Analysis of Indosat M3 Retention Program in Affecting Customer Loyalty

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Business Research Method
Analysis of Indosat M3 Retention Program in Affecting Customer Loyalty

Forewords

Cellular business today is becoming an industry that people cannot ignore, it is grows fast and so many go into this business. Fast growth and dynamic market in cellular business makes this business challenging when one player in cellular business wants to keep their customers’ loyalty. They must use their creativities to create the effective programs to maintain their customers’ loyalty.

For those reasons, the researchers want to reveal about the effective way or programs to maintain their customers’ loyalty especially for young Indosat M3 users. In this market happen dynamic changes of customers because they search for the cheapest price from cellular provider.

In order to measure the effectiveness of the current programs, we execute a research through primary data by spread questionnaire and hold interviews and secondary data by surfing at Indosat M3 website. We will use casual method for this research because the problem is clearly defined.

Chapter 1: Introduction

1.1Background

Playing in the mobile industry today is very exciting because of its very high growth potential. If counted, the 220 million population of Indonesia today there are about 28 million new mobile numbers in circulation, or about 13 percent, the market is still wide open. Of that amount, Telkomsel had close to 15 million, 9.3 million, Indosat, and Excelcomindo approximately 4.5 million.

At the end of this year, the number likely will penetrate 30 million, seeing current market share of incoming operators. Growth of subscribers each carrier is very high, above 60 percent, due to programs that provide ease and grace to prospective customers.

Moreover, the expansion of service coverage or coverage by all operators create isolated regions into the open. This opens new opportunities and increase customer traffic or SMS conversations.

Program Sinyal Kuat from Indosat involved to stimulate people to enjoy its services, because the possibility of a drop calls more and more numerous now. Various programs ease the customer makes total audience of mobile operator services also grew, not only in GSM, but also in CDMA.

Kartu AS from Telkomsel is the prima donna as the number of customers rose rapidly, approaching half a million new subscribers every month. Excelcomindo Pratama, which since the early known to be very careful to win the market thus its growth is not too fast, now launch Kartu Jempol and Kartu Bebas.

Meanwhile, Indosat launched Voucher SMS IM3, absorbing many new subscribers each day on average to 40,000 new customers. Indosat is growing rapidly this year that could have the number of subscribers will keep rising.

The growth of Indonesian cellular has reach the highest point in the world, up 74.9 percent in 2003, said the ITU (International Telecommunication Union) and GS Research However, compared to countries with relatively equal financial ability of its citizens, Indonesia cellular penetration is still comparatively low.

Indonesia, with income per capita (938 U.S. dollars a year) up close to China (955 dollars) and Philippines (976 dollars), it turns out our penetration is lower. In fact, cellular growth in China is only 60.1 percent and the Philippines 64.4 percent, while Singapore only grew 18.2 percent and Malaysia 33.8 percent.

Data from ITU, JP Morgan, and GS Research Report issued recently mentioned, our cellular penetration by the end of 2003 only 9 percent. This means that customers only 9 percent of the total population 220 million, while China's 20 percent (population 1.3 billion people), and the Philippines 2 percent.

Do not compare with Singapore, which was 79.8 percent, 42.6 percent of Malaysia, or Thailand’s 26 percent, 104.6 percent, and even Hong Kong. India had more "bad" from Indonesia, for cell penetration is only 2.6 percent, but with rapid growth, together...
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