Proposal Eta Theke Banaisi
Proposal Eta Theke Banaisi
Proposal Eta Theke Banaisi
Grameenphone widely known as GP is the leading telecommunication service provider in Bangladesh with more than 20 million subscribers (as of June 2008). Grameen Phone is a joint venture company between Norwegian Telecom giant Telenor and Grameen Telecom, a non-profit 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. 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, Grameen Phone also offers high speed Internet, Health line, Bill Pay and many other value added services.
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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);
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.
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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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February 2007 : Grameenphone was presented with the GSM Association's Global Mobile Award for Best use of Mobile for Social and Economic Development' at the 3GSM World Congress held in Barcelona, Spain, for its Health Line Service project
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: Grameen Phone launched own branded modem to facilitate the growth of Internet usage around the country.
September, 2009: Grameen Launched Grameen Phone V100, companys own branded handset. Grameen Phone becomes the first telecom operator in the country to launch its own branded handset.
Grameen Phone 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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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 mannerCompany Telenor Grameen Telecom Marubeni Corporation Gonofone Percentage of share 51 35 9.5 4.5
Later Marubeni Corporation (Japan) and Gonofone Development Corporation both sold their part of shares to other two corporations. Currently Grameenphone has only two shareholdersTelenor, the international part with 62% share and Grameen Telecom, the local part with 38% of share.
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The international shareholder brings technological and business management expertise while the local shareholder provides a presence throughout Bangladesh and a deep understanding of its economy and culture. Both are dedicated to Bangladesh and its struggle for economic progress and have a deep commitment to GrameenPhone and its mission to provide affordable telephony to the entire population of Bangladesh. A short description of these two shareholders is given belowTelenor Mobile Communications: Telenor is the leading Telecommunications Company of Norway listed in the Oslo and NASDAQ Stock Exchanges. It owns 62% shares of GrameenPhone Ltd. Telenor have played a pioneering role in development of cellular communications. It has substantial international operations in mobile telephony, satellite operations and pay Television service. In addition to Norway and Bangladesh, Telenor owns mobile telephony companies in Sweden, Denmark, Hungary, Russia, Ukraine, Montenegro, Thailand, Malaysia, Pakistan and Serbia with more than 145 million mobile subscriptions worldwide as of 31st December 2007. Telenor uses the expertise it has gained in its home and international markets for the development of emerging markets like Bangladesh. As part of the conversion of Grameenphone from a private limited to a public limited company, Telenor Mobile Communications AS transferred 10 shares each on 31st May 2007 to its three affiliate organizations namely Nye Telenor Mobile Communications II AS, Norway; Telenor Asia Pte. Ltd., Singapore; and Nye Telenor Mobile Communications III AS, Norway.
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Ownership Structure
38% 62%
Grameen Telecom
Telenor
Figure: Ownership Structure of Grameenphone Grameen Telecom: Grameen Telecom, which owns 38% of the shares of Grameen Phone is a not-for-profit company and a sister concern of Grameen Bank. Grameen Telecom, with the help of Grameen Bank, administers the Village Phone Program, through which GrameenPhone provides its services to the fast growing rural customers. As part of the conversion of Grameenphone from a private limited to a public limited company, Grameen Telecom transferred one share each on 31st May 2007 to its two affiliated organizations namely Grameen Kalyan and Grameen Shakti. Grameen Telecom has been acclaimed for the innovative Village Phone Program. GT and its chairman Nobel Peace prize laureate Professor Muhammad Yunus have received several awards which include: First ITU World information Society Award in 2005; Petersburg Prize for Use of the IT to improve Poor Peoples Lives in 2004; and the GSM Association Award for GSM in the Community in 2000.
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VISION
The vision statement of Grameen Phone is simple-
MISSION STATEMENT
We will lead the industry and exceed customer expectations by providing the best wireless services, making life and business easier.
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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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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 GrovenDirector Human Resources, Khalid Hasan- Chief Corporate Affairs, Delwar Hossain AzadChief Financial Services, Syed Yamin Bakht- Director Public Relations, N K A MobinDirector 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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ORGANIZATIONAL STRUCTURE
* Mr. Monirul Kabir is assigned as Chief Communication Officer replacing Rubaba Dowla * Mr. Arif Al Islam has also resigned; the CFO position is now vacant.
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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 Customer Service Division Finance Division Human Resource Division Information Technology Division Internal Audit Division Internal Control Office Division Marketing Division Network Division Public Relation Division Sales Division
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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.
Coordinator
Regulatory
Govt. Affairs
Regulatory Planning
Inter connections
Business Control
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Main Responsibilities Develop, maintain and implement company strategies, policies and procedures for the functional area which includes: Regulatory & Corporate Affairs External Relations
Monitor and control Regulatory & Corporate Affairs activities; Provide support and consulting to other functions within scope, in order to ensure coordination, business alignment and adaptation of best-practices; Develop and maintain descriptions of departments reporting to the Head of Regulatory & Corporate Affairs, defining their responsibilities and how work is organized between these departments; Ensure awareness of, and ability to comply with, legal requirements applicable for the company and its governance documents, including SOA-required internal controls and Codes of Conduct; Ensure necessary capabilities within function to ensure that the organization is able to meet its current and future business objectives;
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ORGANOGRAM
Business Controller
Contact Center
Resource Management
Complaint Management
Ferdous Ahmed
Telesales
Sakila Mahmood
Ruhul Amin
Head Of Resource Management, Gjermund Lia is currently Acting Head of Complaint Management. So, Yeasir Mahmood Khan is Acting Head of Resource Management.
4/18/2009
INTERNAL
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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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FINANCE DIVISION
Head of Function: Vacant Reporting To: Odvar Hesjedal, CEO
Company Internal
Main Objective Within the direction from the CEO of GrameenPhone, the CFO shall ensure that the Finance & Supply Chain Management function within Grameenphone at all times is aligned with and supports the realization of GrameenPhones business objectives. The CFO must prepare financial statements with reasonable assurance that statements are not materially misstated at the consolidated group level and for local statutory accounts.
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Main Responsibilities Develop, maintain and implement company strategies, policies and procedures for the functional area, which includes:
Treasury
Monitor and control company-wide Finance & Supply Chain Management activities; Provide support and consulting within scope, to all other divisions in the company, in order to ensure coordination, business alignment and adaptation of best-practices; Develop and maintain descriptions of departments reporting to the CFO, defining their responsibilities and how work is organized between these departments; Ensure awareness of, and ability to comply with, legal requirements applicable for the functional area and its governance documents, including SOA-required internal controls and Codes of Conduct; Ensure necessary capabilities within the function to ensure that the organization is able to meet its current and future business objectives.
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Business Control*
4 Internal
Main Objective Within the direction from the CEO of GrameenPhone, the Head of HR shall ensure that the HR function within GrameenPhone at all times is aligned with and supports the realization of GrameenPhones business objectives. The Head of HR shall optimize the human resources in GrameenPhone, through individual performance management and organizational
development, as well as nurturing a culture supporting the realization of the vision and values. In order to achieve this, leadership excellence is a key focus area for HR.
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HR Operations; Recruitment & Selection; HR Development; Health, Safety & Environment Expatriate and Travel Support.
Main Responsibilities
Develop, maintain and implement company HR strategies, policies and procedures in order to establish organizational capabilities company-wide to meet current and emerging business needs, which include: Leadership, Employee Capabilities, Organizational Design, Collaboration, Recruitment, Compensation & Benefits, Employee relations and Health, Safety & Working Environment Monitor and control company-wide HR activities; Provide support and consulting within scope, to all divisions in the company, in order to ensure coordination, business alignment and adaptation of best-practices; Develop and maintain descriptions of departments reporting to the Head of HR, defining their responsibilities and how work is organized between these departments; Ensure awareness of, and ability to comply with, legal requirements applicable for the function and its governance documents, including SOA-required internal controls and Codes of Conduct;
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IT Organogram
Information Technology Frode Stoldal
Internal
Main Objective
Within the direction from the CEO of GrameenPhone, the Head of IS/IT shall ensure that the Information Security/Information Technology function within Grameenphone at all times is aligned with and supports the realization of GrameenPhones business objectives. The Head of IS/IT shall ensure the realization of the business objectives through delivering services and information with sufficient quality.
NORTH SOUTH UNIVERSITY Page 21
Main Responsibilities
Develop, maintain and implement company strategies, policies and procedures for the functional area, which includes: Strategy and Architecture IS/IT Governance IT Quality and Risk Management IT Sourcing (In compliance with Company Procurement Policy) Monitor and control company-wide IS/IT activities to create transparency and facilitate best practice within IT. Provide support and consulting to all divisions in the company, in order to ensure coordination, business alignment and adaptation of best-practices. Develop and maintain descriptions of departments reporting to the Head of IS/IT, defining their responsibilities and how work is organized between these departments. Ensure awareness of, and ability to comply with, legal requirements applicable for the functional area and its governance documents, including SOA-required internal controls and Codes of Conduct. Ensure necessary capabilities within the function to ensure that the organization is able to meet its current and future business objectives.
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Internal Audit
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Main Objective Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
Main Responsibilities
The Department is responsible for: Develop Risk Based Audit Plan Coordinate with External Auditors / others to provide optimal audit coverage Implement approved audit plan Review and revise Audit Plan as required Follow-up and report on the implementation of audit action plans. Report significant deficiencies in internal control. Assist in the investigation of suspected fraudulent activities Provide consulting and advisory services to management as appropriate
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SOX 404
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Main Objective
Under the COSO Framework, a widely-used framework in the United States, Internal control is broadly defined as follows: A process, affected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: Effectiveness and efficiency of operations Reliability of financial reporting and Compliance with laws and regulations. Main Responsibilities The Department is responsible for: Control Environment: Sets the tone for the organization, influencing the control consciousness of its people. It is the foundation for all other components of internal control. Risk Assessment: The identification and analysis of relevant risks to the achievement of objectives, forming a basis to find out how the risks can be managed. Control Activities: The policies & procedures that help ensure mgt. directives carried out. Monitoring: Processes used to assess the quality of internal control performance over time.
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MARKETING DIVISION
Serajus Saleheen
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Main Objective The main objective of marketing department of GrameenPhone is to promote the brand name of the company and increase brand awareness among the customers.
Main Responsibilities The Department is responsible for: New non-core product portfolio. Acts as a portfolio area for strategically important revenue earners (CIC, Health line, cell bazaar etc.) P&L; To support the core business for strengthening retention and social efforts in core telco To generate ROI through creation of new asset base and revenue source. Development and management of non-core products roadmap. Strategic analysis, development of strategic alternatives, and evaluation & control of feedback Division-wide roadmap for strategic deliverables Monitor and manage segment activities in terms of alignment Administration of KPIs; IVC Program Office for Marketing Division
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NETWORK DIVISION
Main Objective The main objective of Network department of GrameenPhone is to manage and control the network of GrameenPhone throughout the country.
Coordinator
Stay Close
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Main Responsibilities
The Department is responsible for: Effort to maintain LOW CAPEX and OPEX per sub Maintain competitive qualities through whole process of work Maintain service KPI for Network quality and availability focusing customers perspective Maximum Resource utilization by network optimization & efficient management Maintain living values of organization in the activities
Head of Function: Syed Yamin Bakht Reporting To: Odvar Hesjedal, CEO
Main Objective The main objectives of Public Relations department of GrameenPhone are to Promote and protect GrameenPhone reputation as a compliant, transparent and socially responsible company among both internal and external stakeholders.
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4/18/2009
INTERNAL
Main Responsibilities
The Department is responsible for: Project GP as a responsible and transparent company to both internal and external stakeholders Assist in gaining business results through effective media exposures of company events and initiatives Manage a portfolio of social investment initiatives in line with key stakeholders expectations of being a socially responsible business
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SALES DIVISION
Main Objective
The main objective of Sales department of GrameenPhone is to Deliver excellent Compliant Sales Channel Management practice (Logistic, Distribution and Retail) to ensure the Best Customer Experience for GP customers at maximum number of POS to support the 2 out of 3 objective.
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Main Responsibilities
The Department is responsible for: Execute Retail Channel strategy o Select best POS candidates for channels o Develop them according to strategy Support Retail Cannel partners o Regular visits and consultancy o Get Close to Stay close Manage product In-Flow and Out-Flow o POS Portfolio and stock optimization Control customer influencing activities o Best Customer Experience through specific BTL and conscious selling Report field information o Monitor progress of GP o Observe competitors activities
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Smile:
Smile is the pre-paid brand of Grameen Phone. Most of the customers use this SMILE prepaid. Though the number of customers is very high, but revenue generation of this brand is low comparative to other brand. Thats why Grameen Phone charges higher tariff rate for this package during day time in order to maximize network efficiency. Only SMILE and Djuice customers are charged 2Taka/min for calling to other operator in the country. Since these customers are easy to allure, most of Grameen Phone promotional offer undertaken targeting this segment of customers. Moreover, customers of this segment are highly price sensitive, so they switch operator for small bonus offer or for lower call rate of other operator. This is why most of the churn back SIM of Grameen Phone belongs to this segment. That is why Grameen Phone often gives bonus offer for unused SIM, so that they can reintegrate this customers to the network. The tariff rate is of SMILE package is given below-
Schedule Peak Special hour Off peak Night time FnF (3 numbers)
On net BDT 1.50 BDT 0.49 BDT 1.50 BDT 0.49 BDT 0.49
Off net BDT 2.00 BDT 2.00 BDT 2.00 BDT 1.00 N/A
60 60
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Djuice:
Grameen Phone designed Djuice brand targeting young customers. In 2005, when Banglalink was launched with a very low SIM price and lower call rate, Grameen Phone launch Djuice SIM to retain the young segment. Youth segment has a tendency of belongingness and they are the prospective customer in future. Djuice was a huge success for Grameen Phone as it was able to retain lot of customer and represented itself as a strong brand of youth. Djuice customers are more fun loving, friendship is their religion and they want to live in their own world.
Grameen Phone introduced many features to meet the need of this segment like Djuice Web Site, Djuice Voice Chat, Full song Download, Djuice extra khatir etc. All of these features helped the brand to successfully position itself as brand for younger generation.
djuice to djuice BDT 0.49 BDT 0.49 BDT 0.49 BDT 0.49 BDT 0.49
djuice to GP BDT 2.00 BDT 0.49 BDT 2.00 BDT 0.49 BDT 0.49
Off net BDT 2.00 BDT 2.00 BDT 2.00 BDT 1.00 N/A
Pulse 60 60 60 60 60
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Business Solution pre-paid customers are those customers who prefer to pay in advance before taking the service. Customers who do not prefer the complexity of Post-paid SIM typically prefer this package. In order to purchase this package, customers need to have a trade license in his name. They enjoy a lower tariff rate during day time like other Business Solution customers. They also enjoy the night time lower call rate benefit like other pre-paid users. At the same time gets the easy usage benefit like other pre-paid customers. The tariff rate is given below-
Schedule
B. hour Special hour B. hour Pr. Hour Night time FnF
Time
9am 11.59am 12 pm - 3.59 pm 4pm 5.59pm 6.00pm - 11.59pm 12 am - 8.59 am 4 FnF no
On net
BDT 1.00 BDT 0.49 BDT 1.00 BDT 1.50 BDT 0.49 BDT 0.49
Off net
BDT 1.20 BDT 1.20 BDT 1.20 BDT 1.50 BDT 1.00 N/A
pulse
30 sec 60 sec 30 sec 30 sec 60 sec 60 sec
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Xplore:
Xplore is the post-paid brand of Grameen Phone. This segment of customers is mainly heavy users who prefer to pay their bill at the end of the month. Most of the xplore users have a long duration with Grameen Phone. They prefer to talk at a flat rate. Unlike Pre-paid users they do not have a late night lower tariff facility as they enjoy flat rate all the time.
Xplore customers need to pay a 50 taka extra as monthly fee or Access Fee, but if their monthly airtime usage is more than 450 taka (excluding VAT), their access fee is waived. Most of the Xplore customers use 500 taka credit limit, but those who are older user get 1000 taka credit limit. Customers can increase credit limit by keeping deposit. The tariff rate of this package is given below-
Schedule
Peak Special hour Off peak FnF
Time
8am 11.59am 12 pm - 3.59 pm 4pm 7.59am 4 FnF
On net
BDT 1.30 BDT 0.49 BDT 1.30 BDT 0.49
Off net
BDT 1.30 BDT 1.30 BDT 1.30 N/A
pulse
1 1 1 60
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Business Solution post-paid package is designed targeting the business class people of the country whose need is different than other customer segments. These customers need to talk more in office hour and also within their work affiliated people. Understanding their need, Grameen Phone offers a lower call rate at business hour and also introduced a different concept called Closed User Group. Closed User Group is a bunch of customers who are affiliated with each other. Grameen Phone offers a lower 0.80 taka/min call rate to talk with this closed user group customers. The tariff details is given below-
Schedule Business Hour Special hour Business Hour Non- Business Hour FnF
On net BDT 1.00 BDT 0.49 BDT 1.00 BDT 1.30 BDT 0.49
Off net BDT 1.20 BDT 1.20 BDT 1.20 BDT 1.30 BDT 0.80
There are two sub-segments of this segment. One is Corporate and another one is SME. GP has divided these sub-segments in a separate bill cycle. Corporate customers bill is generated on 3rd of every month and SME customers bill is generated on 8th of every month.
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One dedicated Key Account Manager from Grameen Phone is assigned to each company in order to give them priority service. The company also assigns one person from their company as Key Contact Person (KCP) to make the dealings with Grameen Phone. This package is considered more secured than other package because all sort of activation or deactivation, customer need to send written request through a Key Contact Person (KCP) assigned by the company.
As per the priority service policy, this segment of customers gets free Missed Call Alert benefit. Moreover, they also get priority service in Customer Care Centers and Customer Care Helpline. This priority policy helps the customer since they dont have to wait in the queue when they call to Customer Care Hotline.
Corporate customers get flexible credit policy if the company allows. If a corporate customer wants to activate International Roaming facility, then auto debit is mandatory. Auto Debit is an instruction by the subscriber that gives authorization to Grameen Phone to charge the IR bill from his credit card.
As it is mentioned earlier, Business Solution Postpaid customers have to send written request to activate or deactivate edge service, they dont get the flexibility of switching edge package frequently. Moreover, they also dont receive their monthly bill paper, as their bill is sent to company address.
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GP Public Phone: Public phone is a separate package targeting customers who wants to do business with mobile phone. This package has created many entrepreneurs in the country. Public Phone owners use their SIM for business purpose. Since it is only for business purpose they do not enjoy any FnF or night time benefit. Moreover in order to increase their satisfaction and usage currently, these customers enjoy 10% bonus on their recharge amount. The overall tariff details is given below-
pulse 1 1 1
Village Phone: Village phone is mainly administered by Grameen Bank and designed to create independent entrepreneurship among rural people. This package has taken mobile telephony in remote rural places and created new dimension of life among rural people especially for women. Most of the rural women get this package with a handset in an installment basis and used to earn their living. The tariff rate is like the Public Phone package-
pulse 1 1 1
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Porters five forces Model is a key Analytical Tool for Diagnosing the Competitive Environment. It has used five forces to reveal the state of competition. It has become an important tool for analyzing an organizations industry structure in strategic processes. It allows the strategic thinkers to formulate appropriate strategy for a particular entity through systematic and structured analysis of market structure and competitive situation, and helps improve the position of the organization. The model is presented through five competing forces which are given below. The forces are-
1. The degree of rivalry within the industry 2. Threat of new and potential entrants 3. Threat of substitute products 4. Suppliers bargaining power 5. Buyers bargaining power
Through Porters model, the researcher has tried to define the five key factors for analyzing competitiveness and attractiveness of the overall Telecommunication industry.
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Currently, there are 6 competitive companies (GrameenPhone, AkTel, Citycell, Banglalink, Teletalk and Warid) in the market out of which, 45% share of the market belongs to GP, 24% to Banglalink, 19% to AkTel , 4% CityCell, 25% to AkTel,6% to Warid, and the rest 2% to Teletalk. GP holding the major share maintains a market leader strategy and always focus on market revenue share rather than market share. Competition among these rivals is very high. Each and every operator always thrives to grab the market share of others by giving attractive offer. Thats why the degree of rivalry within the industry is very high.
Aktel
Banglalink
Citycell
Teletalk
Warid
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As GrameenPhone is having the highest number of subscriber and there is a high demand for their service, customer pulling is also high. Recently several news have been published in various newspapers regarding the entrance of DOCOMO (Japanese Operator), Vodafone (UK based Telecom Giant), Airtel etc. in the local telecom market. BTRC expressed their interest to give license to a new operator with 3G technology. If Government gives license to any new operator the rivalry will increase. Bangladesh is a land of 147,570 square K/M with a vast population of 150 million. This country is like a golden opportunity for telecom operators to penetrate the market of huge customer base with such a low area coverage needed. But the present market is almost saturated. Warid could not do well in the market. Their failure story gives a negative signal to any new entrants.
So, we can say the threat of new and potential new entrants is moderate.
BTTB has already reduced the NWD and ISD call charge. Furthermore, many private companies get the license to provide wireless phone and land phone service. Rankstel, Dhaka Phone, Peoples tel etc. have already started their. The growing number of substitute products indicates that the existing players have to face threat from these products. But again, in other sense I can say that mobile phone service gives the freedom of mobility which its substitute cannot give. Hence, the threat of substitute is moderately is low.
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GrameenPhone has been maintaining good relation with its suppliers. The company has strategic coordination with its suppliers; hence its suppliers bargaining power is moderately low. GSM technology give the advantage to the company and its subscribers to change mobile set any time they want. Recently Grameen Phone has launched its own branded handset which reduces the suppliers bargaining power. Moreover, they have switched their nework operator from Ericson to Huwai. Again, the industry has lots of suppliers, as a result GrameenPhone has possible alternative to change suitable supplier.
There are many players in the market, which gives the customers alternative and power to choose different brand according to their preference. Thats why buyer concentration is high. The competition in the market makes the customer more powerful and the companies more competitive among each others. Few years ago companies were able to offer SIM at a very low purchasing cost. That increased subscriber buying power and also influence them to possess more than 1 SIM. Since many subscribers have more than 1 SIM under possession, they can easily switch to other operator.
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SWOT ANALYSIS:
Strength:
Brand Image Brands are recognized to be the most valuable asset for any company. As consumers are often willing to pay more for a product which has a strong brand image, marketers always try to increase the brand value of the company. In telecom industry, an operator will have competitive advantage over other operators if it has a strong brand image comparing to others. 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. GrameenPhone has built its brand image by its profound service, widest network coverage and social responsibilities. Moreover GrameenPhone is the largest taxpayer in the country which has also created a strong image in customers mind. This strong brand image gives Grameen Phone a competitive advantage in the market. Financial Soundness Financial strength is always a major strength for a company in any field of business. A company with financial soundness has the capacity to invest in new innovative technology to increase its product portfolio and also to protect itself from any temporary crisis. 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
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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. In the telecom industry of Bangladesh, only GrameenPhone is in a profitable condition while others are still far away to reach their breakeven point. This financial strength makes it easier for GP to invest more for new products and services, to build and maintain its infrastructure. Thus financial strength again gives advantage to Grameen Phone in the market place.
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, so that more people can avail the service. Presently, GrameenPhone has coverage in all over the country. There are 1750 base stations in operation around the country. Furthermore the company is planning to set another thousand base station by this year. The competitors are also lagging far behind in this regard
Optical Fiber GrameenPhone Ltd. sub-leases the Transmission Capacity of its 1600 Fiber Optic Network, leased from Bangladesh Railway, commercially to the prospective business units/clients. There is a contract between GrameenPhone and Bangladesh Railway that GP will use this network for the next 25 years. This advantage enables GP to set a Nation Wide Network in a very contemptible expense. GP optic facilitates nationwide coverage, technical expertise, robust network and minimum downtime for non-protective circuits.
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Loyal Customer Base The clientele of Grameen Phone is more loyal to the company than other operators. GrameenPhone has build up this clientele by providing superior value to the customer by offering them better network, better after sales service and by understanding their need properly. Other operators have allured their customers by offering lower call rate or other discount tools and thus attracted price sensitive customers. Since customers of some other operator like Banglalink and Warid are highly price sensitive, they often switch operators for single unit discount offers. These customer base are more prone to switch, very demanding but not loyal. Grameen Phone easily attracts this price sensitive by offering them bonus talk time free sms etc. But it is very difficult to attract the strong customer base of Grameen Phone
Access to the Widest Rural Distribution Network Through Grameen Bank Grameen Telecom a subsidiary of Grameen Bank facilitates the expansion of Grameen Phone by bringing village people under its network coverage through its regional offices around the country. Moreover, women, linked to the renowned Micro Credit Program through Grameen Bank, have become borrowers and owners of 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.
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Strong Management Support: GrameenPhone is 62% owned by Telenor, a state-owned telecommunication company from Norway and 38% owned by Grameen Telecom. From these companies GrameenPhone get financial and technical supports. The foreign operator brings the necessary skills in technological know-how and the local part has the strength in understanding local culture and gives Grameen Phone a strong distribution network for village phone through its nationwide Grameen Bank offices. Since the managerial expertise comes from both home and abroad, this helps GP to always remain on track and move forward at a consistent pace.
Skilled Workforce: Grameen Phone can feel proud of its highly energetic, well educated and skilled workforce. Their employees are very much dedicated to the company and devoted to bring profit to the company. Most of the employees are young, energetic and very hard working. All of them are well educated at home or abroad, with both sexes (genders) and minority groups in Bangladesh being well represented.
Cell Bazaar, Health Line, Bill Pay Grameen Phone offers many unique services that create clear and distinct value for the company. Cell Bazaar (3838), Health line (789), Bill Pay (1200), Study line (2255), Job Service (3003) are some of the services that have created significant market value for Grameen Phone. Due to the innovative nature of its business, Grameen Phone has come up with this services which facilitate the living of its customers. Grameen Phone has used a universal usage policy for some of its features like cell bazaar, Bill pay which allows other operator users also to use and get the benefit of these services.
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Edge: Internet is the most convenient medium of information through which people can enhance their knowledge, communicate and conduct business around the world and so on. Unfortunately, there is no Internet Service provider in the country who has a strong infrastructure to provide this phenomenon even around Dhaka city. Grameen Phone understanding this need launched Edge service around the country. Edge stands for Enhanced Data rate for GSM Evolution. Edge service is eight times faster than GPRS. This is the most modern technology to provide Internet through Cell Phone. Grameen Phone offers Edge service throughout the country so that people all over the country can have the access to Internet. Due to its wider network coverage, better network quality and after sales service Grameen Phone easily captured this market share. Edge, has created significant market value for the company. Grameen Phone earns huge revenue from this edge service. Again, though some competitors are trying to grab a slice of this potential market, still they stand far behind of Grameen Phone and thus Edge brings another competitive advantage to Grameen Phone.
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Weaknesses
Every company has its weak points and GP is no exception to that rule. The weaknesses of GP areNetwork Related Problem: Grameen Phone has a strong brand image for high quality network. If customers face any problem in Grameenphone network, they dont accept the problem as temporary technical error, rather they consider poor service quality, which hampers the brand image in turn. 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, Grameen Phone 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 Grameen Phone. While other operators are offering below 1tk off-net call rate, Grameen Phone 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. Djuice subscriber often complain that they are not treated like mainstream GP subscriber since they are charged 2 taka/ min for calling to djuice to GP numbers.
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Billing System: Post-paid customers often find the billing system complicated to understand. Their line gets barred without notifying them. Several credit policy like credit limit (the maximum due amount possible), bar after due date is not clear to the subscriber. Moreover, post-paid customers cannot see their bills through dialing any USSD number like *566#. The abrupt barring of connection due to a complicated billing system confuses the customers. Such hassles lead to an unfavorable impression for the company.
Lack of Internal Communication: Grameen Phone 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. Sometimes commercials regarding promotional campaign are shown in advertising media like TV, Radio while the promotion is over.
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. Valuable features are not focused in its advertisements. Most of the time, it fails to focus on customers benefits and core product attributes. GP does not show its competitive advantages through its ads whereas its competitor such as Citycell has done it effectively. Thus GP sometimes falls behind due to poor commercials
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Some Services Are Not Popular: Grameen Phone failed to promote some services properly. For example Voice Mail service did not became popular due to complicacy in activation and very low customer awareness. In their Handset campaign, they imposed so many conditions for the free benefits that customers get confused and thus dissatisfied.
Opportunity:
Diversified Portfolio: The core business of Grameen Phone is voice communication. But due to strong brand image, financial resource and managerial skill, Grameen has the ability to expand its business. They have available financial resource to invest in other sectors like banking, power generation. GP has already expanded their business to Internet service, Modem, Handset. Through diversifying portfolio GP gained huge revenue and also increased its brand value
Attractive Market: Bangladesh is a highly attractive market for mobile services due to its large and highly concentrated population, low penetration of telecommunications services, and high growth in mobile subscribers. With approximately 140 million inhabitants, it ranks as the eighth most populous country in the world and is among the most densely populated. Bangladesh is served by only 1million fixed lines and has only approximately 4.5 million mobile subscribers. While mobile services have been available in Bangladesh since 1991, growth in this sector has only accelerated in recent years. 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: Current market growth rate of the telecommunication is significant which arises a great opportunity for the cellular phone companies to grow rapidly. 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. Recent years growth reflects the enormous potential for the development to telecommunications and information technology in the country.
Poor Internet Service In The Country: There is an emerging need for Internet service. The importance of Internet technology in our daily life is beyond description. Only telecom operators are able to serve this need throughout the country. Moreover a person gets mobility, better after sales service from if they use Grameen Phone. This is why many people are switching from broadband to Grameen Phone for Internet. Grameen Phone still has lot of scope to improve in this sector of business.
Declining Prices for Handsets The prices of the mobile sets are declining in Bangladesh that makes an easy gate way for the customers to use cell phones. It will create an opportunity for the telecommunication industry by getting large number of customers. There are some others opportunities, which can be important factors for GrameenPhone, like Economic growth of Bangladesh, new and better interconnection agreement and future privatization of the fixed network
New International Gateway 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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Governments Plan for Digital Bangladesh: Recently Government is planning to provide flexibility in ICT sector. Thus there is opportunity that Government will reduce Internet Bandwidth charge, allocate more frequency to cell phone operators and remove restrictions on VOIP business. If any of these changes happen in reality, it will be boon for Grameen Phone.
Threat:
High Tax: The imposed increased taxes for SIM price will slower the growth of this industry. Currently the urban market is saturated. If companies want to go for new acquisition, they have to go to remote rural places. A customer from this segment does not have the ability to buy a Sim while paying 800 taka Sim tax. Moreover, since they are not financially sound, their postpurchase usage is not sufficient for the company to give subsidy in order to facilitate their purchase. This high Sim tax has significantly hampered the growth of telecom industry.
Government Regulation Government rigid regulations and policy narrows the direction of the cellular phone companies. GrameenPhone has to go through lengthy government procedures to take permission to launch a new service package. Moreover, Grameen Phone often has to face lot of restrictions from Government time to time. They are not allowed to do business on International call. Recently GP was deprived from Wimax license.
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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 Teletalk is offered a 16 million dollar Loan facility by China and also big investment offer from VietTel of Vietnam. All the competitors always try to allure customers of Grameen Phone through price promotion which makes it difficult for GP to retain its existing call rate. This may make hindrance to take current advantage enjoyed by GrameenPhone alone.
Political Instability Political instability is another threat because, with the change of Government, policies are also changed. So, this is difficult for any multinational & national organization to cope with new policies.
Price War Recently this has become the most important concern for any mobile operator. To remain competitive in the market, operators have to reduce prices, which causes of reduction of revenue.
Wimax: Grameen Phone has majority of Internet user in the country. Recently Aguree has launched Wimax with their Qubee package. Many people have interest on Wimax in the country. If this new entrants can satisfy customer need with their new technology, then they might grab significant market share of Grameen Phone.
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Threats of potential new entrants: There are rumors in the market that some companies are trying to enter the market with cheaper technology. Potential new entrants can get into the telecommunication market with cost effective approach and take off market shares. Since Bangladeshi people are very much price sensitive, the entrance of new operator might cause serious problem for GP.
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.
GrameenPhone is doing great business in Bangladesh from both financial perspectives and marketing perspective. But, if we assess the external environment, we find, the path for GrameenPhone is not that smooth. The service of GP is extensively dependent on BTTB (Bangladesh Telephone & Telegraph Board). In many cases, GP did not get full support of the government owned department. E.g. Initially, GP provided connections that were accessible to BTTB land phones. But at one point of time, BTTB stopped to provide anymore support in this regard. At that time, GP had to innovate the mobile to mobile concept to continue the business growth.
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Moreover, due to heavy tax levied on SIM price, current customer penetration is very low. Since the urban market is almost saturated, the telecom operators have to move to the rural market. Customers in rural market have a very low usage that does not rationalize giving subsidy to facilitate SIM purchase.
The market share of Grameen Phone was threatened heavily when Orascom launch their service in Bangladesh with the brand name Banglalink. But as they follow a low cost strategy they attract subscribers who are highly price sensitive. Like Banglalink, all the other operators are also following the lower end of the market. Grameen Phone is the only operator in the market that serves the high end of the market and thus attracts upper class customers who are highly profit generating.
Moreover with Grameen Phones strategy of continuous innovation and improvement helped the company to find new ways to grab new business opportunity. Grameen Phone is the only operator in the country to introduce BlackBerry service. GrameenPhone launched bill pay service, through which customers from any operator can pay their monthly Gas bill, Electricity bill etc. The health line (789), Study line (2255), Community Information Center (CIC), Cellbazaar etc. has made the life more comfortable and created business path for lot of people. Grameen Phone made huge profit by selling its own branded modem. Recently GrameenPhone launched its own branded handset GrameenPhone V100 on a test basis.
Thus, Grameen Phone is doing great business in current market. If they continuously serve the customers with due care, they will be able to uphold their current status and growth in the market.
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Introduction:
The telecom industry of Bangladesh is almost at a mature stage. New customer acquisition rate is very low comparing to earlier days of the industry. All the six mobile phone operators are trying heart and soul to gain new customer and retain them in their clientele. In this context, the companies are trying to build trust and rapport with their clientele by providing better service in order to increase their customer satisfaction and retention rate.
There are six mobile phone operators in the country, Grameenphone, Banglalink, Aktel, Warid, Citycell and Teletalk. 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. There are more than 500 customer care touch points naming GPC, GPCF and STP to serve their clientele all over the country.
This research will be limited to assessing the satisfaction level of Business Solution Post-Paid customers only. This customer base consists of Corporate and SME customers. These Business Solution customers generate most of the revenues for Grameen Phone. They are the top priority customers of GP. Since they are few in numbers but generate bulk revenue, other competitors always try to allure them. It will be crucial for Grameen Phone if this segment of customers switch to other operators for any sort of dissatisfaction. In this report, I will try to measure the level of satisfaction, find out areas of dissatisfaction and ways to overcome them.
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Objectives:
The main objectives of the research can be stated as below: Figure out the customer satisfaction or dissatisfaction level of Grameenphone subscribers on the basis of different parameters. To make recommendations to lessen the customer dissatisfactions and enhance the level of satisfaction
In this 21st century, competition among businesses has become so fierce that any flaw in the business process can be severely fatal to the business. It has been proven through many research works that acquiring a new customer is much costly and less beneficial than retaining an existing customer. Realizing this fact, telecom operators, especially the local giant Grameen Phone, is trying its best to retain its existing customer base. As it is mentioned earlier, Business Solution Post-Paid customers are the most profitable for Grameen Phone. All the other operators, who compete with Grameen Phone, always try to allure this significant customer base through various offerings like lower call rate, bonus on usage, free Value Added Service etc. In this context, it is really very important for Grameen Phone to ensure the satisfaction of this customer base and remove any areas of dissatisfaction as soon as possible.
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Hypothesis:
My hypothesis for this research isSatisfaction of Grameen Phone Business Solution Post-Paid Customers Depends On Core Functionality and After Sales Service
Methodology:
Research Method: The intention of this research is to study the satisfaction level of a specific customer base. This research was both qualitative and quantitative in nature. A structured questionnaire was prepared to conduct a thorough survey. Using the survey result, the hypothesis is tested to find out the actual scenario of customer satisfaction. Data collection Data was collected through a self administered survey. A questionnaire was prepared to collect data. The questionnaire consists mostly close ended questions, was used to conduct the survey. The survey was conducted over the phone. Questionnaire Construction The questionnaire was prepared in a very organized manner. The first step was literature review. Some foreign articles written about customer satisfaction are reviewed for preparing the questionnaire. Then an explorative research is conducted over the phone to find out major areas of satisfaction and dissatisfaction of customers. Then the questionnaire is prepared based on the understanding of customers needs and preferences.
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Sampling For this customer satisfaction study simple random sampling was used to select the despondences from the population. The sample size was 100. The researcher used equal sample size from both corporate and SME target group. Data Analysis: The data from the survey is analyzed by Microsoft Excel and SPSS. The researcher tested the hypothesis through SPSS. Some other tests are conducted based on the scenario.
Conducting Survey
The researcher developed a questionnaire (enclosed in the APPENDIX) mainly focusing on the customer satisfaction factors of GrameenPhone Business Solution Customers. There were Twenty One (21) closed-ended questions.
The report topic is - A Research to Explore Satisfaction Level of Business Solution PostPaid Customers, Grameen Phone. As I aimed to assess the satisfaction level, I only surveyed the users of GrameenPhone.
The sample size was 100. I conducted the survey based on bill cycle and gender. I picked the sample mainly from two list of Bar after due date. Bar after Due Date is the list of customers whose line gets barred for not paying the bill within due period. I used the list of January and February. I used an old list because if I used a list of recent month they would give biased answer. In the next part, I have represented my survey findings.
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SURVEY RESULT
Gender:
Male Female 79 21
GENDER
21%
79%
Male
Female
The survey is conducted randomly over the phone. As, the sample is taken randomly it was not possible for the researcher to make equal balance between the number of male and female respondents. In the survey, total male participant was 79 and female participant was 21.
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Bill Cycle:
Corporate SME
50 50
BILL CYCLE
8th 50%
3rd 50%
Grameen Phone has separate bill generation date for corporate customers and for SME customers. SME customers are those customers, who use few number of sims and consists of mostly small and medium businesses. Corporate customers are those customers who purchased more than 50 SIM from Grameen Phone. The sample size is taken equally from both corporate customes and from SME customers. Since the researcher used the list of barred line for non-payment of bill of May, 2009, it was possible to select equal number foe each segment. So, among 100 respondents, 50 respondentsare slected from Croporate segment andd 5 0respondentsare selected from SME segments.
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Question 01: How long are you using Grameen Phone-Business Solution Post Paid Sim?
TIME Valid Less Than 1 Year 1 Year 2 Year 3 Year 4 Year 5 Year and Above Total
Frequency 19 18 21 23 10 9 100
Time with GP
25 20 15 10 5 0 less than 1 year 1 Year 2 year 3 year 4 year 5 and above
In this survey, 19 respondents are using GP SIM for less than 1 year. Since, they are new customer of GP, their experience of using GP and consequent satisfaction level could be crucial for GP. 18 respondents are using GP SIM for more than 1 year. Then 21 respondents are using GP service for more than 2 years, 23 are using for more than 3 years and 10 are using for more than 4 years. Finally, in this survey only 9 respondents are using the SIM for 5 years or more than that.
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Usage
60 50 40 30 20 10 0 0-99 100-500 501-1500 1500-3000 3001+
Respondents were asked regarding their monthly usage amount. 8 of the respondents were found to use below 100 taka, 34 of then uses 100 to 500 tk. There are 48 respondents in 500 to 1500tk usage category. 7 respondents use 1500 taka to 3000 take on average in every month. Only 3 of the respondents use more than 3000 taka.
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Question 03: GP offers you suitable call rate that satisfies your need?
It is commonly perceived that call rate is higher in Grameen Phone than other operator. If Grameen Phone reduces call rate to make it attractive, then they will lose revenue significantly. So, the best way to attract and retain customer is to find out their special needs and serve them as per their need.
Business Solution customers are mainly businessman or in service. Most of their usage is for official purpose. So, they need to talk more in day time and most of the time within their colleagues. So, to serve their need Grameen Phone offers them a closed user group call rate to talk within their colleagues. Moreover, business hour (9:00 AM 6:00 PM) is another facility for them where this customer and only this customer are able to talk with other operator below 1.50 taka (including VAT). They can also make GP-GP call at 49 paisa (excluding VAT) from 12 pm to 4 pm and at 1tk (excluding VAT) for rest of the business hour. In non-business hour Business Solution Post-Paid can talk at 1.30 taka (excluding VAT) at a flat rate to any operator.
In this scenario, this question mainly aims that whether GP is successful to serve its purpose or not. If this special call rate can satisfy this customer segments need than they will be satisfied with Grameen Phone.
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GP offers suitable call rate to satisfy my need Frequency Valid Strongly Disagree Disagree Neutral Agree Strongly Agree Total 2 19 14 54 11 100 Percent 2.0 19.0 14.0 54.0 11.0 100.0 Valid Percent 2.0 19.0 14.0 54.0 11.0 100.0 Cumulative Percent 2.0 21.0 35.0 89.0 100.0
In the survey, among 100 respondents, 54 respondents agree and 11 respondents strongly agree to the fact that this call rate is suitable to satisfy their need. But total 21 of the respondents replied that they are not satisfied with the cal rate. However, 11 respondents replied that they are not aware of the call rate. However, it is believed by the researcher that some of the respondent who answered that call rate needs to be reduced were biased to an extent. Since the survey is conducted through 121, they thought if they answer so, call rate will be reduced more.
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Billing Information
40 35 30 25 20 15 10 5 0 IVR (12111) Sms Customer Manager Bill Paper Not Applicable
Post-Paid customers can check their billing info by dialing 12111. But it is clear from the survey result that most of the respondents either unwilling to know their bill through IVR (Interactive Voice Recorder) or do not bother about their bill. 34 of the respondents said that they prefer to know their bill by asking customer managers at hotline. Only 26 respondents prefer to know their bill by dialing 12111 (IVR). 2 of the respondents said that they wait for the monthly bill paper. 33 of the respondents answered that they do not bother about their monthly bill as it is taken care of by the company.
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It is a common complaint from the customer that they dont receive the bill in time. Since the bill is sent customers address through courier service.
Bill Delivery is Prompt in GP Frequency Valid Strongly Disagree Disagree Neutral Agree Strongly Agree Total 6 12 68 13 1 100 Percent 6.0 12.0 68.0 13.0 1.0 100.0 Valid Percent 6.0 12.0 68.0 13.0 1.0 100.0 Cumulative Percent 6.0 18.0 86.0 99.0 100.0
Most of the respondents gave neutral response as they do not receive their bill paper. (Bill is sent at company address). Moreover their bill is paid by the company, so they are not informed about any delivery problem. Only 14% respondents gave a positive answer to this statement. But 18% respondent showed dissatisfaction regarding bill delivery system. This number is very significant and gives a clear area of improvement for GP
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76% respondents answered they trust GP regarding their billing information. Rest 24% answered they get confused with their billing information and sometimes feel that they are overcharged.
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GP Network is Available Everywhere Frequency Valid Disagree Neutral Agree Strongly Agree Total 11 1 64 24 100 Percent 11.0 1.0 64.0 24.0 100.0 Valid Percent 11.0 1.0 64.0 24.0 100.0 Cumulative Percent 11.0 12.0 76.0 100.0
The major strength of Grameen Phone is its network base. It has wide network coverage all over the country. Respondents were asked this question to check their assumption about the availability of network. 64% of the respondents agree and 24% respondents strongly agree to this assumption. Only 11% respondents disagree to this assumption. Though 11% seems to be a small number, but this small percentage might significantly hamper GP brand image.
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57% respondents agree and 23% strongly agree that sound quality is clear in Grameen Phone network. Only 17% disagree and 2% disagree with the statement. 1 respondent did not comment on this statement.
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Question 09:
Call congestion includes call drop, connectivity problem etc. Customers tend to be very much dissatisfied when they face these sorts of problems. The survey result is as follows-
Call congestion in GP network Frequency Valid Never Rare Sometimes Frequently Very Frequently Total 16 63 11 7 3 100 Percent 16.0 63.0 11.0 7.0 3.0 100.0 Valid Percent 16.0 63.0 11.0 7.0 3.0 100.0 Cumulative Percent 16.0 79.0 90.0 97.0 100.0
63% respondents rarely and 16% never faced any Network problem like call drop, call congestion or connection problem. Only 7% said that they frequently and 3% very frequently face any sort of Network problem. However, 11% respondents answer that sometimes they face network problem.
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Question 10: Do you know that Missed Call Alert is free for BS-Postpaid?
Business Solution Postpaid customers get free Missed Call Alert benefit. This service is offered to them for free as special feature of Business Solution Post-paid. Unfortunately many customers are not aware of this feature. Recently Grameen Phone has taken strategy to proactively inform customers regarding their Promotional Campaign, VAS or other sort of customer benefit. This question measures the awareness level of customers as well as the effectiveness of the recent strategy.
24 YES No 76
76 respondents answered that they are aware of the free Missed Call Alert benefit. Only 24 respondents are found to be unaware of their benefit. So, the awareness level is quite moderate.
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Edge User
YES No
Among 100 respondents only 28 use Edge service. Business solution customers can not activate Internet by sending sms to 5000 port. They have to request their key contact person to activate internet in their SIM. Most of the time, the Key Contact Person or KCP is their Managing Director or Divisional Head (Police, Army, BDR). Many customers feel uncomfortable to contact with KCP for edge activation matters. Thus they cannot use internet service even if they are willing to. Some customers use internet in their personal SIM. It has been also observed that some people use BS Post-Paid SIM for using only Internet as they were charged less than other package.
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Question 12:
Valid
This question is asked to measure the satisfaction level of Edge user. Some of the respondents who are not using edge service said that they used it before and due to poor service they are not using this service any more. 45 respondents answered that they do not have any experience regarding the use of Edge service. 14 respondents agree and 4 strongly agree that the Edge service is very much satisfactory. 28 respondents showed their dissatisfaction towards Edge service.
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Question 13: GP provides many VAS that makes your life easier
The purpose of Value added service is to provide some added advantage with the core service, airtime. But due to complex structure and poor consumer learning, subscriber often face problem with these services. The survey result is as followsVAS Makes My Life Easier Frequency Valid Strongly Disagree Disagree Neutral Agree Strongly Agree Total 4 8 20 48 20 100 Percent 4.0 8.0 20.0 48.0 20.0 100.0 Valid Percent 4.0 8.0 20.0 48.0 20.0 100.0 Cumulative Percent 4.0 12.0 32.0 80.0 100.0
In the survey, 4 respondents strongly disagree and 8 disagree with the survey statement. They express their dissatisfaction regarding Value Added Service. Some of them feel these services are simply a way to make revenue for Grameen Phone. On the other hand, 48 respondents agree and 20 respondents strongly agree with the statement that Value Added Service has made their life easier. This is great success for Grameen Phone because satisfaction towards VAS will create value for its product.
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When customers make any query in helpline (121), they expect that they will get proper information from the customer manager. The service, tariff and offers of offers are often very much complicated that customers need the help of Grameen Phone employees to clarify their conception. If they find the employees dont have the required knowledge, they will get dissatisfied. The result is shown belowFrequency Valid Disagree Neutral Agree Strongly Agree Total 4 4 64 28 100 Percent 4.0 4.0 64.0 28.0 100.0 Valid Percent 4.0 4.0 64.0 28.0 100.0 Cumulative Percent 4.0 8.0 72.0 100.0
64% respondents agree and 28% strongly agree that they found GP employee has the knowledge to serve them. Only 4% disagree that they found that employees dont have the sufficient knowledge to answer their query.
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Question 15:
GP employees are always willing to help and they are consistently courteous with you.
Interaction with any official of a service provider creates impression in the mind of subscribers. If customers find the employees courteous to them they will have a good impression about GP. Moreover, it is found in many studies that if employees show that they are willing to help the customer, customer dissatisfaction tends to minimize. This question measures customers perception regarding employee behavior. The result is given belowEmployees are Courteous and Willing to Help Frequenc y Vali d Strongly Disagree Disagree Neutral Agree Strongly Agree Total 1 9 9 61 20 100 Percent 1.0 9.0 9.0 61.0 20.0 100.0 Valid Percent 1.0 9.0 9.0 61.0 20.0 100.0 Cumulative Percent 1.0 10.0 19.0 80.0 100.0
61% respondents agree and 20% strongly agree that they found GP employees are courteous in their behavior and attitude and they show their willingness to help when they need that. Only 10% showed their dissatisfaction in this regard.
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Quickly Solve Problem Frequency Valid Strongly Disagree Disagree Neutral Agree Strongly Agree Total 4 34 11 43 8 100 Percent 4.0 34.0 11.0 43.0 8.0 100.0 Valid Percent 4.0 34.0 11.0 43.0 8.0 100.0 Cumulative Percent 4.0 38.0 49.0 92.0 100.0
43% respondents agree and 8% strongly agree that when they communicate their problem to GP, they find their problem is solved very quickly. But a total of 38% respondents replied that GP is quite sluggish in solving their problem. This is a very bad indicator for GP as responsiveness is considered as one of the most important factor in service quality
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Question 17:
This question is prepared based on researchers personal experience and also through an explorative research. Researcher asked several callers in 121 that whether they have any areas of dissatisfaction. The options are selected based on the common answers that researcher received in explorative research. The survey result is as follows-
Any areas of dissatisfaction Frequency Valid Billing Accuracy Call Rate Service Attitude Push SMS Core Functionality 9 Total 14 20 2 11 11 42 100 Percent 14.0 20.0 2.0 11.0 11.0 42.0 100.0 Valid Percent 14.0 20.0 2.0 11.0 11.0 42.0 100.0 Cumulative Percent 14.0 34.0 36.0 47.0 58.0 100.0
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The survey result shows that majority of the respondents dont have any areas of dissatisfaction. But a significant portion (20%) answered that they are not happy with the call rate. 14% respondents replied that they often get confused with the billing info. Sometimes it appears to them that they are overcharged. Some people (11%) also complained technical error as their major dissatisfaction area. They said technical support from Grameen Phone does not match their expectation. They do not expect to face call generation or call congestion problem in Grameen Phone network as the major value proposition of GP is network quality. Only 2% respondents complained that they received improper treatment from GP employee in the past. Another major area of dissatisfaction is push sms. Push sms are two types. These are either promotional sms sent from GP or commercial push-pull sms, like ringtone download, logo download that are activated by customer and sent by content provider. This commercial sms are not part of GP service, but still customer complain against GP as they feel GP is responsible to activate or deactivate this sort of service.
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Now a-days its very common for people to use more than one handset. So, one question was asked to respondents whether they use any other operator. The survey result is as follows-
Use Other Operator SIM Frequency Percent Valid Yes No Total 11 89 100 11.0 89.0 100.0 Valid Percent 11.0 89.0 100.0 Cumulative Percent 11.0 100.0
89% of research respondent answered that they dont use any other operator SIM and 11% answered that they use more than one SIM. This is a good sign for Grameen Phone since, below 15% customers from Business Solution segment are using other operator SIM.
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Question 19:
Its a negative indicator for Grameen Phone that its subscribers are using SIM of other operator. It can be assumed from common sense that subscribers are getting some value from other operator and that is why they are using the SIM of other operator. So, it is very important to find out that to which operator customers are more attracted to. The survey result is as follows-
Which Other Operator You Use except GP Frequency Percent Valid Banglalink Aktel Warid Missing Value Total 3 2 6 89 100 3.0 2.0 6.0 89.0 100.0 Valid Percent 3.0 2.0 6.0 89.0 100.0 Cumulative Percent 3.0 5.0 11.0 100.0
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27%
55% 18% 0%
Banglalink
Aktel
Citycell
Teletalk
Warid
The result shows that 11 respondents are using SIM of other operator. Among them 55% subscriber are using Warid, 27% using Banglalink, and 18% using Aktel SIM. Among these data, the status of Warid is significant. The researcher also asked the respondents why they prefer Warid. Most of the time common answer was FnF rate and Bonus facility. Subscriber received bonus in Warid SIM and they want to use their bonus. Another important feature is the FnF rate. In order to reduce their cost many subscriber prefer to talk to FnF number using Warid SIM. Though it is assumed that Business Solution Post-Paid customers are not FnF based user, but still some of them put value to FnF rate and hence prefer an operator that offer them the lowest FnF rate in the market.
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Question 20: How likely are you to recommend your friends, relatives or others to buy and use GP SIM? If customers are really satisfied, then they are more likely to recommend others to use the product. If a customer agrees to recommend others to use the product then it is comprehendible that he has higher level of satisfaction towards the brand. The survey result is as followsI Will Recommend Other to Use GP Frequency Valid Strongly Disagree Disagree Neutral Agree Strongly Agree Total 6 27 22 32 13 100 Percent 6.0 27.0 22.0 32.0 13.0 100.0 Valid Percent 6.0 27.0 22.0 32.0 13.0 100.0 Cumulative Percent 6.0 33.0 55.0 87.0 100.0
In the survey, 6 respondents strongly disagree that they will never recommend other to use GP SIM, which represents their dissatisfaction towards the brand. 27 of the
respondents disagree which represents their sort of dissatisfaction towards the brand. Finally 45 respondents answered positive towards this question, which represents positive sign for GP.
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Question 21: How likely are you to repurchase products and services from Grameen Phone? If a customer is satisfied then he is more likely to repurchase the SIM again. The respondents answered as follows
I will Repurchase GP Sim Frequency Valid Strongly Disagree Disagree Neutral Agree Strongly Agree Total 1 16 4 51 28 100 Percent 1.0 16.0 4.0 51.0 28.0 100.0 Valid Percent 1.0 16.0 4.0 51.0 28.0 100.0 Cumulative Percent 1.0 17.0 21.0 72.0 100.0
In the survey, 17% respondents disagree or strongly disagree that they will not repurchase GP SIM if they have to do for their personal use, which represents their dissatisfaction towards the brand. Finally 79% respondents answered positive towards this question, which represents positive sign for GP.
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Question 22: If another company comes up with the same features, I will still remain loyal towards GP
This question attempts to measure the loyalty of this customer segment. The result is as below-
I Will Stay Loyal to GP Even Other Operator Give Sam Offer Cumulative Percent 3.0 28.0 29.0 80.0 100.0
Frequency Valid Strongly Disagree Disagree Neutral Agree Strongly Agree Total 3 25 1 51 20 100
If another company comes up with the same features, I will still remain loyal towards GP
60 50 40 30 20 10 0 Strongly Disagree Disagree Neutral Agree Strongly Agree
In the survey, 28% respondents disagree or strongly disagree that they will not repurchase GP SIM if they have to do for their personal use, which represents their dissatisfaction towards the brand. Finally 71% respondents answered positive towards this question, which represents positive sign for GP.
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Question 23: How could you evaluate your overall satisfaction level with GrameenPhone?
The final question measures customers overall impression with Grameen Phone. The report attempts to measure the satisfaction level of this customer segment. The response of this question gives the idea about how customers feel about using Grameen Phone.
Overall Satisfaction Towards GP Frequency Valid Highly Dissatisfied Dissatisfied Neutral Satisfied Highly Satisfied Total 2 10 9 48 31 100 Percent 2.0 10.0 9.0 48.0 31.0 100.0 Valid Percent 2.0 10.0 9.0 48.0 31.0 100.0 Cumulative Percent 2.0 12.0 21.0 69.0 100.0
From the table, it can be observed that only 2 respondents said that they are highly dissatisfied with Grameen Phone. 10 respondents answered that they are somewhat dissatisfied with Grameen Phone. Though it is not possible to satisfy each and every customer, still this is a bad sign for Grameen Phone that 12 % of Business Solution customers who are using GP SIM but not satisfied with Grameen Phone. 48% subscribers are satisfied and 31% subscribers are highly satisfied with Grameen Phone.
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TEST OF HYPOTHESIS
Ho:
Customer Satisfaction will not deteriorate even if they face network problem like call
drop, call congestion, connection problem etc. H1: Customer Satisfaction deteriorates if they face network problem like call drop, call
Call drop, call congestion, connection problem in GP network Never Overall Satisfaction Towards GP Highly Dissatisfied Dissatisfied Neutral Satisfied Highly Satisfied Total 0 0 0 5 15 18 Rare 1 1 1 44 16 63 Sometimes 0 4 1 7 0 12 Frequently 1 3 0 0 0 4 Very Frequently 0 1 0 0 0 1 Total 2 9 2 56 31 100
Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 89.418 69.865 18.304 100
a
df 20 20 1
a. 24 cells (80.0%) have expected count less than 5. The minimum expected count is .02.
Here, Pearson Chi-square is the P value and as P= .000 < .025 (2-SIDED TEST); So, the Null Hypothesis is rejected. Thus, we can conclude that customer gets dissatisfied if they face any network problem like call drop, call congestion, connection problem etc.
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Ho: H1:
Customers remain dissatisfied even if their problem is solved promptly. Customer gets satisfied if their problem is solved promptly
Quickly Solve Problem Strongly Disagree Overall Satisfaction towards GP Highly Dissatisfied Dissatisfied Neutral Satisfied Highly Satisfied Total 2 5 0 0 0 7 Disagree 0 4 1 0 0 5 Agree 0 0 1 54 16 71 Strongly Agree Total 0 0 0 2 15 17 2 9 2 56 31 100
Chi-Square Tests
Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 142.600a 100.730 77.697 100
df 12 12 1
a. 15 cells (75.0%) have expected count less than 5. The minimum expected count is .10.
Here, Pearson Chi-square is the P value and as P= .000 < .025 (2-SIDED TEST); So, the Null Hypothesis is rejected. Thus, we can conclude that customer gets dissatisfied if their problem is not solved promptly.
Ho: H1:
customers are satisfied, even if the call rate is not suitable to satisfy their need. customer gets satisfied, if the call rate is suitable to satisfy their need.
Overall Satisfaction Towards GP * GP offers suitable tariff that satisfies my need Cross tabulation
GP offers suitable tariff that satisfies my need Strongly Disagree Overall Satisfaction Towards GP Neutral Satisfied Highly Satisfied Total 1 0 0 1 1 7 0 19 0 11 4 15 0 35 19 54 0 3 8 11 2 56 31 100 Highly Dissatisfied Dissatisfied 0 0 Disagree 2 9 Neutral 0 0 Agree 0 0 Strongly Agree 0 0 Total 2 9
Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 115.281
a
df 16 16 1
a. 19 cells (76.0%) have expected count less than 5. The minimum expected count is .02.
Here, Pearson Chi-square is the P value and as P= .000 < .025 (2-SIDED TEST); So, the Null Hypothesis is rejected. Thus, we can conclude that customer who finds the call rate suitable to satisfy their need tends to be more satisfied.
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Ho: H1:
Trust regarding billing information has no relation with customer satisfaction Trust regarding billing information has a relation with customer satisfaction
Overall Satisfaction Towards GP * I trust GP regarding my billing info Cross tabulation Count I trust GP regarding my billing info Yes Overall Satisfaction Towards GP Highly Dissatisfied Dissatisfied Neutral Satisfied Highly Satisfied Total 2 3 2 56 31 94 No 0 6 0 0 0 6 Total 2 9 2 56 31 100
Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 64.539
a
df 4 4 1
a. 7 cells (70.0%) have expected count less than 5. The minimum expected count is .12.
Here, Pearson Chi-square is the P value and as P= .000 < .025 (2-SIDED TEST); So, the Null Hypothesis is rejected. Thus, we can conclude that customers who trust their billing information tend to be more satisfied. If they do not trust the billing information, their satisfaction level also reduces.
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Hypothesis 05 Ho: Satisfaction is not enhanced when Value Added Service helps to make life easier, H1: Satisfaction enhances when Value Added Service helps to make life easier,
Overall Satisfaction Towards GP * VAS Makes My Life Easier Cross tabulation Count VAS Makes My Life Easier Disagree Overall Satisfaction Towards GP Highly Dissatisfied Dissatisfied Neutral Satisfied Highly Satisfied Total 2 2 1 5 0 10 Neutral 0 2 0 6 2 10 Agree 0 5 1 30 25 61 Strongly Agree 0 0 0 15 4 19 Total 2 9 2 56 31 100
Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 34.706
a
df 12 12 1
a. 13 cells (65.0%) have expected count less than 5. The minimum expected count is .20.
Here, Pearson Chi-square is the P value and as P= .001 < .025 (2-SIDED TEST); So, the Null Hypothesis is rejected. Thus, we can conclude that Customer Satisfaction has a relation with VAS. So, we can assume that Grameen Phone can increase customer satisfaction if they offer some VAS that will help them in their everyday life,
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Hypothesis 06:
Ho:
Customer satisfaction level remains unchanged, even if the employees are courteous
and willing to help the customer at their need. H1: Customer satisfaction level increases, if the employees are courteous and willing to
When customers face any problem they request employees at Grameen Phone Customer Care or at Customer Care Hotline to solve their problem. If customers face any difficulty to use a service, they usually get dissatisfied. But if they find that employees of the service provider are trying their best to solve his problem, their dissatisfaction reduces. Moreover, employee behavior also has affect on customers satisfaction. With cordial behavior, employees can win the customer.
This is a test that measures the relationship between employee attitude and behavior with customer satisfaction. To measure the relationship, the researcher conducts chi-square test. The result is shown below-
Overall Satisfaction Towards GP * Employees are Courteous and Willing to Help Cross tabulation Count Employees are Courteous and Willing to Help Strongly Disagree Disagree Neutral Overall Satisfaction Towards GP Highly Dissatisfied Dissatisfied Neutral Satisfied Highly Satisfied Total 0 1 0 0 0 1 1 4 0 4 0 9 1 2 1 5 0 9 Agree 0 2 1 39 19 61 Strongly Agree 0 0 0 8 12 20 Total 2 9 2 56 31 100
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Chi-Square Tests
Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 54.709
a
df 16 16 1
a. 18 cells (72.0%) have expected count less than 5. The minimum expected count is .02.
Here, Pearson Chi-square is the P value and as P= .000 < .025 (2-SIDED TEST); So, the Null Hypothesis is rejected. Thus, we can conclude that Customer Satisfaction has a relation with Employee attitude and behavior at customers interaction with them.
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Regression
Regression analysis is done through a model where we have a dependent variable in the left side of an equation and on the other side there are multiple variables which actually determine the dependent variables movement. Every independent variable is a multiple of its any single sample value which we can get from the data view of SPSS. There is also a constant in the equation which is signified as 0. Multiple Regression Model Preferred variables of customer satisfaction= 0 + 1X1 + 2X2 + 3 X3 + 4X4+ 5X5 + 6X6 + 7X7 +1 Here, 0 = X1 = X2 = X3 = X4 = X5 = X6 = X7 = Y Intercept Network Coverage Call Quality Tariff Responsiveness Service Attitude of Employee Trust in Billing Information Value Added Service
1, 2, 3, 4, 5, 6, 7 are the Coefficient of X1, X2, X3, X4, X5, X6, X7 respectively.
1= Error term
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Model Summary Adjusted Model 1 R .931a R Square .867 Square .857 R Std. Error of the Estimate .354
a. Predictors: (Constant), VAS Makes My Life Easier, I trust GP regarding my billing info, Call drop, call congestion, connection problem in GP network, Employees are Courteous and Willing to Help, GP offers suitable tariff that satisfies my need, GP Network is Available Everywhere, Quickly Solve Problem
Coefficient of Determination: From the above model, we can see R Square is 0.867, which means 86.7% of the customers satisfaction can be defined by these seven variables. And 13.3% remains unexplained. As the researcher is using sample rather than population, so Adjuster R Square is more acceptable. Here, Adjusted R Square is .857or, 85.7%. so; I can conclude that no matter how I measure the coefficient of the determination, the models fit is good.
H1: at least one k is non-zero; then the model is a valid one. Coefficients
Unstandardized Coefficients Model 1 (Constant) B -1.016 Std. Error .477 .076 .033 .303 -.027 Standardized Coefficients Beta t -2.128 5.085 -.619 Sig. .036 .000 .537
GP Network is Available .389 Everywhere Call drop, call congestion, -.020 connection problem in GP network GP offers suitable tariff that .139 satisfies my need Quickly Solve Problem .562
Employees are Courteous .078 and Willing to Help I trust GP regarding my .395 billing info VAS Makes My Life Easier .022
From the Coefficient table we can see that none of the beta is zero. So, the null hypothesis is rejected. Putting all the values of the beta in the model,
Preferred variables of Customer Satisfaction = 0 + 0.303 X1 -.027 X2 + 0.142 X3 + .597 X4 + .072 X5 + .101 X6+ .044 X7 +1
ANOVAb Model 1 Regression Residual Total Sum of Squares 75.224 11.526 86.750 df 7 92 99 Mean Square 10.746 .125 F 85.777 Sig. .000a
a. Predictors: (Constant), VAS Makes My Life Easier, I trust GP regarding my billing info, Call drop, call congestion, connection problem in GP network, Employees are Courteous and Willing to Help, GP offers suitable tariff that satisfies my need, GP Network is Available Everywhere, Quickly Solve Problem b. Dependent Variable: Overall Satisfaction Towards GP
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From the table, we can see that, Sum of Square Regression (SSR) = 75.224 Sum of Square Error (SSE) = 11.526 Sum of Square Total (SST) = 86.750
And from the ANOVA table we can see, F value = 85.777 and Significant value = 0.000. Value of F indicates that a portion of the variation in dependent variable is explained by the regression equation and the model is valid. The rejection region allows us to determine whether F is large enough to justify the null hypothesis.
Assuming = 0.05, the rejection region, F , k, n-k-1 = F.05, 5, 92 = 3.30 F Value > F.05, 5, 54
We can reject the null hypothesis and conclude that the model is valid. Since, F value> Significant value we can say the model we developed is valid.
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Here, 0 = Y Intercept, means that customer satisfaction will be 0 when no other variable has any impacts on customer satisfaction. 0.303 X, means that if Grameen Phone can improve the impression of network quality by 1 unit, customer satisfaction will increase by .303 units. -.027 X2, means that if customers impression regarding call congestion problem increases by 1 unit, customers overall satisfaction will decrease by 0.27 units. 0.142 X3, increasing customers impression regarding call rate will increase customer satisfaction by 0.142 units. 0.597 X4, means that if Grameen Phone can and deliver service promptly by 1 more unit, overall customer satisfaction increases by 0.597 units. 0.072 X5, means that if customers become impressed for service attitude of employees, then overall customer satisfaction will increase by 0.072 units. .101 X6, represents that if Grameen Phone can increase the trust among its customers by 1 more unit then customers overall satisfaction will increase by 0.101 units. .044 X7, represents that customer satisfaction varies by 0.044 units if customer attitude is changed towards the use and effectiveness of Value Added Service by 1 unit. Finally, 1 represents the amount that is unexplained by these seven variables. It represents the extent to which variables other than the selected variables impacts customer satisfaction.
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RECOMMENDATION:
Grameen Phone needs to develop customer service as part of its core brand value rather than considering it as a separate department. Most of the customers problem cannot be solved due to lackness of an integrated approach. The web site of Grameen Phone often does not contain provide updated information. Marketing department often sent sms regarding different promotional campaign or VAS while keeping customer service unaware of it. Sometimes Post-paid customers complain that their line is barred without pre-informing them and there is no way to check the validity of this complains. Upwards communication is very poor due to which customers feedback cannot be taken to management concern. Though customer care hotline operates 24/7, other integrated department has less operational hour which also reduce contact centers ability to serve customer properly. If a roaming customers line gets barred after 8:00 pm, GP cant charge their due bill from credit card due to absence of manpower. Internal bureaucracy often creates conflict, increase lead time and hampers customer service. Contact center Edge Team consist of BBA graduates who are not much skilled about IT, thus increases layer to solve customer problem. Management always focuses on efficiency and resource utilization rather than satisfying customer through providing quality service. All these are service failures that are caused due to poor internal communication. In order to offer a unique and International standard service experience GP needs to develop an integrated approach of serving customer.
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Most of the corporate customers bill is paid by their company according to the bill paper. Most of these customers are unwilling to make any payment by themselves as their bill is paid by the company. But they face problem, if their line gets barred before receiving their bill for exceeding credit limit. Moreover, if they dont receive the bill paper on time, they get dissatisfied.
If Grameen Phone can provide them a summary bill on short notice through e-mail, it will facilitate their payment. Hence, I suggest that in order to increase customer satisfaction and deliver service beyond heir expectation, Grameen Phone should modify e-bill service which will reflect a summary of subscribers current billing status.
To manage the service in a better way, the following feature should be included Customers will receive e-bill which includes information of their total due, current usage, and payment within bill cycle. The service will be offered only to the corporate customers whose line is barred for exceeding credit limit. The information will be updated or at least updated up to last calendar date.
This new service can reduce the dissatisfaction regarding bill delivery and also enhance customers satisfaction towards the responsiveness of GP. Moreover, if Grameen Phone introduces this service, it will create a service quality benchmark for post-paid users in the industry.
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Post-paid customers can check their bills in three ways- IVR (Computer generated voice inform customers their bill when they dial 12111), SMS (Customers can send sms to 2000, writing Bill or Usage), Customer Care Helpline (CM).
Many customers often complain that they get wrong information in sms. Moreover, the bill is often not updated in IVR. Even the customer care hotline cannot give customer updated information regarding their billing information. Due to wrong and complex procedure of IVR and SMS, Customers often need to rely on Hotline which creates call pressure in 121.
Hence, I suggest ensuring the accuracy of billing information and also include time of the bill. For e.g. - IVR will inform customer that your total due amount is XXX taka up to YY: ZZ hour.
Service Consistency:
Customers call 121 to meet their query. They have a lot of trust on 121. So, if they get any wrong information from 121, they become highly dissatisfied. GP needs to ensure information accuracy by training employee and keep them updated about all information. Regular quiz or interview can be helpful to imply this initiative.
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Another area of dissatisfaction is service discrepancy. Different customer manager (CM) tends to serve the customer differently. GP needs to develop a single procedure for serving customer. Emergency Balance or Bar Restriction:
When the line of a heavy user gets barred for crossing credit limit in midnight, customer is deprived of staying close to their nearest ones and GP is deprived of revenue. It is not possible for anyone to make payment after 11:00 PM as most of the flexi-load dealers close their business by that time. GP should offer some emergency balance or line bar restriction for 24 hours policy to its crown customers as part of higher value proposition which will increase customer satisfaction and exceed their expectation. Under this policy customer will get a lead time of 24 hours to make their payment. This service will be offered to Roaming and crown customers (who dont have a bad credit history) only when he doesnt have any payment option.
Scratch-card payment through contact center agent: Sometimes post-paid customers face severe problem to recharge through scratch card. If customers line gets barred, they have to recharge through IVR. But many times, this system doesnt work and customers get highly dissatisfied.
As GP has voice logger, each and every conversation with contact center agent is recorded in this voice logger. So, they can allow contact centre agent to help them recharge through scratch card after verifying scratch card number, serial number. But this service will be provided, only if customers line is barred, and he failed to recharge through IVR.
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Effective Use of Outbound Calling: Outbound refers to calling customers from helpline for business or communication purpose. Currently GP make outbound calls to those customers whose Internet is not activated. They inform customers regarding the benefit of Internet and then activate P1 on subscribers number without any charge. This increase customer satisfaction and use of Internet. But this initiative does not generate much revenue for GP as most of these subscribers are ignorant or not interested in Internet Service.
GP can do outbound for those customers who have activated p5/p6 but their package is about to expire (30 days). If a customer activates p5/p6 again before expiration, his package will be renewed and the remaining data balance will be added to the data new balance. But if their package expires, their remaining balance also expires. So we can inform them about the benefit of activating p5/p6 within this time. This will increase the frequency of p5/p6 activation and thus generate more revenue for Grameen Phone.
Web Self-Care: Web self care will be a web based tool where customers can serve themselves. They will be able to check their balance, make provisioning regarding FnF, Edge, scratch card payment, Welcome Tune etc. Moreover if their charging history can be provided by this tool, that will reduce their confusion and increase their trust on GP. This tool will have option for the customers to listen and activate Welcome Tune.
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LIMITATIONS
Time was the main constraint for this research. I focused only on customers who I can attend through the hotline. As the sample size is very small comparing to actual population so the result might not reflect the actual scenario. Some respondents seem to give bias answer as they thought it will put impact on tariff or other strategy of Grameen Phone. Limited knowledge in SPSS by the researcher also limited the prospect of the report.
CONCLUSION
Despite lot of resistances, lacking, challenges from the market, Grameen Phone has successfully upholds its positive image of superior service provider and positioned itself as the market leader in telecom industry. A little more integration with customer will help the company to improve its ability to serve customer better. Proper understanding of customer need and technological improvement will definitely increase customer satisfaction. The researcher expect that if Grameen Phone can overcome its limitations and continuously delivers its promises to people, it can reach to a level beyond imagination
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BIBLIOGRAPHY
www.grameenphone.com www.djuice.com www.btrc.gov.bd Annual report of GrameenPhone, 2006-2007 Telemarketing campaign report, Contact center, Customer Service Division 21st, 22nd, 23rd & 24th Weekly report from djuice call center Malhotra, K. (2004), Marketing Research an Applied Orientation, 4th edition, Pearson. Education.
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