Customercentricity APSEZ Capt Unmesh Abhyankar Feb 2015 Who
Customer-centricity APSEZ Capt Unmesh Abhyankar Feb 2015
Who is the Customer Do we know our customer? 2
Identifying customers correctly is only the beginning Who is whose customer? Exporter / Importer CHA Surveyor Vessel Owner Port Labour Contractor Transporter Govt Authorities Vessel Agent …and others 3
Next step is to serve the customers well Do we understand our customers’ requirements? YES. OUR PRODUCT DOES NOT MATCH CUSTOMER REQUIREMENTS. BUT WE HAVE TO PROVE OTHERWISE AND SELL IT TO MEET TARGETS. 4
Port’s Perspective of Customers’ requirements An illustrative Importer / Exporter Vessel Agents Transporter • Information availability on real -time basis • Adequate road connectivity to the port • No Pre Berthing Delay • Berthing on arrival • Safe Handling of Cargo • Smooth procedures at In / Out Gates • Timely Registration and declaration of vessel • Speedy Operation at Port • Safe maneouvering • Staff’s behaviour towards their people • High productivity • Sufficient storage space • Fast Evacuation • Fast Turn around Time • No cargo contamination / pilferage • Fast & efficient services i. e. Fresh Water, Gangway etc. • Ease of parking / finding right place within the port …and so on for other classes of customers The spectrum of customers’ requirements is large and complex 5
Customer requirements Are we fulfilling the customers’ requirements to the desired levels? 6
Fulfilling customers’ requirements: Reality is no effective action The gap between awareness of customer requirements and actual action is large 7
Monopolistic Mind-set Are we not fulfilling the customers’ requirements because there is gap in demand-supply? 8
Monopolistic mind set makes us Revenue Focused instead of Customer Centric Revenue Focused • Chasing each and every customer and serving at low-profitability • Lower pricing and profitability • Disturbing the customer dynamics with minimal / no loyalty • Serve and delight Prime customers who can bring in volumes at higher profitability • Company’s value proposition brand equity held intact in customers’ minds • Fully satisfied customers and superlative customer loyalty X Mn MT X+ X Mn MT As we become customer-centric, prime customers see us as strategic partners and will give larger pie of business to us. In long run, business would only increase. 9
Moving ahead Can businesses sustain the monopolistic mind-set and current practices? Some examples Automobile Banking Telecom Airlines 10
Businesses which had monopolistic attitude are on the downward trend Telecom sector 1985 1995 2005 2015 Getting a New Telephone / Mobile Connection No. of Companies in the market 1 2 9 11 Time Taken for New Connection In years In Months In Days In Hours Not thought of Negligible Good Key Differentiator Customer Service Levels With the entry of Service Focused private sector players, business landscape has completely changed for telecom sector All numbers / years are indicative for illustration purpose and are not exact 11
Changed business landscape for telecom Source: TRAI, Telecom Sector in India: A Decadal Profile 12
Businesses which had monopolistic attitude are on the downward trend Banking Sector Element 1985 Monopolistic Attitude 1995 2005 2015 Customer Centric Players in the market Limited number of banks yielding no choice effectively Large number of options to customer for choice Dominance Banks could dictate one-sided terms Customer is king Accessing bank Thought to be difficult Easy and Convenient, bankers coming to home Customer Service Not thought of Much enhanced services to customers Value-added services At bank’s mercy e. Statement / Internet or Mobile banking / advisory etc Customers chasing bank versus bankers chasing the customer With opening of banking for private sector, services levels have increased and traditionally strong players find it difficult to sustain their market positions Years / notations are indicative for illustration purpose 13
What has changed As new options became available, customers switched to the companies providing better services and delivering value for money 14
What will happen in our sector As new options becomes available, customers would prefer companies providing better services and delivering value for money 15
Future scenario: number of choices for the customer Which port should be chosen Port A Port C Port B Port D I have to also deliver cargo to my clients in timely manner Measure Port A Port B Port C Port D Pre Berthing Delay (in days) Nil 0. 5 1 2. 8 Productivity per Ship-berth day (in MT) 18000 15000 12000 9000 Vessel Turn Around Time (in days) 3. 1 4. 0 5. 4 8. 3 Responsiveness / Customer Services Excellent Good Average Poor Port’s Tariff 1. 5 X 1. 2 X X 0. 8 X Effective Cost to Customer 0. 8 Y 0. 95 Y Y 1. 6 Y All numbers / notations are indicative for illustration purpose 16
How the market dynamics would change in future Superior infrastructure and excellent operations translates to minimum effective cost while Customer Services acts as Key Differentiator 17
What do we do about it Day is not far when companies have to put customers first and sincerely think about customer satisfaction as prime goal 18
How do we become customer centric Customer centricity is building and developing business around customers. The Journey of a thousand miles must begin with a single step 19
Illustrative Initiatives to enhance customer centricity 3 2 Information through Mobile / App Operational Information available on Website 4 Customer Satisfaction Survey 5 1 Customer Service Cell Vessel Performance Index Enhanced Customer Centricity 20
Would being Customer Centric help Parameters 1999 -2007 Customer Centric Companies S&P 500 Shareholder returns 130% 0. 6% Sales growth 233% 10% Research shows customer centric organizations achieve far better results Basis Customer-centric companies tracked by Harvard Business School professor Ranjay Gulati, an expert on leadership, strategy, and organizational issues in firms 21
Way Forward Choice is ours Short term sights (Revenue Focused) OR Long term vision (Customer Centric) Nurturing and sustaining the business for years to come 22
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