town gas

TOWNGASAchieving Competitive

Advantage through Customer Relationship

Management Group 09, IMT Ghaziabad

Company Background

Incorporated as HongKong and China gas Company

Listed on the Hongkong exchange since 1960

Owned 70% of the piped-gas market in china

Turnover Distribution in 2002

Turnover in 2002

Residential MarketCommercial MarketIndustrial MarketEquipment Sales

10 Year Key Financial Figures

1993

1995

1997

1999

2001

0

1000

2000

3000

4000

5000

6000

7000

8000

Sales (HK$ million)Profit After TaxProfit Margin

Competitor Analysis

Sale

s

Net In

com

e

Net In

com

e Gro

wth

Custo

mer

Acc

ount

s

Sale

s pe

r Em

ploy

ee

0

2000

4000

6000

TowngasCLPHongKong Elec-tric

Strategy at Towngas

Survival

Success

C.R.M.

Pillars of CRM Strategy

Tremendous Database Customer ServiceSales & Marketing

Strategies

Competitive Advantage

Towngas: CRM Initiatives in line

1990:Multiple contact points for different service requirements

1992:Realization of Total Quality Management (TQM) conceptFormation of Superior Quality Service (SQS) group

1993:Customer Focus Team (CFT) Programme

1994: Launch of 24-hour Customer Service Hotline

1996:More top downInitiative of continuous Transformation

1998:The Executive Committee (ECM)Initiatives resulting in major organizational restructuring7 layers to 4 layers

2001:Towngas AvenueA lifestyle concept StoreSelling contemporary gas appliances

Customer Service Initiatives

Common

Goal

ConsistentQuality of Service

Sense of valueSatisfaction

Loyalty

Sales & Marketing Strategy

Market Data Mining

After Sales Servic

e

C.R.M.Product Lead

ProspectTele Marketing

Sales

Towngas Shared Value Model

Sustained

BusinessGrowth

Leadership

CustomerFocused

CustomerValue

CRM continued to pay off

Residential customer growth by

4.5%

Growth rate of 0.3%

Steady upward trend

Service Commitments

met

Targetsexceeded

1334 complementar

y letters

Complaints dropped 48 to

34

Winner of Customer

Service Award

Surge in Customer

Satisfaction rating &

employee productivity

Questions & Answers

Why is it important to manage customer relationships?

Why did Towngas choose CRM as a tool to strengthen its business?

What are the success factors of Towngas’ CRM System?

What did it do differently than many other companies that had also invested a lot of money in CRM to find that the system was not generating the expected returns?

How did Towngas, primarily a gas production and distribution company, implemented successful CRM strategies?

Why didn’t Towngas install the system earlier?

What were the implications for companies that were planning to implement CRM?

Thank You..!!