Airtel and Synergy

2. Crosses 100 Million Customers
Third company in the world to cross 100 million subscriber mark in a
single country.
6th largest integrated operator in the world after China mobile, China
Unicom, China telecom, AT&T and Verizon.
Started in 1995.. Took 13.5 years to reach 100 million mark.
If Airtel customers were to form a single country. It would be the
12th largest country in the world.
Plans to reach 200 million users in the next 3 years
Next phase of growth will come from Rural India which is still under
penetration.

3. Prior To Implementation of CRM @
• In 1995, Airtel started with manual operations.
• Airtel was able to resolve only 40% customer
related issues
• Problem in handling the growing customer base
• Problem in centralizing the service
• Customer retention was also one of the major
concern

4. &
Airtel Hired
Service of
Synergy
Marketing
Customer
Loyalty
Program
Customer
Acquisition
&
Retention
Tracking
of
Customer
Behavior
Financial
Impact of
Program
A Perfect
“Blind
Test”
Marketing

5. Why
Lowest Possible Price
Increase Customer Loyalty
Leaders in Loyalty Management Solution
21 Years in Business
?

6. Communication Plan
1. Hold on to
the most
valuable
customer
2. Try to
convert the
less valuable
customer to
more valuable
one.
FOR THIS PURPOSE
AIRTEL HAD TO
PROVIDE
a) Response of customers to
a program.
b) Whether the program is
customized on the basis
of service already availed.
c) Whether it utilizes the
loyalty points, or its
customer service & value
added service offered.

7. 3 Big Questions
WHO-
WHEN-
HOW-
To communicate
To communicate
To communicate

8. Sample Selection
Eligibility Criteria
Active for at least
6 months
Bill payment of ₹5000
over 3 months
• The customer eligible, but not selected became the “Control Group”
• The customer could not apply for the program as it was not advertised.
• Billing record were supplied to Synergy Marketing each month.
• This helped to track the customers average monthly spending on bill.

9. The Program
• Selected customers were welcomed with an membership package
• Package consist of 10 standard rewards & 16-18 special opportunity
rewards.
• Specially designed to encourage the member involvement
• Members having low point balance were offered with special
rewards on a “first come, first served” basis
• The newsletter was delivered combining the reward offering &
point Statement.

10. Cellular Reward Website
Launched in July 2003
Allows member to check points online
Enter the random drawings for online rewards
Home page provides variety of rewards
Encourages the repeat visits from members
32% of reward redemption shifted from phone to web based

11. Data Driven
Approach

12. Data Driven Approach
Data
Driven
Approach
If no
profit=Amt.
spent is not
worth it
Prefers high
ROI PERIOD
Why prefer
high ROI?
Because
recourse are
limited Hence
accurately
measures ROI
Idea to generate
high profit by
allocating low
profit recourse to
high profit program

13. Data Resolves Around Customer
Who is a customer? For a day and not for the another?
There is a process to Customer Defection.
Smart Data driven marketer creates high ROI customer marketing programs.
Understands complete defection process.
2- ways to increase customer value :-
1. Extend customer life cycle, more time for customer to increase in value,
by increasing time for customer to defect.
2. Increase value of customers within existing customer cycle, customer
defects on schedule but firm has done everything it can to increase value
before defection.

14. Steps Taken For Data Analysis
 Made sure that there were no errors in random selection process when
creating control group.
 Variables such as value added service, geographic dispersion and mix of
pricing packages were compared between control group and program
group.
 FINANCIAL ANALYSIS was done of all customers regardless of start
dates since start dates were same for both control and program groups.
 To eliminate biasness of profitability results due to long term loyal
customers, analysis was done again using only those customers who
joined in the last 6 months.
 At the end, no. of customers for both control and programme groups
were adjusted and made equal.

15. Financial Performance of Airtel
 It has been seen that the customers in the loyalty program spent
an average of 35% more than the customers who were not in the
program.
 It was found that the loyalty program generated a return on
investment of 252% annually over the 12 month period.
 The ROI on the top 20 per cent of spenders averaged 365
percent for each month.
 The churn rate decreased an average of 3.1 % points across all
customer spending segments annually.
 A 15.6 % decrease in churn over the 12 months period.

16. Total Customer Base
220,878
251,646
271,227
295,948
324,368
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2013 2014 2015 2016 2017

17. Revenue of
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
2013 2014 2015 2016 2017
595,338
683,267
769,045
857,461
920,394

18. Net Profit
60,446
42,594
22,757
27,227
51,853
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2013 2014 2015 2016 2017
Net Profit

19. Presented by:
Abhimanyu -10 Subrata Kr Dey -45
Siddhant Sharma -24 Abhishek Roy -52
Japneet Singh -31 Shubham Verma -59
Rohit Banerjea -38