Bangkok--8 Oct--Hill & Knowlton
Emphasis on customer service key to gaining competitive advantage in Asia
Ninety-three per cent of Thai companies plan to invest further in customer service
Photo caption: Sudhir Vadaketh (left), Senior Editor at The Economist Intelligence Unit and Chananyarak Phetcharat (right), Managing Director, DHL Express Thailand and Indochina together hosted a press conference revealing findings from a study on consumer behaviour and customer service entitled, ‘Greater expectations: Keeping pace with customer service demands in Asia Pacific’.
DHL, the world’s leading logistics company, today revealed the findings of a study on consumer behaviour and customer service commissioned by DHL and undertaken by the Economist Intelligence Unit (EIU). The report, entitled “Greater expectations: Keeping pace with customer service demands in Asia Pacific,” uncovers the gaps between what companies believe consumers want and what consumers actually say, using findings from two surveys — one of over 300 senior executives and another of over 700 consumers — conducted in 10 markets across Asia.
Roger Crook, incoming[1] CEO of DHL Express Asia Pacific, Eastern Europe, Middle East and Africa said: “Asia’s consumers are expected to increase their spending from US$4.3 trillion in 2008 to US$32 trillion annually by 2030 — equal to some 43% of global consumer spending by then[2].
With an established presence in 42 countries and territories in Asia Pacific, it is critical that DHL remains at the forefront of customer insights. Findings from the report provide valuable region-wide perspectives and enhance DHL’s customer service approach, upping the ante for service in Asia’s logistics industry.”
The study confirmed that along with its economies, the region’s customer service standards as well as customers’ perceptions and demands of service have changed dramatically in recent years, and not necessarily evenly. In fact, service, like products, should be tailored to individual markets as consumers in different parts of Asia have quite different service expectations. For instance, before buying a product, Thai consumers value courteous, informed staff much more highly than Malaysian or South Korean consumers.
“The Internet changes the way Thai consumers obtain information. They are today well informed and tend to request excellent service upfront,” said Chananyarak Phetcharat, Managing Director, DHL Express Thailand and Indochina. “At DHL, excellent service is one of our key differentiators and a fundamental pillar of the DHL Express business and we want to further promote good customer service in Asia Pacific. With this study, we hope to excel at customer service by better understanding our customers’ expectations and managing their needs.”
Highlights of the study’s report[3] include the finding that in today’s Asia, price is no longer the only factor in purchasing decisions. In parts of Asia, companies are still focussed on price, but many consumers are willing to pay for better service. For instance, half of the Indonesian firms surveyed feel that their customers are concerned only about price, not service. However, less than one-quarter of the Indonesian consumers surveyed agree. This suggests that firms which start competing on service will be more successful.
Sudhir Vadaketh, senior editor at The Economist Intelligence Unit, said: "The gap between what companies are providing and what consumers say they want is an opportunity. As competition in the region intensifies those companies who put more emphasis on customer service should gain an edge."
Thailand set for higher standards of Customer Service
The findings also suggest that Thailand has seen a sharp improvement in service levels over the past five years. Aware of rising expectations, however, Thai companies are doing their best to address these expectations and raise the bar of service standards. Ninety-three per cent of companies in Thailand plan to increase customer service investments next year, with a focus on internal CRM technology and loyalty programmes. From point-of-sale to after-sales service, the majority of Thai firms say they are giving more priority than five years ago to the overall customer service experience.
About the surveys
The surveys, conducted between June 2010 and September 2010, spoke to consumers and corporations in Asia. The consumer survey encompassed 764 consumers, with at least 70 each from 10 countries: Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, Singapore, South Korea, and Thailand. Some 48% were aged 30-35, with the rest aged 36-50. They are largely middle-class and residing in urban areas.
The corporate portion of the research involved surveying 313 executives familiar with their company’s customer service strategy, with at least 30 each from the same countries as the consumer research. Some 54% of respondents were at the manager level, with the rest senior executives, professionals and entrepreneurs. Twenty-two per cent of respondents were from the manufacturing sector; 19% from IT/Telecoms; 19% from professional services; 19% from retail; and the rest from travel and transport, hospitality, finance, and others.
Media Contact:
Parichart Pramukkul
Marketing Manager - Thailand and Indochina
DHL Express International (Thailand) Ltd.
Tel: 0-2345-5600
Fax: 0-285-5524
Email:
[email protected]
Orawan Chuenwiratsakul
Hill & Knowlton Thailand
Tel: 0-2627-3501
Fax: 0-2627-3510
Email:
[email protected]
[1] With effect from 1 January 2011.
[2] “The Rise of Asia’s Middle Class”, Key Indicators for Asia and the Pacific 2010, Asian Development Bank.
[3] For complete findings, please see Executive Summary appended.