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A CASE STUDY ON CUSTOMER SERVICE AT ASIA ROOFING INDUSTRIES SDN. BHD. (AJIYA)

AT CORPORATE HEAD OFFICE AND FACTORY :

LOT 153, KAWASAN PERINDUSTRIAN,

JALAN GENUANG, 85000, SEGAMAT, JOHOR.

TEL : 07 9434211 FAX : 07 9431054

WEBSITE : www.ajiya.comE-MAIL : enquiry@ajiya.com

SUMMARY :Ajiya Berhad, an investment holding company based in Segamat is listed company on the Main Board of the Bursa Malaysia Securities Berhad. The AJIYA groups activities include manufacturing and marketing of high quality glass products, metal roofing, metal door & window frames, floor decks, metal ceiling and other building materials. Since the company is involved in a wide variety of products and marketing, it tends to lose touch with the customers and begin to see them as just numbers on a page. It fails to realize that theres no accounting formula that will tells just how important happy customers really are. This case study is undertaken to offer better delivery of customer service and support to individual and groups. The views and opinions of every customer, client or group are placed at the centre of everything the company does. With this goal in mind, the study hopes to create an environment within which Customer Service is seen as essential to the management and delivery of services. Before this case study is carried out, various measures as stated below are took into consideration :

review past case study proposals in order to avoid repeating mistakes and offering to reproduce results that have already been achieved. review past project or case study evaluation reports. organise focus groups to make sure that the people involved are able and willing to contribute. check statistical data wherever available in order to avoid any gaps or inaccuracies in the data that is being used or relied on. consult senior management staff or experts to obtain outside opinions and ideas as well as credibility. conduct interviews and survey by telephone, questionaires and on site visit hold meetings or forums whereever necessary to refine the objectives of this study. observations and taking notes of present situation in the company.

The study also proposes various measures that can be implemented or carried out. The end result of this study will be aiming to provide high-quality or excellent customer service whereby every customer will be able to access to this company in the most efficient, fair, cost effective, and humanly satisfying and pleasurable manner possible.

CHAPTER 1 : INTRODUCTION1.1 Company Background AJIYA BERHAD is an investment holding company located at Segamat in Johor. It is a public-listed company on the Main Board of the Bursa Malaysia Securities Berhad. Asia Roofing Industries Sdn.Bhd.,Ajiya Safety Glass Sdn.Bhd. and Ajiya Steel Industries Sdn. Bhd are all wholly-owned subsidiary of AJIYA BERHAD. The AJIYA groups activities include manufacturing and marketing of high-quality glass products, metal roofing, metal door and window frames, floor decks, metal ceiling and other building materials.ARI is an established manufacturer of metal roll-forming products - metal roofing system, metal frame products, structural products, light-weight channel products, AriteQ metal ceiling and sun shade products in Malaysia. These products, under the brand name of AJIYA, are widely used in Malaysia and South East Asia countries.

Ajiya products are renowned for their aesthetic design. Our dynamic sales force is professionally trained to provide quality technical support and services to customers. Our products also conform to the stringent quality standard set by SIRIM Berhad and are all manufactured under the implementation of ISO 9001. ARI is backed by strong Reserch and Development team which constantly identifies and develops as well as fabricates complete production lines for new products. Ajiya Safety Glass Sdn. Bhd. (ASG), was formed in November 1995 and its principal activities are in the manufacturing of curved and flat tempered safety glass, insulating glass, laminated glass, decorative glass as well as security glass inder the brand name of the AJIYA. The long-term commitment of the company towards its customers is clearly underlined by the clear progress of the company. In addition to its strong capability, the company also possesses the capacity. Two new factories in Segamat, with a combined floor space of over 130,000 sq ft, from brand new production facilities for quality processed glass. A second jumbo tempering line was added in 1998, less than 2 years after the first jumbo tempering line was commissioned. The third tempering line located in the Puchong plant was added in 2002, while the fourth tempering plant, dedicated to manufacturing safety glass for industrial application, was added in 2003. Our latest addition is the fifth super jumbo-sized curved and flat tempering plant which complements the ever-demanding modern architecture needs for smart buildings. Together with a wide range of ancillary machinery, ASG has the largest tempering capacity in South East Asia.1.2 Statement of the problems AJIYA is expanding at a phenomenal rate and its continuous growth means it has to develop an effective and productive Customer Service Model that will develop customer loyalty and will not bankrupt the organization. In order to build up such a model, the present customer service problems and difficulties need to addressed accordingly and effectivey before carrying out any other new strategy and planning. The current customer service problems encounter so far from this study are listed as follows:1.2.1 Delivery Problems with certain Customers and is in danger of losing them.

1.2.2 Getting The Conversation Off To A Bad Start1.2.3 Communication problems due to language barrier especially in local dialect whereby understanding is rather limited.

1.2.4 Overloading customer with unnecessary details especially in products terminology, measurements and descriptions.

1.2.5 Inflexibility in customer service procedures. Many a times, customer service representative treats the procedures as though they are set in stone. They force the customer to make a difficult choice -- abide by the procedure or go elsewhere. Both outcomes are apt to lead to an unhappy customer.1.2.6 Poor in ending the customer service conversation. CHAPTER 2 :

Proposed Solutions or Plans, Including the Methods or Procedures2.1 : The Challenge

The client has been frustrated by our company inability to make certain customer deliveries complete and on time on a consistent basis.

This study involved an evaluation of the client's current service levels along with a review of the various kinds of problems that interfered with achieving the desired customer service quality. It is found that there was a very loose customer service policy in place and that freight carriers were generally blamed for any delays that the client's customers experienced. All in all, frustration appeared to set the tone for the typical business day.

My approach included an upstream evaluation of the client's order processing methods. I conducted a process-mapping phase that reviewed the flow of orders from the sales and sales broker staffs through the credit approval and customer service phases.I mapped the flow of materials and information through production planning, manufacturing, and then to the transportation or logistics department.An interesting observation was the number of days that each order spent either in transit or lodged in the various preliminary processes prior to transportation. For example, sales department tended to hold orders until three days before a customer's desired delivery date to assure that any changes in order quantities would be accounted for. I determined that such changes were infrequent (fewer than 5% of orders were changed), and that this "hold time" was just over an average of two days. The client's credit department tended to hold orders for two additional days, even though 95% or more of the client's customers showed no credit problems whatsoever.

By the time orders were delivered to production planning and then downstream to transportation , very little time was left to make delivery on the customers' requested delivery dates. Freight carriers were called each evening and were then told about the client's trucking needs for the following day. In many cases, carriers experienced problems getting equipment to the client's place of business in a timely manner, resulting in delivery delays.

I developed a strategy that enabled the sales staff and the client's sales brokers to increase the visibility of orders early in the cycle. By doing so, each participating department in the supply chain was made aware of pending orders. While this advance information enabled these departments to improve planning, contingency plans were established to handle exception orders that needed to be changed or held for credit reasons.

Another benefit was in creating the ability for the transportation and logistics departments to notify freight carriers of pending shipments well in advance of actual ship dates. Carriers were then able to participate in the planning process in order to make the needed equipment readily available for each day's shipment needs. Feedback received from the client's customers showed a substantial increase in their satisfaction with the service quality provided by this client.2.2 The Challenge :

Getting The Conversation Off To A Bad StartIt is rather interesting to note that many times through my observation and listening, the customer service representatives often off to bad start right from the very beginning. One of the example I would like to state in this study is : Picture this. A customer calls the company and asks some questions about the service the company is providing and how it applies to the customers situation.

The customer service representative wil start the conversation like this :Customer service rep : Can I help you?Customer : Yes, I have some questions about my house roofing which is leaking and I was wonderingCustomer service rep : May I know your name?

Customer : I think you dont really need to have that to answer my question. I was wondering ...The customer service rep is really trying to be helpful but the customer might see this service rep as a person with an attitude, who wont listen to the customers problem.

A better technique for starting this conversation would be:

1. If the customer starts by trying to explain her or his questions, just let the customer talk.

2. Take notes on the major points the customer raises. 3. Effective greeting

Using this technique, the same starting conversation might go like this:

Customer service rep: "Welcome to Ajiya. My name is . I am a customer service rep here at Ajiyas. How can I help you today?"

Customer: Yes. I have some questions about my house roofing which is leaking and I was wondering if you can provide some information.Customer service rep : Of course Sir. If you can provide me your name and address you will be able to receive our list of company products catalogues and list of suggestions to fix your problem at the earliest convenience.2.3 The ChallengeCommunication problems due to language barrier especially in local dialect whereby understanding is rather limited.

Communicating with and satisfying the customer can be difficult even when all parties are speaking a common language. It can be very difficult when the language and culture are different. This is especially so in our plural society whereby different languages and dialects are spoken in our every day life in all aspects. Through my observation and listening to customer service representatives, difficulties in communication often arise especially so in dealing with older generation whereby English and local dialects are often used. Present customer official are mostly fluent in Bahasa Malaysia only. I may suggest that

If you do not have the requisite skills, try to find someone within the organization who does. Other options may include sharing the language skills you do have, drawing pictures, using sign language or showing products that may fit the need. My solution to this problem are as follow : Listening Concentrate on the speaker (customer) and use eye contact

Avoid interrupting, daydreaming or early conclusions

Understand the speakers frame of reference

Pay attention to non-verbal cues

Be alert to emotional content

Take notes as necessary

Provide feedback

Restate the speakers message as you understand it and ask for clarification or confirmation

Avoid slang and jargon. Demonstrate. Whenever possible, enhance communication by showing and demonstrating your product or service.

Promote two-way communication. Respond to the customer and ask for their responses to be certain they continue to be engaged.

Provide closure. After asking if you can provide additional service and if the customer is satisfied, close the sale, thank them and say goodbye to provide a clear sense of closure.2.4The Challenge Overloading customer with unnecessary details especially in products terminology, measurements and descriptions.

This is another common customer service error whereby overloading the customer with unnecessary details that the customer is not equipped to handle. Typically, customer service reps who work with roofing installation and coating specification products are found to fall into this category. My solution to this problem is to take more time to listen to what the customer was trying to tell. After that try to introduce relevant facts in a way the customer would understand.

For instance :

Ajiya Roofing Installation It is strongly recommended that sheets are laid with the side laps facing away from the direction of the prevailing wind. Where possible, the roof sheets should be fixed within the side laps facing away from the normal line of sight as show below :

Prevailing wind

___

Laying Direction2.5 The Challenge

Inflexibility in customer service procedures. Many a times, customer service representative treats the procedures as though they are set in stone. They force the customer to make a difficult choice -- abide by the procedure or go elsewhere. Both outcomes are apt to lead to an unhappy customer.Customer service departments need to have standards and procedures for their operations. And for the most part, customer service reps can help customers working within the recommended methods. However, once in a while there is a customer situation that requires some degree of flexibility. This situation seen missing at present. The customer service representatives treat the company procedures as though they are set in stone. They force the customer to make a difficult choice -- abide by the procedure or go elsewhere. Both outcomes are apt to lead to an unhappy customer, like the one in this situation:

Customer service rep: Can I help you?Customer: Yes. I want to return this item. It's just the wrong colour for my kitchen.

Customer service rep: I see. May I see your sales receipt.Customer: Of course.

Customer service rep: I'm sorry I can't help you. You purchased this item on May 22. That was 45 days ago. Our return policy is that items can only be returned within 30 days of purchase, so I'm afraid you can't return the item.Customer: Isn't there something you can do? If you can't return my money, can't I exchange it for something else .

Customer service rep: I'm sorry. Our policy is 30-day returns only. I'm afraid I can't help you with this one. Is there something else I can help you with?The customer service rep's decision here is to stick with the policy, rather than to flex to the customer's needs. The result is probably a disgruntled customer. Rather than setting up this type of situation, there was probably something the customer service rep could have done to "adjust" the policy ever so much. A better approach is:

1. Determine what customers are asking for.

2. Find something you can do to help the customers even if you can't give them what they ask for.

3. Make sure they walk away with something that they value, no matter how small.

So, by using our customer service instant replay, the same situation might look like this:

Customer service rep: Can I help you?Customer: Yes. I want to return this item. It's just the wrong color for my kitchen.

Customer service rep: I see. May I see your sales receipt.Customer: Of course.

Customer service rep: I'm sorry, that product can't be returned for a refund. You purchased this item on May 22. That was 45 days ago. Our return policy is that items can only be returned within 30 days of purchase.Customer: Isn't there something you can do? If you can't return my money, can't I exchange it for something else or take a store credit?

Customer service rep: This item hasn't been used. Isn't that correct?Customer: That's right. In fact, I didn't take it out of the box. As soon as I got home and took a closer look at my kitchen counters, I knew the color wouldn't be right.

Customer service rep: Well, there are two approaches we can try. First, perhaps we can exchange yours for another of the same model in a color that might work better for you. Or I could talk to my supervisor since the package has never been opened. Which would you prefer I tried?It's even possible at this point the customer could walk away without an exchange or a refund. But clearly, the customer will think more highly of the customer service representative.

2.6 The Challenge

Poor in ending the customer service conversation.The last impression customers may have of the company may very well be the end of the conversation with them. So we want to make sure it's something meaningful that makes customers feel they personally are valued. Many times I found the customer service reps, however, end their conversations like this.

Customer service rep: Can you please sign here for your refund.Customer: OK. Do you have a pen?

Customer service rep: Here. (Pause.) Thanks for shopping here at Ajiya Customer Service Centre.The conversation is so impersonal that customers are left to feel as though they are unnecessary to the success of the business. They may as well get their service elsewhere where they are more appreciated. Rather than being impersonal, the customer service rep should have tried to express more interest in the customer by:

1. Using the customer's name if available.

2. Expressing appreciation.

3. Inviting the customer to come back.

The revised conversation might go something like this:

Customer service rep: Can you please sign here for your refund.Customer: OK. Do you have a pen?

Customer service rep: Of course . Thank you Mr. Lim. I'm glad we were able to help you out today. Be sure to come back if there is anything else we can do to help you.CHAPTER 3 : Deliverables : A Winning Customer Service Strategy

Providing high-quality customere service in the help desk or customer service centre requires much more than just technical troubleshooting skills. Employees must have excellent listening and communication skills, telephone skills, writing skills and they must be able to solve and prevent problems in the help desk. In addition, the ability to handle difficult customers and minimize stress during the workday also increases the level of customer service they provide. These soft skills are often more important in ensuring a high level of customer satisfaction than an employees technical knowledgeLink Satisfaction to Training

In order to improve customer satisfaction within the support environment, a customer service strategy should be in place to solicit feedback from customers. Do they enjoy their support experience? What do they think about the level of service? What do they say when they complain about the service? The answers to those questions and data from the problem management system should then be used to develop a training program to improve the skill level of the help desk employees. Combine the customer service strategy with a solid employee hiring process that recruits new employees with the necessary skills and it will result in an increase in customer satisfaction. It is important to understand the link between customer satisfaction and the skills of the help desk employees.

Step 1 : Develop a Customer Service Strategy

A winning customer service strategy provides quality service and resolves customer complaints. In the help desk industry, much effort has been placed on customer satisfaction measurement. This includes developing processes to measure satisfaction, implement changes to increase customer satisfaction and communicate the enhancements to the customers. A criteria element that is missing is an emphasis on customer complaints. A support organization should also develop processes for the management of complaints. A winning customer service strategy should include: (Please refer to Figure 1 below)SOLICIT Solicit customer complaints and feedback.

RESOLVE Resolve customer complaints on first contact

TRACK Survey customers on a regular basis.

TRAIN Train employees, based upon complaints, survey results and performance metrics, to increse quality of customer service and improve complaint resolution.

MARKET Market the winning customer service strategy to help desk employees and customers to establish expectation.

FIGURE 1 : SIX STEPS WINNING CUSTOMER SERVICE STRATEGYAccording to the 1966 report, Serving the American People : Best Practices in Resolving Customer Complaints published by the National Performance Review, there are five reasongs why successful complaints succeed at resolving customer complaints and thus increase customer satisfaction and loyalty. A best practice environment must :

Make it easy for customers to complain and customers will make it easy for you to improve

Respond to complaints quickly and courteously with common sense and you will improve customer loyalty.

Reslove complaints on the first contact and save money by eliminating unnecessary additional contacts that escalate costs and build customer confidence.

Technology is critical in complaint handling systems.

Recruit and hire the best for customer service jobs.

Customer satisfaction is more than just solving a customers technology problem or fulfilling a request as quickly as possible. It is about how you handle poor service. You cant expect every call to be handled perfectly every time. Some customers get mad and get vocal. This often leads to the bad reputation of he help desk. So even when you provide bad service, develop a clear strategy for how to make it right quickly and prevent similar problems in the future.Step 2 : Hire Only the BestQuality service comes from quality employees. Develop a solid new hire process that recruits only those employees who have the necessary skills. The new hire process should have the following four steps as show in Figure 2 below:

RECRUIT - Recruit for technical resolution, listening and communication, telephone,writing and customer service skills.

HIRE Hire only those employees who possess a complete skill set.

TRAIN Train employees regularly to invest in their success, increase employee retention and increase customer satisfaction.

PROMOTE Promote and retain only those employees who make the grade in the support organization

FIGURE 2 : FOUR STEPS IN HIRE ONLY THE BEST STRATEGYStep 3 : Invest in Employees

In both the customer service strategy and the new hire process, there is an emphasis on training. A robust training program should address all the critical skills that are necessary to provide the best service to the customer. In the same report by the National Performance Review it state .

Best-in-Business leaders consider training an investment, not an expense. The use complaint trends/data to identify training needs. Ajiya should spend a sizeable portion of the budgets on training which directly or indirectly in the long run can see a direct link between training and increase in customer satisfaction and loyalty.

According to the American Productivity & Quality Centre in their report titled Best Practices in New Customer Service,

The foundation of any successful customer service organization in the empowered customer service agent. Management in the best-practice organizations recognizes that external customer satisfaction requires granting power to those internal company representatives who serve as the critical link between the company and the customer.

In order to create a winning customer strategy in this aspect, there are four plans which I consider important. Customer Communication Plan, Customer Satisfaction Plan, Customer Marketing Plan and Customer Service Training as illustrated in Figure 3 below.

Communication Plan This deliverable helps to establish communication standards in all written and verbal communication as well as defines the process for how to communicate effectively with the customer. Customer Satisfaction Plan This deliverable develops a customer satisfaction measurement process, assists with tool selection and provides sample surveys

Marketing Plan This deliverable is a help desk marketing strategy to inform customers of the help desk services, help change the perception of the help desk and establish customer expectations.

FIGURE 3 : FOUR STEPS IN INVESTING EMPLOYEES STRATEGY

CHAPTER 4 : CONCLUSIONThis case study is conducted in such a way that it summarize the main and most common customer service problems face by the present situation. The problems are mainly in the aspect of delivery problems, poor in conversation and communication difficulties, overloading customer with unnecessary figures and specifications as well as rigid in following customer service procedures. Further more poor in ending or closing customer sales or conversation is also pointed out in this study. Various winning customer service strategy are suggested and elaborated. The six steps in developing a customer service strategy are solicit, resolve, track, survey, train and market are suggested and focus on complaints are highlighted.

The four steps in hiring only the best are to recruit, hire, train and promote in order to have a quality customer service.

The four plans in investing company employees in order to have a solid and effective and quality customer service are also discussed.

With all these strategies and approach, it is my sincerely hope that the present customer service or help desk centre will gradually improved and command a better respect from all quarters. This indirectly will translate into bringing in more sales and revenue not just for the company but employees will gain tremendously in the form of in house training, effective communication and conversation skills and bright prospect in promotion in all sectors.

Reference :

1. http://readyset.tigris.org/nonav/templates/proposal.html2. http://www.wpi.edu/Academics/Projects/Proposal/basicsec.html3. http://academic.emporia.edu/smithwil/000sumfall02/mg476sum/eja/stoker/customerservice.html4. http://www.wsbdc.org/customersvc.htm#q45. http://www.buslog.com/service-improvement/case-study1.html6. http://www.fivecentnickel.com/2006/09/19/solving-customer-service-problems/7. http://www.salesmba.com/articles1/cssp03.htm8. http://www.salesmba.com/misc/service.htm9. Ajiya Sales Catalogues and BronchuresSOLICIT

WINNING CUSTOMER SERVICE STRATEGY

RESOLVE

TRACK

SURVEY

MARKET

TRAIN

WINNING CUSTOMER SERVICE STRATEGY

HIRE

PROMOTE

TRAIN

RECRUIT

WINNING CUSTOMER SERVICE STRATEGY

CUSTOMER

SATISFACTION

PLAN

CUSTOMER

SERVICE

TRAINING

MARKETING

PLAN

COMMUNICATION

PLAN

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