INVESTIGATION TOWARDS THE USE OF (CRM) CUSTOMER RELATIONSHIP

MANAGEMENT ON CUSTOMER SATISFACTION AMONG INTERNET SERVICE

PROVIDERS IN RWANDA
Case study: BSC and AXIOM

BY: Lucy Cherono Chepkwony

Lecturer of Business IT
University Of Tourism Technology and Business (UTB)

INTRODUCTION
The hard work of government can be greatly realized in its ambitious initiatives such as the ICT
infrastructure in Rwanda, something that will make Rwanda become a regional ICT hub soon.
The improvement in mobile phone and fibre optic networks and well as computer usage and
internet access will enable both international public and private firms on enhance development in
a country that once faced a shattered economy in 1994.
The EDPRS 2 period is the time when our private sector is expected to take the driving seat in
economic growth and poverty reduction. Through this strategy we will focus government efforts
on transforming the economy, the private sector and alleviating constraints to growth of
investment. We will develop the appropriate skills and competencies to allow our people
particularly the youth to become more productive and competitive to support our ambitions. We
will also strengthen the platform for communities to engage decisively and to continue to
develop home grown solutions that have been the bedrock of our success. These are fundamental
principles as we work to improve the lives of all Rwandans in the face of an uncertain global
economic environment.
The Second Economic Development and Poverty Reduction Strategy (EDPRS 2) is a launch into
the home strait of our Vision 2020. Its main objective is to devise Rwandas medium-term

strategy in order to put Rwanda on a higher growth trajectory to ensure that the country achieves
middle-income status by 2020.
In line with this objective, the Cabinet recently approved revised Vision 2020 targets, and
EDPRS 2 targets are aligned to these. Rwanda needs to achieve at least 11.5% average GDP
growth per annum, and also aims to reduce poverty to below 30%.
While the Vision 2020 framework addressed agricultural, industrial, and social elements as well,
Rwandas lack of port access, inflated airfreight rates, and surrounding instability provoked the
Rwandan government to invest in a knowledge-based economy with ICT as its cornerstone.
Launching programmes in scientific research and education, technological innovation, and
telecommunications distribution, Vision 2020 aimed to produce highly-skilled scientists and
technicians to satisfy the needs of the national economy that would be integrated into the larger
framework of economic and social development for the greater Rwandan population.
A business needs to set its overall direction for the company through a customer relationship
management. This sets out how the company is to maintain its existing customers. Whether it's
launching a new product or uncovering ways your brand can better meet customer satisfaction,
Customer relationship management (CRM) is the term used for the business practice to allow
businesses with more than few customers to better serve and manage the interaction with those
customers. It is easy to manage a few customers without any problem. You know the customers
by name, and you and customers account manager probably know in some detail what their
interest is and what their business is. You probably know what they like and dislike about your
company and its products and services. If you have 10 million customers, youd ideally like to
have the same kind of relationship with them. It is not cost effective to have multiple people
from your company assigned to each customer.
Organizing and maintaining long-term relationships have a significant impact on corporate
success and this impact can be more strengthen by increasing the effectiveness of existing client
relations (Bauer et al, 2002).
This is where you need help from technologies and best practices of customer relationship
management. In some circles, CRM is also known as customer profitability management. The

bottom line is that if you want to improve customer profitability, you almost always have to first
improve the relationship that you company has with that customer. Often, the best way to
improve profitability is to improve customer loyalty.
Customer relationship management is a relatively new field, but its importance is becoming even
more evident as time passes. The paradigm shift from focusing on attracting new customers to
retaining current ones is at the backbone of CRM (Winer, 2001). Reichhelds studies revealed
that small increases in customer retention rates greatly increased profits, proving that long term
customers can be more valuable. More revenue on average is generated from repeat-purchase
customers when compared to one time buyers (Reichheld, 1996).
Companies face ever greater pressure to retain and grow sales from existing customers, while
trying to maximize opportunities from new ones. Customer relationship management (CRM)
systems have been adopted to have better relationships with customers by having detailed
knowledge of their requirements through using different strategies. Implementing CRM systems
correctly can provide many of benefits both for the customers and to the companies as well. ISP
has large numbers of customers and to fulfill their customer requirements have to adopted CRM
systems. This thesis tries to identify how CRM systems are helpful in the ISP sector to satisfy its
customers.
ISPs (Internet Service Providers) IN RWANDA PROFILE
Broadband Systems Corporation (BSC Ltd) is a Rwandan information technology company
launched on 1st June 2012 to provide advanced technology in Fiber Optics and Data storage
Internet solutions.
Broadband Systems Corporation (BSC Ltd) is a service provider of innovative ICT solutions
based on:

Broadband connectivity that is provided over the largest fiber-optic network across
Rwanda; and

A state-of-the-art Data Center

BSC Ltd is well positioned to significantly contribute to the realization of Rwandas vision of
becoming a regional ICT hub.

The journey of BSC started in 2008 in Kigali with the roll out of the Fiber Optics Networks
across Rwanda by Rwanda Development Board. By 2011 the infrastructure roll out which
included over 3,000 kilometers of fiber spread to all the 30 districts and 11 border points around
Rwanda was completed. This is the biggest spread of Fiber connectivity in the country.
BSC was launched at a time in Rwanda when the growth of investors, small and medium
enterprises needed more dynamic enterprise solutions. From our research, customers were
increasingly becoming more demanding of the Internet and Data Centre services to enrich their
lives and also businesses. They also complained about slow speeds, high prices and poor
customer care services.
At BSC it is our aim to lead the market from the customers perspective, by providing a balance
between reliable, fast Internet connection and value added services with a reasonable price to our
customers.
Axiom was founded in 2012, Axiom Networks is a Rwandan Internet Service Provider which
specializes in the design and implementation of customized connectivity packages.
Our solutions include basic internet delivery, managed end-to-end connectivity for businesses
and hospitality, wide area private networks, last mile connectivity and datacenter services. Our
goal is to fill the connectivity industry gaps that have persistently hindered business productivity
and customer satisfaction over the last decade.
We are one of the most dynamic and fastest growing companies because we listen to our
customers and design tailor-made solutions to suit their needs and even go beyond their
expectations.
Furthermore, we believe in Value for Money principles and consistently apply cost effective
business models to ensure optimal satisfaction is drawn from our services.
By constantly searching for technological innovations that will provide performance-enhancing
solutions for our customers and striving for highest standard of services, we will continue to lead
the advancement of ISP business in Rwanda.
ISPA provides tailored Internet Connectivity and IP Solutions to corporate, small/medium
businesses and home users. By providing IP Applications such as;

 Fast Internet Access

Domain Name Services
Web Browsing
VoIP
Voice Systems (PABX)
Interactive Distance Learning
Video Conferencing
Wireless Leased lines
Net Working
All traditional IP Applications
ISPA connects customers in Rwanda to the rest of the world and provides them with solutions
through our IP networks.
oRn is the only 4G LTE infrastructure company in Rwanda, jointly invested by the Government
of Rwanda and kt exclusively for wholesale provision of universal mobile broadband network in
Rwanda using 4G LTE technology. The wholesale network service for mobile broadband will
help to promote healthy competition for advanced retail services and solutions, and will benefit
consumers, enterprises and the nation in transforming Rwanda into the ICT hub of East Africa.
In June 2013, the Government of Rwanda and KT got into a Public Private Partnership (PPP) to
install and activate a wide-ranging high-speed broadband network and also lead the extension of
the nation's online services capability, which are essential to achieve Rwandas goals in the ICT
sector.
oRn was established to deliver universal broadband access based on world-class 4G LTE
technology on top of Rwanda's national Fiber optic infrastructure and manage the fixed-mobile
converged infrastructure as the wholesale provider of high-speed mobile broadband, covering
95% of the population within 4 years.

Needs Assessment is used to compare wants, needs, and expectations to your brands or
categorys perceived delivery or performance. Using a technique called an Unmet Needs Gap
Analysis, respondents are first asked to indicate the degree to which they desire a particular
characteristic or feature in a given product category, and then to rate the degree to which they
believe a brand currently delivers with respect to that attribute. The two rating questions are
asked in tandem so that the want rating is used as a performance standard against which the
performance rating is given.
Simultaneously assessing expectations and current performance in this manner across all
respondents will reveal the most compelling gaps (deficiencies) for your brand where
perceived performance is falling below expectations for larger percentages of respondents. The
average size of the gap between the want and delivery among those indicating a deficiency
is also analyzed.

1.3 Problem statement

To address the above stated issues the current study has been initiated to investigate whether
customer relationship management is being implemented in internet service providers in Rwanda
like BSC and AXIOM to enhance the customer satisfaction.
1.4 Objectives of the study
1.4.1 The General Objective
To assess the impact of customer relationship management on customer satisfaction with a
reference to internet service providers in Rwanda
1.4.2 Specific Objectives
i.
ii.

To examine relationship between customer relationship management and customer

satisfaction
To study whether customer relationship management is being understood and
implemented in ISPs or not.

iii.

To identify the factors affecting customer satisfaction in BSC / AXIOM

1.5 Research Questions

i.
Is there a relationship between customer relationship management and customer
satisfaction?

ii.

Does customer relationship management being understood and implemented in

ISPs or not?

iii.

What are the factors affecting customer satisfaction in BSC/ AXIOM

1.6 Significance of the Study

To internet service providers in Rwanda, the study will act as a reference on how to undergo and
make successful change for the purpose of achieving organization efficiency and better
placement in this competitive world. It will provide more insights of the impact of customer
relationship management on customer satisfaction bearing in mind that the study will practically
be conducted and therefore it represents a real life scenario providing a learning lesson to other
organizations.
1.7 Research Methodology
A research methodology can be regarded as an arrangement of conditions for collection and
analysis of data in a manner that aims to combine relevance with the research purpose (Kombo
and Tromp 2006). It constitutes the blue print for the collection, measurement and analysis of
data (Kothari 2004).
The research will be carried out in form of a cross section survey of ISPs that have offered
services to its clients within the region under study.
1.8 Scope of the Study
The researcher is seeking to address the impact of customer relationship management
implementation on customer satisfaction for the purpose of the improvement in internet service
providers performance.
Geographically the study will be conducted within Kigali city specifically in internet providers
companies (BSC and AXIOM) to examine the impact of customer relationship management on
customer satisfaction
Time scope: The study will consider information for a period of two years from 2013 to 2015
Content scope: The study will be limited to the impacts of customer relationship management
on customer satisfaction

REFERENCE:
BOOKS
Audrey Manring (2001), Profiling the Chief Customer Officer, Customer Relationship
Management, , pp.84-95.
Christopher, M., Payne, A., & Ballantyne, D. (1991) Relationship Marketing: Bringing
Quality, Customer Service and Marketing Together. Oxford: Butterworth Heinemann.
Kothari C. S. & Indulkar, D.P., (2004.) Power system transients: a statistical approach:
Ptrentice-Hall of India products
Mugenda, O. & Mugenda, A (2003). Research Methods: Quantitative and Qualitative
Approaches. (Nairobi: Acts Press)

Kotler, P. 1997. Marketing management: analysis, planning, implementation, and control.

New Jersey: Prentice Hall International.

Web Resources
http://www.rwanda-online.org/ict-rwanda/information-communication-technologies-rwanda/
http://www.edprs.rw/content/edprs-2