RETAINING MOBILE TELECOM CONSUMERS - A POST JIO SCENARIO
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International Journal of Management (IJM)
Volume 11, Issue 7, July 2020, pp. 778-785, Article ID: IJM_11_07_067
Available online at http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=7
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: 10.34218/IJM.11.7.2020.067
© IAEME Publication Scopus Indexed
RETAINING MOBILE TELECOM CONSUMERS
- A POST JIO SCENARIO
Gurpreet Singh
Research Scholar, Department of Management & Humanities, SLIET- Sant Longowal
Institute of Engineering and Technology, Longowal, India and
Assistant Professor, Sri Guru Teg Bahadur Khalsa College Sri Anandpur Sahib, India
Dr. Sanjeev Kumar Garg
Associate Professor, Department of Management & Humanities,
Associate Professor, SLIET- Sant Longowal Institute of Engineering and Technology,
Punjab, India
ABSTRACT
Now days, one of the most important sector related to consumer’s routine life is
Mobile Telecom. Indian Mobile telecom sector is now the talk of the town. Thanks to
Reliance Jio. As price is factor which is known as a prime determinant to identify the
customer satisfaction and loyalty in the telecommunication service sector because the
price is denoted at the monetary benefits. The financial assistance is necessary to be
acquired by the consumer for subscribing a mobile network which is also done by
using mobile services. Most of the mobile operators turned the market segmentation
successfully and targeted positioning strategies to adopt low-cost pricing strategies
after ther entry of Reliance Jio. It highly affects the customer satisfaction in the form
of competitive advantage by providing them with reliable, trustworthy and wider
experience. It enables the firms to create a good brand image as a service provider by
maintaining the contractual relationship with mobile operators and identifying the
willingness of the customer effectively. In Mobile Telecom sector in India, there are
only Bharti Airtel, Reliance Jio, Vodafon-Idea (As Vodafone and Idea Merged in
2018), BSNL, left in the market and all are doing their best to retain their customer
base.
Key words: Customer Retention, Policies, Competition, Mobile Telecom
Cite this Article: Gurpreet Singh and Dr. Sanjeev Kumar Garg, Retaining Mobile
Telecom Consumers - A Post Jio Scenario, International Journal of Management,
11(7), 2020, pp. 778-785.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=7
http://www.iaeme.com/IJM/index.asp 778 editor@iaeme.com
Retaining Mobile Telecom Consumers - A Post Jio Scenario
1. INTRODUCTION
The Telecom industry in India has witnessed rapid growth. Due to the globalization, the
organisations always try to offer innovative products and services to their customers so that
the firm will be able to achieve a competitive advantage effectively. This growth has brought
many positive changes in the industry because of which telecommunication industry now
ranked as the second largest industry in the world. To analyze the performance of competitors
and exploring the growth opportunity in the competitive market, it was examined that
telecommunication companies adopting various innovative ways such as launching new data
schemes, broadband facilities, various recharge offers so that they will be able to identify the
process and redefining the strategies that help to retain the consumer in a large scale. The
main objective of the telecommunication industry is to target the right customers by analyzing
their need effectively and efficiently. As a result, telecommunication companies are adopting
various practices for retaining the consumer that helps them to compete in a changing and
rapid environment (Sharma & Sonwalkar, 2016). To make focus on consumer retention; it
mainly defines as a way by which organization will be able to analyze the demand of the
customers and satisfying them and meeting their need effectively. In respect to this, consumer
retention is treated as the implication of the strategy that makes a positive impact on the
Quality Services performance and efficiency which has been done by the telecommunication
industry. The current study mainly focuses on the consumer towards telecom companies like
Reliance Jio, Airtel, Vodafone, BSNL and others. Which bring changes in consumer behavior
by making a particular focus on Jio Telecommunication Company. In addition to this, the
study also focuses on various factors that Highly Effective growth of Telecommunication
Companies like Airtel, Vodafone, BSNL, Jio etc. and highlights the initiatives and strategies
taken by Reliance Jio and Airtel, Vodafone, BSNL companies to motivate the customer so
that customers will be able to purchase their product and services on a large scale for the
growth of the market.
2. INDIAN TELECOM SECTOR
Indian telecom sector has faced various mergers recently and now becoming a consolidated
industry. Last year in September, following major mobile telecom players left in the
completion with their share in the market:-
Figure 1 Telecom Subscription Data as on 30th September, 2019 (TRAI Report)
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Gurpreet Singh and Dr. Sanjeev Kumar Garg
Figure 2 Company wise subscribers (TRAI Report)
At that time, Reliance Jio was major player followed by Vodafone. Airtel was on number
three. During this period, we saw significant lose of subscribers for Bharti Airtel and
Vodafone. Jio subscribers rose significantly. But in March this year, the scenario changed by
following:-
Figure 3 Company wise subscribers - March 2020
Figure 4 Company wise subscribers - March 2020
http://www.iaeme.com/IJM/index.asp 780 editor@iaeme.com
Retaining Mobile Telecom Consumers - A Post Jio Scenario
In March 2020 Report of TRAI, Reliance Jio was major player followed by Airtel.
Vodafone was on number three. During this period, we saw significant lose of subscribers for
Bharti Airtel and Vodafone. Jio subscribers kept on rising.
3. LITERATURE REVIEW
As per Ahn et al., (2006) point of views, the rapid growth and changes in the market have
increased the type of services that are offered to the customers. Some of the consumers are
provided facilities like subscription based in the telecom service market in which customer
retention has become a critical issue. It was examined that the technology and mobile network
have both increased by attracting the subscriber services which and maximizes customer
retention by analyzing the timely concerns of the mobile service provider in India.
According to Amulya, (2013) telecommunication companies rapidly change and reforms
so that an enhancement of the existing market takes place by providing various types of
services on a subscription basis in the different service sector where consumer attention is a
major concern. Due to the development of advanced technology and an increase in the mobile
network sector, maximizing of customer retention takes place provides ample opportunities
for meeting the needs of the mobile service providers in India. Mobile phone services are
known as the commodity by consumer all over the market and expressed that the cell phone
service providers highly focus on the acquisition of consumer. The cell phone service
providers ensured that high-quality services are provided to the customers at the cost of
performing retention activities. The study also provides so insights related to consumer
attention and confirmed that when loyalty declines the sales cycle also becomes low which
causes the business environment negatively.
As per Rizka & Widji, (2013) point of view, identify is regarded as the key determinant
for retaining the customer. It mainly includes customer loyalty that increases the firm's
customer retention by developing a good relationship with the marketing strategies and
services that are provided by the firm. As a result, a strong relationship is developed with the
customers subsequently leading to maintaining a successful relational exchange.
According to Latha,(2013), there are various strategies adopted by the
telecommunication industry like developing attrition strategy, providing investment
opportunities and other related methods. It may also be in the form of reducing attrition,
selling. reselling again, bringing back, conducting the last ship activity, providing
extraordinary consumer services with covered systems, provision of product and service
integrity, major lifetime value and resolving a complaint is a gift for attaining the consumer.
To make focus on reducing the attrition strategy in which the majority of the service providers
highly try to reduce the attrition rate by measuring the pace at which the consumer becomes
inactive.
According to Caylar, & Ménard (2016), sale and then re-sale again strategy is also
adopted by the telecommunication sector in which the initial sale are highly focused by the
service providers. It also leads to loss of the consumer with just got into a new relation by
making the initial purchase. Apart from this, the service provider also brings the lost
consumer approach to acquire the consumers at the right time by providing the right offer. It is
known as a quick and the easiest way to retain the consumer. The customer also influences
them so that they will be able to switch, overcome and resolve their theories by establishing
reconnection with the service providers and increasing the sales revenue. As a result, the
creation of the loyal consumer takes place effectively.
Danish Khan , (2018) point of views, due to deregulation of the telecommunication
sector, the industry in India has changed drastically. It has increased competition among the
http://www.iaeme.com/IJM/index.asp 781 editor@iaeme.comGurpreet Singh and Dr. Sanjeev Kumar Garg
various telecom service providers which has increased the difficulty for the various telecom
companies like Airtel, Jio, Vodafone, BSNL to retain the existing customers and acquire new
customers. For example, Airtel provides a range of services like Cellular, Basic, Internet,
National Long Distance to its customers. Additionally, service guarantee facility is provided
to the customers through which repair of dead phones and error regarding the billing are
resolved in real time.
Sanjay Gupta, (2017) says that the companies have also adopted content strategies which
play a major role in establishing large scale distribution so that content is made available to
the maximum number of consumers across the different regions in India. As a result, the
adoption of different strategies like service guarantee, content strategies, provision of value-
added services, world-class customer more customers are attracted towards the company and
the existing clients are retained effectively.
According to Singh, (2016), Reliance communication is world largest generation of IP
enabled connectivity infrastructure which comprises 280000 kilometres of fiber optic cable
system in India, USA, Europe, Middle East, and the Asia Pacific region. The custom company
is highly based on customer service and covers over 21000 cities, towns and over 400000
villages in India. To make focus on Reliance Rio, it has used the process of innovation and
technology to set up 4G VoLTE infrastructure by ensuring the high-speed internet
connectivity-rich communication services. The high definition services are provided to the
consumers by the adopting of various Digital Services on Pan India which forms the basis for
the key domain certification, security, financial services, government cities an interface
Healthcare and entertainment.
Kumar, Balaji, Krishna & Yadav (2018) examined that the telecom company like
Vodafone adopts segmentation retention strategy to ensure that the customers remain
committed to the company. The company carries out Average revenue per user (ARPU)
dilution activity so that high-value customers will be retained to the company for a longer
duration of time. The company also adopts upselling strategies so that 30% of the mid- value
customers will be attracted to the company. The company provides upsell 3G and 4G to its
base customers which have shown positive signs in the data usage elasticity. It also lays focus
on capturing the mass market by providing 100% of SIM spending in the multi-SIM usage
category. For example, the 149 unlimited offers provided by the Vodafone company enables
its users to use entire spending. As a result, the company is able to capture smaller traffic and
uplift Average revenue per user (ARPU).
According to Rituraj, (2018), Goel, (2018), to retain the customer and providing
satisfactory level the Reliance also provides various product and services such as 4G
broadband to the customers that offer data and voice services exponentially. It also includes
LYF smartphones known as a domestic handset which are provided to the customer by paying
1500 rupees only. As a result, the customers get the Jio membership plan for a year and after
that, they will be able to recharge as per the requirement. The company also provides Jionet,
WI-Fi facility which is started by providing free Wi-Fi hotspot services in various cities such
as Surat, Ahmadabad in Gujarat, Visakhapatnam, Andhra Pradesh and have been now
implemented over India. Apart from this, there are various new applications that are provided
on the Google Play Store which mainly includes my Jio, Jio TV, Jio cinema, Jio chat
messengers so that the needs and wants of the customers are adequately met.
According to Muntazir Abbas, (2019), the Reliance Jio’s unique services make it easily
accessible to the large masses in comparison to the costly services that are provided by several
companies in the telecommunication field.
http://www.iaeme.com/IJM/index.asp 782 editor@iaeme.comRetaining Mobile Telecom Consumers - A Post Jio Scenario
4. PROBLEM STATEMENT
It is essential for the telecom organizations to understand the need and demand or preferences
so that they will be able to modify the operational activity and providing all beneficial
services at their customers. In mobile telecom sector in India, there are very few service
providers left and it’s a possibility that this industry may become one man show. So they all
need to provide their unique selling skills to their customers which mainly include special
data plan, message pack, data, free services, top-up facilities, roaming, International facilities
(Amulya, 2013). Hence, it can be said that all these facilities provided by the
telecommunication industries highly impact their expansion strategies in a global market. As a
result, it is essential for the telecommunication industry to analyze the demand of the
customer by providing Marketing Services so that it will not make a negative impact on the
growth as well as the perception of the consumer demand (Sheth, 2001).
5. CONSUMER RETENTION POLICIES
Each business firm whether little or medium or enormous makes them thing in their brain and
that is "Buyer RETENTION". With the expanding procurement cost, business everywhere
throughout the world needs to characterize and create advance ways and act a proactive job so
as to hold the purchasers in this exceptionally aggressive world. As indicated by (Beard,
2014) buyer benefit will increment over the life of a held customer and included motivating
force for organizations will apportion more assets to hone their shopper maintenance
methodologies.
It is all around said that "the most effortless approach to develop your buyer base is to
hold them for since quite a while ago run". As concentrated before every year normal business
firm lose around 20 percent and a few enterprises lose in excess of 80% of their purchasers
since they neglect to hold them. The expense here of losing every purchaser is stunning
however numerous organizations comprehend the significance of shopper maintenance and
actualize the viable systems which brings about accomplishment of the association.
In Indian Telecommunication area the results of shopper maintenance is unpredictable,
and now and again surprising. A little change in telecom division maintenance methodologies
can course the whole framework pursued and it can get duplicated after some time. This will
bring about declining long haul gainfulness and development of the association. Underneath
referenced are a portion of the consumer retention techniques of Telecommunication area
which whenever suggested can cost close to nothing yet give you extra edge to the specialist
co-op in advertise.
Minimizing Attrition: Companies should find a way to diminish the steady loss rate by
estimating the rate at which the buyers become inert. At first these suppliers contribute huge
measure of time, exertion and cash in building introductory purchaser connection yet when
they face any issue emerging from customer end instead of settling it they attempt to cut off
the association with shopper and push forward to focus on the best way to get new one. The
most effortless approach to stay away from this wearing down isn't to lose the current buyer
yet attempting to determine the issues in the most ideal manner, which will prompt shopper
maintenance.
Sell and Re-Sell: In telecom, the companies make new Consumer by selling upgraded
product to existing consumer. This is retaining existing consumer bye reselling him the much
higher level product.
Extraordinary Consumer Service: Companies ought to consistently include themselves in
the endless procedure of being in contact with endorsers. Every single shopper ought to
consistently feel happy with the administrations you give. These ought to include commitment
http://www.iaeme.com/IJM/index.asp 783 editor@iaeme.comGurpreet Singh and Dr. Sanjeev Kumar Garg
by each representative towards customer fulfilment; giving quick reaction; predictable on-
time conveyance; conveying what you guarantee when the deal; esteem included
administrations with additional advantages and selecting remarkable individuals to convey
your buyer administration.
Service Integrity: Sometimes, service providers make promises to the consumer but the
actual product cannot live up to those promises. Then consumer has no other choice but to
move to another product of any other company. The the service integrity is the most required
thing in mobile telecom.
Measure Lifetime Value: Companies ought to consistently perceive what amount
consolidated benefit a customer adds to our business when they buy from us over and over,
throughout the months, years or decades, which will help us in understanding the significance
of shopper maintenance.
A Complaint is a Gift: Studies have featured that 96% of customers who are disappointed
don't whine they simply change to another specialist organization. In the event that a specialist
co-op outlines a framework which will uncover the protests of the shoppers then this will be
the following very open door for specialist organization to come back to the buyer
consequently giving them fulfilment and charm and thusly holding them.
6. CONCLUSION
Consumer’s fulfilment is viewed as a significant factor in customer maintenance. Be that as it
may, the connection among fulfilment and purchaser maintenance is conflicting. Against such
a foundation, the general objective of this exploration is to inspect the drivers of purchaser
maintenance procedure of telecom administration industry in India.
Consumers of Indian Mobile Telecom Sector, price war has changed everything but that is
good for consumer for the time being. Because now concentration of every company is to
adapt Retention Strategies and create some new one as well for being relevant in the market.
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