Achieving Competitive Advantage Through Customer Relationship Management66

Sixers

about Towngasabout Towngas

1960Listed in HK Stock Exchange

1992TQM & Business Process Re-engineering

1993Costumer Focus Team

Business:Production & Distribution Gas

It was sole supplier of town gas and related service of 1.4 million household

Groups of customer:45 % (Resident)35% (Commercial)17% (Equipmemt Sales and others)3% (Industrial)

1996Continues Transformation 1998

Key Management Focus

What’s next with TOWNGAS ?

Challenges Challenges

1-Year Sales Growth Number of Customer

Gas Industry Competition

Source : Annual Reports of Towngas, CLP, and Hong Kong Electric.

AcquisitionCost ↓

Base Profit ↑

Revenue Growth ↑

Operation Cost ↓

Referral↑

PricePremium

Loyal Customer Are More ProfitableLoyal Customer Are More Profitable

Source : Mullins, Johm W, Orville. Marketing Management : a Strategic Decision Making Approach 8 ed Mc Graw Hill

Mature Market StrategyMature Market Strategy

framework

CRM Framework CRM Framework

Source : Winner, Russel (2001), Marketing Management 4ed Pearson

Towngas CRMTowngas CRM

Towngas Key Success FactorsTowngas Key Success Factors

Involvement of Managing Director

on CT Project &Department

Managers on ECM Project

From TQM (1990) --> SQS (1992) --> FC (1993) --> ECM (1998)

Uninterrupted Gas SupplyRestoration of gas supply within 24 hoursEmergency team arrived within an hour

Availability within 3 working daysCustomer Service Hotline calls answer within

5 rings

1.4 mio Customer Information More than 2 mio equipment installed

through HK↓

Information about potential customer for new product

Consumption pattern for forcesting and trend analysis

Already Revied in 1999-2002

Customer Shared ValueCustomer Shared Value

from the corporate value, we can conclude that we have to make sure our customer knows that we are :

company customer

RecomendationRecomendation

Data Strengthenin through CIS and BI– Business intelligence (BI) is a broad category of

applications and technologies for gathering, storing, analyzing, and providing access to data to help enterprise users make better business decisions.

– Customer Information System is the computer data base and information system that contains all billing and personal data pertaining to utility customers of the City of Anaheim including billing rates, historical utility consumption, associated charges and meter information. The focus of the system is at the customer level supported by premise and service levels.

WORKING PROCESS through doing Continues Improvement

• Availability of appointment in hours• Reduce number of complains

RecomendationRecomendation

Strengthening Towngas position as one stop solution of gas uses appliance.

– Towngas Avenue– More Outlet : Opened- gas & kitchen

appliances and bath room accessories

LifestyleCashless payment card basis with loyalty point

Social MediaWeb base

Cooking centerCommunity

RecomendationRecomendation

GENERATE MORE BUSINESS• Expansion in mainland china• Line Business Spa

thankyou