>> MIM Speaks
CUSTOMERS DO COME FIRST
AUG 17, 1997 -
THE STAR
By S. Hadi Abdullah
MANAGEMENT gurus always emphasise the importance of customers
and economists say that the customer is sovereign. The
company-customer relationship is crucial to the success of any
business today.
The Japanese often place the customers first. American and
European businesses have realised this for some time,
especially those listed in Fortune 500.
While many companies are venturing into new areas and making
handsome profits at the same time, some of them are lagging
behind in customer relations. In fact, one gets the impression
that there could be a deterioration in this aspect of business
or that people are still working with the old mind-set.
For example, in electrical products. When we buy a toaster,
TV, VCR, mini-compo and the Eke, we are provided with two-pin
plugs. Every house in Malaysia is fitted with power points for
a three-pin plug which includes the earthing.
Why aren't companies providing customers with three-pin plugs?
Even if it is a question of preference, why not ask the
customers?
A company in England did just that Reed Plastic Containers
considered the customer's needs to the last detail before
marketing a clear plastic paint container.
The container is said to be square with rounded corners. This
facilitates stacking in large numbers. The container is clear,
which makes it easy to note the paint colour.
The company also provided a brush-wiping area, a built-in lip
thatat makes pouring easy and a handle that is off-centre so
that the brush could be dipped into the container.
Though simple, much thought went into the making of a
userfriendly product. Customers remember this and often talk
about it.
Marks & Spencer has a customer service department which
handles about 250,000 customer contacts (letters and telephone
calls) a year, and the company spends about E2 million (RM9
million) in refund.
The department has three objectives: to re-create goodwiU, to
inform the business, and provide training on customer care.
"It is not just about giving money. We need to provide an
appropriate response which compensates the customer for what
has gone wrong," says Ross Gardner, explaining how seriously
Marks & Spencer takes complaints.
The customer contact has been good for the business in terms
of customer-thinking and wants. Recent feedback indicates a
need for more fitting rooms and a more child-friendly shopping
environment.
In line with this, Marks & Spencer's customer mission is: "A
customer is the most important visitor to our premises. He is
not dependent on us. We are dependent on him. He is not an
interruption to our work. He is the purpose of it. He is not
an outsider in our business. He is part of it. We are not
doing him a favour by serving him. He is doing us a favour by
serving him. He is doing us a favour by giving us the
opportunity to do so."
It will do us much good to read the quote several times. One
can easily see the importance the company places on customers.
No wonder Management Today rated Marks & Spencer as one of the
most-admired companies in the United Kingdom.
In Malaysia, one is reminded by Tan Sri Kishu's statement that
customers can return any floods at Globe Silk Store up to off
month from the date of purchase, without any questions asked.
Lately, new hotels have come up in major towns. I was in
Butterworth recently and stayed at a hotel set up jointly by a
private company and the state government.
There was no receptionist at the counter, besides, there was a
brown-out. The guard was of no help as he was "only in charge
of safety".
What was very noticeable was the fact that the parking bay
closest to the hotel entrance was reserved for the general
manager. As a customer you would begin to wonder how much
importance the hotel management places on you.
Guy Kawasaki, an Apple Fellow, gives an example that is just
the opposite. He talks of his trip to Hawaii in 1993 with his
wife and son. They stayed at the Hyatt Regency in Poipu Beach,
Kauai.
He was amazed to see free wash ers and dryers in the laundry
room. Someone had truly thought about the customer's needs -
in our case to wash an endless stream of bibs and baby clothes
" He adds that few hotels would think of a laundry room
because it takes up space and reduces revenue for the hotel
from laundry service.
The hotel business is very competitive in Hawaii and such an
innovation makes a positive impression on customers.
Many Malaysian companies do not reward repeat customers.
Companies should work towards a situation where their
customers spread the good word about them.
This reminds me of the story related by a friend. She was
attending a meeting in Singapore and had to send some
documents to Kuala Lumpur. She and a colleague rushed to the
nearest DHL Office. They were met by a pleasant young man who
asked about their needs.
On weighing the documents, they found that they did not have
sufficient cash for the payment. The man asked if they had ATM
cards, and using the DHL van took them to the nearest machine
(a few kilometres away), waited for them, and brought them
back to his office.
This deed made such an impression on her that by now she must
have told quite a few people about it. What a splendid way to
woo new cuswtomers.
Customers can be turned off by the smallest irritation.
Advances in telecommunication provide versatile telephone
facilities in the office including automatic liners transfer
and voice mail.
Often, in the name of cutting cost, companies do not operate
these facilities effectively: callers get transferred from one
number to another, only to be advised to call again. In some
cases, the voices of people speaking atrocious English or with
bad intonation are used on the recording facility.
Those keen on knowing how this facility should be used need
only to cab the British High Commission or Citibank during
lunch time.
Companies selling telephone equipment should provide the
recording service or recommend those who could. At least
people who listen to these recorded messages will feel that
they are dealing with an efficient and vibrant company. Of
course, telephonists must be well-trained.
On being well-trained, the security gbards at the Cooperative
College in Petaling Jaya are among the best I have come
across. They were polite, knowledgeable and courteous.
They seemed genuinely happy for people to visit the college.
The impression given was that they were well-selected and
appropriately trained, with the customer in mind.
One company that went all the way to woo customers was Harley
Davidson. Luke other American companies, Harley-Davidson was
hit badly by Japanese competitions However, it bounced backs
through renewed corporate commitment to understanding of its
customers.
From the receptionist to the vicepresident, they went to
rallies to ride with customers and thereby obtain first-hand
feedback on their machines. They gave new bike owners a
one-year free subscription of their bimonthly publication, Hog
Tales, and invited bikers to the company open house and
national rallies.
They did all this to keep in touch with their customers and
serve them better.
In today's competitive world, the company that values and
takes care of its customers will be around in the long term.
with the adoption of WTO rules, more international competition
would be at our doorstep.
Companies which have taken things for granted, either due to
"licensed" privileges or because their competition has been
worse than them, will suddenly find themselves outpaced in the
race to woo customers. Some may not even know what hit them.
The earlier we get back to basics the better.
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