Loyalty Programs in Indian Telecom Industry

no wonder young adults are using their phones almost eight hours a day (qtd. in Spend

These characteristics all combined can identify the exact group of end-users that are targeted by companies like Netflix.

India is one country which is developing rapidly at the moment along with China (Lal and Clement, 2005). The political, economic, social, cultural, technological and legal climate in India is extremely suitable for international entrepreneurs since business prospects in a country are heavily dependent on the above mentioned parameters. Since India is the second most heavily populated country in the world, British telecommunication company, Vodafone has enormous business opportunities in India. Mobile phone usage in India is increasing rapidly in recent times (Press Information Bureau: Government of India, 2010). A substantial portion of Indian

This strategy is vital and attracts customers that have been loyal and meet the company vision of customer first. This strategy boosts sales in their industry.

The telecommunications industry has steadily rebound since 2009; this is because of the growth of not only the mobile and broadband structures, but also the increase of the video market. In Figure 1, the projected outcome is indicates a steady increase in the new 4G mobile broadband networks which will fuel continued wireless growth. “Business customers in particular will continue to use this technology to expand their capabilities beyond the desktop computer. Emerging markets such as China, India and Latin America are expected to see strong growth,” (Verizon, 2011).

The number of wireless subscriber connections worldwide reached 3 billion at the end of 2007. China led with the most subscribers followed by US. The emerging mobile market in Asia Pacific is very attractive with a lower penetration and higher growth rate compared to mature markets such as North America. Western Europe's mobile market was highly nationalistic with most users preferring home-grown mobile companies.

Cell phones are having a great influence in our live and are very convenient to keep with us. Cell phones are a faster and more effective way to transfer information. Indeed, it is a resource that gives its user’s great advantages.

Perhaps the reason for such growth in wireless service is the nonstop development of smart phones (Apple’s iphone, Samsung’s Galaxy, RIM’s Black Berry, etc.). The attractiveness of high technology devices helps complimenting the service. The negative growth for voice can be explained by the stable growth for data as it is can be seen as a substitute.

Focus on all aspects of the customer lifecycle with an objective of retaining customers. Actively visiting customers, partners, and prospects in the region to align revenue and profit targets.

In looking at relationship marketing from the specialty provider practice’s point of view, this practice recognizes primary care providers as being their customers thus, gaining and maintaining the primary care provider’s loyalty should be the specialty practice’s focus and goal. Changing the group’s perspective from viewing patient referrals as individual transactions to developing a long-term, cost-effective link with primary care practices benefits both the specialty and primary care practices (Berkowitz, 2011). Much of the specialty group’s strategy perspective should simulate the elements listed in the customer loyalty pyramid, from awareness to the ultimate objective, loyalty.

Customer loyalty is much harder to obtain that customer service satisfaction. The most important first step is to satisfy the customer by meeting their expectations. Customers only give a company one chance and if they aren’t satisfied they will not do business with that company again, as well as tell others of their experience. The next step would be to exceed the customer’s expectations. If a business goes above and beyond to assist the customer they begin to build loyalty. The next step is to truly surprise the customer. In order to dominate the marketplace the company must find a way to make them selves stand out with their product or service, accompanied with phenomenal customer service. Once this has been done customer satisfaction and loyalty will be gained. “Acquiring a new customer can cost four or five times more than keeping a current customer” (Bestmark, 2013). So it’s essential to keep the current customer’s happy and coming back for more.

It would have been good if this fundamental vision was in place right at the very beginning of the company’s formation. In the end it is the customers that make the company, so it makes sense to work towards satisfying this customer relationship. To become profitable and achieve market share are secondary objective that can be measured on a annual basis and overall company well being targets can be rewarded with incentives that link into the company’s performance as opposed to individual contribution to the company’s success.

Customer loyalty is the key objective of customer relationship. Loyalty only occurs when there is a positive attitude to a brand perceived to be different. The individual market segments should be targeted in terms of developing customer loyalty. Loyalty is not just repeat buying but also involves the attitudes of customers to a brand. When a customer feels that the product or service was highly satisfying they develop loyalty. If they do not feel as if the product and service was not satisfying there might negative effects.

India is today one of the world’s most promising markets, but for the telecom companies it is both promising and difficult. With at least 6 operators in each circle, the Indian market is extremely competitive. The customer is very demanding.

In 1991, India had just five million telephone subscribers. As at the end of October 2008, there were 363.95 million subscribers.Teledensity too which was below one telephone per 100 population has now risen sharply to above 30.