Telstra - Finding the Reason for the Loss of Clientele of Telecom Communications - Research Paper Example

Market research It came to Telstra’s notice that there was a sudden and significant decrease in the numbers of residential clients. These clients had terminated all- or some of the service contracts like mobile, landline or internet connections. We were surprised, because as opposed to this sudden termination of contracts by individual clients, who mostly used our services for personal use, we did not notice any complaints or termination of contracts from our business clients. This anomaly was of particular interest to us from our business point of view, for servicing large corporate clients is more complex than servicing individual clients. We decided to commission a through market research with regards to the termination of individual telecom connections in order to pin the reason for this loss of clientele and to find a solution for the same. We were hopeful that the outcome of the research will also lend us a clear direction about improving our existing system, in order to create a better client servicing model for the future because market research, if carried out appropriately, keeping in mind the problem / research question in mind, can generate data which can uncover the reasons for inexplicable market swings- for example, sudden decrease in sale of products, reasons for attrition, inputs about brand image, the choice of customers (which in turn can help an organization to cater them according to their demands), etc. Market research throws light on the consumer awareness and acceptance of the product, the current share, competitive brands and pricing levels, retail penetration, etc. It also gives information on how would product reformulation would influence consumer perceptions. Thus, a well-carried out market research minimizes business risks.1 For a research to yield the desired results, it is very important that the issue on which data is sought is outlined properly. As a Marketing Manager of a large telecom provider, I had commission the market research with two main objectives: 1) To find out why we were losing only individual customers while our corporate clientele base remained satisfied with our services and 2) What should Telstra do in order to recapture the lost clientele, and increase the individual client base. This essay aims to describe in detail the reasons, results and methodology of the market research commissioned for our organization. The research design included a mix of qualitative and quantitative methodologies, in order to ensure a well-covered range of data, optimized data collection by resorting to a mix of research technologies. Since dissatisfaction is largely a subjective reaction, researchers felt that the study would be incomplete without getting first-hand, detailed inputs from the clients themselves. A use of a mix of research methodologies helps in reaching to a balanced, thorough view of the situation. Methods included survey questionnaires (close ended) administered by research associates /volunteers in the Telstra store, telephonic surveys, email surveys, in-depth interview. Survey questionnaires were filled up by Simple Random Sampling method where every 10th visitor entering Telstra shop was requested to participate in an interview about their past experiences with Telstra. The sample size will be determined according to the average foot-fall in the store. For example, if the foot-fall is 500 customers per day, according to this sampling, fifty customers will be requested in a day. Out of these fifty, the researchers have to take in account the response rates, given the possibility that many customers may decline to cooperate. In order to increase the credibility of the data collected, the sample size, which is representative of the entire population, must be adequate. In our case, we hope to make up for an adequate sample by keeping a sufficiently long time-line during the period of which data will be collected. We intend to continue with simple-random sampling (i.e. requesting every tenth customer to give his inputs) by continuing the exercise for a period of one month (30 days, including Sundays) We also conduct an email survey. In this, all those customers who have registered with the Telstra website to receive updates of new products will be sent a short email questionnaire that intends to get customer reactions on service offered by Telstra, their satisfaction levels, complains, etc. In order to get maximum response, this email questionnaire will be accompanied with a notification that those taking part in the survey stand the chance to win 2-years of free broadband access. The short-coming of an email survey are that there was no guarantee that the respondent will reply to all the questions in the questionnaire. The chances of getting incomplete responses are very high, and thus decrease the response rate. In case of the presence of a volunteer, the respondent can clarify any doubts he may have with regards to confusion in the questionnaire. Moreover the researcher’s / volunteers personal presence ensures that it is the customer himself, who fills the form, and not someone else on his behalf through a shared email id, prank, etc. Promising of a gift, though acts as a lure and may help in getting more results, is a means of paying the respondent indirectly (in kind) and may be considered to compromise research ethics. However, as these methods are readily applied these days, given that the chances of getting more responses are higher, this research methodology was applied and the team went ahead with the prize assurance to all the respondents. Telephone interview, a slightly more in-depth approach than an email questionnaire was also used. In this, the interviewer would be able to gauge the response of customers also by his tone and expressions on the phone The drawback however was similar: A phone call may interrupt the privacy of the customer. With legislations becoming stricter with regards to telephone advertising, survey and such alike, the management had to ensure that the use of the customer database information did not violate any legal codes of conduct. We needed to exercise utmost caution in ensuring that we did not contact any client who had expressed not to be disturbed (Do not disturb, i.e. DND customers. Respondents will be asked to provide details about their association with Telstra, the service, reasons for dissatisfaction, etc. They will be asked to confide what prompted them to terminate the service, in order to give Telstra a chance to better their service quality and make the required improvisations in the current structure that may have led to dissatisfaction. The objective of this telephone survey (conducted from a random sample of respondents from a customer database) would be to collect information about their past experience with telecommunication providers. In order to ensure maximum number of responses, there is an incentive for participation - a chance to win a car valued at $30,000. However, there is drawback in this incentive approach of research methodology (as in the methodology of email questionnaires explained above). First drawback is, the telephone interviewer (or the email questionnaire) in order to get maximum respondents, will have to first establish credibility so that the respondent believes the assurance. Given the many spam mails and unsolicited phone calls due to tele-marketing, the respondent is likely to dismiss such an incentive as a hoax and desist from complying with the interview. Extreme care must be taken so that customers who have asserted their ‘Do not disturb’ preference are not contacted.2 A person may be out of station, on a personal visit, etc. The response rates of such individuals are likely to be very low. For this reason, a substantial sample size must be established in order to make up for each unsuccessful survey call. In-depth interviews will be conducted. Respondents will be asked their views about the use of telecommunication providers in major shopping centers. Interviewers decide who they want to speak to. In-depth interviews consist of open-ended and non-directive questions. (There is a basic difference between in-depth interviews and survey research interviewing method that was used above in telephone interviews in that the survey questions follow a strictly defined sequence of questions and does not deviate away from these) Anywhere between five to fifty participants can be interviewed. The interviewer has the flexibility to modify questions based on the responses of participants.3 Open ended questions asked in the in-depth interviews will encourage the respondents to talk in detail about their views, as opposed to the close-ended survey questionnaires. The interviewer / researcher may use a Dictaphone / tape recorder to record the conversation to facilitate better analysis.4 The representativeness of the samples is expected to be more than adequate for we have ensured to keep a large sample size in mind, keeping in mind the denied responses on email, telephone, in-depth interviews. The response rate, however is likely to be low, for a direct correspondence between the interview team and the respondents is established only at two places (in the simple random survey of customers coming to Telstra and then in an in-depth interview). Only in the in-depth interview the interviewers have the liberty to select their respondents and as we assume, to fix a mutually convenient time and place for the interview session. Thus, responses in this planned interview are likely to be higher than in the other means of survey / interviews. The resulting quality of data will be able to provide a detailed picture of the problem, besides offering solutions. This has been ensured by adopting a mix of research techniques (quantitative surveys and qualitative interviews). In this case, we have a definite idea about the source of collected data. Besides, a team of researchers will study the data collection and the analysis in detail before finalizing the outcome of the research. Thus, the quality of the data and its analysis is credible.5 Data analysis could be difficult in terms of qualitative research- given the open ended nature of questions and responses. However, this can be overcome by using the expertise of professional, experienced research experts. In the above research, the telephonic interview part can be dropped. I suggest this because telephonic interviews are least likely to be entertained, given the increasing demand for private space and grudge against unsolicited tele-marketing calls. Given that the customers already have a less than satisfactory experience of our telecom provider, a telephonic intervention may irk them further. Instead, the focus could be on increasing the sample size of the walk-in interview proposed by simple-random sampling. Instead of every tenth customer, every fifth customer can be requested for an interview. The questionnaire should be an expertly designed, closed ended one. The presence of an interviewer may ensure less errors, less incomplete forms, and so the data generated would be of a credible quality than email surveys. Reference: 1. Hague, Paul Market Research: A Guide to Planning, Methodology and Evaluation, 3rd Edition, viewed on April 29, 2008, URL: http://books.google.co.in/books?hl=en&id=hjVgjY0ZlFcC&dq=market+research&printsec=frontcover&source=web&ots=ns1qjftwm7&sig=n_5fhzFu7eI9-Hb9Qeby9JYjjoE#PPA276,M1 2. Zikmund, W., Ward, S., Lowe, B. and Winzar, H., 2008, Marketing Research:Asia Pacific Edition, Thomson Learning Australia 3. Mariampolski,  HY ‘Qualitative Market Research: A Comprehensive Guide’, viewed on April 29, 2008, URL: http://books.google.co.in/books?hl=en&id=3tZ_tq9BE94C&dq=market+research&printsec=frontcover&source=web&ots=DEDJ2UxlQi&sig=AV83uLvexEHwmxL7Pk3wkwWORG4#PPA48,M1 4. Accessed from the World Wide Web, viewed on April 29, 2008, URL: http://www.nhchc.org/Curriculum/module4/module4D/H9OpenEndedQuestions.pdf 5. Niles, Robert, ‘Data Analysis’, RobertNiles.com, Accessed from the World Wide Web, viewed on April 29, 2008, URL: http://ww.robertniles.com/stats/dataanly.shtml Read More