37774434 bsnl project mba

8/8/2019 37774434 Bsnl Project Mba

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A study on

CUSTOMER RELATONSHIP MANAGEMENT

IN

BHARAT SANCHAR NIGAM

LIMITED % GMTD

RAJAHMUNDRY

A Project report Submitted to Andhra University in the

Partial fulfilment of the Requirement for the Award of the

Degree ofMASTER OF BUSINESS ADMINISTRATION

Submitted by

KOLA GANESWARA RAO

REG.NO 109287302011

(2009-2011)

Under the Guidance of

SriJJJ JEEVAN RAM

Lecturer in management studies

SREE RAMA INSTITUTE OF MANAGEMENT

(Sponsored by Sree ^aira Educational Society)

.

Affiliated to Andhra University / A I.C.T.E. New Delhi.

. Pydiparru, TANUKU -534211 W.G.Dist (A.P) Andhra Pradesh


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ACKNOWLEDGEMENT.

I Would like to express my Sincere thanks to P. Srinivas, MBA.,

HEAD, PG Dept., of Management Studies, ( MBA) for

his Constructive Cooperation and Valuable Guidance throughout the Course and also

during the Project Work.

I am Grateful to my Project guide Sri. J. J J. JEEVAN RAM, MBA,

lecturer in management Studies for his valuable guidance and Suggestions to

complete this project report successfully.

I express my gratitude to Sri. G. RAGHAVENDRA RAO, I.T.S.,

GENERAL MANAGER East Godavari Telecom Division. Sri. G.V. Manoj kumar,

I.T.S Dy. General Manager(AP) BSNL, RJY. Sri. Y. Prabhakar Rao AGM(CFA)

%GMTD Rajahmundry.

I am also thankful to Sri. P. Narasimha Rao, Divisional Engineer

(Admn.)% GMTD Rajahmundry. Express my thanks to Sri. CH. VENKATA

RAO , SDE (MKTG&PR) BSNL, RJY for Providing me With the opportunity to do my

project in their organization.

I express my thanks to My parents, and friends Who helped and

Supported me a great extent to complete this Project. Further I thank the Almighty in

Bestowing his blessings on me for Successful completion of my studies.

K. Ganeswara Rao.


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CONTENTS

CHAPTER-I 1

INTRODUCTION OF THE STUDY

OBJECTIVES OF THE STUDY

SCOPE OF THE STUDY

METHODOLOGY OF STUDY

LIMITATIONS OF THE STUDY

CHAPTER-II 15

INDUSTRY PROFILE

CHAPTER-IH 23

COMPANY PROFILE

CHAPTER-IV 42

THEORETICAL FRAME WORK

CHAPTER-V 74

ANALYSIS & INTERPRETATION

CHAPTER-VI 86

FINDINGS

SUGGESTIONS

BIBLIOGRAPHY 88

QUESTIONNAIRE 89


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INTRODUCTION

Customer relationship management (CRM) , is a number of

strategies and technologies that are used to build stronger relationships

between companies and their customers. A company will store

information that is related to their customers, and they will spend time

analyzing it so that it can be used for this purpose.

Some of the methods connected with CRM are automated, and the

purpose of this is to create marketing strategies which are targeted towards

specific customers. The strategies used will be dependent on the

information that is contained within the system. Customer relationship

management is commonly used by corporations, and they will focus on

maintaining a strong relationship with their clients.

There are a number of reasons why CRM has become so important

in the last 10 years. The competition in the global market has become

highly competitive, and it has become easier for customers to switch

companies if they are not happy with the service they receive. One of the

primary goals of CRM is to maintain clients. When it is used effectively, a

company will be able to build a relationship with their customers that can

last a lifetime. Customer relationship management tools will generally

come in the form of software. Each software program may vary in the way

it approaches CRM. It is important to realize that CRM is more than just a

technology.

Customer relationship management could be better defined as

being a methodology, an approach that a company will use to achieve

their goals. It should be directly connected to the philosophy of the

company. It must guide all of its policies, and it must be an important part


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of customer service and marketing. If this is-"not done, the CRM system

will become a failure. There are a number of things the ideal CRM system

should have. It should allow the company to find the factors that interest

their customers the most. A company must realize that it is impossible for

them to succeed if they do not cater to the desires and needs of their

customers. Customer relationship management is a powerful system that

will allow them to do this.

It is also important for the CRM system to foster a philosophy

that is oriented towards the customers. While this may sound like common

sense, there are a sizeable number of companies that have failed to do it,and their businesses suffered as a result. With CRM, the customer is

always right, and they are the most important factor in the success of the

company. It is also important for the company to use measures that are

dependent on their customers. This will greatly tip the odds of success in

their favor. While CRM should not be viewed as a technology, it is

important to realize that there are end to end processes that must be

created so that customers can be properly served. In many cases, these

processes will use computers and software.

Customer support is directly connected to CRM. If a company fails

to provide quality customer support, they have also failed with their CRM

system. When a customer makes complaints, they must be handled quickly

and efficiently. The company should also seek to make sure those mistakes

are not repeated. When sales are made, they should be tracked so that the

company can analyze them from various aspects. It is also important to

understand the architecture of Customer relationship management. The

architecture of CRM can be broken down into three


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categories, and these are collaborative, operational, and analytical. The

collaborative aspect of CRM deals with communication between

companies and their clients.

The telecommunications market, in the last few years, has seen incredible

Technological advancement, which has fueled massive consumer adoption

and brutal competition driven by commoditization. To drive profits in this

business. You must increase the average lifetime value per customer and

minimize the service cost even as service choices increase. Common to all

of our customers in the telecom sector is an abiding belief in delivering the

best service to customers by investing in technology that empowers

consumers and service agents to have intelligent, productive conversations.

In a marketplace where consumers are increasingly aware of their choices,

consistent service quality is the foundation of a durable brand.

TELECOMMUNICATION SECTOR

The sector that includes the telecommunications service providers,

network operators, regulators, manufacturers, subscribers, and users.

The telecom sector has seen much change during the past two

decades. At first, it was the opining up of the equipment manufacturing

sector, followed by the corporatisation of the government owned entities,

Videsh Sanchar Nigam Limited (VSNL) and Mahan agar Telephone

Nigam Limited (MTNL). Subsequently, the sector was opened for private

participation in basic other value added services. The most recentliberalization moves have been the corporatization of the Department

of Telecom into Bharat Sanchar Nigam Limited (BSNL) and the

privatization of VSNL.


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CRM AND THE TELECOM SECTOR

An effective CRM system includes tools such as a skilled customer care

staff and leading edge automation and workflow management software

platforms. With this tool, it is possible for a telecom company to track

sales enquiries, trouble tickets, emails, telephone calls, and customer

satisfaction surveys.

INDUSTRY CHALLENGES AND E-GAIN SOLUTIONS

CUSTOMER SERVICE IS KEY TO SALES AND LOYALTY

Telecom, especially mobile telecom, is a highly competitive and

increasingly mature market. As network coverage, handsets, and price

plans become less important as differentiators, customer service is

increasingly seen as the key factor in customer acquisition and customer

retention.

INCREASING PRODUCT AND SERVICE COMPLEXITY:

Mobile telephony providers face a significant challenge to introduce and

support the range of new products and services such as email, multimedia

messaging, and synchronization with handheld devices, etc.

Aliant, for instance, has achieved a 17% reduction in call handle

time, which is translates to a saving of approximately $ 1.5 million in

operating staff expenses


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THE OPPORTUNITY FOR SELF-SERVICE:

Organizations would like to reduce the costs of customer care by

deflecting calls to web-based service channels, preferably to self-service.

CUSTOMER SERVICE BECOMES THE DIFFERENTIATOR:

With the commoditization of products and services, fuelled by greater

access to competitive information over the web, customer service is one of

the few ways organizations can themselves and increase market share.


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OBJECTIVES OF THE STUDY

To find out the relationship by knowing the satisfaction level of

subscribers about the telecom industry.

To know the customer opinion about tariff rates of BSNL.

Creating awareness to BSNL subscribers about the facilities in

prepaid and postpaid connections.

Analyzing the problem faced by BSNL subscribers

Analyzing which connection is more used by customers.

Analyzing which type of topping is more used by customers.

Analyzing the satisfaction level of customers towards BSNL

connection.

SCOPE OF THE STUDY:

The study is conducted on BSNL prepaid and postpaid users at 'BSNL

CUSTOMER SERVICE CENTER. The study is confined to the area

of RAJAHMUNDRY. The size of the sample was 50.


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METHODOLOGY

MARKETING RESEARCH

Definition of marketing research is approved by the board of the American

Marketing Association (AMA) is:

"Marketing research is the functions which links the customer and public

To marketer through information used to identity and define marketing

Opportunities and problems; generate define and evaluate, marketing

Actions, monitor marketing performance, and improve understanding of

Marketing as a process. Simply, marketing research is the systematic

design, collection, analysis and Reporting of the data findings relevant to a

specific marketing situation facing the company.

Careful planning through all stages of the research is a necessity.

Objectivity in research is all- important. The heart of the scientific methodis The objective gathering and analysis of the information.

The function of marketing research within a company is to

provide the Information and analytical inputs necessary for effective-

Planning of future marketing activity.

Control of marketing operations in the present.

Evaluation of marketing results.


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A research may undertake any of three types of research

investigations depending upon the problem. These three types of research

included.

Basic research

Applied research

Designated fact gathering

BASIC RESEARCH

It is also known as the pure fundamental research which refers to thosestudies, sole purpose of which is the discovery of new information. It is

conducted to extend the horizon in given area of knowledge with no

immediate application to existing problem.

APPLIED RESEARCH

It is an attempt to apply the various marketing techniques, which have

been developed as research, first and later on they become applied

research techniques. It is an attempt to apply the basic principles and

existing knowledge for the purpose of solving the operational problems.

DESIGNATED FACT GATHERING

It refers to a research where the investigator attempts nearly to gather

some predetermined data.


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Steps in Marketing Research Process

Marketing Research Process can be carried out through the following

steps:

Define the problem and research objectives

Develop the research plan

Collect the information

Analysis and interpretations

Present the findings


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DEFINE THE PROBLEM AND RESEARCH OBJECTIVES

In a very sense, this is the heart of the research process. This is the first

step,which calls for the marketing manage and marketing research.

RESEARCH PLAN DEVELOPMENT

The second calls for developing the most efficient plan for gathering the

needed information. Not to forget the cost or values of research the

Marketing manager must estimate process its approval, Research plan

calls For decision on

a) Data source

I. Primary data to be collected for a specific purpose,

II. Secondary data collected for another purpose and already

existing somewhere.

1. Research Approaches: Primary data can be collected in four ways:

1. Observational research

2. Focus group research

3. Survey research

4. Experimental research

2. Research Instruments: Marketing researchers can use questionnaires

in collecting of primary data, because of its flexibility, questionnaires is

by for the most common instrument used to collect primary data.

3. Sampling Plan: This plan calls for the three aspects:-

a) Define the sampling unit.

b) Decide the sample size.

c) Decide the sampling procedure whether to use probability or

non-probability sampling methods.


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4. Contract method: once the sampling plan has been determined, this has

to decide how the subject should be contacted. The choices are mail,

telephone or research interviews.

COLLECTION OF INFORMATION

Data collection phase is generally the most expensive and the most phase

to error. Carry out the field Work, collect data using the instruments,

adjust the Problem of not at homes, replaced, refusal to co-operate, biased

or dishonest answers.

ANALYSIS AND INTERPRETATIONS

The next to last step is to extract pertinent findings from the collected data.

The researcher edits, code, tabulate the collected data.

PRESENTATION OF FINDINGS

As the last step in marketing research the researchers present the findings.

The researchers have to arrange the researched result according to an

approved reporting format, get the report typed and bound, present thecopies of the report to the concerned authorities.

RESEARCH METHODOLOGY/ DESIGN

The methodology adopted for eliciting the data required for the study was

survey method. It is the overall pattern or framework of the project that

will dictate as to what information is to be collected, from which sources

and by what procedures.


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RESEARCH METHOD

Research methodology must be classified on the basis of the major

purpose of the investigation. In this problem, description studies have

been under- taken, as the objective of the project is to conduct the market

share study to determine the share of the market received by both the

company and it's competitors,

DATA COLLECTION

The information needed to further proceed in the project had been

collected through primary data and secondary data.

PRIMARY DATA

Primary data consists of information collected for the specific purpose at

hand for the purpose of collecting primary data. Survey research is the

approach best suited gathering description,

SECONDARY DATA

The secondary data consists of information that already exist somewhere,Having been collected for another purpose. Any researcher begins the

research work by first going through the secondary data. Secondary data

includes the information available with the company.

It may be the findings of research previously done in the field.

Secondary data can also be collected from magazines, newspapers, other

surveys conducted by known research agencies etc.


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RESEARCH METHODOLOGY

The respondents are the mobile connection holders with BSNL toppings

facilities. The survey was carried in BSNL CUSTOMER SERVICE

CENTER at Rajahmundry with the sample size of 50. The survey was

carried out with the help of a structured questionnaire, which helps in

accomplishing the research objectives. The respondents by means of

personal interview administer this structured ended questionnaire.


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LIMITATIONS

The present study is subjected to following LIMITATIONS.

Method of data collection was through personal interview and

therefore bias becomes a major limitation.

Due to the time constraints all the customers were not covered.

The sample was restricted to 50 customers, which may restrict the

scope and completion of study.

The scope of study is restricted only to the Rajahmundry. Owing to their pre occupation some customers were unable to

answer the complete questionnaire.


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INDUSTRY PROFILE

The telecom network in India is the fifth largest network in the world

meeting up with global standards. Presently, the Indian telecom industry is

currently slated to an estimated contribution of nearly 1% to India's

The Indian. Telecommunications network with 110.Q1 million

connections is the fifth largest in the world and the second largest among the

emerging economies of Asia. Today, it is the fastest growing market in the

world and represents unique opportunities for U.S. companies in the stagnant

global scenario. The total subscriber base, which has grown by 40% in 2005,

is expected to reach 250 million in 2007. According to Broadband Policy

2004, Government of India aims at 9 million broadband connections and 18

million internet connections by 2007. The wireless subscriber base has

jumped from 33.69 million in 2004 to 62.57 million in FY2004- 2005. In the

last 3 years, two out of every three new telephone subscribers were wireless

subscribers. Consequently, wireless now accounts for 54.6% of the totaltelephone subscriber base, as compared to only 40% in 2003. Wireless

subscriber growth is expected to bypass 2.5 million new subscribers per

month by 2007. The wireless technologies currently in use are Global System

for Mobile Communications (GSM) and Code Division Multiple Access '

(CDMA).. There are primarily 9 GSM and 5 CDMA operators providing

mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns

across the country.


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Evolution of the industry-Important Milestones

History of Indian Telecommunications

Year

1851 First operational land lines were laid by the government near

Calcutta (seat of British power)

1881 Telephone service introduced in India

1883 Merger with the postal system

1923 Formation of Indian Radio Telegraph Company (IRT)

1932 Merger of ETC and IRT into the Indian Radio and Cable

Communication Company (IRCC)

1947 Nationalization of all foreign telecommunication companies to

form the Posts, Telephone and Telegraph (PTT), a monopoly

run by the government's Ministry of Communications

1985 Department of Telecommunications (DOT) established, an

exclusive provider of domestic and long-distance service thatwould be its own regulator (separate from the postal system)

1986 Conversion of DOT into two wholly government-owned

companies: the Videsh Sanchar Nigam Limited (VSNL) for

international telecommunications and Mahanagar Telephone

Nigam Limited (MTNL) for service in metropolitan areas.

1997 Telecom Regulatory Authority of India created.

1999 Cellular Services are launched in India. New National

Telecom Policy is adopted.

2000 DoT becomes a corporation, BSNL.


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Major Players

There are three types of players in telecom services:

-State owned companies (BSNL and MTNL)

-Private Indian owned companies (Reliance Infocomm, Tata

Teleservices,)

-Foreign invested companies (Hutchison-Essar, Bharti Tele-

Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications)

BSNL

On October 1, 2000 the Department of Telecom Operations, Government

of India became a corporation and was renamed Bharat Sanchar Nigam

Limited (BSNL). BSNL is now India's leading telecommunications company

and the largest public sector undertaking. It has a network of over 45 million

lines covering 5000 towns with over 35 million telephoneconnections.

The state-controlled BSNL operates basic, cellular (GSM and

CDMA) mobile, Internet and long distance services throughout India

(except Delhi and Mumbai). BSNL will be expanding the network in line

with the Tenth Five-Year Plan (1992-97). The aim is to provide a

telephone density of 9.9 per hundred by March 2007. BSNL, which

became the third operator of GSM mobile services in most circles, is now

planning to overtake Bharti to become the largest GSM operator in thecountry. BSNL is also the largest operator in the Internet market, with a

share of 21 per cent of the entire subscriber base.


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BHARATI:

Established in 1985, Bharti has been a pioneering force in the telecom

sector with many firsts and innovations to its credit, ranging from being

the first mobile service in Delhi, first private basic telephone service

provider in the country, first Indian company to provide comprehensive

telecom services outside India in Seychelles and first private sector service

provider to launch National Long Distance Services in India. Bharti Tele-

Ventures Limited was incorporated on July 7, 1995 for promoting

investments in telecommunications services. The group has a totalcustomer base of 6.45 million, of which 5.86 million are mobile and

588,000 fixed line customers, as of January 31, 2004. In mobile, Bharti's

footprint extends across 15 circles.

MTNL:

MTNL was set up on 1st April 1986 by the Government of India to

upgrade the quality of telecom services, expand the telecom network,

introduce new services and to raise revenue for telecom development

needs of India's key metros - Delhi, the political capital, and Mumbai, the

business capital. In the past 17 years, the company has taken rapid strides

to emerge as India's leading and one of Asia's largest telecom operating

companies. The Govt, of India currently holds 56.25% stake in the

company.


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MTNL has over 5 million subscribers and 329,374 mobile

subscribers. While the market for fixed wire line phones is stagnating,

MTNL faces intense competition from the private playersBharti,

Hutchison and Idea Cellular, Reliance Infocommin mobile services.

MTNL recorded sales of Rs. 60.2 billion ($1.38 billion) in the year 2002-

03, a decline of 5.8 per cent over the previous year's annual turnover of

Rs.63.92 Billion.

RELIANCE INFOCOMM:

Reliance is a $16 billion integrated oil exploration to refiner}' to power

and textiles conglomerate. It is also an integrated telecom service provider

with licenses for mobile, fixed, domestic long distance and international

services. Reliance Infocomm offers a complete range of telecom services,

covering mobile and fixed line telephony including broadband, national

and international long distance services, data services and a wide range of

value added services and applications. Reliance India Mobile, the first of

Infocomm's initiatives was launched on December 28, 2002. This marked

the beginning of Reliance's vision of ushering in a digital revolution in

India by becoming a major catalyst in improving quality of life and

changing the face ofIndia.lt has rolled out its CDMA mobile network and

enrolled more than 6 million subscribers in one year to become the

country's largest mobile operator. It now wants to increase its market share

and has recently launched pre-paid services. Having captured the voicemarket, it intends to attack the broadband market.
http://india.lt/http://india.lt/


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TATA TELESERVICES:

Tata Teleservices is a part of the $12 billion Tata Group, which has 93

companies, over 200,000 employees and more than 2.3 million

shareholders. Tata Teleservices provides basic (fixed line services), usingCDMA technology in six circles: Maharashtra (including Mumbai), New

Delhi, Andhra Pradesh, Tamil Nadu, Gujarat, and Karnataka. It has over

800,000 subscribers. It has now migrated to unified access licenses, by

paying a Rs. 5.45 billion ($120 million) fee, which enables it to provide

fully mobile services as well.

The company is also expanding its footprint, and has paid Rs. 4.17

billion ($90million) to DoT for 11 new licenses under the IUC

(interconnect usage charges) regime. The new licenses, coupled with the

six circles in which it already operates, virtually gives the CDMA mobile

operator a national footprint that is almost on par with BSNL and

Reliance Infocomm. The company hopes to start off services in these 11

new circles by August 2004. These circles include Bihar, Haryana,

Himachal Pradesh, Kerala, Kolkata, Orissa, Punjab, Rajasthan, Uttar

Pradesh (East) & West and West Bengal.

VSNL:

On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a

wholly Government owned corporation - was born as successor to OCS.

The company operates a network of earth stations, switches, submarine

cable systems, and value added service nodes to provide a range of basic

and value added services and has a dedicated work force of about 2000


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employees. VSNL's main gateway centers are located at Mumbai, New

Delhi, Kolkata and Chennai. The international telecommunication circuits

are derived via Intelsat and Inmarsat satellites and wide band submarine

cable systems e.g. FLAG, SEA-ME-WE-2 and SEA-ME-WE-3.

VODAFONE:

Mumbai, Septemberl9,2007:Vodafone, the world's leading international

mobile communications company, has fully arrived in India. Vodafone

Essar announced today that the Vodafone brand will be launched in India

from 21st September onwards. The popular and endearing brand, Hutch,

will be transitioned to Vodafone across India. This marks a significant

chapter in the evolution of Vodafone as a dynamic and ever-growing

brand. The brand change over the next few weeks will be unveiled

nationally through a high profile campaign covering all important media.

Vodafone Essar is the Indian subsidiary of Vodafone Group and

commenced operations in 1994 when its predecessor Hutchison Telecom

acquired the cellular license for Mumbai. The company now has

operations across the country with over 71.54 million customers. IDEA:

Indian regional operator IDEA Cellular Ltd. has a new ownership

structure and grand designs to become a national player, but in doing so is

likely lo become a thorn in the side of Reliance Communications Ltd.

IDEA operates in eight telecom "circles," or regions, in Western India,

and has received additional GSM licenses to expand its network into three

circles in Eastern India the first phase of a major expansion plan that it

intends to fund through an IPO, according to parent company Aditya Birla

group.


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Latest Customers + Revenue Market Share of Top5 Telecom Cos in

India

Results of all the Telecom Companies for the quarter ending June-2009:

BhartiAirtel has 24.3% customer market share and 33.8% revenue

market share.

Vodafone India has 18.8% customer market share and 20.7%

revenue market share.

Idea Cellular has 11.2% subscribers market share and 12.1%

revenue market share

BSNL has subscriber share of 12.7% and mere 10.2% of revenue

share

Reliance Communications is with 18.9% customer market share

and pathetic 11.5% revenue market share.

5

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airtel vodafone idea bsnl reliance

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COMPANY PROFILE

Type State-owned

Founded 19th century, incorporated 2000

Headquarters Bharat Sanchar Bhavan,

HarishChandra

Mathur Lane,Janapth,New Delhi

Key people Kuldeep Goyal(Chairman) & (MD)

Industry Telecommunications

Products wire!ess,telephone internet

television

Revenue USS 7.03 billion (2009)

Owners(s) The Government of India

Employees 357,000-march 31,2009

Web site www.bsnl.co.in
http://www.bsnl.co.in/http://www.bsnl.co.in/


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Bharat Sanchar Nigam Limited (known as BSNL, India

Communications Corporation Limited) is a state-owned

telecommunication company in India. BSNL is the fourth largest cellular

service provider, with over 53.96 million customers as of March 31, 2009

and the largest land line telephone provider in India. Its headquarters are at

Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New

Delhi. It has the status ofMini Ratna, a status assigned to reputed public

sector companies in India.

BSNL is India's oldest and largest Communication Service Provider

(CSP). Currently has a customer base of 90 million as of June 2008.f3] It

has footprints throughout India except for the metropolitan cities of

Mumbai and New Delhi which are managed by MTNL. As on March 31,

2008 BSNL commanded a customer base of 31.55 million Wire line, 4.58

million CDMA-WLL and 54.21 million GSM Mobile subscribers. BSNL's

earnings for the Financial Year ending March 31, 2009 stood at INR

397.15b (US$7.03 billion) with net profit of INR 78.06b (US$1.90

billion). BSNL has an estimated market value of $ 100 Billion. The

company is planning an IPO within 6 months to offload 10% to public in

the Rs 300-400 range valuing the company at over $100 billion.

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's

7th largest Telecommunications Company providing comprehensive

range of telecom services in India: Wire line, CDMA mobile, GSM

Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP

services, IN Services etc. Presently it is one of the largest & leading

public sector units in India.


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BSNL has installed Quality Telecom Network in the country and

now focusing on improving it, expanding the network, introducing new

telecom services with ICT applications in villages and wining customer's

confidence. Today, it has about 47.3 million line basic telephone capacity,

4 million WLL capacity, 49.76 Million GSM Capacity, more than 37382

fixed exchanges, 46565 BTS, 3895 Node B ( 3G BTS), 287 Satellite

Stations, 480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network

connecting 602 Districts, 7330 cities/towns and 5.5 Lakhs villages.

BSNL is the only service provider, making focused efforts and

planned initiatives to bridge the Rural-Urban Digital Divide ICT sector. In

fact there is no telecom operator in the country to beat its reach with its

wide network giving services in every nook & corner of country and

operates across India except Delhi & Mumbai. Whether it is inaccessible

areas of Siachen glacier and North-eastern region of the country, BSNL

serves its customers with its wide bouquet of telecom services.

BSNL is numero uno operator of India in all services in its license

area. The company offers vide ranging & most transparent tariff schemes

designed to suite every customer.

BSNL cellular service, CellOne, has 55,140,282 2G cellular

customers and 88,493 3G customers as on 30.11.2009. In basic services,

BSNL is miles ahead of its rivals, with 35.1 million Basic Phone

subscribers i.e. 85 per cent share of the subscriber base and 92 percent

share in revenue terms.


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BSNL has more than 2.5 million WLL subscribers and 2.5 million

Internet Customers who access Internet through various modes viz. Dial-

up, Leased Line, DIAS, Account Less Internet (CLI). BSNL has been

adjudged as the NUMBER ONE ISP in the country.

BSNL has set up a world class multi-gigabit, multi-protocol

convergent IP infrastructure that provides convergent services like voice,

data and video through the same Backbone and Broadband Access

Network. At present there are 0.6 million DataOne broadband customers.

The company has vast experience in Planning, Installation, network

integration and Maintenance of Switching & Transmission Networks and

also has a world class ISO 9000 certified Telecom Training Institute.

Scaling new heights of success, the present turnover of BSNL is more than

Rs.351,820 million (US $ 8 billion) with net profit to the tune of Rs.99,390

million (US $ 2.26 billion) for last financial year. The infrastructure alone

is worth aboutRs.630, 000million (US$14.37billion). BSNL plans to

expand its customer base from present 47 million lines to 125 million lines

by December 2007 and infrastructure investment plan to the tune of Rs.

733 crores (US$ 16.67 million) in the next three years.

The turnover, nationwide coverage, reach, comprehensive range of

telecom services and the desire to excel has made BSNL the No. 1

Telecom Company of India


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VISION

To become the largest telecom Service Provider in Asia.

Be the leading Telecom Service Provider in India with global

presence. Create a customer focused organization with excellence in sales,

marketing and customer care.

Leverage technology to provide affordable and innovative

products/services across customer segments provide a conducive

work environment with strong focus on performance Establish

efficient business processes enabled by IT.

MISSION

To provide world class State-of-art technology telecom services to

its customers on demand at competitive price,

To Provide world class telecom infrastructure in its area of

Operation and to contribute to the growth of the country's economy.

OBJECTIVES

To be the Lead Telecom Services Provider.

To provide quality and reliable fixed telecom service to our

customer and thereby increase customer's confidence.

To provide mobile telephone service of high quality and become

no. 1 GSM operator in its area of operation.

To provide point of interconnection to other service provider as per

their requirement promptly.

To facilitate R&D activity in the country.


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FINANCE:

Bharat Sanchar Nigam Limited, the largest Public Sector Undertaking of

the Nation, is certainly on a financial ground that's sound.

The Company has a net worth of Rs. 88,634 crores (US$ 17.40

billion), authorized equity capital of Rs. 10,000 crores (US $ 1.96 billion),

Paid up Equity Share Capital of Rs. 5,000 crores (US $ 0.98 billion) and

Revenues is Rs. 35,812 crores (US $ 7.03 billion) in 2008-09.

(Note: 1 US $ = 50.9500 INR as on 31-03-2009)

ASSETS:Bharat Sanchar Nigam Limited has got net fixed assets valuing more than

Rs. 54,321 Crores (US $ 10.67 billion), which are in the form of Land,

Buildings Cables, Apparatus & Plants etc. as on 31.03.2009.

REVENUE:

Revenue earned by BSNL during last five years


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Gross Investment in Fixed Assets:

The BSNL is making substantial investment year to year for its network

expansion and modernization. During the current financial year BSNL has

made the gross investment of Rs. 8,613 crore ( US $ 1.69 billion) in Fixed

Assets. These investments have been financed by the internal accruals.

Cumulative Capital Outlay

BSNL has Gross Fixed Assets of over Rs. 132243 Crores (US $ 25.96

billion) ason31.03.2009.


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GROWTH PLAN

BSNL's future plan include a fast expansion programme of increasing the

present 34 million lines to twice that number by 2005 and some 120

million lines by 2010.

The shift in demand from voice to data domination, and from wire

line to wireless, has revolutionized the very nature of the network. BSNL

has already set in place several measures that should enable it to evolve

into a fully integrated multi-operator by 2005 and its incumbent status,

size, infrastructure and human resource should certainly, give it a distinct

advantage.

Consolidation of the network and maintaining high quality of

service comparable to International standards is the key aim of the Growth

Plan. Objective of the plan are:

The telephone connection shall be provided on demand and it shallbe sustained

The Network shall be made fully digital. All the technologically

obsolete analog exchanges will be replaced with digital exchanges

To provide digital transmission links up to all SDCAs.

Digital connectivity shall be made available to all the exchanges by

2007.


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Extensive use of Optical fiber System in the local, Junction and

long distance network so as to make available sufficient

bandwidth for the spread of Internet and Information

technology.

ISDN services shall be extended to all the district headquarters,

subject to demand.

To provide Intelligent Network Services, progressively all over

the country (major cities have already been covered).

To set up Internet Nodes progressively up to District

headquarters level.

Upgrading existing STD/ISD PCOs to full fledged Public Tele-

Info Centers (PTIC) for supporting Multimedia capability and

Internet Access.

Replacement of life expired, analogue coaxial and radiosystems.

Introduction of Wireless technology (Supporting Internet

Access) and optical fiber technology in subscriber loop.

Introduction of latest telecom services like National directory

enquiry, computerization etc.

Cellular Mobile Service 'Cell One' of BSNL was launched on

19th October 2002 . The scheme will cover 4 million

customers in two phases. Phase-I will cover about 1.5 million

customers covering about 1000 cities during 2002-03, which

will be expanded to 4 million in phase-II.


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PROJECTS RECENTLY IMPLEMENTED/UNDER

DEVELOPMENT

National Internet Backbone of BSNL

Voice over IP

Broadband Services - ADSL & High Speed Internet

Managed Leased Line Network (MLLN)

Access Network - LMDS, DLCs, RLC etc.

Internet Exchange Points - IXP & Internet Data Centers (IDC)

E-Commerce.

National Internet Backbone OF BSNL

The National Internet Backbone of BSNL consists of 432 Point of

Presence( POP) that gives it the capability of transporting IP traffic from

every hook and corner of the country. This network provides internet

services to more than 1 million dial-up customers including about 3.5 lakh

customers on CLI basis.

2nd in the line of IP network, BSNL commissioned a state-of-the-art

Multi Protocol Label Switching (MPLS) NETWORK TAKING India into

the next stage of the IP evolution. This network has 10 physical nodes

with all district headquarters designated as virtual nodes. This network has

opened up a new market segment of secure and reliable Virtual Private

Networks (VPNs) for corporate customers.


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The latest endeavor of BSNL is a world-class multi-gigabit multi-

protocol, convergent IP infrastructure which will provide voice, data and

video services through the same backbone. In terms of infrastructure for

broadband services, this would put India at par with more advanced

nations. Designated as NIB-II this will be implemented in the form of four

projects.

Project 1 involves building up of MPLS backbone

Project 2.1 is for narrow band access

Project 2.2 is for broadband access

Project 3 is to put systems and processes in place to integrate

network

All the above projects in form of NIB-II are at different stages of

implementation and as per schedule .They will be operational in the third

quarter of this year.

The services that will be available to customers when NIB-II is in place:

Narrowband and broadband Internet access.

Narrowband and broadband Internet access.

Managed OPE

Value Added Services like encryption, firewall and NAT

Messaging: Plain Vanilla and feature rich

Data Center Services: web hosting and web-collocation.

Content based Services: e.g. video multicast, video on demand,

interactive gaming.


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SERVICES

When it comes to connecting the four comers of the nation, and much

beyond, one solitary name lies embedded at the pinnacle - BSNL. A

company that has gone past the number games and the quest to attain theposition of a leader. It is working round the clock to take India into the

future by providing world class telecom services for people of India.

BSNL is India's no. 1 Telecom Service provider and most trusted Telecom

brand of the Nation.

Driven by the very best of telecom technology from chosen global

leaders, it connects each inch of the nation to the infinite corners of theglobe, to enable you to step into tomorrow.

Here is an overview of the World Class services offered by the BSNL:

Basic Telephone Services

The Plain old, Countrywide telephone Service through 32,000 electronic

exchanges. Digitalized Public Switched Telephone Network (PSTN) with

a host of Phone Plus value additions.

BSNL launched DataOne broadband service in January 2005

which shall be extended to 198 cities very shortly. The service is being

provided on existing copper infrastructure on ADSL2 technology. The

minimum speed offered to the customer is 256 Kbps at Rs. 250/- per

month only. Subsequently, other services such as VPN, Multicasting,Video Conferencing, Video-on-Demand, Broadcast application etc will be

added.


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INTERNET

Keeping the global network of Networks networked, the countrywide

Internet Services of BSNL under the brand name includes Internet dial up/

Leased line access, CLI based access (no account is required) and DIAS

service, for web browsing and E-mail applications. You can use your

dialup sancharnet account from any place in India using the same access

no '172233', the facility which no other ISP has. BSNL has customer base

of more than 1.7 million for sancharnet service.

BSNL also offers Web hosting and co-location services at very cheap

rates.

ISDN

Integrated Service Digital Network Service of BSNL utilizes a unique

digital network providing high speed and high quality voice, data and

image transfer over the same line. It can also facilitate both desktop video

and high quality video conferring.

INTELLIGENT NETWORK

Intelligent Network Service (In Service) offers value-added services, such

as:

India Telephone Card (Prepaid card)

Free Phone Service (FPH)

Account Card Calling (ACC)

Virtual Private Network (VPN)

Tele-voting

Premium Rae Service (PRM)


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Universal Access Number (UAN) and more

I-NET:

India s x.25 based packet Switched Public Data Network is operational in

104 cities of the country. It offers x.25 x.28 leased, x.28 Dial up (PSTN)

Connection) and frame relay services.

LEASED LINES & DATACOM

BSNL provides leased lines for voice and data communication for various

application on point to point basis. It offers a choice of high, medium and

low speed leased data circuits as well as dial-up lines. Bandwidth is

available on demand in most cities. Managed Leased Line Network

(MLLN) offers flexibility of providing circuits with speeds of nx64 kbps

up to 2mbps, useful for Internet leased lines and International Principle

Leased Circuits (IPLCs).

CELLULAR MOBILE SERVICES

POSTPAID & PREPAID

BSNL's GSM cellular mobile service Cellone has a customer base of over

5.2 million. BSNL Mobile provides all the services like MMS, GPRS,

Voice Mail, E-mail, Short Message Service (SMS) both national and

international, unified messaging service (send and receive e-mails) etc.

You can use BSNL Mobile in over 160 countries worldwide and in 270

cellular networks and over 1000 cities/towns across India. It has got

coverage in all National and State Highways and train routes. BSNL

Mobile offers all India Roaming facility to both pre-paid and post-paid

customers (including Mumbai & Delhi).


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WIRELESS IN LOCAL LOOPS:

This is a communication system that connects customers to the Public

Switched Telephone Network (PSTN) using radio frequency signals as a

substitute for conventional wires for all or part of the connection between

the subscribers and the telephone exchange.

Countrywide WLL is being offered in areas that are non-feasible for

the normal network.

Helping relieve congestion of connections in the normal cable/wire

based network in urban areas.

Connecting the remote and scattered rural areas.

Limited mobility without any air-time charge

BROADBAND SERVICES;

BSNL is in the process of commissioning of a world class, multi-gigabit,

multi-protocol, convergent IP infrastructure through National Internet

Backbone-II (NIB-II), that will provide convergent services through the

same backbone and broadband access network. The Broadband service

will be available on DSL technology (on the same copper cable that is

used for connecting telephone), on a countrywide basis spanning 198

cities.

In terms of infrastructure for broadband services NIB-II would put

India at par with more advanced nations. The services that would besupported includes always-on broadband access to the Internet for

residential and business customers, Content based services, Video

multicasting, Video-on-demand and Interactive gaming, Audio and Video

conferencing, IP Telephony, Distance learning, Messaging: plain and


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feature rich, Multi-site MPLS VPNs with Quality of Service (QoS)

guarantees. The subscribe will be able to access the above services

through Subscriber Service Selection System (SSSS) portal.

Key Objectives

To provide high speed Internet connectivity (up to 8 Mbps)

To provide dial VPN service to MPLS VPN customers.

To provide Virtual Private Network (VPN) service to the

broadband customers

To provide multicast video services, video-on-demand, etc.

through the Broadband Remote Access Server (BRAS).

To provide a means to bill for the aforesaid services by either

time-based or volume-based billing. It shall provide the customer

with the option to select the services through web server

To provide both pre-paid and post paid broadband

services Services available through Broadband

High speed Internet Access: This is the always-on Internet

access service with speed ranging from 256 kbps to 8 Mbps.

Multicasting: This is to provide video multicast services for

application in distance education, telemedicine etc

Dial VPN Service: This service allows remote users to access their

private network securely over the NIB-II infrastructure.

Video and Audio Conferencing

Content based Services: Like Video on Demand, Interactive

Gaming, Live and time shifted TV


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Several Steps have been taken at BSNL to augment the quality of

customer care to international standards.

Access round the clock help at following toll free numbers

Dataone Broadband' 1600-424-1600'

PSTN Call Center' 1500' (in select states)

Sancharnet Help Desk' 1957'

CellOne all India Help '9400024365'

All BSNL Customer Service Centers (CSCs) remain open on all

seven days from 8.00 AM to 8.00 PM without any break for all activities.

Cheque deposit machines have also been installed in many cities,

so that customers can make payments 24X7 at their convenience.

Customers can also make payments by cheque/Demand Draft to

BSNL franchisees all over the country.

With a view to simplify and offer customer friendly services, more

than one Bfone connections can be applied on a single application form.

Accordingly, a single demand note would be issued to the customer in

respect of all the connections applied for.

Shifting charges for local as well as all India shifting of fixed

telephone (bfone) has been abolished.

Pagers being given to outdoor staff in a phased manner for speedy

rectification of faults.

Majority of the local network is built up on jelly filled and OFC for

trouble free service.


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Internal Distribution Points (DPs) being provided in the customer

premises to eliminate the faults arising out of overhead wires.

Extensive use of digital loop carrier (DLC)/Wireless in Local Loop

(WLL) system for improving reliability of external plant.

Remote Line Units (RLUs). Remote subscriber Units (RSUs) being

provided extensively to reduce the long lengths of copper cables.

Establishing call centers across the nation to provide single window

solutions and convenience to customers

Countrywide Network Management & Surveillance System

(NMSS) to ensure uninterrupted and efficient flow of telecom traffic.

Application Forms for new connections have been made free of

charge for all services

Procedure for restoration of telephones disconnected due to non-

payment simplified and powers delegated to Secondary Switching

Area (SSA) heads

Payment of telephone bills being received on Saturday and Sunday

through cheques in City Telecom Offices (CTOs).

More than one Public Call Office(PCO) permitted at the same

premises

Various application forms and procedures being simplified for new

telephone connections, shifting and third party transfer.


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SOCIAL COMMITMENT

BSNL is committed to provide quality Telecom Services at affordable

price to the citizens of the remotest part of the Country. BSNL is making

all effort to ensure that the main objectives of the new Telecom Policy

1999 (salient points indicated below) are achieved:

Access to telecommunications is of utmost importance for achievement of

the country's social and economic goals. Availability of affordable and

effective communications for the citizens is at the core of the vision and

goal of the new Telecom policy 1999.

Strive to provide a balance between the provision of universal service to

all uncovered areas, including the rural areas, and the provision of high-

level services capable of meeting the needs of the country's economy;

Encourage development of telecommunication facilities in remote, hilly

and tribal areas of the country;

Transform in a time bound manner, the telecommunications sector to a

greater competitive environment in both urban and rural areas providing

equal opportunities and level playing field for all players;


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THEORETICAL FRAME WORK

Till recently, most marketers focused on traditional modes of marketing to

segment and acquire few customers from its target segments, using the

tools and techniques developed for mass marketing in the industrial era, as

a way to engender growth. In the present competitive era, this is proving to

be highly ineffective. Today, there is a different approach to business that

involves relationship marketing, customer retention and cross-selling,

leading to customer extension, which is a far cry from the traditional

segmentation model.

The relative and market emergence of CRM as a business strategy

has radically transformed the way organization operates. There has been a

shift in business focus from transactional to relationship marketing where

the customer is at the center of all business activity and organizations are

now desperately trying to restructure their process around the needs of

their strategically significant customers. The critical driver of such a

seismic shift towards customer orientation is the realization that customers

are a business asset that when managed effectively can derive continuous

and sustainable economic value for an organization over their lifetime.

The dynamics of the business ecosystem have changed the way in

which companies do business both in relationship management and the

streamlining of their operations. Relationship marketing is emerging as

the core marketing activity for business operating in fiercely competitive

environments. On an average, businesses spend six times more to acquire

new customers than to keep them. Therefore, many firms are now paying


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more attention to their relationships with existing customers to retain them

and increase their share of customer's purchases. The practice of

relationship marketing also has the potential to improve marketing

productivity through improved marketing efficiencies and effectiveness.

Retaining and developing customers has long been a critical success

factor for businesses. In that sense, Customer Relationship Management is

not new, previously falling under the guise of customer satisfaction.

Worldwide, service organizations have been pioneers in developing

customer retention strategies. Banks have relationship managers for select

customers, airlines have frequent flyer programs to reward loyal

customers, credit card companies offer redeemable bonus points for

increased card usage, telecom service operators provide customized

services to their heavy users, and hotels have personalized services for

their regular guests. It is, however, with the rapid rise of new entrants into

the market place and increased competition that companies in other sectors

have recognized the business potential within a captured base.

Sluggish growth rates, intensifying competition and technological

developments businesses induced to reduce costs and improve their

effectiveness. Business process re-engineering, automation and

downsizing reduced the manpower costs. Financial restructuring and

efficient fund management reduced the financial costs. Production and

operation costs have been reduced through Total Quality Management

(TQM), Just in Time (JIT) inventory, Flexible Manufacturing Systems(FMS) and efficient Supply Chain Management (SCM). However,

reduction in costs alone is no longer enough or is necessarily an effective

strategy.


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In facing the competitive threats, such as new entrants, pricing

pressures, technology along with the related costs and also including the

time lags in procuring, maintaining and strengthening one's market, more

and more organizations are realizing that the traditional marketing models

is no longer effective. With a flood of new entrants offering quality

products and. services at lower prices; many sectors have been turned into

commodity markets.

In a market place where loyalty has plummeted and the cost of

acquiring new customers is prohibitive, companies have turned to their

current customers in an attempt not only to retain them but to exploit the

potential within. This has enabled them not only to respond to the threats

in their market place but also positioned them strategically to take

advantage of the opportunities available.


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BENEFITS OF CRM :

The benefits of customer relationship management are considered abound.

It allows organizations not only to retain customers, but enables more

effective marketing, creates intelligent opportunities for cross selling and

opens up the possibility of rapid introduction of new brands and products.

To be able to deliver these benefits, organizations must be able to

customize their product offering, optimize price, integrate products and

services and deliver the service as promised and demanded by the

customer base.

Keeping the customer happy is obviously one way of ensuring that

they stay with the organization. However, by maintaining an overall

relationship with the customer, companies are able to unlock the potential

of their customer base and maximize the contribution to their business.

Whilst the value of customer relationship management has been identified

by organizations, the full implications and benefits are yet to be. Those

responsible for delivery are perhaps the most informed about these

strategic benefits yet the transformation is a long-drawn-out process.

The strategic benefits of customer relationship management allow

companies to reduce the cost of customer acquisition and give established

players the ability to react like a new market entrant, the very people they

are battling against. Ironically these are increased and the potential of

customers can be then capitalized through cross selling of other products

and services. It is important to understand the key benefits of CRM for

most companies. These benefits generally fall into three categories: cost

savings, revenue enhancement, and strategic impact.


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Based on successful CRM implementations, the following benefits seem

reasonable:

Increased sales revenues. Increased sales result from spending more

time with customers, which results from spending less time chasing,

needed information (i.e., productivity improvement).

Increased with rates. Win rates improve since companies can

withdraw from unlikely or bad deals earlier on in the sale process.

Increased margins. Increased margins resulting from knowing

customers better, providing a value-sell, and discounting prices.

Improved customer satisfaction ratings. This increase occurs since

customers find the company to be more responsive and better in

touch with their specific needs.

Decreased general sales and marketing administrative costs. This

decrease occurs since the company has specified its target segment

customers, it knows their needs better, and thus it is not wasting

money and time for example, on mailing information to all

customers in all existing and potential target segments.

THE RELATIONSHIP CHALLENGE

Customer relationship management does not enable a quick win. It is a

long-term approach that has to be adopted at a strategic level. However,

the journey of understanding the strategic benefits of relationship

management has just begun. To a greater degree, companies have

understood the implications of customer relationship management and

have identified the risk to their business of not doing so, namely loss of

customers and competitive attach.


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They are yet to look at the bigger picture and understand all of the

associated benefits that would enable their business strategies to be

successful. The competencies required to deliver these customer benefit

are: to deliver on its service promise, integrate products and service

channels effectively, customize products, service and their respective

prices, create opportunities for cross selling and delivery mechanisms for

the onward promotion of these products and services and reduce the

gestation period to market by allowing quick and effective introduction of

new products and services.


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TYPES OF CRM

On the basis of business srocess automation analysis of operational data,

and customer interaction software, CRM can also be seen as the following

types:

1. Operational

2. Analytical

3. Collaborative

OPERATIONAL CRMThe automation of horizontally integrated business processes involving

front office customer touch points - sales, marketing, and customer service

(call centre, field service) - via multiple, interconnected delivery channels

and integration between front office and back office. The operational

CRM is a process or an approach, which involves the areas where direct

customer contact is possible. Operational CRM represents the automationof business processes involving customers.

Its purpose is to provide transaction level data about individuals and

products, and provide support for customer facing process, such as direct

mail, phone interactions, Web-based communications, and point of sale

information.

Because operational solutions directly effect the customer, they are

very appealing and often are the first implemented components of a CRM

are:


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Sale force automation

o Account Management

o Opportunity Management

o Contact Managemento Activities Management

o Price and Product List Configuration

o Sales Incentives Plans

o Sales Forecasting and Reporting

Customer Service automation

o Service Request / Customer Complaints Management

o Web-enabled Contact Center Management

o A customer interaction centre (CIC) is a critical component of

operational CRM, whether implemented for sale, marketing, or

customer service functions. The CIC accommodates multiple channel

for customer interaction and critical functions, including customer

service/support, field service dispatch, quality management, intelligent

routing, case-based reasoning, and knowledge repositories. The CIS is

the intelligent routing, case-base reasoning, and knowledge repositories.

The CIS is the key to consolidating customer interaction and

developing and unified, enterprise view of the customer.

o Sale Force Automation, also known as "technology Enabled Selling

(TES)'\ SFA is the application of information systems technologies to

sales activities. This includes accurate business forecasts,

generating customized


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presentation and proposals and personalized communications by the field

representatives. It also handles the entire sales pipeline from lead

generation to closure and activities like calendar, diary management.

o Call centre systems provide extensive customer service by enabling

customers to receive any information they need, answering their queries,

buying products and receiving, payments promptly.

Includes customized service and support addressing specific issues

raised by customers, tracking cases and escalations, track progress, and

identifying opportunities to cross/up-sell.

o Order management - In the simplest sense, this includes quote generation,

campaigns; and service requests, pricing and ordering of products.o Invoicing or billing this includes multiple order billing, multicurrency

billing and pricing functionalities in a minimal feature tool.

o Marketing automation and Management enable companies to measure

and track campaigns develop and refine strategies, gain insights into

buying behavior, revenues and profitability using marketing analytics.

o Today, the consumer approaches the business in far many ways than in

the past. The various interaction points are referred as "Customer Touch

points."

o Technological Developments have made the job of a marketer

more difficult. The consumer today is flooded with information from

various sources to the extent that it


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sometimes leads to information overload. For organizations, this is a major

problem as it means that there are several ways by which a prospect or a

customer learns about or experiences any organization.

o This could be the organization's catalogue, website, word of mouth

through customers, through employees of that organization, etc. all such

sources from which one gets in touch with the organization are called

"Customer Touch points."

o New sources of communication, faster means of transportation,

changes in life-style, increasing international trade and exposure to

various media are some of the reasons for an increase in the number of

customer touch points. This is a big challenge of organizations as in howto monitor so many different sources in order to ensure that the same

message reaches the end customer.

o One of the most important customer touch point for any

organization is the Customer Care help line, wherein the customers can

register their complaint or get information about the products or services

provided by that organization. A large multinational bank once has had

the entire process such that after a phone connection had been established

with the bank's call centre, it took six-odd minutes to speak to the

customer care executive. This is a long time keeping in mind that many of

the customers usually call when they have some problem and want an

immediate solution.


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ANALYTICAL CRM

The analysis of data created on the operational side of the CRM equation

for the purpose of business performance management, Analytical CRM is

inextricably tied to data warehouse architecture and is most often

manifested in analytical applications that leverage data marts. Analytical

CRM is the synthesis and interpretation of operational data to identify

opportunities, optimize customer interactions and manage business

performance. It also provides the insight into customer behavior needed to

implement intelligent personalization.

Analytics involves the capture, storage, extraction, processing,

interpretation and reporting customer data. It works on data gathered from

multiple sources; from marketing campaigns, key accounts and market or

product group, and is used as a strategic planning support tool. Analytical

CRM takes the information that operation CRM so diligently gathers, and

runs algorithms over it for analysis and interpretation purposes, to provide

the insight and data interpretation that is lacking inoperational CRM. This

includes:

1. Data warehouses: Data warehouse is system for storing and

delivering massive quantities of data that aids in analysis and

decision-making. It is frequently use for decision support within an

organization, and also allows the organization to classify its data,

coordinate updates and identify relationships between information

gathered from different parts of the organization.

2. Data marts: Data marts are subject-specific data warehouses; often

departmental or based on line-of-business.

3. Vertical and application-specific analytic tools.


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4. Marketing Automation

Campaign Management

Database Marketing

Outbound Call Center Management

5. Optimizes profitability, revenue and customer satisfaction Analysis

of:

What Are the Buying Patterns? Cross Selling Opportunities?

Who are the Most Profitable Customers / Products /

Services ?

Competition?

6. Customer Profiting & Categorization.

7. Up Selling / Cross Selling of Products & Services

8. Fraud Analysis

9. Churn Management

Analytical CRM functions

The following are the functions of analytical CRM:

Create a comprehensive customer knowledge base while ensuring

privacy: Capturing all relevant customer information from different

sources, channels, and touch-points before, during, and after the sale and

then integrating it into a customer knowledge base that provides a 360

degrees view of the customer. This knowledge base must; however, be

guarded with utmost care so that the customers' right to privacy is never

compromised inany way.

Measure and predict customer behavior by analyzing customer

knowledge: Applying a comprehensive set of analytical methods to

measure and optimize customer relationship and answering all


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relevant business questions. The customer intelligence that results

from this analysis includes:

Customer behavior: This is expressed through customer preference,

priorities, and activities.

Customer Value: This is expressed in terms of customer profitability,

customer lifetime value, and potential.

Customer portfolio: This requires developing a clear understanding

of the composition of customer portfolio and how it can be

optimized.

Deploy the results of the analysis to improve customer value: The

insights gained through the above analyses helps a company gear its CRM processes towards customer centricity, and improve its customer

interactions. Following are possible outcomes of deployment of the

analytical insights:

Acquiring new profitable customers by cloning your best customers.

Improving relationships with existing customers by addressing their

individual needs more effectively and more efficiently. This is

accomplished through automating and personalizing interactions with

them on the basis of the sound customer knowledge acquired through

CRM analytics.

Optimizing cross-selling and up-selling opportunities. Improving

customer loyalty and reducing a customer's propensity to churn.

Targeting high-value customers: CRM analytics provides a

company with the knowledge of the customer lifetime value that

enables a company to focus its limited resources in marketing, sales,

and service at high-value customers.

Integrate customer value into strategic enterprise management to

improve shareholder value. An improved understanding of customers


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and customer segments facilitates integration of marketing sales, and

service strategies into the enterprise strategy.

Customer Analysis and Personalization Broadcast through Transaction

Information Segmentation All Channels

Customer

Data

Warehouse

Design

Relevant

Personalization

For eachcustomer

Reach every

Customer

where

Facilitate

Interaction

COLLABORATIVE CRM

Collaborative CRM includes a suite of customer interaction software such

as e-mail management and conferencing tools. Collaborative CRM takes

things a stage further, and provides a point of interaction between

customers, staff and business partners, through new and traditional

groupware/web technologies.

The application of collaborative service (e.g., personalized

publishing, e-mail, communities, conferencing, Web-enabled customer

interaction centers) to facilitate interactions between customers and

organizations (e.g., customers to sales, sales to marketing, organizational

activities related to customer information) for the purpose of improving

co-ordination and communication, thereby establishing lifetime customervalue beyond the transaction (i.e., a "partnering relationship").


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This includes technologies such as:

Voice - Interactive Voice Response (IVR), Computer Telephony

Integration (CTI), and Automatic Call Distribution (ACD) Conferencing -

Web Conferencing Response: Email, Fax and collaborative chatting.

BENEFITS OF CRM WITH THE HELP OF TYPES OF

CRM

Highlighting a few benefits whereby different types of CRM help

enterprises:

o Retain existing customers, CRM helps increase customers

loyalty by tracking and coordinating all customer interactions It also

gives the customer a single, consistent and uniform experience

irrespective of the channel used to interact with the company.

o Attract, acquire, and grow new customers. CRM helps

companies in refining strategies and take timely action by providing

real-time feedback on marketing initiatives and sales leads through

analysis and reports.o Recognize and take advantage of new competitive

opportunities. Because all interactions with a customer (or

potential customer) are tracked, opportunities for up selling

and cross selling are more easily recognized.

o Improved response time to customer requests for information.

With 24-hour access to information and faster tools for

communication such as email, web chat, etc., the customer

can contact anytime and from anywhere.


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o Product meets customer requirements; Based on the customer

like and dislikes and with the capability of online

configuration, companies or customers can create products

suiting their needs.

o Improved customer satisfaction, By analyzing the customer

behavior and providing a single view of the customer across

the departments, line-of-business or the interaction channels,

CRM helps in better servicing of the customer.

o Improved revenue and reduced cost, Becoming customer

centric increases revenue, profitability and employee

productivity, as well as improve overall shareholder value.

Facets & Elements of CRM :

1.CRM Vision : Leadership, Market Position, Value Proposition

2.CRM Strategy: Objectives, Segments, Effective Interaction

5.CRM Process: Customer Life Cycle, Knowledge Management

6.CRM information: Data, Analysis, One view Across Channels

7.CRM Technology: Applications, Architecture, infrastructure

8.CRM Metrics: Value Retention, Satisfaction, Loyalty, Cost to Serve

3 Valued Customer Experience

Understand Requirement

Culture and Structure Monitor

Expectations Satisfaction vs.

Competition

Organizational collaboration

culture and structure

customer understanding

people skill, competencies


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Achieving the long-term value of customer relationship management

(CRM) requires a strategy involving the whole business and should be

approached at an enterprise level. Only a small, but growing, number of

enterprises are tackling CRM at this level, with most CRM initiatives

consisting of departmental projects or attempts to integrate the work of

multiple projects.

Executing enterprise-level CRM is not easy. It requires board-level

vision and leadership to drive a. relentless focus on the customer." It

involves learning new customer management skills, potentially difficult

changes to processes, culture and organization, and grappling with the

technology challenges of multichannel alignment, systems integration and

data quality. Even if the board accepts the need for enterprise-level CRM,

the quarterly demands of revenue and profit targets, especially in delicate

economic conditions, often mean that, although CRM is the most

important challenge facing an enterprise, it is not seen as the most urgent.

This typically results in a focus on isolated tactical "quick wins"

until conditions are better. Through 2005, enterprises that use a strategic

CRM framework to estimate, plan and promote their CRM initiatives

while building up their capabilities in small piloted steps are twice as

likely to achieve planned business benefits as enterprises that pursue

projects without framework (0.7 probabilities).

The framework emphasizes the need to create a balance between

the requirements of the enterprise and the customer. The two central

building blocks in the Figure (value customer experience and

organizational collaboration) are joined by a yin and yang motif to

emphasize that this is where people meet, build relationships and provide

value to each other.


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Through 2005, 90 percent of successful CRM initiatives will have

balanced the needs of improved customer experience with improved

organizational collaboration (0.8 probability). Too many CRM initiatives

suffer from an inward focus on the enterprise, whereas the point of CRM is

to achieve a balance between value to shareholders or stakeholders and

value to customers for mutually beneficial relationships.

1 Vision: Successful CRM demands a clear vision so that a strategy and

implementation can be developed to achieve it. The CRM vision is how

the customer-centric enterprise wants to look and feel to its customers

and prospects - the customer value position (CVP) and the corporate

brand values are key to the CRM vision.

Without a CRM vision, the enterprise will not stand out from

the competition, target customers will not know what to expect from it

and employees will not know what to deliver in terms of external

customer experience. A successful CRM vision is the cornerstone to

motivating staff, generating customer loyalty and gaining a greater

market share. "Creating a CRM Vision" defines a CRM vision, outlines

the key steps and challenges in creating it and discusses its role in

creating a successful CRM program.

2 Strategy: A CRM strategy is not an implementation plan or road map

A real CRM strategy takes the direction and financial goals of thebusiness strategy and sets out how the enterprise is going to build

customer loyalty - that "feel-good factor" of customer connection with

an enterprise that means customers stay longer, buy more, recommend

the enterprise to others and are more willing to pay a


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premium price: The objectives of a CRM strategy are to target, acquire,

develop and retain valuable customers to achieve corporate goals.

3. Valued Customer Experience : Customers' experiences when interacting

with the enterprise play a key role in shaping their perception of the

enterprise - the value it provides and the importance it place on the

customer relationship. Good customer experiences drive satisfaction,

trust and long-term loyalty. Poor customer experiences have the

opposite effect and, because bad new travels faster and further than

good news, they harm the enterprise's ability to create new

relationships with prospects. No amount of internal "second guessing"

can simulate what it's really like to be a customer.

4. Organizational Collaboration : Many enterprises believe that

implementing CRM technologies makes them a customer-centric

organization. They forget, ignore or deliberately avoid the necessary

changes to the enterprise itself. True CRM means that individuals,

teams and the whole enterprise must become more focused on the

needs and wants of the customer.

The term "organizational collaboration, ''highlights the many

facets of the customer-centric internal change needed to deliver the

required and desired external customer experience. As a critical part of

a CRM program, it will involve changing organizational structure,

incentives and compensation, skills and even the enterprise culture.

Ongoing change management will be key.


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5. Process: Past efforts to re-engineer processes were primarily driven by

the desire to improve the efficiency of an enterprise and reduce costs.

The beneficiary was the enterprise, not its customers. The rise in CRM

has led to a focus on reworking key processes that touch the customer

and asking customers which processes matter to them. We call this

customer process re-entineering. Enterprises frequently do not realize

that their functionally fragmented processes often mean that the

customer has a poor experience and receives less than the expected

value.

Successful re-engineering should create processes that not only

meet customers' expectations, but also support the customer valueproposition, provide competitive differentiation and contribute to the

desired customer experience.

6. Information: Successful CRM requires a flow of customer information

around the organization and tight integration between operational and

analytical systems. Having the right information at the right time is

fundamental to successful CRM strategies, providing customer insight

and allowing effective interaction across any channel. Unfortunately,

most enterprises' CRM information capabilities are poor - the result of

numerous and fragmented departments, initiatives, databases and

systems. Enterprises that establish a business plan for sourcing,

managing and leveraging their customer information assets are more

likely to achieve their CRM goals and objectives and gain a competitive

advantage.


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7. Technology: For most technologists, CRM is all about technology,

CRM technologies are an essential enabler for any modem CRM

business strategy, but they are just one piece of the puzzle. Gartner has

a wealth of ongoing research into CRM technology issues and

"Technology Decisions Are Key to Enabling CRM Strategies" (DF-14-

8082) looks at the key decisions that enterprises have to take in three

areas: CRM applications, architectural issues and integration.

In many CRM projects, integration issues start as a relatively

low priority, and then rise in prominence (costs and time) as enterprises

realize that true CRM requires seamless customer-centric processes,

supported by integrated technology across the enterprise and its supplychain.

8 Matrics: The other seven building blocks depend on performance

targets and metrics to gauge their success, and enterprises must set

measurable CRM objectives and monitor CRM indicators to

successfully turn customers into assets. Without performance

management, a CRM strategy and associated program is destined to

fail. A framework for measuring and enterprise's success with CRM by

creating a hierarchy of performance metrics involves four levels,

namely: corporate, customer strategic, operational and process, and

infrastructure input metrics. These metrics have an internal and an

external focus and link operations to strategy and corporate financial

benefits. Each enterprise will have a unique set of metrics applicable totheir situation.


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To achieve the long-term value of CRM, enterprise must understand that it

is a strategy involving the whole business, and thus should be approached

at an enterprise level. CRM initiatives need a framework to ensure that

programs are approached on a strategic, balanced and integrated basis.

Thus, Gartner defines customer relationship management (CRM)

as a business strategy that maximizes profitability, revenue and customer

satisfaction by:

Organizing around customer segments

Fostering behavior that satisfied customers

Implementing customer-centric processes.


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CRM STRATEGIES

Customer relationship management (CRM) strategies and the technologies

that enable them make it possible to figure out what customers

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