Executive Summary

Realizing the importance of Customer Relationship Management (CRM) systems to increase profitability almost every organization regardless of their size are increasingly adopting CRM systems. Firms use CRM systems not only to automate customer oriented business processes to reduce costs, but also to collect and analyze customer data to better fulfill customer needs and improve customer satisfaction. Telecommunication business in Bangladesh is in a growth stage with stiff competition and making an enormous profit every year. Most of the companies are using CRM. In this study, I have attempted to identify level of application of CRM in leading Telecommunication Company in Bangladesh considering developing model of CRM. Paper will also reveal how important is the CRM strategy of GrameenPhone (GP) Ltd., a leading telecommunication company in Bangladesh contributes in changing the environment of competitive market.

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Part A Introduction of The Report

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Chapter-01 Introduction
Customer relationship management (CRM) is a widely implemented model for managing a companys interactions with customers, clients, and sales prospects. It involves using technology to organize, automate, and synchronize business processes principally sales activities, but also those for marketing, customer service, and support. The overall goals are to find, attract, and win new clients; nurture and retain those the company already has; entice former clients back into the fold; and reduce the costs of marketing and client service. Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments. Measuring and valuing customer relationships is critical to implementing this strategy. Over the past couple of decades, technology has helped various business channels. Enabling businesses & employees to organize their day to day proceedings & findings new ways to ease & accelerate the daily tasks, whilst ensuring its integrity. CRM is a means to help businesses enhance their interaction with customers & to provide product & services to them in the best possible way, along with identifying ways of reducing cost & increasing profits.

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1.1 Back ground of the study

At the very arena of globalization and technological innovation, Telecommunication business has become more competitive. To cope up with this, telecommunication should have huge theoretical knowledge and professional skill as well as technical basis. As a BBA student, I felt that telecommunication is an excellent area to gather some practical knowledge. With a view to develop skilled professional in this area, Leading University, Sylhet has undertaken the Fundamentals of Management Information Systems course for its BBA students. As a partial and essential requirement of the BBA degree, on Course teachers instruction I have selected the CRM in GrameenPhone to acquire some practical experience in telecommunication industry. It would not be out of place to mention here that during the course of the program I had to perform several duties.

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1.2 Origin of the Report

This Report has prepared as a requirement for the course of the Fundamentals of MIS of Leading University, Sylhet. As I am doing the course of Fundamentals of MIS I think to work on CRM is a good field for me to acquire knowledge, how can CRM help to give best service. As per my course instructor instruction I have submitted my report which is about Customer Relationship Management at GP. I choose this topic because at present time, we know the most growing industry in our country is mobile telecom industry. And the companies in this industry fight each other really hard to attract more customers. And here customer relation management plays a vital role. Because its help the companies to retain their present customer long time. Which make them more profitable. Cause we know retain the present customer is less costly then attract new customer. And maintain the customer relationship they used many types of web based tool & physical tool. Those web based tools called CRM.

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1.3 Objective
The topic chosen for the report is Customer Relationship Management at GP. The underlying objectives of this report can be classified in the following two types,

General Objective:

How the company provides the service in an efficient way to the customer? How they
can maintain the large customer based?

Project Objective:

To fulfill academic requirement. To get the practical experiences in the Telecommunication Industry To know the corporate culture To present overall overview of GrameenPhone

1.4 Scope of the Report:

In the report I have tried to discuss the CRM impact which GrameenPhone use to retain and attract their customer and how they provide the service by using this.

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1.5 Methodology
The nature of this report is descriptive, so instead of doing any survey or using sampling method, observation method is used to complete this qualitative research. Most of the necessary information has been collected by face to face interview with the people working in different departments, personal investigation with officers, staffs and clients, circulars sent by Head Office, studying published materials such as previous Annual reports, Internet, books, journals and practical work with maintaining daily diary which contains all the activities that has been observed in the GP.

1.6 Sources of Data

The report is based on both primary and secondary sources of information. Interviewing the managers and officers of the GP customer care, talking to the customers has provided the primary sources of information, beside these; different publications of the GP, departmental working procedure manual regarding telecommunication functions, credit guidelines, annual reports, file study, and the Grameenphone website were the secondary sources of data.

1.7 Limitations
In preparing the report I had face several difficulties: Obtaining Relevant papers and documents were strictly prohibited. To protect the organizational loss in regard of maintaining confidentiality, some parts of the report is not in depth. In some cases few assumptions were made. That is why the report content may deviate from real life scenario.

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Part B Company Profile

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2.1 Introduction of the Company

Grameenphone widely known as GP is the leading telecommunication service provider in Bangladesh with more than 20 million subscribers (as of June 2008). GrameenPhone is a joint venture company between Norwegian Telecom giant Telenor and Grameen Telecom, a nonprofit sister concern of the internationally acclaimed microfinance organization and community development bank Grameen Bank. Telenor owns 62% and Grameen Telecom owns 38% share of GrameenPhone. The address of its Head Office is: Celebration Point, Plot No. 3 & 5, Road No. 113/A, Gulshan-2, Dhaka 1212, Bangladesh Grameenphone was the first company to introduce GSM technology in Bangladesh. It also established the first 24-hour Call Center to support its subscribers. With the slogan Stay Close, stated goal of Grameenphone is to provide affordable telephony to the entire population of Bangladesh. Due to the heavy competition in the market and low acquisition rate, currently the company is focusing more to satisfy the existing customers and retain them in their clientele. Grameenphone, the market leader in the industry, is trying to establish a benchmark in terms of customer service in the mobile phone industry. They have established a customer care hotline which operates 24/7 round the year currently 18/7. There are more than 500 customer care touch points naming GPC, GPCF and STP to serve their clientele all over the country. Along with their core service, Airtime, GrameenPhone also offers high speed Internet, Health line, Bill Pay and many other value added services.

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2.2 History of GrameenPhone:

November 28, 1996: GrameenPhone was offered cellular license in Bangladesh by the Ministry of Posts and Telecommunications. March 26, 1997: GrameenPhone launched its service on the Independence Day of Bangladesh as the first GSM operator in the country. June 1998: GP started its services in the port city of Chittagong, the second largest city in the country. Cell to cell coverage in the Dhaka-Chittagong corridor also enabled GP to introduce its service in a number of other districts along the way; September 1999: Grameenphone introduced the EASY pre-paid service in the local market. It also introduced the Voice Mail Service (VMS) and the Short Message Service (SMS) and other Value Added Services (VAS); September 1999: GP started its service in the industrial city of Khulna. February 2000: GP received GSM Community Award for Village Phone from GSM World Congress, France. March 2000: US President Bill Clinton visited Bangladesh while GP Village Phone program was highlighted to him. June 2000: GrameenPhone started its services in Sylhet, Barisal and Rajshahi, bringing all six divisional headquarters under the coverage of its network. The service in Barisal region was started after the microwave link between Khulna and Chittagong was completed. August 2003: After six years of operation, GrameenPhone has more than one million subscribers; November 2005: GrameenPhone continues to being the largest mobile phone operator of Bangladesh with more than 5 million subscribers; November 16, 2006: After almost 10 years of operation, GrameenPhone has over 10 million subscribers. GrameenPhone has built one of the most extensive infrastructures of Bangladesh and is a major contributor to the development of the national economy. October 2006: Grameenphone was presented with the GSM Association's Global Mobile Award for Best use of Mobile for Social and Economic Development' at 3GSM World Congress held in Singapore, for its Community Information Center (CIC) project. December 2006: Grameenphone launched Bill Pay service. Grameenphone undertook a universal approach meaning customers from other operators will also be able to use this service. GrameenPhone also established a separate hotline 1200 to assist people for their queries and complains.
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December 31, 2007: GrameenPhone is one of the largest private sector investments in the country with an accumulated investment of USD $1.7 billion up to December 2007. GrameenPhone is also one the largest taxpayers in the country, having contributed nearly BDT 50,000 Million in direct and indirect taxes to the Government Exchequer over the years of which is amount, BDT 16,700 Million was paid in 2005 alone. June, 2008: Grameenphone reached 20 million subscribers while experiencing a 25% growth in that fiscal year. April, 2009: GrameenPhone launched own branded modem to facilitate the growth of Internet usage around the country. September, 2009: Grameen Launched GrameenPhone V100, companys own branded handset. GrameenPhone becomes the first telecom operator in the country to launch its own branded handset. GrameenPhone throughout its years of operation continuously thrives to develop and improve its business activity. The history of Grameenphone in the telecom arena reflects its strategic success and shows a bright direction for the company for its future growth .

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2.3 Shareholders of GrameenPhone

The shareholders of GrameenPhone contribute their unique, in-depth experience in both telecommunications and development. Grameenphone is basically a joint-venture company. Initially four different companies collaborate together to form this joint-venture and inaugurate GSM technology in Bangladesh. The initial shareholders are1. Telenor A state-owned telecommunication company from Norway. 2. Grameen Telecom - A sister concern of Grameen Bank. 3. Marubeni Corporation A leading investment and trading company from Japan. 4. Gonofone A New York-based telecommunication development company.

These four companies own shares of GrameenPhone in the following manner- Company Telenor Grameen Telecom Marubeni Corporation Gonofone

Percentage of share 51 35 9.5 4.5

Figure: Ownership Structure of Grameenphone

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VISION
The vision statement of GrameenPhone is simpleWe are here to help This means that Grameenphone helps their customers to get the best out of communications services in their daily lives. Were here to help isnt a slogan; its a way of life for all the stakeholders of Grameenphone.

MISSION STATEMENT
We will lead the industry and exceed customer expectations by providing the best wireless services, making life and business easier.

VALUES OF GRAMEENPHONE
MAKE IT EASY We are practical. Everything we produce should be easy to understand and use. Because we never forget we are trying to make our customers' lives easier. BE INSPIRING We are creative. We bring energy and imagination to our work. We want to be a partner in the development of our community. We are passionate about our business, customers and our country. KEEP PROMISES Everything we set out to do should work. If it does not, we are there to put things right. We are about delivery, not over promising - actions not words. BE RESPECTFUL We acknowledge and respect the local culture. We are respectful and professional in regard to all our interactions, both internally and externally. We are open, helpful and friendly.

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2.3 OBJECTIVE AND STRATEGY:

Good Business, Good Development GrameenPhone's basic strategy is coverage of both urban and rural areas. The Company has devised its strategies so that it earns healthy returns for its shareholders and at the same time, contributes to genuine development of the country. In short, it pursues a dual strategy of good business and good development. Serving the mass market is one of GP's primary goals. By serving the general public as opposed to niche markets, the Company plans to achieve economies of scale and healthy profits. At the same time, service to the general public means connectivity to a wider population and general economic development of the country. In contrast to the "island" strategy followed by some companies, which involves connecting isolated islands of urban coverage through transmission links, GrameenPhone builds continuous coverage, cell after cell. While the intensity of coverage may vary from area to area depending on market conditions, the basic strategy of cell-to-cell coverage is applied throughout GrameenPhone's network. In addition, GP has positioned itself to capitalize on the declining prices of handsets, making its goal to serve the general public realistic.

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2.4 MANAGEMENT OF GRAMEENPHONE LTD

The top management of GrameenPhone Ltd carried out their management roles comprehensively over the years. There has been replacement or changes in the positions but all have worked together to increase the overall performance of the organization. Management Team of GrameenPhone comprises of the CEO, Directors and the Divisional Heads of the company. At present, Oddvar Hesjedal is the CEO; Petter Russ- Director CHQ; Arnfinn Groven- Director Human Resources, Khalid Hasan- Chief Corporate Affairs, Delwar Hossain Azad- Chief Financial Services, Syed Yamin Bakht- Director Public Relations, N K A Mobin- Director Climate Strategy, Gjermund Lia - Director Customer Services of GrameenPhone Ltd. They equally contributed to GrameenPhones superior leadership, by carrying out their unique roles. They worked well together, respecting each others abilities, & arguing openly & without any rancor when they disagreed. GrameenPhone follows a 3-layer management philosophy in Bangladesh. These are Directors, Managers and Officers. The CEO is the top most authority of all the levels. Directors are the departmental heads that are responsible for the activities of their departments. Managers have the authority next to directors. These two layers represent the management level of GrameenPhone. Officers are the next persons to stand in the hierarchy list. They are the typical mid-level employees of Grameenphones organizational hierarchy. These officers are responsible for managing the operational activities and operating level employees.

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Fig : ORGANIZATIONAL STRUCTURE

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DIVISIONS AT GRAMEENPHONE LTD.

GrameenPhone Ltd. has approximately 5000 employees working at different levels of organizational hierarchy. There are 9 functional departments engaged in managing these employees- with the aim to meet organizational objectives. GrameenPhone follows a mix of centralized and decentralized decision making process-where the top management mainly takes all the strategic decisions while the functional managers have flexibility to take decisions by themselves on a day to day basis. At GrameenPhone the Managing Director is assisted by 9 Senior Executives who are heading different departments in the strategic decision making process. The departmental names of GrameenPhone are given below: Corporate Affairs Division Internal Control Office Division Network Division Marketing Division Customer Service Division Public Relation Division Finance Division Internal Audit Division Human Resource Division Sales Division Information Technology Division

CORPORATE AFFAIRS DIVISION

Head of Function: Titus Dan Reporting To: Odvar Hesjedal, CEO Main Objective Within the direction from the CEO of GrameenPhone, the Head of Corporate Affairs shall ensure that the Regulatory & Corporate Affairs function within the company at all times is aligned with and supports the business objectives.

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Fig: Corporate Affairs Organization

Main Responsibilities:
Develop, maintain and implement company strategies, policies and procedures for the functional area Monitor and control Regulatory & Corporate Affairs activities; Provide support and consulting to other functions Ensure awareness of legal requirements applicable for the company Ensure that the organization is able to meet its current and future business objectives

CUSTOMER SERVICE DIVISION

Head of Function: Gjermund Lia Reporting To: Odvar Hesjedal, CEO

Main Objective The main objective of the Customer Service division is to be the best in class customer service in Asia to gain competitive advantage for GrameenPhone in the market place. Main Responsibilities Position as the most reliable, friendly and quality service provider in the industry to be perceived as the operator that provides segment based services beyond expectations Manage business environment with superior efficiency and operational excellence for profitable growth Establish Customer Service to gain sustainable competitive advantage for GrameenPhone Foster a competent team in a culture with empowerment and involvement Recruit the best, develop every employee and retain the best Convert each customer contact to an opportunity for retention and new sales with a focus on competitors profitable customers Build effective alliance with other customer services, within the Telenor group and in Asia

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Previous & Present Logo of Grameenphone:

Fig: Previous Logo Source-Website 13

Fig: Present Logo Source Website 14

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Part C General Context of the Study

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3.1 Customer Relationship Management for the Telecommunications Industry:

Times are tough in the telecommunications industry. Saturated markets leave little room to maneuver, debts stifle capital investment, and rolling out new services is often prohibitively expensive. But delivering on new strategic goals profitability, lower churn, higher customer satisfaction, reduced costs, and competitive edge are a must. In the competitive business arena the following areas have to be considered by the company as a part of implementation of CRM.

Customer service:

Source : Website 6

CRM solutions give the company the functionality and integration needed to meet the customers and other stakeholders demands .It will help the organization to be customer centric with the kind of individual care and attention that todays consumers expect. At the same time, it enables the company to achieve strategic business goals, such as lower costs through process automation and optimization, increased productivity of front- and back-office staff, lower churn, and greater profitability.

Customer care and Billing:

CRM provides a wide range of capabilities for organizations centre of interaction and for customer self-care via organizations Web sites. As a result, customer care centers can resolve issues with speed and efficiency. Detailed customer profiles give service providers the facts and figures they need to effectively manage interactions via phone, e-mail, fax, or letter. Full integration with financial, billing, and order and service management systems enables them to investigate and wrap up inquiries quickly, professionally, and with pointed- click simplicity. Service providers of customer care centers or agents can access and modify customer billing data; view invoices, account balances, and full customer histories; accept payments; create credit notes; and reconnect services. Furthermore, they can react immediately to requests for information, and send out product brochures and contract details. Now the CRM systems meet
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all types of customer expectations with the verifications of customer information from CRM database and provide automated billing systems for customers within a smallest unit of time.

Marketing:
CRM help to improve the efficiency, effectiveness, and profitability of organizations marketing campaigns and promotions. Organization can use real-time information to plan, budget, execute, and analyze their activities at any level: enterprise, regional, field, product, or brand. Through CRM systems it is possible to roll out highly personalized campaigns, targeting products to customers who are most likely to be interested, thus raising profitability and reducing waste which is most important for the telecom industry.

Sales and Contract Management

The Telecom industry requires better functionality and CRM equips the industry with the functionality required to shorten sales cycles, increase revenues, maximize productivity, and optimize direct, indirect, or online channels. Organization can plan and forecast sales activities with greater accuracy and organize territories according to a range of criteria such as size, revenue, product lines, or strategic accounts. Organizations have to a direct motivational impact to their sales representatives by developing and deploying sophisticated incentive programs.

Partner Relationship Management

Beyond the companies' walls, CRM helps partners share critical information on sales forecasts, order flow, and delivery schedules. The System also offers a wide range of self service capabilities and tools via an Internet portal and provides full access to the information and processes that help dealers sell more of their companies products and services. Companies can also maintain all types of information about dealer s, agents, and partners with their agreed contract.

3.2 Customer Relationship Management practices in the Telecommunications Industry in Bangladesh:

Two decades ago the Telecom industry in Bangladesh was in the introductory stage and didnt face competition as the number of operators was few as well as customer also. Now the industry faces stiff competition and realizes the importance of customer loyalty for getting competitive advantage. The industry also understands the strategic value of CRM technology to achieve dramatic increases in revenue, productivity, and customer satisfaction. At present six mobile operators work in the industry with 74.18 million subscribers, several market surveys forecast the number of mobile phone users will be around 80 million at the end of 2011 .

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Source- Website 9

Table 1: The Mobile Phone subscribers of different operators (at April, 2011): Operators Active Subscribers in Millions
Grameen Phone Ltd. (GP) Orascom Telecom Bangladesh Limited (Banglalink) Robi Axiata Limited (Robi) Airtel Bangladesh Limited (Airtel) Pacific Bangladesh Telecom Limited (Citycell) Teletalk Bangladesh Ltd. (Teletalk)
Total

32.640 20.049 13.794 4.782 1.747 1.174 74.188

Source: website of BTRC ( www.btrc.gov.bd)

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Table 2: Public switch telephone networks (PSTN) Phone Subscribers at May 2010: Operators
BTCL Telebarta Ltd Jalalabad Telecom Ltd. Onetel Communication Ltd. Westec Ltd Sheba Phone Ltd. (ISL) S. A. Telecom System Ltd. Banglaphone Ltd. Total Source: website of BTRC ( www.btrc.gov.bd) In the initial stage, most of the companies were not applying CRM system but now all of the mobile phone companies apply CRM systems in their organizations. GP apply CRM system for customer management and service management.

Subscribers
872.41 . 56.42 10.90 39.57 . 17.00 11.62 18.03 2.24 1028.19

3.3 CRM system of GP:

Source : Website 10

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GP apply operational CRM, which supports a variety of customer-oriented business processes in marketing, sales and service operations; and analytic CRM, which analyzes customer data and transaction patterns to improve customer relationships. Operational and analytic CRM modules provide the major functions of a CRM system. In addition to leveraging CRM functions, GP uses CRM systems to realize collaborative interactions with customers and business partners through system integration. System integration links CRM systems with back-office enterprise systems (such as enterprise resource planning (ERP) and legacy systems) and web-based business applications via Internet-based communication protocols, and connects these systems with dealers, partners, and customers based on common data standards.

3.4 CRM Strategy:

Source : Website 12

3.5 GP CRM system performs customer services to achieve customer loyalty:

Source : Website 11

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Service Managers of GP, Our new Customer Service campaign is a tribute to close relationships and the care it entails. It is a celebration of the magic of the closeness that Grameenphone facilitates through its superior service. You, our valued subscriber, are a member of the family we care for every day. Remember, customer service is always beside you with the people closest to your heart.(GP online news letter, 2009). Every subscriber of GP will get after sales service, service related queries and complaints just by using the following procedures:

Customer Service Hotline :

User of the GP will get service by dialing 121 from their own mobile set.

Customer Service Point :

User of the GP can solve the problem just knocking at the door of their near customer care center with valid documents of SIM holder.

Complaint Management:
Complaint Management handling queries, requests by mail, faxes and letters from customers.

Feedback Form/Query Form :

Customers can ask a question about their unknown facts through their website and will get instant answer by the CRM systems of the company.

3.6 GP is the leading operator in Bangladesh for customer caring and billing system:
CRM technique of GP already ensures customer loyalty with end-to-end customer care by direct text message, voice mail, and direct call to the subscribers. Auto generated messages of the CRM systems help to subscribers to understand many unknown facts. The System provides auto voice messages to the caller before making a new call when below the minimum balance and make a bill (for postpaid subscriber) of the individual subscriber by showing every call with call duration, cost, time, and date from the databases of the CRM system.

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3.6 Sales, marketing and Contract Management of GP:

CRM figure
Source: website 4

GrameenPhone applies CRM systems for marketing campaigns, promotional activities, maximizing productivity; and optimizing direct, indirect, or online channels. For future forecasting about sales, products, product line, GP uses CRM tools for analyzing data from the data warehouse. As a part of their partner relationship management GP performs different types of activities as for example: Grameenphone signed an agreement with Medinova Medical Services where GP users will enjoy discount and other facilities from medinova. Grameenphone (GP) and the Titas Gas Transmission and Distribution Company (TGTDCL) have signed an agreement to jointly launch the electronic bill payment service BillPay. Grameenphone has renewed its postpaid bill collection agreement with Islami Bank Bangladesh Ltd. (IBBL) with the introduction of the online bill payment facility. To add more value to a Grameenphone subscriber's life, the thankyou partnership program has entered into several exclusive partnership agreements with various large local business houses this summer.

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3.7 Application level of CRM in GP:

CRM plays a key role in relationship building and prepare a platform to collect and analyze data, but it also includes the integration of all these activities across the firm for creating customer value. Rashid H and Rahman M M (2009) developed a model to find CRM application level in any type of organization.

Source : Website 8

Table 03: Dimensions of CRM Dimensions

T R A C K Thankful Responsiveness and Relationship Appropriateness Caring Keep in Touch

Explanation
Organizations have to be thankful to all customers with continuous follow up to retain them. Organizations have to response each customer individually and maintain longer relationship with them Organizations have proper respect to the prior specification of time, cost, and quality with the customers. Organizations have proper caring of the customers by listening their problems even in after sale service. Companies have to make an effort to stay close to its customers and solicit their options

Success of any organization mainly depends on level of customer interactions, which is main part of the CRM. Cycle starts from receiving customer information while cycle end at keeping customers information and retain them successfully. Following model describe how customer interaction cycle will be performed.

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Part D Methodology

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4.1 Methodology:
Methodology is generally a guideline system for solving a problem, with specific components such as phases, tasks, methods, techniques and tools. Primary & secondary data sources were used to generate this report. Site selection: Customer Relationships Management- A perspective study at Grameenphone First I tried to find this topic related information in books. Then I collected information from internet through visiting GP website & others. There are a lot of informations are available in the internet. Then I try to find this topic related previous published report. On the base of CRM at GP topic there I find lot of published reports.

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Part E Result & Discussion

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5.1 Survey findings on Customers and Officers of GP:

Source : Website 5

200 officers and 400 customers of GP were asked from different dimensions of TRACK model of CRM to find the application level of CRM in GP in Bangladesh.

Aspects of officers (as a service provider):

There are mainly 5 dimension of CRM in TRACK model about which different level GPs officers were questioned. About 86.38% of the interviewee focus on CRM using in GP is in Caring dimension while least focusing dimension is Appropriateness which obtained only 78.63% CRM score. At the same time, maintaining responsiveness and Relationship, thankful, keep in touch dimension obtained CRM score 84.13%, 80%, and 79% respectively (Table-06).

Aspects of subscribers (as a service taker):

Again study also conducted on subscribers of GP about their judgment on CRM practicing. TRACK model also applied for this group to evaluate the level of application of CRM. Subscribers of GP highly focusing on practicing in Caring and Keep in touch dimensions of TRACK model which achieved 78.13% and 76% CRM score respectively. On the other hand, appropriateness, Responsiveness and relationship, and Thankful dimensions were achieved 69 to 71%. Behind from the standard CRM score are 56.25% and 60% (Table- 06). Views of service providers and service taker in different dimensions difference not more than 13% and average score deviation maximum .53 on 4.00 scales.

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Table: 04 Total Score table of Survey results Dimensions of TRACK model

Interviewee
Number of GP's Officers 200 Total Score: (Out of 800) Thankful Responsiveness & Relationship Appropriate Caring Keep in touch Overall CRM

640

673

629

691

632

653

Percen tage
Number of Customers 400 Total Score: (Out of 1600)

80 1112

84.13 1133

78.63 1142

86.38 1250

79 1216

81.63 1170.6

Percen tage
Deviation in percentage

69.5 10.5

70.81 13.31

71.38 7.25

78.13 8.25

76 3

73.16 8.46

Table: 05 Average Score table of Survey results Dimensions of TRACK model

Interviewee Thankful Responsiveness Appropriate & Relationship 3.365 3.145 2.8325 0.5325 2.855 0.29 Caring Keep in touch 3.16 3.04 0.12 Average CRM Score 3.265 2.9265 0.3385

GP's Officer Customers Deviation

3.2 2.78 0.42

3.455 3.125 0.33

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Dimension 1 Thankful

Fig: Response of service provider (Officers of GP)

Fig: Response of service Takers (Subscribers of GP)

From the diagram 1 we get that in case of thankful to GP there are difference opinion vary from officers & subscribers. From 800 officers 80 percent of them thought that GP is thankful to customer on the other hand 69.5 percent out of 1600 customer thought that GP is thankful to them. A lower portion from officers to subscribers is supporting GP in case of thankful.

Dimension 2 Responsiveness & Relationships

400 300 200 100 0 No. of Respondent Score

Rating

Fig: Response of service provider (Officers of GP)

Fig: Response of service Takers (Subscribers of GP)

From the diagram 2; in case of responsiveness & maintaining relationships we get that the officers of GP are supporting GP a lot rather than the customer. Out of 800 officers 84.13 percent of them thought that GP is responsible & maintain the relationships with customer very well; on the other side only 70.81 percent out of 1600 customer thought that GP is responsible & maintain the relationships with customer very well.
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Dimension 3 Appropriate

1000 800 600 400 200 0 Rating No. of Respondent Score

Fig: Response of service provider (Officers of GP)

Fig: Response of service Takers (Subscribers of GP)

If we measure the diagram 78.63 percent of officer thinks that GP is providing appropriate service to customer but in case of customer only 71.38 percent out of 1600 think that GP is
providing appreciate service to them.

Dimension 4 - Caring

Fig: Response of service provider (Officers of GP)

Fig: Response of service Takers (Subscribers of GP)

86.38 percent out of 800 officers of GP thinks that GP is very caring but if we measure the customers opinion there are only 78.13 percent out of 1600 them GP is caring to the subscribers.
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Dimension 5 Keep in Touch

Fig: Response of service provider Fig: Response of service Takers (Officers of GP) (Subscribers of GP) 79 percent out of 800 officers thinks that GP is always try to keep in touch with its customer on the other hand there is some similarities with customer also. 76 percent out of 1600 of also think that GP always try to keep in touch with its customer. And finally we get that the overall gap between thinking of officers & customer about GPs CRM is 8.47 percent. 81.63 percent of (out of 800) officers are supporting in all terms on the other hand 73.86 (out of 1600) percent of subscribers are supporting in all term related to the questionnaire topics.

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5.2 Future Implementation and action plans of CRM systems in the Telecommunication industry:
Leveraging CRM systems requires both IT and business managers to have sufficient technical and business skills for carrying out CRM-enhanced operations (Goodhue et al. 2002). More importantly, successful CRM implementation often entails significant organizational transformation due to the complexity of multiple operations involved in managing customer relationships. Implementing a CRM system is only part of the needed change. To embrace the new ways of interacting with customers, firms need to align various organizational aspects with their CRM systems, e.g. business processes, strategies, top management support, and employee training (Goodhue et al. 2002). These organizational efforts are termed organizational capital and must take place in conjunction with technology investments. GP applies CRM in every aspect of their operation and management. Though their tariff cost is high compared with other operators in Bangladesh, customers are loyal to them only for better caring, servicing and management. At the same time GPs CRM system assists them to effectively analyze sales and marketing data for ensuring competitive advantage that is why they are the leader in the industry to date. As the telecommunication industry is the purely a service sector, its success completely depends on customer satisfaction and loyalty. However, management of an enormous number of customers is not an easy task. CRM plays a role to better manage customers, services, sales, and operations in the organization. Grameenphone is an excellent example which has held its leadership in this sector from inception. The other five operators are struggling to cut market share from GP by offering more than 50% reduced tariff in all types of outgoing calls. Now the other operators are also trying to implement proper CRM following the success of GP.

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SWOT ANALYSIS

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Strength:
Brand Image
Grameenphone have already established their brand name in a pioneer position in telecom industry. Brands are recognized to be the most valuable asset for any company. Marketers always increase the brand value of the company. GrameenPhone has the strongest brand image in local telecom industry. According to a research conducted by Bangladesh Brand Forum, Grameen Phone is the second strongest brand in the country right after Nokia (Handset) and the strongest brand in telecom sector.

Financial Soundness
GrameenPhone has a huge amount of capital mainly invested by the shareholders. Capital size is $280 million. Moreover, global institutions like IMF, World Bank etc. have sanctioned loan for GP. This is a huge success for GP. GrameenPhones total capitalization was US$120,000,000, including around US$50 million from IFC/CDC, and the Asian Development Bank (ADB). It also received US$60 million in equity from the four GrameenPhone private partners. Grameen Telecom borrowed US$10.6 million from the Open Society Institute to set up Village Phone. The company continued to invest heavily in expanding the capacity of its network and coverage. The company reached its breakeven point in 2003.

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Largest Geographical Coverage

GrameenPhone has the largest geographical network coverage compare to its competitors. GP has planned to make fresh investments to further expand its coverage throughout the country and increase the capacity of the network GrameenPhone has coverage in all over the country. There are 1750 base stations in operation around the country, another thousand base station by this year.

Access to the Widest Rural Distribution Network through Grameen Bank

GrameenPhone by bringing village people under its network coverage through its regional offices around the country. Grameen bank gives the loan to the women to purchase the Village Phone. The Program offers mobile service to over 40 million people in remote areas. On average a Village Phone Operator earns nearly 1,000 USD a year, nearly three times more than the average per capita income.

Others are:
Optical Fiber Strong Management Support: Skilled Workforce: Cell Bazaar, Health Line, Bill Pay EDGE Loyal Customer Base

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Weaknesses
Every company has its weak points and GP is no exception to that rule. The weaknesses of GP are-

Network Related Problem:

Recently GP has switched its network vendor from Ericson to Huawei for cost reduction. As technology of Huawei is not up to the standard like Ericson, GrameenPhone is suffering some network problem. Customers often complain that they are facing call drop, call congestion, sound clarity problem. Moreover, GP has weak coverage in some districts like Netrokona, Laxmipur, Noakhali, Maulvibazar, Habiganj, Coxs Bazar etc. As the subscribers complaints, they cannot communicate effectively in these weak networks.

Call Rate:
The call rate of other operator is significantly lower than GrameenPhone. While other operators are offering below 1tk off-net call rate, GrameenPhone charges 2tk/min call rate. Moreover after 22nd March, 2009, GP as increased the FnF rate from 25 paisa to 49 paisa, which decreases its subscriber base specially customers of younger age.

Billing System:
Post-paid customers often find the billing system complicated to understand. Their line gets barred without notifying them Post-paid customers cannot see their bills through dialing any USSD number like *566#.

Lack of Internal Communication:

GrameenPhone has severe weakness due to lack of communication inside the organization. While marketing department sends any promotional sms to customers, Customer service often remains unaware of it. When customers make any query regarding those promotional sms, Customers service agents often fail to communicate it properly to the subscriber.
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Commercial Ads Are Not Much Creative:

People now a day not only consider the price or product of a company. They also consider the performance, ability of a company. Even now a days people have started to compare the commercials of different company. Sometimes GPs commercial ads are not that much appealing its prospective customers compare to its competitors. GP does not show its competitive advantages through its ads whereas its competitor such as Citycell has done it effectively.

Some Services Are Not Popular:

Voice Mail service Their Handset campaign To get free benefits that customers get confused and thus dissatisfied.

Opportunity:
Diversified Portfolio:
The core business of GrameenPhone is voice communication. GP has already expanded their business to Internet service, Modem, Handset.

Attractive Market:
Bangladesh is a highly attractive market for mobile services due to its large and highly concentrated population, Bangladesh is eighth most populous country in the world and is among the most densely populated. This market has still low penetration rate but still there is opportunity to increase high penetration rate.

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Huge Need for Telecom Services:

The demand of the cell phone is still increasing. Variety services with most lucrative features made this sector more and more attractive day by day.

Governments Plan for Digital Bangladesh:

Thus there is opportunity that Government will reduce Internet Bandwidth charge. Allocate more frequency to cell phone operators and remove restrictions on VOIP business.

Others:
Poor Internet Service in the Country helps to increase GP internet subscriber. Declining Prices for Handsets help to poor people to buy a hand set. As BTTB has established new gateway to connect internationally, this is easy for mobile phone companies to provide services of ISD call and international roaming.

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Threat:
High Tax:
The imposed increased taxes for SIM price will slower the growth of this industry. A customer from this segment does not have the ability to buy a Sim while paying 800 taka Sim tax. Government Regulation is GP is not allowed to do business on International call. Recently GP was deprived from Wimax license.

Other existing operator:

Among the existing competitors, Banglalink, Aktel, City Cell, Teletalk are planning to develop country wide network and take many promotional activities. Among these operators Teletalk enjoys Government subsidy and other Government support which gives them a clear competitive advantage in the market. Recently price promotion of other competitors which makes it difficult for GP to retain its existing call rate.

Others are:
Threats of potential new entrants with cheaper techonology Political Instability Price War Entrance of Wimax is great threat for GP internet service In the above discussion it is clear that GP has huge strength and opportunity. If GP can utilize all the advantage properly and minimize the weakness & threat then GP can retain its leading position and can continue their success for a long time.

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Part F
Conclusion & Recommendation

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6.1 Conclusion
From the previous discussion we know that Customer Relationship Management (CRM) is all about retain the present customer so they are satisfy to use particular companys product and do not get the interest to use other products which offer by another companies. Because we know retain the present customer is less costly then attract new customer about my product. But through CRM we also try to attract the new customers who have the willingness to use my product. And we use Customer Relation Management more effectively if we apply some web based tools and other software which are collectively known as CRM.

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6.2 Critical observations & recommendation

Source : Website 7

GrameenPhone is now mainly focusing on the service quality issue because it believes in long term relationship with its customer. GrameenPhone believe that if every customer has a positive image about GrameenPhone they will carry on with GrameenPhone. My observation shows that positive word of mouth has more power than the promotion, products and price. To do so it needs more priority on customer services than any other thing. Due to huge customer base and cross cultural differences it seems very difficult for the team to properly manage customer satisfaction. So from my point of view the team member should have more cross cultural training in order to understand the customer best. Customer satisfaction can be increased by the customer service department but they need to follow bellow things: We know that customers overall satisfaction will decrease if Cost of waiting time increase day by that means when customer call their respective operators hotline number that time they reach the customer manager after waiting long time. For example if the customer call their particular operators hotline number in any time except mid night then they have to wait 3 to 4 minutes to reach the customer manager. So GrameenPhone need to expand their facility like increase the number of employee though they are using CRM but they need more customer manager.

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 One more important point is, in addition they have to wait more than 3-4 minutes to reach the customer manager. Which create a negative impact on customer mind. Because for solve a single problem they have to spend 6 to 7 taka. So the mobile operator companies supposed to reduce their call rate for their hotline or customer service number. But they have to reduce it up to an optimum level. Because if they reduce the call rate at minimum level then ultimately the call pressure increase dynamically. Then also Cost of waiting time increase substantially. Another reason of customer overall satisfaction decrease is take long time to solve the problem. That means when the customer give the complain about their line and other value added service, the mobile operator company take long time to solve their problem. For example overcharging, friends and family number correction, missed call alert problem. Then the companies take 72 hours from customer to solve that particular problem. To achieve the higher customer rate they need to reduce the time gap. And this can be possible when they use high technological software which has higher analytical capability. I also want to mention one more things there are some other factors which are directly involve with customer satisfaction rate. These points are Service attitude of Customer Manager and The solution or outcome of the conversation bring some positive result. The service quality also depends on the key person who deals with the customer over the phone. So the companies need to trained their employees such a way that they serve each customer as their first customer. And try to increase their analytical power so they can understand the customer problem within a very short time. And other important factor like length of the conversation, understanding capability of Customer Manager, positive behavior from Customer Manager end are acting as a vital role to maintain the companys overall customer satisfaction rate. So companies must create more efficiency to maintain the customer satisfaction .

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References

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Books
Dong S. and Zhu K.(2004), The Business Value of CRM Systems: Productivity, Profitability, and Time Lag University of California, Irvine on line journal. Gefen, D., and C.M. Ridings (2002), Implementation team responsiveness and user evaluation of customer relationship management: A quasi-experimental design study of social exchange theory. Journal of Management Information Systems, 19(1): 47-69.

Websites
1. http://www.grameenphone.com/about-us/media-center/press-release/2009 (visit date: 17 July 2012) 2. http://www.btrc.gov.bd/newsandevents/mobile_phone_subscribers.php (visit date: 17th July 2012) 3. http://www.btrc.gov.bd/newsandevents/pstn_phone_subscribers.php (visit date: 15th July 2012) 4. http://www.google.com/imgres?q=crm&num=10&hl=en&biw=1366&bih=643&tbm=isch&tbnid
=-uAau6aOj-fIMM:&imgrefurl=http://crm.manufacturersupplier.com/&docid=nQxtO_LfkbWSXM&imgurl=http://crm.manufacturer-supplier.com/crmpic.jpg&w=336&h=336&ei=AjcMUNqfOYHtrQfRrO3ICA&zoom=1 5. http://www.google.com/imgres?q=customer&hl=en&noj=1&tbm=isch&tbnid=K7bMQUO5cn_X MM:&imgrefurl=http://www.catalystmarketers.com/tag/customerservice/&docid=2fhbSy_jtKAY8M&imgurl=http://www.catalystmarketers.com/wpcontent/uploads/2009/12/customer-service-philadelphiabusiness.jpg&w=822&h=584&ei=3zcMUMvsJIzSrQe_rvDICA&zoom=1&iact=hc&vpx=172&vpy=1 84&dur=3585&hovh=189&hovw=266&tx=142&ty=118&sig=105274253844155736136&page=1 &tbnh=120&tbnw=169&start=0&ndsp=22&ved=1t:429,r:0,s:0,i:141&biw=1366&bih=643 6. http://www.google.com/imgres?q=customer&hl=en&noj=1&tbm=isch&tbnid=KeYj2KVHe_7Vh M:&imgrefurl=http://blog.lynksoftware.com/&docid=GeU-OtWF53k_M&imgurl=http://blog.lynksoftware.com/wpcontent/uploads/2010/08/customer_relationships.jpg&w=485&h=452&ei=3zcMUMvsJIzSrQe_r vDICA&zoom=1&iact=hc&vpx=1092&vpy=247&dur=115&hovh=217&hovw=233&tx=147&ty=10 7&sig=105274253844155736136&page=2&tbnh=144&tbnw=154&start=22&ndsp=28&ved=1t:4 29,r:27,s:22,i:296&biw=1366&bih=643 7. http://www.google.com/imgres?q=thinking&hl=en&noj=1&tbm=isch&tbnid=zfw4dmnYwXVcJM :&imgrefurl=http://vincentloy.wordpress.com/2011/04/04/design-makes-me-think-a-lot-thinkuntil-toomuch/&docid=qNYH3p7RL2IfuM&imgurl=http://vincentloy.files.wordpress.com/2011/04/thinki ng_7_tnb.png&w=350&h=286&ei=5DgMUNuAHMf5rAfxxTHCA&zoom=1&iact=hc&vpx=1077&vpy=233&dur=87&hovh=203&hovw=248&tx=197&ty=110 &sig=105274253844155736136&page=2&tbnh=137&tbnw=166&start=24&ndsp=28&ved=1t:42 9,r:6,s:24,i:236&biw=1366&bih=643 Page | 50

8. http://www.google.com/imgres?q=crm+call+center&hl=en&noj=1&tbm=isch&tbnid=yPLMU5SX
mwkKPM:&imgrefurl=http://www.aquacrmsoftware.com/crm-for-callcenteraquacrm.html&docid=O2t2sGhi3Ef4_M&imgurl=http://www.aquacrmsoftware.com/images/CR M-CALLCENTER.jpg&w=400&h=266&ei=zzkMUM27LNDHrQfl_JXICA&zoom=1&biw=1366&bih=643 9. http://www.google.com/imgres?q=public-relations-customercare&hl=en&noj=1&biw=1366&bih=643&tbm=isch&tbnid=5kJrCZvNaDV_sM:&imgrefurl=http:// www.ehow.com/list_6587673_public-relations-customer-caretips.html&docid=9K3SZMVcFSX3sM&imgurl=http://img.ehowcdn.com/articlenew/ehow/images/a06/91/8p/public-relations-customer-care-tips-1.1800x800.jpg&w=425&h=283&ei=DToMUNP1JMHrrQegvsjICA&zoom=1 10. http://www.google.com/imgres?q=Customer-RelationshipManagement&start=95&num=10&hl=en&addh=36&tbm=isch&tbnid=LaB5E2PKStR8rM:&imgref url=http://www.allthingscrm.com/help-desk-and-contact-center-applications/how-schmoozingcan-improve-customerservice.html&docid=kfl8V4RiT_snNM&imgurl=http://www.allthingscrm.com/wpcontent/uploads/2009/07/Customer-RelationshipManagement.jpg&w=480&h=312&ei=3DoMUNDtD8mmrAePgrXICA&zoom=1&iact=hc&vpx=180 &vpy=205&dur=72&hovh=181&hovw=279&tx=152&ty=116&sig=105274253844155736136&pa ge=5&tbnh=144&tbnw=198&ndsp=24&ved=1t:429,r:0,s:95,i:6&biw=1366&bih=643 11. http://www.google.com/imgres?q=operion_crm&hl=en&biw=1366&bih=643&tbm=isch&tbnid= 2CRMQgK2xjdR5M:&imgrefurl=http://www.operion.com.my/operion_crm.html&docid=y8TAy WPI_BSV0M&imgurl=http://www.operion.com.my/main/images/operion_crm.jpg&w=300&h=3 08&ei=AjsMUN_LEsKHrAeWpLzICA&zoom=1 12. http://www.google.com/imgres?q=crm-strategychalkboard&hl=en&tbm=isch&tbnid=ydMCAGkEpXQGoM:&imgrefurl=http://www.comparebusi nessproducts.com/crm&docid=4QnL4kJMfz0WmM&imgurl=http://www.comparebusinessprodu cts.com/content/assets/20/images/crm/crm-strategychalkboard.png&w=380&h=276&ei=JjsMUIazAsbtrQeNu6XJCA&zoom=1&biw=1366&bih=643 13. http://www.google.com/imgres?q=logo+of+grameenphone&hl=en&tbm=isch&tbnid=Ih_8zH11 5vJEVM:&imgrefurl=http://www.logotypes101.com/free_vector_logo/88845/Grameenphone& docid=CPRwrpwY2rE_8M&imgurl=http://www.logotypes101.com/logos/290/1BDC83B7F469D6 8ED001E3370B0A2184/gpoldlogos.png&w=300&h=300&ei=ATwMUOrcH4XprQfCqNDHCA&zoo m=1&iact=hc&vpx=380&vpy=158&dur=196&hovh=225&hovw=225&tx=114&ty=146&sig=10527 4253844155736136&page=1&tbnh=140&tbnw=146&start=0&ndsp=21&ved=1t:429,r:15,s:0,i:12 2&biw=1366&bih=643 14. http://www.google.com/imgres?q=logo+of+grameenphone&hl=en&tbm=isch&tbnid=fqg412jba GBHxM:&imgrefurl=http://en.wikipedia.org/wiki/File:Grameenphone_Logo.png&docid=cbBM2GtijvlFM&imgurl=http://upload.wikimedia.org/wikipedia/en/9/9a/Grameenphone_Logo.png &w=417&h=399&ei=ATwMUOrcH4XprQfCqNDHCA&zoom=1&iact=rc&sig=10527425384415573 6136&page=1&tbnh=127&tbnw=133&start=0&ndsp=21&ved=1t:429,r:0,s:0,i:75&tx=99&ty=66 &biw=1366&bih=643

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Appendix

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Credit Rating Report

Grameenphone Limited
Particulars Ratings Grameenphone Limited AAA BDT 13,905.00 million aggregate Fund based limit ST-1 BDT 22,668.00 million aggregate non-fund based limit ST-1 ST-Short Term Date of Rating: 05 January 2012 Validity: The Long Term rating is valid up to 31 December 2012 and the Short Term ratings are valid up to limit expiry date of respective credit facilities or 31 December 2012 whichever is earlier. The AAA rating of GP is underpinned by its sustaining Rating Based on: Audited financial statement up to 30 June 2011, revenue growth, leading market position despite intense bank liability position as on 30 September 2011, and other relevant quantitative as well as qualitative information up to the competition in the telecommunication industry of date of rating declaration. Bangladesh-a result of comprehensive network coverage, wide product range, increasing business volume, Financial highlights (Mil. BDT) H1 2011 Assets Revenue EBITDA Capital Expenditure Fund flow from operation (FFO) Retained cash flow (RCF) Free cash flow (FCF) Interest expense/(income) Total liabilities Equity PROFILE Grameenphone Limited (hereinafter referred to as GP or the Company) is a GSM based mobile its telecommunication service provider started 2010 107,541.57 43,404.14 21,980.78 4,179.80 109,502.14 74,733.08 37,000.80 9,303.01 27,738.82 17,384.39 8,081.38 comfortable profit margins, positive cash flows and low credit risk profile. The rating recognizes the support of the sponsor- Telenor a leading telecommunications company of Norway listed in the Oslo stock exchange having operation in Sweden, Denmark, Hungary, Russia, Ukraine, Serbia, Montenegro, Thailand, Malaysia, Pakistan and India with more than 174 million mobile subscriptions worldwide as of December 31, 2009. The rating of GP is further supported by the strengthening governance structure of GP emanating from oversight of its board and robust internal control framework. The telecom sector of Bangladesh has been experiencing a healthy growth during recent years. The growth has been fueled by intense competition that resulted in expansion of both network coverage and subscriber base. While countrys tele-density stands at around 40.69% as of December 2010, there lie sound growth prospects for mobile operators. Pricing competition among the wireless operators has been intense and pressured operating margins as the markets are mostly maturing. In addition, average revenue per user in most markets has continued to decline, especially in emerging markets, as subscriber growth is coming from low-segment users. However, threats from the smaller operators are expected to subside as their profitability and cash flows are vulnerable due to their low economics of scale and limited financial flexibility to weather the current economic turmoil.

(788.05)
61,824.85 45,716.72

(593.47)
61,470.31 48,031.83

operation on 26 March 1997. As of December 2010, GP had a subscriber base of 29.97 million ranking as the largest mobile operator in the telecommunication industry of Bangladesh. GPs cellular network in the country covers 98% of country's population through 13,000 base stations in more than 7,200 locations. RATIONALE Credit Rating Agency of Bangladesh Limited (CRAB) has reaffirmed AAA (Pronounced as Triple A) rating of Grameenphone Ltd based on the recent performances.

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