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CRM Implementation in Indian Telecom Industry – Evaluating the Effectiveness of Mobile Service Providers Using Data Envelopment Analysis

Author(s): Vani Haridasan & Shathi Venkatesh

Journal: International Journal of Business Research and Management
ISSN 2180-2165

Volume: 2;
Issue: 3;
Start page: 110;
Date: 2011;
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Keywords: Data Envelopment Analysis | Effectiveness | CRM | Loyalty | Relative Efficiency | Frontier Analysis | DMU

With the liberalization and internationalization in telecommunication, service quality has becomean important means of differentiation and path to achieve business success. Faced with agrowing market and increasing competition, companies in the telecom business are adopting tonew technological imperatives in order to outperform their competitors. These companies adaptcontinuously to the dynamic environment so as to survive competition. The emphasis here lies inidentifying critical value adding processes and redesigning them to become customer centric.One such approach in the adoption of an IT to move towards customers is the CustomerRelationship Management (CRM). The Indian Mobile Service Providers are using CRMextensively to identify the needs of the customers and stretching out ways and means to satisfythem. In this context, it is absolutely essential to study the effectiveness of the CRM beingpracticed by the mobile service providers. This study specifically analyses the extent to whichCRM is being practiced by the mobile service providers, and identifies the effect of the servicequality of the mobile service providers on the Customer Loyalty. As CRM focuses on beingcustomer centric, it becomes essential to measure the effectiveness of CRM in terms of thedegree to which the customers are advocates of the mobile service provider as well as tomeasure the degree to which they participate in the cross selling and up selling of the variousproducts and services of the provider. To evaluate the effectiveness, there are lots of quantitativetechniques available and some work in this area has already been done. But there is a dearth ofliterature focusing on the relative efficiency. One advanced operations research technique whichevaluates the relative efficiency is the Frontier Analysis or Data Envelopment Analysis (DEA).This paper attempts to use Data Envelopment Analysis to assess the effectiveness of MobileService Providers, specifically a set of the providers offering services in Chennai, Tamil Nadu,India. The research has identified a set of input and output parameters for each Service Provider,from which the efficient frontiers (DMUs) are determined. The relative efficiency of the ServiceProviders are measured with respect to the efficient frontier and then analyzed. Detailedrecommendations are set forth, for appropriate interventions to address the specific gapsidentified through the gaps analysis. The analysis further provides useful information and opensup new avenues for future research.
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