Telkomsel's success as a leader

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.