Linking Growth to Revenues Essay
The key recommendations that emerge relate to the present state of development of the telecom sector in China and the impetus for growth as well as adaptability of CRM in the telecom industry. Chinese telecom industry is considered appropriately poised for infusion of CRM, this is so as growth is decelerating and revenues have remained relatively constant. CRM will enable it to achieve a number of objectives, expansion in terms of product promotion, capacity utilization as well as revenues.
Based on the detailed analysis of the findings and other issues covered in the research, salient recommendations are summarized as follows:-
Linking Growth to Revenues.
Chinese telecommunication companies must link growth to revenues for that is an effective parameter of efficiency and progress. A move towards this is also indicated by an increase in revenue vis a vis customer base observed in China Mobile in June 2006 of 20 % revenue year on year to 22 % growth in subscribers.
Linking Growth to Customer Satisfaction.
One of the key parameters of growth is linking it to customer satisfaction and not just customer population. This will also generate impetus for development. CRM will greatly enable the same.
One measure can be assessed from a drop in telecom charge by a wide margin of 45 percent in 2005 from 2001. The proportion of telecom revenue and business also dropped from . 9 to 1 to . 5 to 1, indicating that the Chinese companies were aware of this important component of customer satisfaction. This trend must continue.
Adoption of Appropriate CRM as A Growth Strategy.
Chinese telecommunication companies need to adopt CRM as the principal growth strategy as follows:
– Differentiation of Strategy – Customers. There is a differential in application of strategy to customers.
To the high value customer, there is a need to quickly develop a partner ship relation. This may not be culturally suited to the Chinese environment, but its advantages should make its application more than evident to the decision makers.
Process/Project Based Approach.
A process/project based approach is essential to ensure that the deliverables are monitored at each stage. Implementation of CRM process and projects has been covered in detail in the previous chapters. The same is recommended based on this analysis for various Chinese companies based on their Advanced CRM Concepts.
While a number of advanced CRM concepts have been covered in the research such as knowledge management, Chinese telecommunications companies may not be able to adapt the same in the near future. However an historical review has indicated that the Chinese are extremely adaptable to innovation and the rate of growth given the volumes is also very high, hence these concepts could also be built in CRM adaptation. Organization For Implementation. CRM implementation will have to be carried out through a tailor made organization so that there is focus and accountability and responsibility is harmonized.
Selection of Personnel. Selection of personnel is a key to successful implementation of CRM. This needs to be done with care and followed up with personnel development initiatives.
Dependence on External Agencies.
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Chinese companies are dependent on a number of external companies for providing assistance in CRM as given in Table below. Chinese companies should however develop such competencies internally. The research suffered from a number of limitations as no direct interaction with the Chinese consumer has been possible; similarly no contact could be made with the executives of Chinese telecommunication companies.
This denied primary sources for the research. A separate segmented survey of the fixed line, mobile and internet customers in China has not been possible as it would have been beyond the scope of this research. However it is felt that this facet could form an area for further research in the future. Another area which could be explored is the adoption of specific strategies and processes by each telecommunication company, which has been far beyond the scope of the present research but can be considered separately.