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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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