Analysis of Indosat M3 Retention Program in Affecting Customer Loyalty

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Analysis of Indosat M3 Retention Program in Affecting Customer Loyalty

By | December 2010
Page 1 of 29
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.

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