Sakshi Maheshwari

2023MBA059
Group - 15
Swastika Upadhyay
Case- Towngas Achieving
2023MBA070 Competitive
Priya Arya Advantage through CRM
 Introduction Company Background

• Towngas, an exclusive supplier of piped • It was incorporated as the Hong Kong

naphtha gas and one of the oldest and China Gas Company.
energy suppliers in Hong Kong. • It was established during the colonial
• Strong support of government through times.
cooperative policies and regulations. • It was the oldest energy supplier in
• Towngas was successful in capturing 70% Hong Kong.
of the piped gas market in Hong Kong. • It has been listed in the Hong Kong
• Showed a proactive approach by Stock exchange since 1960.
strengthening its company from within. • Its businesses include production,
• Flagship programs such as TQM (Total distribution, and marketing of gas and
Quality Management) and Business appliances.
Process Engineering were implemented • It was the sole supplier for 1.4 million
to provide the best quality products and households and businesses in Hong
services to its consumers. Kong.
ustomer Groups and Marketing Departments

Major Customer Groups of Towngas:

• Residential
• Commercial
• Industrial
Major Marketing Departments Within
Towngas:
• Retail marketing managed domestic
household customers.
• Commercial and Industrial Marketing
serviced restaurants, hotels, super markets
and industrial markets.
• Project marketing was responsible for
project bidding and account servicing for real
estate development projects.
Towngas Key Success Factors

1 2 3 4 5 6

Uninterrupted Customer Continuous Management Customer Customer

Gas Supply: Satisfaction: Improvement: Support: Database: Focus:
Restoration Answering Transition from Involvement of 1.4 million Information
within 24 hour calls within 5 TQM (1990) to Managing customer about
Emergency rings: FCM (1998): Director and information potential
team within an Highlights the Shows the Department More than 2 customers
hour company's company's Managers: million Consumption
Availability focus on commitment to Demonstrates equipment pattern
within 3 prompt evolving quality top-level installed analysis
working day customer management commitment to
Customer service. practices. quality
Service Hotline initiatives.
Challenges
CRM Framework

Benefits of a CRM Framework for

Towngas:
• Improved customer satisfaction:
Personalized experiences and timely
support enhance customer loyalty.
• Increased sales and revenue: Effective
targeting and relationship marketing drive
customer acquisition and retention.
• Enhanced operational efficiency:
Streamlined processes and data-driven
insights optimize resource allocation.
• Better decision-making: Data-backed
insights inform strategic planning and
marketing initiatives.
• Enhanced brand reputation: Positive
customer experiences contribute to a
strong brand image.
Service Scape

Servicescape refers to the physical and environmental setting in which a service is [Link]’s servicescape
model, which considers both physical and non-physical elements that shape the service encounter. It plays a crucial role
in shaping customer perceptions, satisfaction, and behavior. It includes tangible elements (e.g., decor, lighting) and
ambient conditions (e.g., noise, temperature), as well as the layout and design of service areas.

Customer services or Towngas Avenue Frontline Staff

telephonic services Towngas avenues which are With a flattened
In past customer had to deal opened in 2001 presented a organisational structure,THe
with multiple point of life style concept store selling try to facilitate more effective
contact , In 1994 they contemprary gas appliances communication between
streamlined the process with and other kitchen and frontline staff and
24 hours customer service bathroom acessories . This department managers , so
hotline that served as one was designed to tap into the that customers issue can
stop shop . They also added 5 high income segment resolve quickly . with
language human answering customers . who are in empowerment frontline staff
feature pursuit of healthy life styles could make sensible
decisions to take extra steps
in delighting customers
Focus strategy of services

• Towngas initially adopted a service-focused

strategy, primarily concentrating on the
production, supply, and marketing of gas
appliances.
• Their main customers include residential,
commercial, and industrial sectors, such as
hotels and supermarkets.
• Towngas meets the diverse needs of its clientele
effectively
• After introduction of Towngas avenue they try to
foucus on niche market basically high income
segment presenting lifestyle concept store
selling gas appliances and kitchen and bathroom
accessories.
• They implemented fully focused strategy ,
basically they tried a balance approach .but
their core business was mainly production and
distribution of gas
Service Marketing Triangle
It highlights the relationships that an organization needs to manage in delivering excellent service. The three key
factors in the triangle are the Company (Management), Employees (Service Providers), and Customers (End-
users).
Compan
Towngas sets a customer-centric vision and drives CRM initiatives for high satisfaction.
y
It established a 24/7 hotline and "Towngas Avenue" stores to enhance customer
experience

Internal External
Marketing Marketing
It trains and supports employees to It promotes its commitment to quality
fulfill its promises. service and innovation.
Like ongoing employee development Advertisements highlighting customer
and internal communications to service and new energy solutions.
meet service goals.

Employe Interactive Custome

estrain employees for Marketing
Towngas uses TQM to Service delivery during direct rs the service
Customers experience
excellent service. interactions with customers. and evaluate Towngas' promises.
Employees deliver the company's Technicians perform routine Customers engage through
promises through direct customer checks, ensuring reliability feedback and rewards programs.
interactions. and efficiency.
They manage customer queries and
Servuction Model

1. Invisible Components (Backstage Elements)

• Service Production System:
⚬ Customer Relationship Management (CRM): Towngas invested in CRM strategies, using a comprehensive
customer information database to track interactions and improve service quality.
⚬ Internal Initiatives: Programs like Total Quality Management (TQM) and Continuous Transformation (CT)
were implemented to improve internal processes and align them with customer service goals.
⚬ Training Programs: Employees underwent customer service training to ensure consistent service delivery
across all touchpoints.
• Corporate Culture:
⚬ Customer-Centric Approach: Towngas transformed its culture to focus on customer satisfaction and
service quality through internal alignment and empowerment of front-line staff.
⚬ Organizational Structure: The company flattened its structure, enabling faster decision-making and direct
communication between front-line staff and managers.
Servuction Model

2. Visible Components (Frontstage Elements)

• Service Facilities:
⚬ Customer Service Hotline: A 24-hour, five-language customer service hotline served as the main point of
contact for customers, handling various service requests and inquiries.
⚬ Towngas Avenue: A lifestyle concept store introduced to target high-income customers, showcasing
contemporary gas appliances and providing personalized services, like recipe-on-request.
• Contact Personnel:
⚬ Call Center Staff: Employees at Towngas’ call center handled over 6,500 calls daily, providing human
interaction instead of automated responses, thus increasing customer satisfaction.
⚬ Field Service Technicians: These employees interacted with customers during on-site visits for
installations, maintenance, and safety checks, collecting detailed feedback and data.
⚬ Customer Focus Teams (CFTs): Senior representatives visited residential estates to gather firsthand
customer feedback and address issues directly.
Servuction Model

3. Other Customers:
• Customer Interactions: Towngas customers might influence each other’s perceptions of the company through
shared experiences or reviews. Positive word-of-mouth from satisfied customers can contribute to loyalty and
the company’s reputation.
4. Service Outcome:
• Customer Satisfaction: Towngas focused on ensuring consistent and high-quality service across all
touchpoints, resulting in improved customer satisfaction, loyalty, and retention.
• Service Recognition: Towngas was recognized with several service awards, including the 2002 Customer
Service Award from the Hong Kong Retail Management Association, demonstrating the success of its service
initiatives.
Recommendations

Data Strengthening
• Business Intelligence (BI): Analyze customer data to identify trends, optimize operations, and
personalize services.
• Customer Information System (CIS): Maintain accurate and up-to-date customer records for
effective management.
One-Stop Solution
• Integrated services: Offer bundled services like gas appliances and installation to enhance
customer value.
• Personalized customer support: Provide tailored assistance based on individual customer
needs.
• Digital self-service: Enable customers to manage accounts and access information online.
Lifestyle
• Community engagement: Participate in local events and initiatives to strengthen brand
presence.
• Sustainable practices: Promote environmentally friendly initiatives to appeal to eco-conscious
customers.
• Customer loyalty programs: Reward loyal customers with exclusive offers and benefits.
Generate More Business
• Targeted marketing campaigns: Utilize customer data to create personalized marketing
campaigns.
• Expand service offerings: Explore new business opportunities, such as renewable energy
Thankyo
u