2002, Bharti Cellular Ltd. (Bharti), India’s largest cellular telephone company released a television Commercial (TVC), which despite using the ‘oft-repeated’ celebrity endorsement route was unusual in terms of its celebrity selection. Instead of using the usual movie stars/sports celebrities, it chose one of the country’s most successful music composers, A R Rahman to promote its brand. The campaign attracted considerable media attention because this was the first time Rahman had agreed to do a television commercial and also because, Rahman had been paid Rs. 0mn for the campaign, a sum usually unheard of, for celebrity endorsers in India. The campaign received brickbats as well as bouquets in the media, both for the selection of Rahman and the TVC’s execution. However, Bharti claimed to have scored an ace in terms of getting Rahman to compose five exclusive Symphonies downloadable as rind tones for Airtel users. The TVC was a part of the brand repositioning and restructuring efforts for Airtel, as part of which, Bharti changed the brand’s tagline in early -2002 from ‘ Touch Tomorrow’ to Live Every Moment’.
Thee company also decided to undertake a compressive brand-building program and choose the slogan ‘Unlimited Freedom’ for the same. Commenting on these changes, company source said, “Airtel’s brand identity and campaign will now have a new younger and international look and feel that builds on the earlier positioning”. 50 Bharti’s massive media expenditure plans were no surprise, considering the fact that it was the largest cellular telecom company in the country— reaching over 600million people in 16(out of29) states in India. The company posted revenue of Rs. 8. 8 billion and a net loss of Rs. 1 billion in the financial year 2000-01. The Airtel brand (and the prepaid card services brand, Magic) and top of–the-mind recall amongst cellular phone users and enjoyed a leadership position in most markets. Industry observers attributed it to Bharti’s strong brand and positioning strategies. Repositioning Airtel – Once again! Owing to consistent marketing efforts, the Airtel and Touch Tomorrow Campaign became every popular. Therefore Bharti’s decision to withdraw this campaign (Touch Tomorrow) in 2002came as a surprise to many.
The new campaign was accompanied by a change in the logo as well. The data behind the new logo was to give Airtel a younger look. The logo symbolizes innovation, energy and friendliness. As a part of its restructuring and repositioning exercise, Bharti unveiled new brand architecture. The proposed two-tiered architecture has categories under two head – wired and wireless. All the wireless products were placed under the Airtel brand, which also included Tango, Free net and Magic. According to company sources, the objective of this new architecture was to establish Bharti as a global telecom company.
The company reportedly allocated Rs. 1 bn for media coverage and other brand building activities. Commenting on the new brand identity of Airtel, a Bharti spokesperson said, “Airtel’s brand identity and campaign will now have a new younger and international look and feel that builds on the earlier position of ‘Touch Tomorrow’ injected with renewed energy and heightened optimism. 51 CHAPTER-4 RESEARCH METHODOLOGY 52 4. 1 Type of Research: The project employs systematic, objective and quantitative research techniques using a well-structured questionnaire.
Customer Retention Strategies have been studied extensively in the mobile service industry. The research investigation is restricted to the existing/potential customers of AIRTEL in the Bangalore Metropolitan Area. The primary data was collected using a well structured questionnaire. The descriptions also involve cross analysis of respondents from different consumer segments entailing age, preference, and usage as variable parameters. Separate tables were furnished under specific headings, these were analyzed with the help of descriptive analysis and percentage, and the data was analyzed and interpreted.
Detailed charts are developed showing the data obtained from the respondents; the data collected from the respondents were organized, processed and tabulated to depict the results. Since our research investigation is highly qualitative in nature, the research data has not been subjected to rigorous quantitative treatment. It is our belief and conviction that the qualitative analysis is as useful as quantitative analysis in drawing significant inferences and making projections. 4. 2 Sampling Technique.
Since the population for the study is quite large and since the study is limited by the constraints of resources and time, complete enumeration of the population by census method was not possible. Hence, the project used random sampling technique. Respondents were mostly selected from the youth segments, who were the major respondents of the survey. The advantage of this technique is that it is both economical and reasonably reliable. 4. 3 Sample size. The sample size comprises 100 respondents. The sample size of 100 respondents is considered by us to make reasonable projection in the study of this kind. . 4 Sample description. The sample description includes customers of Airtel in both prepaid and postpaid sections. The youth segment was taken as the respondents because they are more prone to 53 switch to different service providers and usually they are the trendsetters. Hence it is our strong belief if we could develop strategies to retain them, its easier to retain the other segments too. 4. 5 Instrumentation technique. • • • Structured questionnaire. Observation technique. Tables/charts. 4. 6 Actual collection of data.
Data has been collected from various sources, there is a combination of both primary and secondary data that has been used in this research. A well-administered questionnaire has formed the main profitable source of the primary data collection. This enabled us to capture a first hand insight into the actual findings of the research. Published articles relating to customer retention in the mobile service industry and also papers submitted by renowned people have formed the source of secondary data. Articles have been sourced from magazines and journals dealing with current issues in mobile service industry.
Internet a major secondary source for the extraction of the expert’s opinion. 4. 7 Limitation of the study. This study was restricted to the city of existing customers of AIRTEL in Bangalore Metropolitan Area and therefore the results of this study can not be generalized. Due to the time constrain, an extensive research could not be undertaken, therefore the sample size was restricted to 100 respondents only. Analysis of the data obtained from the questionnaire was done on the assumption that: the respondents gave the correct information to the best of their knowledge.
Preferences and responses of customers could change over a period of time necessitating
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