Cementing customer loyalty<\/p>\n
The government's designation of Sept. 4 as National Customers
\nDay starting this year should provide the momentum for an ongoing
\ncampaign to improve the overall performance of Indonesian
\nbusinesses and, consequently, the competitiveness of the national
\neconomy.<\/p>\n
It was, we think, this broader objective that prompted
\nPresident Megawati Soekarnoputri to put in a personal appearance
\nto lead the inaugural ceremony marking National Customers Day
\nlast Thursday.<\/p>\n
The event may be seen as part of a much broader campaign than
\none designed simply to propagate the importance of satisfying
\ncustomers and building up customer loyalty, because achieving
\ncustomer loyalty is not a single action but is the axis of an
\nongoing process to develop good corporate governance practices in
\nthe broadest sense.<\/p>\n
The event was doubly significant as it was initiated by the
\nOffice of the State Minister for State Enterprises. We as
\nconsumers are all too aware about how blase or unheeding most
\nstate companies are toward their customers due largely to the
\nmonopoly or duopoly positions they occupy in their respective
\nfields of business.<\/p>\n
Many may still remember how until the mid-1990s one had often
\nto pay much more than the official rate to get a telephone line
\ninstalled or to have one's home connected to the power grid. Or
\nhow officials of the national flag carrier Garuda Indonesia
\nconspired with travel agents to sell tickets way above the
\npublished rates. Customer satisfaction, let alone customer
\nloyalty, were concepts that were virtually unheard of among state
\ncompany employees. Complaining customers were simply ignored.<\/p>\n
The situation has improved over the past few years after the
\ndismantling of many state monopolies, the enactment of the
\nconsumer protection law, the establishment of the consumer
\ndisputes settlement board, the enforcement of the law against
\nmonopolies and unfair business practices, as well as the broader
\nliberalization of import policy.<\/p>\n
But most businesses, especially state companies and private-
\nsector oligopolies, still have a long way to go to
\ninstitutionalize in their corporate cultures the vital mission of
\ncreating customer satisfaction and cementing customer loyalty.<\/p>\n
In this context, we were encouraged by the participation of 15
\nstate companies in the ceremony marking National Customers Day.
\nMany of them, such as PT Telekomunikasi Indonesia, Garuda
\nIndonesia and the State Electricity Company (PLN) were formerly
\nmonopolies in their respective business areas. Several others
\nsuch as PT Pelni, an inter-island ferry company, the civil
\nservice health insurance company PT Askes, the labor insurance
\ncompany PT Jamsostek, and PT Pos Indonesia are in fact still
\nmonopolies.<\/p>\n
The campaign will go a long way toward bolstering the program
\nto develop good governance practices in the business sector and,
\nhopefully, in the public sector as well, because building up
\ncustomer loyalty means gaining customer trust.<\/p>\n
The drive to win customer trust must start with the
\ndevelopment of solid trust and relationships within a company,
\nwhich in turn requires transparency and accountability, two of
\nthe most important elements of good governance practices. Trust
\nis enhanced only when everyone within the organization feels they
\nare working under a caring, sharing environment of trust. This
\nsituation in turn builds up a sense of ownership among employees,
\na devotion to serving customers out of a realization that it is
\nthe customers that make their businesses thrive.<\/p>\n
Businesses are operating in a highly competitive environment
\nwhere customer trust is critical because today's customers simply
\nwant the best. Anything less is unacceptable. And only satisfied,
\ncontent employees are capable of giving the best to customers.<\/p>\n
As most state companies have for decades either operated as
\nmonopolies or duopolies, or enjoyed captive markets that were
\ncreated by the government, they need more time to change their
\nwork cultures, shape up their employees and forge the sort of
\nteam work that is needed to meet the challenges of the market.<\/p>\n
As change is never easy, the instituting of National Customers
\nDay will hopefully help sustain the campaign, and develop it into
\nan ongoing drive to implement good corporate governance practices
\nin order to win customer trust.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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