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Customer Relation Management in the Vodafone Group

Paper Type: Free Essay Subject: Marketing
Wordcount: 3042 words Published: 1st Jan 2015

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Vodafone Group is a universal telecommunications corporation having headquarter is in London, U K . Vodafone is the world’s biggest mobile phone company by revenue is measured and the measured world’s 2nd-largest of participants after China Mobile. Till November 2010 they have a customer over 341 million. It operates over more than 30 countries and in over 40 countries they are network partners.

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It have a share of 45% of Verizon Wireless, which is the largest mobile phone company in the United States has in terms of subscribers. Vodafone name derived from the word Voice data fone which mean “imitate the condition of voice and information services via mobile phone. It is listed in London stock exchange as a primary listing and it is a essential component of 100 FTSE index.

. It had a market capitalization of around £ 92000000000 from November 2010. In London stock exchange it is third largest company and in NASDAQ it also listed as Secondary(Bond 2010).

Customer Relation Management

Traditional marketing strategies determined related to 4th Ps i.e. place, product, price, promotion. Which help them to boost their market shares.. Its main worries were to raise transaction of volume between the vendor and Customer. A good measure is considered when volume of transaction performs well in marketing policies and strategies(Finnegan & Currie n.d.).

For further growing transaction volume Customer relation Management is business tactics that is used. Main objective of these strategies is used to increase profit, revenue, customer satisfaction. Company used different tool like technologies and procedure to promote customer relationship to increase sale and it help them achieve CRM.

Customer Relation has three Components




Customer: The customer is the only source of profit and future growth. But with a good customer, providing more gain less Resource is scarce, because customers are informed and the competition is strong.

Sometimes it is complicated to discriminate who the actual Customers because the purchase decision is often a joint activity Surrounded by the participants in the

process of process of making decision. Information technologies have a capability to distinguish and supervise customer.CRM can be used as a marketing approach designed based on information of customer.


Relationships: The ongoing relationship between a company and its customers of two-way communication and interface. The association can be short or long term, continual or repeated or only and Compounds, attitude or behaviour. Even if the customers approach optimistic towards the company as well as its goods, their purchase behaviour depends largely on the situation.

For example, the purchase behaviour of the airline tickets depending on if a person buys tickets for a business trip or family holiday. CRM involves the management of this relationship is so beneficial and mutually favourable.

Management – In marketing Department CRM is not just an activity

. On the other hand, the constant changes in corporate culture and processes. The information contained in the knowledge of the business of content will transform leads to the activities that take advantage of opportunities and market information. CRM need a complete change in the association and its people.

Includes support for specialized management software:

• Field service,

• E-Commerce by

• Application for Self-service

• Management for Catalog,

• Presentation of Bill

• Marketing programs

• Analysis applications (Gray & Byun 2001).

CRM overall process and application are based on following Fundamental

Treat customers independently

Retain information of customers and take care of them individually.

CRM is basely based on belief of personalization. Personalization means the “satisfied and be of service to customers designed for customers Attitudes and behaviour and offers individually Convenience for the customer and increases the expenditure of the change Provider.

Win bind and customer loyalty through private relationships. If personalization had happen then a company must continuously made their associations with their customers. Constant contacts with customers can especially if they fulfil the needs of customer’s preferences and generate customer loyalty(Becker et al. 2008).

Choose “good” consumers instead of “bad “based on customer lifetime price. Find and book the right customers to generate profits. By differentiating a company can award its limited resources to achieve higher returns. The best consumers deserve best customer, service should be deleted worst customers.


The main benefits of CRM services are

Increase the body’s ability to keep and win customers and maximize the value of the life of each client

Improve the service free of charge of service.

Some of these benefits can be measured and that others can’t. CRM consists of four continuous processes Each process offers significant advantages for organization. These advantages, sales, Marketing and service operation should work mutually(KO et al. 2007).

Theory of CRM

Gartner CRM characterized [16], a common problem for companies and scientists [10]. Markets CRM, CRM Company: By Romano and Fjermestad research on CRM in five major areas which do not exclude each other Models of knowledge management, CRM Technology, CRM and human factors. These five research areas influence each other and also the process, practice and the result of the acquisition of CRM is not yet known, that the success of CRM initiatives of the organization.

Integration of the clients, organization and IT strategy is the key to the achievement of CRM. Hewson and McAlpine supporter that the CRM application is other eight groups of risk management information systems. Risks (1) the prevailing characteristics of the residents of the sale involve the main users (2) the complication of industry processes, a series of CRM (3) the rapid changes in the environment, the use of the political system (5) Multimedia techniques CRM (6) the lack of a method established for the implementation (7) the recovery of loans (8)’s access needs. Roh and his partner say that following the process, the quality and the support of the system are main factors in CRM. Cannon said [4] that causes inadequate planning of CRM.

CRM project implementation problem, while Cavaye and Davenport stress that business processes must be aligned to meet the need of the system users. CRM success has also been measured in terms of the efficiency of business processes appropriate strategy formulation, customer satisfaction as well as system design perspective.

Review of prior research indicates that the management of development (the fit between organisational strategy and CRM strategy), technology (ubiquitous access points to users and management of the technology deployment and usage) and information (management knowledge generated from the information) seem to be the crucial factors of CRM success.

In addition, there is indication that ability to address the environmental factors resident outside the organisation also impacts the successful deployment and usage of CRM. It is evident that inconsistencies in prior studies on CRM success have been found because they have addressed one or the other factors of people, process and/or technology. A comprehensive view of the entire set of factors and their effective management seems to be missing. In order to enhance the understanding, we therefore

need a framework that the entire space that impacts a system’s deployment and usage(OU 2009).


Now we talk about CRM in Vodafone Company

Following are task which need to perform to achieve CRM in Vodafone they are as follows

Customer Identification – To provide significance to our customers, the company has to know or determine their customer from different marketing channels, dealings and time interactions.

2. Customer differentiation – Each client has its own value of life from the perspective of the company and each buyer imposes demands which are unique and their different Company requirements.

3. Customer Interaction – Customer wants change all over time. From a perspective of CRM, the continuing profitability of customers and their relationship with the company is very important. Therefore, knowing the client company continuously and to track performance and customer needs are an important Task for CRM.

4. Customization or Personalization – “Treat every customer differently” is the slogan of the whole process of CRM. By personalizing the customer Satisfaction Company can increase loyalty to their company(Agrawal et al. 2009).

E CRM and It use in Vodafone

E-CRM describes a wide variety of technologies used to maintain the CRM strategy. E-CRM is also occasionally referred to as Web-enabled or

CRM and was from this perspective, e-CRM, Forrester Research has been defined as “web centric approach is used to synchronize customer relationship between the communication channels along with business functions and also for the public. LeeKelley et al. Highlight the relation have lack of literature in this area suggests, and a working definition “Building for marketing activities, tools and techniques as the Internet, including Web mail worldwide chat rooms offered e-forums, etc. to find a purpose, and long-standing customer relationships to develop their individual potential to improve” from e-CRM.

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The objective of e-CRM systems is to improve service to customers, retain valued customers and contribute to analysis capabilities within an organization’s CRM applications take full advantage of technological innovations to raise their capacity and analysis of data on the habits of Internet users construe customer behaviour, grow predictive models that respond in a timely and capable personalized communications and provide high quality products and services to individual consumers. By using technology to increase the interaction with business customers can have a degree view of customer interactions from the past to optimize future learning. It is also the infrastructure that enables the definition and

increases, correct to motivate the value for the customer and the means by which valuable customers to remain loyal.

E CRM is to synchronize helped Vodafone, coordination of all interactions with customers through multiple channels and telephone Fax email put face to face as a E CRM solution has also enabled the personnel of the customers to improve productivity and maximize the capabilities of the automation of workflow services revenue the E CRM has the company been allows you to manage each and every one of these calls. Efficient and professional. Sales are now connect automatically to the current and potential clients on the basis of and knowledge of services and the availability of the product called Geography. They the status of a call, or may subscribers request him/her information on the status of applications scripts and so-called agents productivity of profiles to further improve.

ECRM help to Ideas practices for individual analysis and personalized communication interactions buy Vodafone can identify segments of the relationship with the client to understand.

The needs and preferences and create targeted marketing special offers certain segments of customers.

Monitor customer feedback the application of the lessons for future campaigns customers shopping guide behaviour.

The levels of service to the customer are for the introduction and development of relations. Needs of management processes and existing methods are offered in the service changes and improve the quality of service for customers.

This is an important area to develop relations with clients in the long term. This requires that the management the ability to recognize that customers are important to the company and then be able to ensure that their needs are different. This allows them to communicate properly with the client.

• Continuous interaction with customers are required to continue the development of activities in the long term relationship. This requires new methods and communication techniques, such as the use of email, SMS and other developed technical(Q. Chen & H. M. Chen 2003).

6 E in E-CRM

The “e” in e-CRM is not only a synonym for “electronic”, but you can see that many other connotations. Although the core of integration is the channel e-CRM section and the Organization of the six “e: e-CRM in alternative decisions may be under channels based e-CRM problems and impact other factors, e-CRM e six” explained briefly below””

1. Electronic channels: new electronic channels like the Internet and personal

E-mail address must be the means for fast, interactive and cost Communication professions difficult to keep pace with this increase in speed.

e-CRM is nourished by these electronic channels.

2. Enterprises: Playing with a partnership with CRM tools and e-Learning

Customer satisfaction through sales and service, the occupier

Need to recognize and evaluate customer behaviour.

3. Empowerment: E-CRM strategies should be structured so that consumers

Well, the power to decide when and how Company during this channel, how often. ECRM solution must the reasons for the current use, relevant and useful understands in return for their attention.

4. Economics: A e-CRM strategy should ideally focus on the customer the economy, which has good asset distribution decisions, focus on offer people with communication, a high-quality service for customers initiatives.

5. Evaluation- The economy of the customers is the ability of an Enterprise and evaluation of knowledge-based interactions between the behaviour of users

Development of multi-channel customers, and compare the expected return on investment and Real income customers reporting analysis(Suresh 2002).

The challenges of e-CRM

Decide with customer interaction eCRM readers about the nature and duration of contact allowed. Creating the capacity for intimacy with clients is limited and confidence can be difficult. In the face of online channel management company with the fact that more choice creates ease for customers and compete with one click is there is no second chance to recover from errors in these remote channels Architecture and data integration challenges for organizations to adopt e-CRM technology available(Kennedy 2006).


Implementation of CRM in short-term success must reorganize its client and change the mindset of the organization. When CRM works, helps to resolve this problem interference problem all together and the approach of the Organization of the consumer. Like all tactical initiatives, CRM requires dedication and considerate across the enterprise, not only in marketing. In general, add a sense of expectation and the loyalty that instilled in the customer and the growth of a connection break-up between the company and the consumers of the stiff competition. Business decisions based on reliable and comprehensive information on its customers are very difficult to play competitors and create a sustainable economical advantage (Suresh 2002).

Word Count – 2400

Bibliography/ Reference list

Agrawal, R. et al., 2009. A Report on Vodafone Essar India and their CRM practices. USCUSTOMER RELATIONSHIP MANEGEMENT. Available at: [Accessed March 24, 2011].

Becker, J.U., Greve, G. & Alber, S., 2008. The impact of technological and organizational implementation of CRM on customer

acquisition, maintenance, and retention. Intern. J. of Research in Marketing, 207-215.

Bond, S.J., 2010. Vodafone Anual report 2010. Available at: http://www.vodafone.com/content/dam/vodafone/investors/annual_reports/annual_report_accounts_2010.pdf [Accessed March 25, 2011].

Chen, Q. & Chen, H.M., 2003. EBSCOhost: Exploring the success factors of eCRM strategies in practice. Available at: http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=a67b4d2d-2230-4072-b627-7f7057fcd126%40sessionmgr15&vid=1&hid=24 [Accessed March 26, 2011].

Finnegan, D.J. & Currie, W.L., A multi-layered approach to CRM implementation:

An integration perspective. European Management Journal, 28, 153-167.

Gray, P. & Byun, J., 2001. CUSTOMER RELATIONSHIP

MANAGEMENT. Available at: http://www.crito.uci.edu/papers/2001/crm.pdf [Accessed March 25, 1925].




CHALLENGES IN A DIGITAL WORLD. Available at: http://graduatenetwork.dit.ie/media/newsdocuments/2006/irishmarketingreviewvolume18number122006/mr-58.pdf [Accessed March 25, 2011].

KO, E. et al., 2007. Organizational characteristics and the CRM adoption process. Journal of Business Research, 65-74.


MANAGEMENT. Journal of Information Technology Management, XX. Available at: http://www.aom-iaom.org/jitm_pdfs/jitm_2009/number%201/article4.pdf [Accessed March 25, 2011].



An Opportunity for Competitive Advantage. Available at: http://www.realmarket.com/required/psginst1.pdf [Accessed March 24, 2011].


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