Telkomsel's success as a leader

By Taufik

The crisis which started in 1997 may have changed consumer behavior in Indonesia in terms of consumption and goods purchased. However, how about their loyalty toward products or brands? It has to be admitted that this does not have an easy answer, because the crisis has lowered consumer purchasing power, which certainly changed consumers' preferences with regard to goods purchased. One example would be the choices made between quality and a fair price.

Prior to the crisis era, it is possible that people largely chose quality over price. Apart from a facilitation of better economic conditions at the time, it was also because of promising circumstances, which was highlighted by a global information flow.

Quality is not the only considering factor. The ability to deliver high value to customers is another factor. This is often measured by service quality and (or) customer satisfaction. In fact, based on empirical data on certain industries in Indonesia, for instance the banking industry, there are many companies that are subject to good positioning in the minds of their customers. These companies are the ones that have the ability to provide quality service or good customer satisfaction.

However, if we pivot ourselves to the process of satisfied consumers, who would then become loyal customers and then, in turn, become the company's voluntary sales force, we would find that there exists a missing link between the surveys and the market reality.

Market performance in the form of market share, specifically reflects the companies, which are based on the surveys, having acquired quality service or having provided good customer satisfaction. On the other hand, we can continually witness an increasing number of customers who are concerned with quality service or customer satisfaction.

Amazingly, although the number of customers who are concerned about quality service and good customer satisfaction is indeed increasing, at this point in time there is a lack of consumer assistance available in choosing a product or brand that can offer quality service and best customer satisfaction. Even Warta Konsumen, the Indonesian Consumers Foundation's magazine, that could truly play a part in educating Indonesian consumers in realizing good quality service, is yet to be the one reference in choosing products. This is different from America, where Consumers Report is often referred to in choosing products.

Consumers in America do not rely on one reference source in product choosing but can comfortably rely upon numerous sources. Among these is the JD Power Consumer Index formulated by the JD Power Consultancy Office. The ranking system in surveying consumer satisfaction level in various industries has been promoted to be the benchmark to the companies in a number of industries. One of the reasons is that the companies listed in the top position are those who have a good position in the market.

If the same circumstances were to occur in Indonesia, it would not only allow customers but also the business players in certain industries to obtain references in product choice. This will eventually arouse them to progressively increase the capability in serving customers, reaching just the right response from the customers in the industry, alias a good market share.

However, it should be realized that although there is no such thing as the JD Power Consumer Index in Indonesia, there have been many companies making a lot of effort to strengthen their ability in giving the best service to the largest part of customers in an industry. This has generated a good response, and, in turn, has gained a high market share. Basically, this is the story behind Telkomsel.

The company that is not, actually, the pioneer of cellular operations in Indonesia has managed to become the market leader because of its quality products and satisfactory network coverage, as well as international standard customer care service. The Customer Satisfaction Index 99, held in five major cities in Indonesia, has further confirmed this particular achievement. Telkomsel is now the number one company in the Cellular Operator Customer Service category.

Taufik is an Associate Consultant of MarkPlus Strategy Consulting.