PROJECT REPORT ON

CUSTOMER RELATIONSHIP MANAGEMENT

SUBMITTED BY
SALONI DAGLY

T.Y.B.M.S. [Semester V]

MITHIBAI COLLEGE

VILE PARLE (WEST)

SUBMITTED TO

UNIVERSITY OF MUMBAI

ACADEMIC YEAR
2009 - 2010

NAME OF PROJECT CO-ORDINATOR

PROF. NEELA NAIR

DATE OF SUBMISSION

25TH JULY 2009

 DECLARATION

I SALONI DAGLY of MITHIBAI COLLEGE

of TYBMS [Semester 5] hereby declare that I have compiled this

project on CUSTOMER RELATIONSHIP MANAGEMENT in the academic year 2009-

2010. The information submitted is true

and original to the best of my knowledge.

Signature of the Student

[SALONI DAGLY]

CERTIFICATE

I, Mrs. Neela Nair hereby certify that Saloni Dagly of Mithibai College of

TYBMS [SEMESTER 5] has completed project on CUSTOMER RELATIONSHIP

MANAGEMENT in the academic year 2009-2010. The information submitted is

true and original to the best of my knowledge.

Signature of the principal signature of the project coordinator

[Dr. KIRAN MANGAONKAR] Mrs. Neela Nair

 ACKNOWLEDGEMENT

Firstly, I would like to thank MITHIBAI COLLEGE and the Mumbai University for giving me
the wonderful opportunity of doing this project report on CUSTOMER RELATIONSHIP
MANAGEMENT and exploring an unknown area of something we all hear of these days. This
has been a tremendous learning and enriching experience for me.

Secondly, I would like to thank my project guide Mrs. NEELA NAIR for her valuable tips and
guidance throughout my learning experience and preparation of the project. I thank her for the
time, patience and support she gave me.

Lastly, I would like to thank:

Mr. CHIRAG SHAH (ex employee of Airtel)

Mr. YASH DESAI (Vodafone, technical department)

Who have cooperated with me, explained me the entire concept and working of CUSTOMER
RELATIONSHIP MANAGEMENT and mainly helped me a lot to gather information and
provided me with recent updates needed for this report.
 OBJECTIVES AND RESEARCH METHODOLOGY

The methodology adopted in carrying out the research includes a number of tools. Each of these
tools was used to accomplish research in a particular designated objective, as identified in the
project proposal. The primary objectives of the research were:

 To understand the relationship between customer and company.

 The ways adopted by the company to retain its customer and also to maintain their
loyalty
 Perspective of the customers on the same.
Meaning of customer relationship management (CRM), the need of it and E-CRM is explained in
the introductory part.
The key areas and characteristics of the customer relationship management were gauged with the
help of two questionnaires. One which was answered by an employee of the company and
second one were answered by their customers. The perspectives of the company as well as the
customers were taken in to account. Opinions of both the parties were given equal weightage.
And then later on comparison was made that, the level up to which the company has succeeded
in implementing CRM strategies and the success rate from the view of customers. Because
ultimately customers are the centre point here.
The strategies used for CRM differ from company to company depending on the merchandise
being offered by the company. Similarly competition varies in each industry and techniques used
to deal with such competition also vary. In order to assess these techniques, therefore, case study
was undertaken, of companies in different sectors/ industries.

Apart from the above, a large amount of literature was reviewed for the purposes of this project.
This included research on articles and books dealing with the CRM, strategies, customer loyalty.

Thus the data compiled for the project includes data from both primary as well as secondary
sources. Primary data includes material got through the survey.100 customers from the age
group of 18- 30 were surveyed. The questionnaire consisted of open-ended questions to be
answered along with their reasons. Also official from both the respective companies were
interviewed asking questions relating to their CRM strategies/Secondary data includes data from
the internet (official web sites of the companies mentioned above, newspaper articles, books,
reports and results of research conducted by various organizations) and by reference to several
books on the subject.

The methodology of the research is thus spread over a large number of tools, which would insure
against any inappropriate or wrong information being presented. Dependence on only one source
of information could prove to be misleading in the event that the source is incorrect. Thus, by
diversifying the information across a vast array of sources, this risk is avoided.
 EXECUTIVE SUMMARY

CRM is a combination of policies, processes, and strategies implemented by an organization to

unify its customer interactions and provide a means to track customer information. Today CRM
is used in all sectors of business to expand its customer base so as to gain a firm foothold in the
current competition based market.

Since customer is regarded as the king of the market and all activities of business are conducted
keeping his interests in mind, CRM plays a huge role in this. The success of CRM would go a
long way in the overall growth of revenue as well as market share of the company.

CRM includes many aspects which relate directly to one another:

 Front office operations — Direct interaction with customers, e.g. face to face meetings,
phone calls, e-mail, online services etc.
 Back office operations — Operations that ultimately affect the activities of the front
office (e.g., billing, maintenance, planning, marketing, advertising, finance,
manufacturing, etc.)
 Business relationships — Interaction with other companies and partners, such as
suppliers/vendors and retail outlets/distributors, industry networks (lobbying groups,
trade associations). This external network supports front and back office activities.
 Analysis — Key CRM data can be analyzed in order to plan target-marketing campaigns,
conceive business strategies, and judge the success of CRM activities (e.g., market share,
number and types of customers, revenue, profitability).

For CRM to be successful appropriate processes and framework has to be adopted. This can be
done by conducting market surveys and getting customer feedback about the company and
working on the framework accordingly.

Along with CRM, E-CRM is the new evolving concept which uses electronic as well as
traditional channels to operate. Since electronic media is growing on a large scale E-CRM has
good potential in future.
Concentrating on the companies in question here:

 VODAFONE
 AIRTEL

Vodafone has recently upgraded its Vodafone’s customer management systems at its UK

Enterprise Business Unit (EBU). This involved the implementation of the latest version of
dise3G, Martin Dawes’ end-to-end billing and CRM solution.

In case of Airtel the following article in the newspaper “The Hindu” proves the importance of
CRM

COIMBATORE: The services of Airtel (Tamil Nadu circle-excepting Chennai) have been rated
highest among the private cellular operators for the quality of service and customer satisfaction.
The rating has come from the most comprehensive survey by TRAI and IMRB, a release from P.
Swaminathan, CEO and Director Mobility-Southern Region, Bharti Cellular, said. The survey
took into account the factors such as fault clearance within 24 hours, call drop rate, percentage of
connections with good voice quality and billing complaints. Airtel had scored the highest in both
the objective as well as the subjective quality of service assessment making Airtel, a benchmark
in the private cellular service industry in the rest of Tamil Nadu, the release claimed. It also
mentions that Airtel has achieved this position due to its application of CRM solutions in its
work environment.
 TABLE OF CONTENETS

SR.NO PARTICULARS PG.NO

1. INTRODUCTION 1

1.1 CUSTOMERS 1

1.2 CUSTOMER RELATIONSHIP 2-4

MANAGEMNET
2 EVOLUTION OF CRM 5

2.1 INTRODUCTION 5
2.2 A PEEP INTO THE PAST 5

2.3 THE PRESENT 6

2.4 THE FUTURE 6-7

2.5 FUTURE HOLDS OF CRM 7

3 ABOUT CRM 8

3.1 THREE PARTS OF CRM 9

3.2 NEED OF CRM 10-11

4 A CRM PROCESS FRAMEWORK 12-16

5 THE THREE DRIVETS OF LOYALTY 17-18

6 CONCEPT OF E-CRM 19

6.1 E CRM VS CRM 19

6.2 BENEFITS OF E CRM 19-20

6.3 THE 6 E’S OF E-CRM 20-21

6.4 CUSTOMER OPTIMISATION ALONG THREE 21

DIMENSIONS

SR.NO PARTICULARS PG.NO

7 CRM SUCCESS 22-23

8 RETURN ON INVESTMENT 24

9 INTRODUCTION-COMPANIES

9.1 AIRTEL 25-27

9.2 VODAFONE 28-29

10 EVALUATING CRM SUCCESS FROM 30-39

COMPANY’S PERSPECTIVE

11 EVALUATING CRM SUCCESS FROM 40-51

CUSTOMER’S PERSPECTIVE

12 CONCLUSION 52-53

13 BIBLIOGRAPHY 54

14 ANNEXURES 55-59