SmarTone-Vodafone maintains a database system with different kinds of information to segment the customers. She effectively progresses cross-selling, up-selling and CRM with customers in order to satisfy and retain the customers.
Generally, SmarTone offers the customers handsets, service plan discounts and basic call plan upgrade etc. Excellent customer service is also provided both in call centres and chain stores. SMS sends to the customers in some special circumstances such as big news, weather reminder, festivals etc.
SmarTone uses service plan usage of customers to segment and target the profitable customers which is providing the CRM program, Priority Plus, to the heavy users. SmarTone offers Priority Plus members a wide range of additional services including priority services, personalized assistance and personal privileges.
SmartTone does well in the basic CRM elements but the main CRM program, Priority Plus, innt attractive and useful to the profitable members. The services which are offered show little difference between general customers and Priority Plus members. The members maybe useless on the services which the program provides. Priority Plus is not effective enough to satisfy and retain the profitable customers.
The telecommunication industry has saturated market and intense competition in Hong Kong. Customers cannot easily differentiate the difference between suppliers. Many drivers are also against the industry doing relationship marketing. These facts reflect that SmarTone has to review the existing CRM program, and make the improvement.
SmarTone should terminate or redesign the Priority Plus program. The program content should be enriched, including more attractive and useful advantages such as free trial of value-added services, handset & accessories discount and lifestyle privileges to reward customers.
