Table of Content

1. Introduction ……………………………………………………………………2

2. Relationship Marketing in Sri Lanka Telecom PLC ……………………………3

2.1 Shareholders ……………………………………………………………5
2.2 Customers ……………………………………………………………………5
2.2.1 Improve Consumer Relationship and Retention ……………………6
2.2.2 Improve SME Customer Relationship and Retention ……………6
2.2.3 Improve Enterprise Customer Relationship and Retention ……7
2.3 Business partners ……………………………………………………………7
2.4 Employees ……………………………………………………………………8
2.5 Government and regulatory authorities ……………………………………8
2.6 Media and Advocacy Groups ……………………………………………9
2.7 Community ……………………………………………………………9

3. Conclusion ……………………………………………………………………9
 1. Introduction

Sri Lanka Telecom PLC. (SLT) is one of Sri Lanka’s most valuable blue chip companies with a
market capitalization which, as at 31st December 2015 topped Rs.84 billion. Sri Lanka Telecom
is the national ICT solutions provider and the leading broadband and backbone infrastructure
services provider in the country. The two main shareholders of Sri Lanka Telecom as at year end
were the Government of Sri Lanka which held 49.5% through the Secretary to the Treasury and
Global Telecommunication Holdings N.V. of Curacao, which owned a 44.98% stake. The
balance shares are publicly traded. The Company has been awarded a National Long Term
Rating of AAA (lka) and a BB- rating on Long Term Local Currency and Foreign Currency by
Fitch Ratings, followed by B+ Local and Foreign Currency credit ratings by Standard & Poor’s.

The SLT Group has a customer base of over six million including multinational corporations,
large and small corporate, public sector, retail and domestic customers. The SLT Group provides
a full range of ICT facilities and services in the areas of voice, data, broadband, wholesale,
enterprise, TV and mobile services.

One of the key strategic objectives of the SLT Group is to drive broadband-based consumer and
enterprise services by expanding the broadband footprint via ‘Next Generation Network’ and
‘National Backbone Network’ and Next generation access of ADSL2+, VDSL2, optical fibre,
carrier-grade Wi-Fi and both fixed and mobile 4G LTE technologies. The Group’s total
integrated solution portfolio includes voice, networking, data hosting, managed services, cloud
computing services and mobile based consumer and enterprise solutions provided through its
fully owned subsidiary, Mobitel via its 2.5G/3.5G/4G LTE networks.

SLT aims to be a key regional player by providing Global Services through major investments in
multiple international submarine cable systems such as SEA-ME-WE 5, SEA-ME-WE 4, SEA-
ME-WE 3, Bharat-Lanka submarine cable system and Dhiraagu-SLT submarine cable system.

SLT has been recognized by the top Enterprises and SMEs in Sri Lanka as the best and most
reliable ICT Solutions Provider. Also the company was entrusted by other telecommunications
operators in the country as the wholesaler of choice and the best network provider. SLT's
‘Intelligent Solutions’ encompass the entire gamut of next generation voice, networking, data
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hosting and managed services to facilitate local enterprises and SME businesses to compete in
the global arena.

The Sri Lanka Telecom Group provides an entire gamut of ICT solutions in the areas of fixed
and mobile telephony, broadband, data, IPTV, cloud computing, hosted services and networking
solutions to its valued customers via the latest cutting edge technologies and also diversified
services. SLT’s subsidiaries operating under the group include: Mobitel (Private) Limited
(mobile service provider), SLT VisionCom (Private) Limited (IPTV support services), SLT
Publications (Private) Limited (directory publication services), SKY Network (Private) Limited
(wireless broadband operations), Sri Lanka Telecom (Services) Limited (providing total network
solutions to corporate and small business customers), SLT Human Capital Solutions (Private)
Limited (providing workforce solutions), SLT Property Management (Private) Limited
(managing the group’s properties for better utilization of resources and stretching its operations
into diversified businesses) and SLT Campus (Private) Limited (Providing Higher education
services of ICT and business management).

2. Relationship Marketing in Sri Lanka Telecom PLC

Relationship marketing is a strategy designed to build customer loyalty, interaction and customer
long-term engagement through provision of information and open communication that suits
customer needs. Relationship Marketing is the process of creating, maintaining and enhancing
strong, value-laden relationships with customers and other stakeholders.

The ultimate goal of Relationship Management is to bolster already strong relationships and
convert indifferent customers into loyal ones. It is considered an effective strategy, not only for
promoting loyalty and retaining customers, but is also crucial in moving target customers up the
ladder of loyalty. Relationship Management brings stability and decreased uncertainty to the
company by acting as a barrier to competitor entry and by keeping a stable and solid base of
customers. For customers, close and long-term relationships yield three types of benefits:
1. Psychological or social benefits (familiarity, friendship and information-sharing)
2. Economic benefits (discount or other money-saving benefits) and
3. Customization benefits (tailor- made services/products)

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Relationship marketing orientation measures the extent to which a company engages in
developing a long term relationship with its customers. Relationship marketing orientation is a
multidimensional constructs consisting of five behavioral components: Trust; Commitment;
Communications; Bonding, and Satisfaction.

When consider Relationship Marketing, for a service based company like SLT the satisfaction
and loyalty of its customers is vital.

Customer Relationship Marketing (CRM) “is the core business strategy that integrates internal
processes and functions, and external networks, to create and deliver value to targeted customers
at a profit. It is grounded on high-quality customer data and enabled by IT”. CRM is a business
strategy to identify, cultivate, and maintain long-term profitable customer relationships. It
requires developing a method to select your most profitable customer relationships (or those with
the most potential) and working to provide those customers with service quality that exceeds
their expectations. CRM is the strategic process of identifying desirable customer segments,
micro-segments or individual customers on a one-to –one basis and developing integrated
programs that maximize both value to the customer and the lifetime value of customers to the
organization through targeted customer acquisition, profit enhancing activities and retention.

Sri Lanka Telecom has a strong marketing network consists of the company and its supporting
stake holders, such as Customers, Distributors, Dealers and Suppliers.

To maintain a good relationship with its customers SLT has introduces several good practices
which are described under each category who are working jointly with SLT.

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2.1 Shareholders

There are several material issues pertaining to the stakeholders of SLT such as Dividend, share
price, innovation and industry growth. To maintain good relationship with shareholders below
steps have taken.

Engagement with Shareholder Frequency of Engagement Key Initiatives

Quarterly Results Quarterly

Annual Report Annually

Annual General Meetings Annually AGM and Rating Reviews to

Rating Agencies
CSE Filings Need Based

Media Releases Regular Basis

Rating Reviews Annually

2.2 Customers

In the relationship era, Customer Relationship Management (CRM) is one most popular retention
strategy used by SLT. With the problems of extreme customer churn and switching behaviors
due to increase in competition and customers’ expectation of service in Telecommunication
industry the requirement for CRM has become vital for SLT.

When consider customers in SLT we can categorize them in to three;

1. Consumer
2. SME Customer
3. Enterprise (Corporate) Customer

To enhance the relationship among the organization and its customers SLT has taken number of
initiatives while considering the areas of engagement of customers and organization.

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2.2.1 Improve Consumer Relationship and Retention

Since the organization is providing services to the customer, the relationship with its customers
is very much important and one – to – one interactions are essential in regular basis in order to
satisfy customer needs and enlighten them. A fully occupied Contact Center is ready 24X7 in
order to provide a tremendous after sales service to its customers. SLT is using internet to keep
interactions with the customers through its website www.slt.lk and social media such as
Facebook, twitter.

SLT is sending their new product details, seasonal offer details and any other detail meant to be
known by its customers through monthly bill. The necessary details are printed in the back side
of the bill which can be easily reaching to the customer. They use several other documents such
as brochures, leaflets and news letters to acknowledge their customers about the new products
and offers.

Monthly Customer Satisfaction survey is done via outsourced companies and teams to find the
CSI (Customer Satisfaction Index) and the feedback is used to do relevant improvements in the
service as well as customer care.

Annual Brand Health Track Study, Regional Account Management and Customer Touch Point
Evaluation are some of criteria used to measure the customer satisfaction and loyalty towards the
organization and annual customer gatherings are organized to enhance the loyalty of customers.

2.2.2 Improve SME Customer Relationship and Retention

To deal with SME sector separate unit is developed with Provincial Sales Managers and the
solutions were developed with consideration of customer requirement which are gathered
through customer visits and meetings and market surveys. Whenever a new products are
introduced SLT organizes product awareness programs to aware the SME sector on possible
telecommunication solutions and conduct IT workshops for SME business owners and their IT
managers. SME customer forums are arranged annually to increase the interactions and
relationship between customer and SLT employees.

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2.2.3 Improve Enterprise Customer Relationship and Retention

As same as in SME sector the telecommunication solutions are given to Enterprise sector with
the updates received through sales staff through customer visits and meetings. Enterprise
customer forums are arranged annually to increase the interactions and relationship between
customer and SLT employees.

2.3 Business partners

Business partners of SLT are comprises of

1. Dealers
2. Suppliers
3. Contractors

Their main expectations are better return, strengthened brand presence, improving sales,
innovation and business growth. To enhance the relationship with its partners several initiatives
were taken. Few of them are listed below.

Partner Initiative

Business Partner Partner Meetings

Projects and Events – Post evaluation reviews
Dealers Dealer Meetings
Dealer Satisfaction Surveys
Review and awareness sessions
Reward programs
Supplier Procurement policy and vendor selection
process
Vendor satisfaction surveys
Vendor review and awareness sessions
Vendor reward programs
Quality improvements

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 2.4 Employees

Basically employees of any organization have some expectations from the organization other
than their salaries and any other financial benefits.

Those can be employee welfare, job satisfaction, training and development and retention.
Island-wide programs and internal communication campaigns are conducted to help the
organization to improve its relationship with own employees.
 Employee satisfaction survey
 Information sharing through Intranet
 Employee affinity
 Grievance handling
 Transfer handling
 Emails
 Notice boards
 Cultural and religious associations
 Award ceremonies
 Involvement in community projects
 Internal newsletter – ‘Amathuma’
 Business plan awareness sessions
 Mobile visits – knowledge sharing sessions
 Knowledge sharing sessions after foreign visits for training
 Performance evaluation

2.5 Government and regulatory authorities

SLT is an organization which, 50.50% shares owned by Sri Lankan government and its major
regulatory body is TRCSL (Telecommunications Regulatory Commission of Sri Lanka.
Government and TRC expect Investment and infrastructure development, better return,
innovation and industry growth, compliances and digital services or smart Sri Lanka services

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 from SLT. To achieve those goals and maintain a healthy relationship with government and
regulatory bodies several steps have been taken. Monthly meetings with Treasury, TRCSL,
BOI, Customs and other regulatory bodies, Annual Report and quarterly reports, Strategy and
operational presentations, Media releases and Customer forums are few of them.

2.6 Media and Advocacy Groups

The expectations of media and advocacy groups are Quality affordable service with good after
sales service, investment and infrastructure development, innovation and industry growth. To
build the expected relationship regular Meetings and Briefings were taken and frequent Media
releases were given. SLT corporate Website and social media are also available for the
engagement with media and other groups.

2.7 Community
Community is expecting community investment and infrastructure development from the
organization.

To build the relationship with community as well as media, website user interface revamped and
improved the functionality of the content and social media and media relations drive are used.

3. Conclusion
When consider the initiatives taken by Sri Lanka Telecom PLC to deal with relationship
marketing it can be concluded that SLT is maintaining good practices to build up a good
relationship with its shareholders, customers, business partners, employees, government and
regulatory bodies, media and advocacy groups and community.