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..!!