Maintaining and developing quality-oriented customers<\/p>\n
Almost two years of economic crisis have not stopped the
\ngrowth and development of Indonesia's cellular phone operators,
\nparticularly GSM. With prepaid SIM cards, GSM operators have been
\nable to tap into the changing behavior of crisis-wary consumers
\nwho are limiting their pulse usage. The prepaid SIM card has
\nbecome popular because of its advantage in being able to monitor
\nand limit pulse usage.<\/p>\n
But like businesses in any era, GSM operators not only
\nencounter customers concerned with the benefits available to them
\nand price, but also those people, better known as quality-
\noriented customers, who place more emphasis on quality than cost.<\/p>\n
Not all GSM operators have focused on the latter group during
\nthe crisis. Before the crisis, their number was smaller than
\nthose consumers concerned with both quality and price, or looked
\nfor price over quality. The crisis, with its harsh impact on
\nconsumer spending power, further reduced the number of quality-
\noriented customers.<\/p>\n
Their number may be smaller, but quality-oriented customers
\nshould receive greater attention because they are likely to be
\nloyal. Their main concern is not price but quality, and their
\nloyalty should be won with quality products and superior service.<\/p>\n
Initially, the objective to serve quality-oriented customers
\nwas not an easy task for Excelomindo Pratama (XL), the GSM
\noperator most concerned with this group.<\/p>\n
As the newest face in the GSM market, XL did not have to be
\nconcerned with educating the market. Yet XL quickly gained a
\nresponse from customers and prospective customers that was far
\nbeyond expectations, despite the fact XL prepared its system and
\ninfrastructure according to predictions of customer numbers.<\/p>\n
XL's emergence in the wake of other operators, partly due to
\nits efforts to install a better infrastructure, inevitably
\ncreated a more conducive starting point for its debut, making
\nquality its point of differentiation with other operators.<\/p>\n
Why quality? Because this aspect received insufficient
\nattention from the market's predecessors, which were more focused
\non educating the market. While XL started out with a range not as
\nwide as its competitors, and relatively higher fees, the market
\naccommodated its entry. Its SIM GSM card, with its advertising
\nslogan Langsung Kring (Starts Ringing Instantly), quickly made
\nits voice heard in the market.<\/p>\n
XL's guarantee of quality covers two aspects: service quality
\nand communications quality. Service quality: XL's Customer
\nService Staff (CS) are trained not only to give answers to
\nquestions, but to take the initiative in offering solutions to
\ncellular subscribers' problems.<\/p>\n
XL is the only cellular operator to use Fiber Optics in Java,
\nBali and Lombok. Fiber Optic's transmission communication quality
\nis considered clearer and faster than microwave frequency. XL
\nalso installed Microcell XL in Jakarta's communication-heavy
\nGolden Triangle: Jl. Sudirman, Kuningan and Jl. Thamrin. Use of
\nMicrocell XL increases network channels and minimalizes the
\ngeneral customer complaint of \"No Network\" or \"Network Busy\".<\/p>\n
Of course, at the outset, XL offered better service and
\ncommunication quality for all its customers, regardless of
\nwhether they were frequent or infrequent users. However, after a
\nsufficiently satisfying response, it decided it needed to show
\nmore appreciation to its frequent users. This came as the crisis
\nbegan to strike Indonesia.<\/p>\n
As we are all aware, the worst crisis in Indonesia in the past
\n30 years has caused changes in customer behavior. Many customers
\nsuddenly began calculating price versus quality, or price value.
\nThe drastic change in consumer behavior put businesses on notice
\nthat they would have to develop an outreach which was suited to
\ncustomers' needs, wants and expectations.<\/p>\n
With quality oriented-customers, businesses have taken the
\napproach known as \"romancing the brand\". This includes providing
\ncontent and context differentiation which is equal to or better
\nthan prior to the crisis. For value-oriented customers, companies
\nhave been forced to embark on \"rationalizing the brand\", which
\nentails offering the same content differentiation but reducing
\ncontext differentiation.<\/p>\n
To price-oriented customers, \"economizing the brand\" is the
\nnecessary approach, characterized by lowering content and context
\ndifferentiation offered to customers (see Figure 1).<\/p>\n
Outreach to customers does not only identify differentiation,
\nbut also nine core marketing elements. This is why XL set out to
\noffer service with greater benefits for its quality-oriented
\ncustomers, instead of offering added-benefit service for a higher
\nprice. The process remained quality focused (see Figure 2).<\/p>\n
Subscribers identified as quality-oriented customers receive
\nappreciation based on the number of phone pulse units they use.
\nInitially, XL offered discounts to certain businesses, but it now
\napplies to all quality-oriented customers. Among them are the
\ncreme de la creme: the very heavy users.<\/p>\n
In implementing Treachy and Wieserma's recommendations in The
\nDiscipline of Market Leaders, XL developed special customer
\noutreach to these exclusive customers. It introduced Customer
\nRelations Officers (CRO) to serve the needs of the customers. For
\ninstance, XL CROs can assist in airport check-in or gain access
\nfor economy-ticket holding passengers to use executive lounges at
\nairports.<\/p>\n
Why does XL go to all the trouble? Quality-oriented customers
\nneed a product with an extra package, which also takes the form
\nof a loyalty program.<\/p>\n
How has the outreach fared? XL has managed to ensure that the
\nnumber of its quality-oriented customers has not dwindled, a
\nreason in itself for a sense of achievement. It is even more
\nsatisfying when we consider that most cell phone users today have
\na preference for prepaid GSM SIM cards, which do not foster a
\ncloser relationship between an operator and its customer.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/maintaining-and-developing-quality-oriented-customers-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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