Internship Report on Customer Satisfaction of GrameenPhone

8/10/2019 Internship Report on Customer Satisfaction of GrameenPhone

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Report

On

GrameenPhone


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ReportOn

Grameen Phone

Topic:Customer Satisfaction of

GrameenPhone

!

" #$%&'$%(

! $

Date of Submission: October 17 July 2007


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Augst 15, 2007

Masud Ibna Rahman

Assistant Professor

Faculty of Business & Economics

Daffodil International University

102- Sukrabad, Dhanmondi, Dhaka-1207

Sub: submission of term paper on Customer Satisfaction of Grameen phoneLtd.

Dear Sir:

It is a great pleasure for me for me to submit my report on the topic CustomerSatisfaction of Grameen Phone Ltds.

I have prepared this term paper, as a fulfillment of the course requirement. Tomake this term paper up to the standard, I have tried my level best to fulfill therequirements. I hope that this will help me in my future practical life.

I believe that you will be pleased to see my work. I also believe that this reportwill be able to fulfill your expectation.

Sincerely yours,

.MD: Feroz AlamID: 042-18-426


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Executive Summery

As a market leader, GrameenPhone is continuously coming up with new ideas regarding its

products and services. Recently, the company is mainly focusing on the non-voice services.

Because, the company knows in near future, voice based services will reach to the maturity

stage which will make the business growth constant to some extents. Hence, the company istrying to maintain the leading position in non-voices services as well like SMS, Push-Pull,

and Information related services at the early growing stage. These services are working as a

building block to increase GPs service value.

Coming up with innovative service is easier than making subscribers aware of services.

Hence through this internship report I have tried to analyze the present situation of the

cellular phone industry in Bangladesh and GPs position there in, find out the services that

Grameen phone is presently providing to its valued customers & their satisfaction level. 15

million people out of 140 million total citizen of Bangladesh are presently using cell phone; itmeans that out of every 9 people one is using cell phone. In the third world country like

Bangladesh the amount of users is amazing. Grameenphone holds almost 61% market share

of telecom industry that is out of every 10 users 6 belongs to Grameenphone. So

GrameenPhone marketing strategy should be Profitable growth & expanding market share

through satisfying existing customers. I have also made a comparative service analysis of

various cellular phone companies in Bangladesh and drawn some valuable recommendation

to GrameenPhone to be the market leader in future in this competitive market.

A comprehensive survey was conducted to know about GPs present position in the market

and its present service condition that is providing to its valued customers. The survey report

shows that Grameen phone is still a market leader in this industry but as it is becoming more

competitive day by day so Grameen phone should revise its service packages, quality with

more conveniently for the customers.

Among the other cellular phone companies GrameenPhone has some unique competitive

advantages in this industry in Bangladesh so if it is possible for GP to provide better services

with continuous innovative products it will add value to the company. Otherwise, in the long

run new innovation services will not give its ultimate success.


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Table of Contents

TopicsPage

No.

Executive Summary

Chapter -1 1-5

Introduction

Chapter -2 6-11

Situation Analysis: An overview of theWireless Phone Industry

Chapter -3 12-29

Company Profile

Chapter -4 30-56

Customer Management Division

Chapter -5 57-66

A comparison of service among the wirelessphone operators

Chapter -6 67-78

Customer Satisfaction & survey findings

Chapter -7 79-84

Recommendation & Conclusion

Appendix-1 85-86

Appendix-2 87

Appendix-3 88-89


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INTRODUCTION

GrameenPhone (GP) today is apparently the largest mobile telecommunication industry in

Bangladesh. It operates its function with an aim to accomplish two principal targets. Firstly,

as with other commercial organizations, it operates in such a manner that it receives a good

economic return on the investment. Nonetheless, secondly, it contributes significantly to the

economic development of the country in making telecommunication a popular medium for

exchange of information.

GP, in its operation, has to address a large number of customers throughout the country. It is

therefore imperative to get to the customers to know their impression on the services of this

important communication medium. This encouraged the researcher to choose the topic of this

internship programme as Customer satisfaction of GrameenPhone.


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Background of the Industry:

In a highly populated country like Bangladesh, telecommunication can play a vital role to

boost the economy and social level of people. The introduction of cellular phones has

dramatically changed the lives of businesses and individuals.

As there is a growing trend of workers turning from farming to other occupations, the need

for mobiles is increasing among the thousands of impoverished villages. The overall

efficiency of other business has increased as an aftermath of the government's decision of

deregulating the telecommunications sector, which until the late 1980s had been a state

monopoly.

Privatization of the telecommunications sector began in 1989, when Sheba and BRTA were

awarded 25-year licenses to install and operate fixed-wire lines and wireless services in rural

areas. The same year, Pacific Telecom Bangladesh got the government's permission to launch

the country's first cellular phone and paging service sold under brand name CityCell in

collaboration with a Hong Kong-based company. The company targeted only the higher class

of the society. During that time price of mobile was above Tk 50,000/=. Naturally, the growth

of the industry was too slow. CityCell had a virtual monopoly until 1996, when the

government gave licenses to three more companies to operate cell phones in Bangladesh. So,

the government decided to bring more companies in the market and break the monopoly.

After careful evaluation the government decided to provide three licenses to GrameenPhone,

TM International (AkTel), and Sheba Telecom (Banglalink). Only CityCell is using Code

Division Multiple Access (CDMA) technology, AkTel, GrameenPhone, Banglalink these

three companies are using GSM (Global System for Mobile) technology. GSM is the most

popular mobile telecommunication technology in the world. About 60% of the cell phone

users of the world use GSM technology.

These three new companies entered the market, not only helped trim down over-dependence

on BTTB's fixed-line system, but also made mobile phones cheaper and easier to get. The


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price of a cell phone came down from $2,000 to as low as $100, depending on the features of

the handset and SIM price is only Tk.200-300.

A definite development has been observed in the Business Market with comparatively high

expectations. Customer maturity and anticipation regarding technology has increased over

time. Rumors regarding new entrants have groomed expectations in the market.

Consequently, people are expecting cheaper handsets with lowered airtime.

The existing Cellular phone companies in Bangladesh are CityCell (Pacific Bangladesh

Telecom Limited), GrameenPhone Ltd., AkTel Ltd. Banglalink and TeleTalk. Among these

company GrameenPhone, AkTeland Banglalinkadopted GSM technology and Citycell the

market pioneer started with CDMA technology.


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Objectives of the Study:

This Programme was designed to accomplish three objectives. The objectives were identified

through a closer interaction and exchange of views with the management of CMD. The

objectives are:

To find out the satisfaction level of GrameenPhone subscribers.

To locate specific areas of dissatisfaction of the GP users.

To analysis the year-wise contribution of GrameenPhone to the national treasury.


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METHODOLOGY

Based on the topic chosen, the researcher was assigned the task in the Customer Management

Division (CMD) in GP. This divisions consists of a big team of about 1500 employees. Its

functions relate with the customer service after the sales occur. Prime functions and activities

of the GP Customer Management Divisions cater to all after-sales services starting from

activation of subscriptions, all customer contacts (Centralized Call Center, Customer

Relations Centers, and centralized Customer Communications), billing, bank communication,

bill collection throughout the country, helpline services, GPSDs etc.


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Limitations of the Study:

GrameenPhone basic strategy is widening its market through its emerging countrywide

network. As a result of this strategy, the subscribers are from different segments or from

different income levels. Moreover, the subscribers are scattered all over the country.

The time constraint confined the study mostly on the data collected in Dhaka zone. Moreover,

it was not possible to get all required internal information of the company as these are treated

as confidential to the company.

The outcome of the study can thus be regarded exploratory, and may not be treated as

absolute for the whole country. In latter case a more comprehensive study is required.


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Market Share of Mobile Operators:

The mobile phone market consists of five operators. Out of which, 61% share of the market

belongs to GP, 3% to CityCell, 28% to AkTel, 7% to Banglalink and the rest of 1% to

TeleTalk as of Nov, 05. GP holding the major share maintains a market leader strategy to

all other players in the market. The telecom market intends to grow at penetration rate of

more than 3.48%; where GP has already penetrated at 2.12%.

Market Share of Mobile Operators (2005)

61%

28%

7%

3%1%

TeleTal

TeleT


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Competitive Position of the mobile operator:

Table : Relative position of mobile phone operators

Target

Custome

r

Price &Tariff

Quality Technology Strategy

Corporate

/

Individua

l

LowDeteriorati

ng servicesCDMA

Network

expansion &

attractive

products

Corporate

/SME/

Individua

l

Competitiv

e

Highquality

service but

limited

coverage

GSM

Increase

coverage and

market share

Corporate

/SME/

Individua

l

Very

affordable

Low

quality and

limited

coverage

GSM

Increase

coverage and

Market share

Corporate

/

SME/

Individua

l

Competitiv

e

Good

network

with wider

coverage

GSM

To maintain

the no. 1

position as a

cell phone

operator

Target customers are almost same for the four mobile operators. Regarding to price and tariff,

AkTel and GrameenPhone are very much competitive. Banglalinks price and tariff is very

affordable and Citycell is able to give low price to its subscribers. In case of service quality

and network coverage, GrameenPhone is leading the number one position among them. Only

Citycell use CDMA technology and others three use GSM technology. By this, Citycell


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10. Network And Network Coverage OF Grameen Phone:

GrameenPhone aims to build a full range of service all over the country. The company has

targeted to build extensive network all over the country. For better coverage, GP has taken

1600 Km fiber optic cable network leased from Bangladesh Railway. In April 2004, GP had

750 base stations. Now till Oct05, it has 1750 base stations. Furthermore, considering the

subscribers need of quality network and extensive coverage, the company is planning to set

up another thousand base stations in the following year. Recently GP has doubled its speech

quality 900GSM MHz to 1800GSm MHz. Already the company has expanded its network to

61 districts out of 64 districts and 400 upazillas out of 460 upazillas. Its the only company

which covers the most of the land areas with its net work. Approximately 52% land area is

covered by GrameenPhones network. In over all, GrameenPhone offers the most competitive

network facility to its subscribers, and continue improving it. Existing coverage areas are

divided into six zones according to the divisional boundary. These are

Dhaka Sylhet

Chittagong Rajshahi

Khulna Barisal

District Covered

2636 40

47

60 61 61

210

10

20

30

40

50

60

70

1997 1998 1999 2000 2001 2002 2003 2004 Mar' 05

Year

Districts

Figure : GrameenPhones district coverage.


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CUSTOMER MANAGEMENT DIVISION

The Customer Management Division of GrameenPhone Ltd. provides a full range of after-

sales service customized to the needs of the valued customers. Efforts are made to offer

complete service through all the contact points dedicated for GP customers at every

opportunity through Call Center, Customer Management Centers and Customer

Communication.

The Slogan Of CMD is:

We believe inInvolve &Evolve

Give sustaining positive experience to the customers by understanding and

fulfilling/exceeding their service expectations at appropriate time and prices. Make the

customer experience as the main differentiator to stand tall in the market.

The organgram of Customer Management Division:

Figure: Organogram of Customer Management Division

Customer Management

CommunicatiHuman

Training &

CompetenceService

Technology forCustomer

Process

Program Budget and

CallCenterPostpaid

CallCenter

PrePaid

CustomerManagement

Center

CallingCenter

CreditManagement

Collectionand

Banking

Corporatecustomer

IRCustomerService

CustomerDemographic

andActivation


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Products and services that have been successful

GP-Regular, the oldest product of GrameenPhone retains its popularity through its full

connectivity to all networks including fixed line telephony services.

EASY Pre-Paid, because of Low flat tariff and nationwide mobility, its a Pre-paid

service, no monthly rent required and instant use due to pre-activation, no hassles of

bill payment.

Information Service through mobile because of easy access, interesting theme, and

reasonable rate and for being new and innovative.

Village phone because of use of Grameen Banks borrower network and for having

access to BTTB & ISD.

Subscription Unit

Customer Management Division (CMD) of GrameenPhone Limited is consists of 15 units;

Subscription Unit is one on them. This is the unit that remains very close to the customer andalways busy to meet the satisfaction of GPs valued customer.

Subscription Services

Subscription Unit is the unit that performs its job in touch with all other divisions. The

following figure [Fig-3.1] shows us the subscription services in a whole.

i) Sales and MarketingSales and marketing is one of the important services of subscription. Among theservices they allocate phone number for various packages. They planed for new

product and packages. They receive the subscription papers all over the countryfrom the dealers.

ii) Technical

Subscription unit also has some technical responsibilities. Among them quality

assurance of the SIM features, testing the SIM, SIM problem is important.

iii) Legal

Subscription service also deals with the legal issue and various legal procedures.

iv) IT

Subscription Unit also has IT services. This service mainly develop the customize

software for maintaining the customer database and other soft wares to maintain

efficient customer relation. All the Customer Relation Centers all over the country


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are connected with central database. This network maintenance is also a

subscription units service.

Fig : Subscription Services

Finance

Another important service of subscription unit is to monitor the international

roaming facilities of the subscriber as well as the credit of the subscriber.

This is the flow of subscription services.

SUBSCRIPTI

Sales & MarketingNumber allocationActivation Papers

International RoamingSubscription Paper Receiving

Product and PlanningTest SIM

TechnicalQuality Assurance

Test SIMPre Paid Reconnection

SIM Problem

ITSoftware Development

Networking between all CRC

LegalProcedure

FinanceInternational Roaming

Subscriber

InformationCenter

Dealers orAgents

SalesCenter

Fax orcourier

Services

InstantServices

CorporateCare

Sales andMarketing

Hotline-155

Check,Provisioning,

QualityCheck

Activation,Migration,

SIM Change,International

Roaming,WAP

Numberallocation

Manualfiling

ElectronicFiling

Sorting


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Fig: Subscription Services flow Chart

CUSTOMER SATISFACTION

The Customers are in the mainstream of sales oriented services. The success of such

companies largely depends on the satisfaction of the customers .The buyers are happy if the

product and/or the services meet their expectations. If their requirements do not meet the

expectations the buyers become discontented, they are delighted when the performance fulfils

their requirements.

Customers past buying experiences, the opinion of friends, associates, marketer, competitor

information and promises lead to the expectations. Marketer must be careful to set the right

level of expectations. If they set expectations too low, they may satisfy those who buy but fail

to attract enough buyers. In contrast, if they raise expectations too high, buyers are likely to

bedisappointed. Dissatisfaction can arise either from a decrease in product and service quality

or from an increase in customer expectations. In either case, it presents an opportunity for

companies that can deliver superior customer value and satisfaction.

To-day most successful companies have taken the strategy of are raising expectations and

delivering performance to match. Such companies track their customers expectations,

perceived company performance, and customer satisfaction. Highly satisfied customers

produce several benefits for the company. Satisfied customers are fewer prices sensitiveremain customers for a longer period and talk favorably to others about the company and its

products and services.

Although the customer centered firm seeks to deliver high customer satisfaction relative to its

competitors, it does not attempt to maximize customer satisfaction. A company can always

increase customer satisfaction by lowering its price and increasing its services, but it may

result in lower profits. Thus, the purpose of marketing is to generate customer value

profitably.

Now, we have a very good idea regarding the importance of customer satisfaction. So, it is

also important for the company to know about the satisfaction level of the customers. When

any problem is identified, it becomes easier to solve the problem.


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If the inquiry is regarding general information, the customer relations officer does not need to

take help of information system. She/he just provides the information and the subscriber keep

the phone.

There are some queries that are much more personalized and the CM needs to get into the

account of that particular subscriber to provide the service. In some case, the subscriber just

keeps the complaint/ request and later action is needed to be taken.

Customer need to pay TK. 4 per minute to take the service from helpline.

2 Interactive Voice Responses (IVR):

This newly introduced service by GrameenPhone. This is automated helpline service. A GP

subscriber needs to dial 123 to reach this service. After that she/he can get information

regarding the bill, usage, credit policy, bank name that receives GPs bill and so on by

choosing different options.Itisfree of charge for the first minute, from the second minute the

subscriber needs to pay tk.2 per minute.

3. Information Centers:

Most of the problems of the subscribers are solved by the helpline service. But there are

some problems that can not be solved there. Subscriber need to come physically to deal with

that problems.Grameen Phone has seven customer relation centers and 380 GPSDs which

provide services all over the country.

These Customer Relation Centers are situated in the prime divisional head quarters likeDhaka, Chittagone, Sylhet, Rajshahi and Khulna and GPSDs situated all most everywhere in

Bangladesh. In these information centers the subscribers can come directly with their

problems like billing, address change, SIM change, handset problems, etc.

These after sales services are very crucial to keep subscribers satisfied regarding

GrameenPhone.

Survey Findings:

In order to measure the satisfaction of the customers a series of questions were asked to the

customers with the help of a questionnaire, the data from these questions are tabulated below.For clear understanding, the overall satisfaction has been divided into satisfaction with the

package and satisfaction with the after sales service. As already mentioned, the survey was


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conducted among hundred GrameenPhone subscribers, it was conducted in the information

center as subscribers from different areas in Dhaka come to this center

Interpretation of Survey Data:

a. I use GrameenPhone because it is the best:

Strongly Agree 25%

Agree 55%

Neither Agree nor Disagree 15%

Disagree 5%

Strongly Disagree 0%

25%

55%

15%5%0%

Strongly Agree

Agree

Neither Agree norDisagreeDisagree

Strongly Disagree

b. I use GP mobile as it has additional features in comparison to other operators.

Strongly Agree 29%

Agree 63%


Disagree 0%


29%

63%

8%

0% 0%0%

10%

20%

30%

40%

50%

60%

70%

Strongly

Agree

Neither

Agree

Strongly

Disagree

Farctors

Percentage

Strongly Agree

Agree

Neither Agree nor Disagree

Disagree

Strongly Disagree


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c. Price of Gramophones different package is affordable.

Strongly Agree 4%

Agree 49%


Disagree 23%


4%

49%

13%

23%

11%

0%

10%

20%

30%

40%

50%

60%

Strongly

Agree

Agree

Neither

Agree

Disagree

Strongly

Disagree

Farctors

Percentage

Strongly Agree

Agree


Disagree

Strongly Disagree

d. I am satisfied with the service (quality of airtime and network availability) of GP.

Strongly Agree 9%

Agree 26%


Disagree 30%



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9%

26%24%

30%

11%

0%

5%

10%

15%

20%

25%

30%

35%

Strong

lyAg

ree

Agree

Neith

erAgree

norDi

sagree

D

isagree

Strongly

Disa

gree

Farctors

Percentage

Strongly Agree

Agree


Disagree

Strongly Disagree

e. Whenever I want to have a GP connection, I can get it.

Strongly Agree 23%

Agree 28%Neither Agree nor Disagree 17%

Disagree 19%


23%

28%17%

19%

13%

Strongly Agree

Agree

Neither Agree norDisagreeDisagree

Strongly Disagree


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f. GP helpline is very helpful in meeting my queries and other needs

Strongly Agree 10%

Agree 35%


Disagree 15%


10%

35%

20%

15%

20%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Strongly

Agree

Neither

Agree

Strongly

Disagree

Farctors

Percentage

Strongly Agree

Agree


Disagree

Strongly Disagree

g. GP helpline is very helpful in meeting my queries and other needs

Strongly Agree 9%

Agree 40%


Disagree 15%


9%

40%

20%

15%

10% Strongly Agree

Agree

Neither Agree norDisagree

Disagree

Strongly Disagree


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As we can see from the above table and the chart, maximum number of subscribers would

purchase a cellular service which has a good network coverage, apart from that the other

criteria which is they consider after network coverage is easy bill payment system.

j. Criterias which were considered while purchasing GrameenPhone

Criteria No. of subscribers

Network Coverage 68

International Roaming 8

Value added Services 7

24 hrs customer service 48

Pre-paid facility and bill

payment facility

37

From the chart and the table above it can be seen that most of the subscribers purchased

GrameenPhone due its network coverage. Also by looking at the figures the bill payment

system and the 24 hrs customer service were the other common attributes which attracted the

subscribers to purchase GrameenPhone

k. Satisfaction with the after sales service

When you are faced with a problem what do you do?

Criteria No. of subscribers

Call up the GP hotline 54Write a letter 6Go to the Information center 48

68

111216

37

0

10

20

30

40

50

60

70

No. of

subscribers

Network Coverage

InternationalRoaming

Value addedServices

After Salesservice

Easy Bill PaymentSystem.


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From the above table it can be seen that most of the subscribers either call up the GP hotline

or they go to the information center.

l. Are the GP employees able to solve your problem regarding the following criterias?

Criterias Always Sometimes Never N/A Total

Billing 32 25 4 39 100

Bar/ unbar line 29 22 2 47 100

After sales service 49 31 5 15 100

Special service

(International roaming)

17 21 2 60 100

Value Added services 60 22 18 18 100

Total 187 121 31 179 100

From the table above it can be seen that regarding almost every criteria, the Grameen Phone

employees are able to solve the problem most of the time.

But at the same time there is quite a large number who always do not get a solution to their

problem this occur because for certain queries a subscriber has to go to the information

center and GrameenPhone has only one information center, due to this shortage a customer is

made to wait long hours in a queue. Also many times when the line takes more than a day to

be reconnected.

54

6

48

0

10

20

30

40

50

60

No. of

subscribers

Call up the GPhotline

Write a letter

Go to the

Information center


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m. Subscribers perception of the different Grameen Phone package

What is your perception of GrameenPhone?

Excellent, I amfully

satisfied

Good, butthe

servicescould beimproved

Alright, I useGP because

no othercompany

offers

Bad, I amlooking

foralternative

Total

Which GPprepaid

6 34 14 0 54

Grameen GPregular

3 9 1 0 13

Phone GPGP 1 12 2 1 16

Packagedo you

use?

RegularGP-GP

0 14 1 3 17

Total 10 69 18 3 100

It can be seen from the above table that most of the subscribers from every package perceive

their respective packages as good packages but they feel that the services can be improved.

According to the four faces of customer loyalty by Smart Loyalty, we could consider the 10%

to fall under truly loyal customers as highly satisfied, 69% of the subscribers could be

considered as accessible because they feel that the services can be improved, these

subscribers want to give a chance to GP to earn their loyalty. 18% could be considered as

trapped because they use GrameenPhone as no other company offers them the services and

only 3% fall under High-risk as these subscribers do not like the GrameenPhone services and

are looking for alternatives.


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Negative attributes: Neither agree or disagree + disagree =33+20 = 53Positive attributes: agree + strongly agree = 28+19 =47

n. Opinion whether GrameenPhone subscribers would remain loyal if another

company came up with packages of similar features.

Disagree Neither agree ordisagree

Agree Stronglyagree

Total

GP prepaid 9 17 20 8 54GP regular 3 3 3 4 13

GPGP 5 5 3 3 16

WhichGrameen

Phonepackagedo youuse?

regularGPGP

3 8 2 4 17

Total 20 33 28 19 100

Some Representative Additional Comments:

Helpline is not so easy to reach.

Behavior of helpline officers is quite rough.

Helpline gives support to solve our problem.

Info Centers take a whole day to solve a small problem.

In Dhaka city, there should be more info centers, especially in old side.

Prepaid connections are very difficult to avail.

Billing rate should be reduced, it is too high.

GrameenPhone does not think about the subscribers, their main intensions are to make

money.


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RECOMMENDATION & CONCLUSION

The means to overcome the needs of the customers have been discussed in this chapter. These

lead to the various recommendations given in chapter 7. Hopefully these recommendations

will create awareness to GrameenPhone authority to resolve the problems of the customers.

Analysis of the Results:

It is already discussed that GrameenPhone is the leading company in the mobile

telecommunication industry in Bangladesh. This has been possible because it has a created a

superior image in comparison to the other operators. In other words, GP has a clear advantage

over competitors.

GrameenPhone has some additional advantageous features in comparisons to its competitors.

There is easier access to person to person contract. Another important thing is that GP users

are mostly satisfied with the initial price of GP connections and handsets. Before GPs

introduction to the market, mobile phones were virtually out of reach to the major part of the

current market. Moreover, GrameenPhone subscribers are happy with the country wide

network.

However, there is dissatisfaction among the GP users with the service of the company. Many

important factors are acting as reasons behind this overall dissatisfaction. Quality of airtime

and network availability is not satisfactory.Grameen Phone connections are difficult to reach

sometimes. It so happens that the subscribers used to pay extra money to get the access. This

is especially true for prepaid service. It is encouraging that very recently situation has

improved to a certain extent bases on the findings in this report.

The Info Centers of GP are very important for some after sales services. But, there is

shortage of capacity of this service, In Dhaka Info Centers are located at Gulshan,

Dhanmondhi, Mothijheel, Uttara, these four centers cannot cope with the demand of vastly

populated Dhaka city. The GP helpline is also an important customer care tool. But it is also

in shortage of capacity. Subscribers need to spend significant amount of time to reach the

helpline. Behavior of the helpline CM is also sometimes unmanageable. They are to handle


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Documents

Internship Report on Customer Satisfaction of GrameenPhone