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 BIUp to date information serves better suit the need of different market segment

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