SZTC: Customer-Preferred to Customer-Centric
Mr. Phillips, CEO of Sunder-Zealand Telecom Corporation (SZTC), a Government-owned Telecom Service Operator in Sunder-Zealand, was in a dilemma as the revenue and profit were plummeting continuously. SZTC provides telecom services for example, basic telephone, mobile services, etc., catering to retail and corporate customers all over the country. Customers were not satisfied with its services which resulted in declining market share, revenue and profit. SZTC registered loss for the first time and lost its No.1 position. Mr. Phillips called for a meeting of the Board of Directors and informed that the Minister of Telecom Affairs, Government of Sunder- Zealand had called to caution that in case SZTC fails to regain business within two years, it would be sold and the Minister had also insisted on a revival roadmap at the earliest.
Mr. Phillips sought advice from the Directors on how to go ahead. One of the Directors suggested that SZTC should hire a reputed consultancy and seek advice. Few others were against the idea and demanded an internal assessment through brainstorming and discussions at various levels while focusing attention and resources to enterprises and retail customers separately, with emphasis on marketing particularly to corporate customer segment. After long deliberations on both the ideas it was finally decided that SZTC would hire Anantya Consultancy.
Anantya Consultancy conducted an exploratory research on the telecom industry and SZTC as the first step in the direction and then sought data on the number of complaints against SZTC and its competitors. They examined how SZTC handled complaints and customer feedback forms. Additionally, researchers from Anantya Consultancy interviewed industry experts, competitors and randomly selected SZTC customers to have extensive information on SZTC and to identify the loopholes in SZTC’s services..................
Exhibits
Exhibit I: Revenue and Profit (in %)
Exhibit II: Percentage of User Base (in 2011-12)
Exhibit III: Year-wise Market Share of Different Companies
Exhibit IV: Value Segmentation using Decile Analysis
Exhibit V: Usage Segmentation (in %)