Improving the quality of mobile phone customer care service at telecommunications service corporation VNPT vinaphone

ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------

PHẠM THỊ THỦY

IMPROVING THE QUALITY OF MOBILE PHONE
CUSTOMER CARE SERVICE AT
TELECOMMUNICATIONS SERVICE CORPORATION VNPT VINAPHONE
NÂNG CAO CHẤT LƯỢNG DỊCH VỤ CHĂM SÓC
KHÁCH HÀNG THUÊ BAO DI ĐỘNG TẠI TỔNG CÔNG TY
DỊCH VỤ VIỄN THÔNG -VNPT VINAPHONE

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2019


ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------

PHẠM THỊ THỦY

IMPROVING THE QUALITY OF MOBILE PHONE
CUSTOMER CARE SERVICE AT
TELECOMMUNICATIONS SERVICE CORPORATION VNPT VINAPHONE
NÂNG CAO CHẤT LƯỢNG DỊCH VỤ CHĂM SÓC
KHÁCH HÀNG THUÊ BAO DI ĐỘNG TẠI TỔNG CÔNG TY
DỊCH VỤ VIỄN THÔNG -VNPT VINAPHONE

Chuyên ngành: Quản trị kinh doanh
Mã số: 60 34 01 02
LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS. PHẠM VĂN HỒNG

HÀ NỘI - 2019


DECLARATION

The author confirms that the research outcome in the thesis is the result of
author’s independent work during study and research period and it is not yet
published in other’s research and article.
The other’s research result and documentation (extraction, table, figure,
formula, and other document) used in the thesis are cited properly and the
permission (if required) is given.
The author is responsible in front of the Thesis Assessment Committee,
Hanoi School of Business and Management, and the laws for above-mentioned
declaration.

Hanoi, June 1st, 2019


ACKNOWLEDGEMENT

With a deep and sincere affection that allows the author to deeply thank all
individuals and collectives for facilitating the process of studying and studying this thesis.
In particular, the author would like to express his deep thanks to Dr. Pham
Van Hong, who directly guided and helped a lot during the research and completion

of the thesis.
The author would like to express his gratitude to all HSB faculty members of
Hanoi National University for teaching encouragement and encouragement, facilitating
the time of studying at the University as well as the time to complete this thesis.
The author would like to sincerely thank the Board of Directors, colleagues
of the Personal Customer Department and Customer Care Department for
facilitating and helping to complete this thesis.
Although the author has made great efforts, the thesis is difficult to avoid
certain limitations and shortcomings. Due to time limits and professional
qualifications, the dissertation does not avoid shortcomings. We hope to receive the
sincere advice and contributions from teachers, teachers, friends and colleagues to
make the thesis more complete. Once again, thank you!
Hanoi, June 1st, 2019


CONTENT

LIST OF TABLE ........................................................................................................ i
LIST OF DIAGRAM ................................................................................................. ii
ABSTRACT ................................................................................................................1
OVERVIEW OF RELATED RESEARCH WORKS .................................................5
CHAPTER 1: RATIONALE OF SERVICE AND QUALITY OF CUSTOMER
CARE SERVICE ........................................................................................................8
1.1. Customer care service in the enterprise ...............................................................8
1.1.1. The concept of customers and the role of customers for businesses ............8
1.1.2. Concept of customer care ...........................................................................10
1.1.3. The role of customer care ...........................................................................13
1.1.4. Some principles of customer care ...............................................................16
1.2. Service and quality of customer care services in the field of Telecommunications ....18
1.2.1. Features of Telecommunication service .....................................................18

1.2.2. Customer service Telecommunications and maintenance of customers in
the telecommunications sector ..............................................................................19
1.2.3. Quality of customer care service ................................................................22
1.3. The criteria to assess the quality of customer care services in the field of
Telecommunications .................................................................................................23
1.3.1. Type of service provided ............................................................................23
1.3.2. Service quality ............................................................................................24
1.3.3. Method of providing services .....................................................................26
1.3.4. Customer satisfaction ..................................................................................27
1.4.

Factors

affecting

the

quality

of

customer

care

services

in

the

Telecommunications sector .......................................................................................23
1.4.1. External environmental factors ...................................................................28
1.4.2. Factors within the enterprise .......................................................................29
CHAPTER 2: CURRENT SITUATION OF QUALITY OF MOBILE PHONE
CUSTOMER CARE SERVICE AT VNPT VINAPHONE ....................................32


2.1. Overview of Telecommunications Service Corporation - VNPT VinaPhone ...32
2.1.1. Functions, tasks and organizational structure of VNPT VinaPhone ..........32
2.1.2. Customer characteristics of VNPT VinaPhone ..........................................36
2.2. Current situation of factors affecting the quality of customer care for mobile
subscribers at VNPT VinaPhone ...............................................................................40
2.2.1. External environmental factors ...................................................................40
2.2.2. Factors within the enterprise .......................................................................43
2.3. Actual quality of customer service of mobile subscribers at VNPT VinaPhone .....44
2.3.1. Type of service provided ............................................................................44
2.3.2. Service quality ............................................................................................45
2.3.3. Method of providing services .....................................................................51
2.3.4. Customer satisfaction ..................................................................................54
2.4. Evaluate the quality of mobile customer service at VNPT VinaPhone .............56
2.4.1. Advantages ..................................................................................................56
2.4.2. Limitations and reasons ..............................................................................57
CHAPTER 3: SOME SOLUTIONS TO IMPROVE THE QUALITY OF MOBILE
PHONE CUSTOMER CARE SERVICE AT VNPT VINAPHONE .......................60
3.1. Viewpoints and orientations of the Company on the quality of customer care
services in the future .................................................................................................60
3.2. Solutions to improve the quality of mobile customer service ............................61
3.2.1. Management Solutions group .....................................................................61
3.2.2. Professional solutions group .......................................................................67

3.2.3. Method of providing services .....................................................................70
3.2.4. Improve customer satisfaction ....................................................................73
3.2.5. Implement marketing mix solutions ...........................................................74
3.2.6. Solution to retain customers .......................................................................78
CONCLUSION .........................................................................................................80
REFERENCES ............................................................................................................2


LIST OF TABLE

Table 2.1: Percentage of product packages in total subscriber and total revenue............45
Table 2.2: Working statistics to answer customers' answers ....................................46
Table 2.3: Evaluation results of subscribers on the accessibility of customer care
activities of VNPT VinaPhone ..................................................................................47
Table 2.4: Evaluation results of subscribers on the availability of customer care
activities of VNPT VinaPhone ..................................................................................48
Table 2.5: Evaluation results of subscribers on reliability in customer care of VNPT
VinaPhone .................................................................................................................49
Table 2.6: Evaluation results of subscribers on VNPT VinaPhone's ........................50
Table 2.7: Evaluation results of subscribers about the capacity of transaction staff of
VNPT VinaPhone......................................................................................................51
Table 2.8: Proportion of customers who prefer to use customer care forms of VNPT
VinaPhone .................................................................................................................53
Table 2.9: Customer satisfaction when using customer care service Of VNPT
VinaPhone .................................................................................................................54
Table 2.10: Comparison of subscribers on quality criteria between VNPT
VinaPhone network and that network is used ...........................................................55
Table 2.11: Evaluation of customers for mobile phone networks in ascending order...56

i

LIST OF DIAGRAM

Diagram 1.1: Determinants of service quality received ............................................25
Diagram 2.1: Organizational structure of VNPT VinaPhone ...................................35
Diagram 3.2: How to solve customer related problems at stores, agents of VNPT
VinaPhone .................................................................................................................71

ii


ABSTRACT

1. Rationale
Customer care is a business strategy that most businesses pay attention and
invest. Good customer service will bring many benefits to businesses.
Customer care service plays a very important role in improving the
competitive advantage of service businesses in general and telecommunication
service businesses in particular. It helps businesses differentiate their image of
service quality in the minds of customers, maintain existing customers, increase
loyal customers, attract potential customers and business costs for businesses. .
Customer care service is a key activity in marketing activities of enterprises in order
to direct the management activities of enterprises into target customers to bring
outstanding satisfaction to customers when consuming services with good customer
care quality.
Vinaphone is one of the three largest operators accounting for the highest market
share of mobile information services (including Mobifone, Vinaphone and Viettel).
Besides, there are also smaller networks that continuously have strong market
penetration strategies to gain market share of these three operators, so the networks in

general and VNPT VinaPhone Corporation in particular need to have different
strategies to maintain old market share as well as increase new market share. Customer
satisfaction with products - services is a vital issue for every business. In today's
context, technological advancements, mobile telecommunication services today
have become popular and indispensable for everyone in everyday life. The recent
event is Vietnam registered on the global telecommunications map and global 3G
map. Thereby showing the growth of the telecommunications industry in Vietnam.
Especially when there are quite a lot of competitors, the research on the quality of
services provided to customers of each business is extremely necessary to retain
existing customers as well as entice potential customers. In recent years, VNPT
VinaPhone Corporation has met many difficulties in its business, operating units of
sales and customer care activities nationwide for customers who are individuals,

1


households, small and medium enterprises. This is also the customer segment that
accounts for the largest proportion in VNPT VinaPhone's business activities.
Therefore, the construction of customer care solutions by modern methods,
applying the theory of quality management of customer care, informatics
applications in customer management, organization of customer care Professional
goods to further enhance customer care quality create customer satisfaction to retain
customers the most necessary, while operators are starting to make the same number
transfer service available.
As an employee of VNPT VinaPhone, facing difficulties and challenges of
the market, being aware of the importance of customer care activities is essential,
with the guidance of Dr. Pham Van Hong. I chose the topic " Improving the quality
of mobile phone customer care service at Telecommunication Service Corporation VNPT VinaPhone " as my thesis dissertation topic. I hope teachers, friends and
colleagues to contribute ideas to help me complete the content of this thesis.
2. Literature Review

Research on customer care is an urgent and vital issue to the existence and
development of service providers and also becomes a topic that attracts many
authors inside and outside. countries interested in research. However, each
author's approach, level and scope of exposure are different. Some important
research projects can be mentioned:
Master's thesis in Business Administration "Some solutions to improve the
quality of customer care service at Misa joint stock company" by author Le Thi
Hong Van, National Economics University, 2018.
Thesis of Master of Business Administration "Completing customer care
at Mobile Information Company (VMS MobiFone)" by author Le Van Tu,
National Economics University, 2017.
Thesis of Master of Business Administration "Improving the quality of
customer service of Saigon Commercial Bank - Hanoi Transaction Office" by
author Vu Dieu Tu, National Economics University, 2016.

2


Thesis of Master of Business Administration "Improving the operation
process of Customer Care Center (CallCenter) at Techcombank" by author Le
Thi Minh Tri, National Economics University, 2016.
In summary, although there are quite a lot of researches on finishing and
improving the quality of customer care services, however, research projects have
not yet proposed and built up complete and synchronous and special solutions. is
for customer care services in the field of Telecommunications. With the desire to
bring out specific solutions, highly practical, applied to the field of customer
care at Telecommunication Service Corporation - VNPT VinaPhone author
selected the topic “Improving the quality of mobile phone customer care service at
Telecommunication Service Corporation - VNPT VinaPhone" as a research topic
for their dissertation.

3. Aims of research
The thesis studies the basic arguments on service quality in general and the
quality of customer service in the field of Telecommunications and mobile
information in particular with the following objectives:


Systematize some basic arguments about service quality, especially quality

of customer care in the field of Telecommunications.


The concept of customer care



Criteria for evaluating customer service quality



Factors affecting customer service quality improvement



Analyze the status of customer service quality of VNPT VinaPhone



Proposing solutions to improve the quality of customer care services of

VNPT VinaPhone

4. Object of Research
Quality of customer care service for postpaid / prepaid subscribers
5. Scope of Research
- About time: Period 2015 - 2018
- About space: At Telecommunication Service Corporation - VNPT VinaPhone

3


- Regarding the content: The thesis performs research and assess the status of
mobile subscriber service of VNPT VinaPhone and sets out solutions to improve the
quality of mobile subscriber service of VNPT VinaPhone.
6. Research Methods
The thesis using main research methods is:
Research methods at the table: This is a common method to carry out initial
assessment. Authors can collect available data within your company or external
sources. Information can be in paper form or digitalized on issues such as: national
economic overview, market survey report, company profile, sales tracking data,
trade statistics, consumer survey ...
Field survey method: Is the method of direct observation on the object of the
survey right at the place where the processes that the researcher can use as an
argument. This is a method that requires sophisticated observation of the researcher.
The observation of survey objects is divided into many types: according to the level
of preparation, according to the relationship between the observer and the observed,
according to the purpose of grasping the nature of the observed object, according to
the purpose of treatment information, according to the continuity of observation and
ultimately according to the means used in the observation.
Expert method: Expert method is the method of using the intelligence of a
team of highly qualified experts to consider and identify a complex scientific or
practical event, to find make the optimal solution for such events or evaluate a

scientific product.
7. Proposed Thesis Structure
In addition to the introduction, conclusion and list of references, the dissertation is
divided into 3 chapters:
Chapter 1: Rationale for service and quality of customer care services.
Chapter 2: Current situation of the quality of mobile customer care service at VNPT
VINAPHONE
Chapter 3: Some solutions to improve the quality of mobile customer care service
at VNPT VINAPHONE

4


OVERVIEW OF RELATED RESEARCH WORKS
Research on customer care is an urgent and vital issue to the existence and
development of service providers and also becomes a topic that attracts many
authors inside and outside. countries interested in research. However, each author's
approach, level and scope of exposure are different. Some important research
projects can be mentioned:
Master's thesis in Business Administration "Some solutions to improve the
quality of customer care services at Misa joint stock company" by author Le Thi
Hong Van, National Economics University, 2018. Comment The author's writing
evaluates the status of customer service quality at Misa Joint Stock Company. In the
actual situation, the author gives some general assessments about the quality of
customer care services at the company, including the positive aspects, the
limitations, giving the causes of the limitations . Since then, the author proposed
some solutions to improve the quality of customer care services at the company
such as: Improving the quality of staff activities; implementing synchronously the
VOIP switchboard system; increase investment in technology and facilities for
departments; set product policies. At the same time, the author proposed some

recommendations to improve the quality of customer care services such as:
Proposals related to leadership and policies; petitions related to people;
recommendations on improvement of management organization; recommendations
on facilities and equipment.
In the actual chapter, the quality of customer care service at Misa joint stock
company has mentioned the criteria of measuring customer service quality at the
company. However, in his solution, the author did not mention solutions related to
these measurement criteria.
Thesis of Master of Business Administration "Completing customer care at
Mobile Information Company (VMS MobiFone)" by author Le Van Tu, National
Economics University, 2017. Compared to the topic of author Le Thi Hong Van
refers to the work of customer care in the field of software, the thesis of author Le
Van Tu refers to the care of customers in the field of telecommunications, is the

5


field There are relatively different characteristics compared to the software field.
Under this topic, the author generalized the characteristics of customer care
activities in mobile information; provides criteria and methods for evaluating
customer care activities in mobile information. In the actual situation, the author has
provided customer care contents at VMS Mobifone mobile information company;
customer care system of the company; The quality of the mobile information
company's customer care system as well as the major limitations and challenges of
the customer care system at the company. From the reality of the customer care
system at the company, the author proposed some solutions to improve customer
care work at the mobile information company VMS Mobifone: Complete the
information support system customer care; promote customer retention in customer
care activities; unify the process and improve the method of complaint settlement;
solutions for empowering the direct customer care department

These solutions, although applied to a company operating in the field of
mobile information, however, cannot fully apply these solutions to customer care
work at the VNPT VinaPhone is possible because although operating in the field of
mobile information but the business philosophy and strategic direction of each
company as well as programs, guidelines and policies in operation Customer care at
each company is different.
Thesis of Master of Business Administration "Improving the quality of
customer service of Saigon Commercial Bank - Hanoi Transaction Office" by
author Vu Dieu Tu, National Economics University, 2016. Topic The author does
not work on customer care in the field of telecommunications but also offers some
of the following issues:
i. Assessing the quality of customer service through surveys at Sacombank Hanoi Transaction Office: Describing the process of investigation and analysis of
survey results.

6


ii. Analyzing the factors that make up the quality of customer service of
Sacombank - Hanoi Exchange including: Employee factor; time factor; Prestige
bank; Infrastructure.
iii. Giving positive solutions to improve the quality of customer service of
Sacombank - Hanoi Exchange: Building appropriate organizational structure
towards customers; In particular, the author offers solutions to improve technology
capacity and facilities such as the need to have more utilities to Sacombank become
an electronic bank: Phonebanking; Internet Banking provides utilities to transfer
money from accounts; Mobile Banking provides utilities such as mobile banking.
Thesis of Master of Business Administration "Improving the operation
process of Customer Care Center (CallCenter) at Techcombank" by author Le Thi
Minh Tri, National Economics University, 2016. In section The theoretical basis of
the author gives the theory of process improvement in the service sector according

to Lean Six Sigma (LSS) model; experience applying Lean Six Sigma model at
Nam Ha Garment Joint Stock Company.
In the chapter "Analysis of customer comments processing process at
Customer Care Center - Techcombank", the author mentioned the application of
LSS model by DMAIC method in the process of processing customer comments. at
TechCenter CallCenter - Techcombank, thereby identifying the main type of
customer complaints related to system errors and lack of skills.
In summary, although there are quite a lot of researches on finishing and improving
the quality of customer care services, however, research projects have not yet
proposed and built up complete and synchronous and special solutions. is for
customer care service in telecommunications. With the desire to bring out specific
solutions,

highly practical,

applied

to

the

field

of

customer

care

at

Telecommunication Service Corporation - VNPT VinaPhone author selected the
topic "Improving the quality of mobile phone customer care service at
Telecommunication Service Corporation - VNPT VinaPhone” as a research
topic.

7


CHAPTER 1
RATIONALE OF SERVICE AND QUALITY OF CUSTOMER
CARE SERVICE

1.1. Customer care service in the enterprise
1.1.1. The concept of customers and the role of customers for businesses
So far, people often define customers as follows: "Customers are all
organizations and individuals who have demand for products and services that
businesses provide, are and will use products. service of the business ”. Under this
definition, customers are understood as buyers. That understanding is correct but
incomplete, it does not take into account the customers who are investors,
management agencies and employees working in the enterprise. : "Customers are
the people we serve whether they pay for our services or not." This definition has a
disadvantage that overlooks the business purpose in order to achieve profitability
but fully mentioned all customers of the business.
The customers of the enterprise are divided into two groups:
- Group of internal customers (internal customers): are all employees of an
enterprise, who are working in the enterprise and enjoy benefits from that enterprise.
- Group of external customers (often called customer): People who are
outside come to buy goods or services of a business. External customers include the
following objects:

+ Users: Individuals or organizations actually use products and services of
enterprises
+ Buyers: are people who collect information about products and services,
choose and make decisions to buy and pay
+ Beneficiary: are individuals or organizations that benefit or suffer from the
use of products or services.
In the above three subjects, the buyer is the direct creator of the revenue for
the business but not so that we do not care about the two objects left by users and
beneficiaries are closely related to process through buyers' decisions. The process is

8


shown as follows:
Identify
needs

Look
for
informa
-tion

Evaluate
the plan

Decide
to buy

Action
to buy

From the stage of recognizing the demand, finding information,
evaluating the plan and then deciding to buy goods, it affects and is influenced
by buyers, users and beneficiaries, so businesses must pay attention to both
These three objects.
From an enterprise-wide perspective, businesses must serve outside
customers. But for each department, department or employee, they may have to
serve outside customers, internal customers or both. It means that not everyone
serves outside customers but everyone has customers.
It should be noted that in any business in any business, serving outside
customers is also the number one priority. And if you don't directly interact
with outside customers, then support your internal customers to better serve
outside customers.
Currently in the context of a strong market economy, when competition
is becoming more and more popular and fierce, customers play a very
important role for each business, it determines success or failure of the
business. Many businesses have affirmed that "The most important asset for
our business is customers." Why is there such affirmation: Products produced
and traded on the market must have consumers. Without customers, goods will
not be sold, leading to bankruptcy.
In the market, every item has many suppliers, alternative products are
also diverse. This is the right choice for customers. Enterprises that provide the
most appropriate products, have the best care policies will be chosen by
customers. If customers are not satisfied with the product or service of a
business, they will be ready to choose products and services of other businesses
immediately. Thus, the company cannot consume the product, it will be lost

9

even if it is not accepted in the market.
Thus, the business exists thanks to the supply of goods and services on
the market and they have no choice but to compete for customers, the survival of
the business depends on the customer. Customers who act as consumers of products
and services, are the ones that bring profits to the business. What is the decision to
produce: What model, quality? How many, the price? ... the problems that
businesses do not decide on their own but depend heavily on the tastes of
customers. Since then, new enterprises have decided to invest, build production and
business scale to suit their capabilities and meet market demands.
A business that wants to succeed must always ask itself: "What do we
really do business? "In other words," what do we offer our customers? "
Some experts believe that every business is the same business that is
sold to customers with satisfaction. So no matter what type of business you
want to survive, there is no other way to meet customers' needs. The needs of
customers are not just about the goods and services businesses provide, but
there are also higher requirements. Recognizing the importance of customer
satisfaction is the decisive factor for business survival. So how to satisfy
customers, how to take care to keep old customers and attract new customers?
Is a problem that all members of the business from the leadership to all
employees must change according to the new thinking "Towards customers".
1.1.2. Concept of customer care
Along with proper awareness about the role of customers in the existence and
development of enterprises, today customer care work has been focused and
considered an important part of Marketing, ensuring the success of any business.
Customer care is a competitive strategic activity of businesses to reach and keep
customers both by reason and emotion. Investing in customer care is not an ordinary
expense, but a long-term, strategic investment. Taking care of outside customers is
closely related to internal customer care.
Customer care is not only polite and friendly attitude when contacting
customers. Customer care is not just about the employees who have direct contact

10


with customers, but customer care must be done in all aspects of products and
services provided to customers. Customer care activities come from reality, through
the process of summarizing practical experience, generalizing into reasoning.
Currently, the term customer care has not been defined correctly and consistently,
but can be understood relatively as follows: "Customer care is to serve customers
the way they want. be served and do all necessary to keep existing customers ”.
Customer care has three phases:
- Taking care of customers before buying products: advertising activities,
product marketing
- Customer care during the purchase process: it is the service attitude of the
sales staff directly with the customer, which is the discount, discount for customers
who buy in large quantities.
- Customer care after purchase: is the task of answering customers' questions,
resolving complaints and maintaining customers.
Between Customer Care and customer service (Customer Service) there are
common points. Customer service is the minimum incremental service that comes
with selling products to customers. But customer care has a wider meaning, it is not
only the minimum incremental service but also the human aspect, it is similar to
taking care of your friends and relatives to gain the good of customers when buying.
Customer care is a competitive strategic activity of businesses to reach and keep
customers with both rational and emotional. Investing in customer care is not an
ordinary expense but an investment that is long-term, strategic and must be based
on a long-term corporate culture. So it can be said that corporate culture is the
foundation, the starting point of customer care.
Marketing is a management activity of an enterprise to detect and satisfy
customers' needs. Considering the process of marketing management, Marketing

includes all activities from market research, demand detection, product design, pricing,
distribution channel building and promotion activities. At that time, customer care is
only a marketing activity and only appears in some stages of that process.
At product design, there are three levels of products: core products, realistic

11


products and additional products. Customer care corresponds to level three additional products. With the meaning of enhancing value for products based on
basic level and real level. This is the competitive weapon of companies especially
for service providers, apart from price and quality factors, customer care is an
important factor to dominate the market.
In addition, customer care also appears in some other stages such as the process of
building distribution channels, direct sales, and identifying promotional mechanisms.
In the construction of distribution channels, enterprises need to ensure to expand the
network to the maximum extent, enabling customers to access services easily, thus
requiring customer care to be very good. Or in direct selling, employees who contacts
directly with customers must perform customer care well.
Customer care is a part of marketing, so it also receives support from marketing
activities and vice versa also dominates and supports marketing activities.
Customer care as well as many other marketing activities aim to meet the
expectations of customers. In fact there are many different factors to satisfy
customers. The elements are divided into three pillar groups:
Group of product and service elements
• The variety of products and services offered
• Price factor
• Quality and specifications of products and services
• Quality of after-sales service ... ..
Group of convenient elements
• Conditions of delivery and exchange

• Business hours
• Payment methods
Group of human elements
• The ability, skills and qualifications of sellers
• Employee attitudes and behaviors
Which of these three groups play the most important role? This depends on
specific situations. Such as:

12


If the product is not suitable and the price is too high, the customer will not
buy no matter how polite the attitude of the seller is.
If the product is good, the price is low, the customer can accept to bear many
inconvenient factors.
If products are sold on the market with similar prices and quality, human
factors become important.
Thus, customer care activities can be effective or not and how the level of
promotion depends very much on the characteristics of products and services. Any
customer, whether an individual or an organization, wants more from the product or
service they buy, we must be completely reliable, that is, the product factor is
always at the top of the decision to choose. Their choice then comes the quality of
customer care activities. All friendly smiles and polite greetings cannot compensate
for unreliable products or substandard services. Customer care activities only really
make sense when the product or service itself meets the customer's requirements.
1.1.3. The role of customer care
Customer care is a marketing activity and along with marketing activities it
also aims to satisfy customers' needs so that the goals of the business can be
achieved (the goal of generating revenue, increasing profits). profit, growth target or
exist in a competitive environment ...). Therefore, the role of customer care for

enterprises is as follows:
Customer care helps businesses maintain existing customers and create
loyal customers
Business customers are divided into two categories: existing customers and
potential customers. Existing customers are those who are using products and services
of the business. Potential customers are those who may purchase products and services
of the business in the future. In order to maintain existing customers, it is to make them
use their products and then continue to use them, then businesses often pay attention to
customer care. To attract potential customers, businesses invest in marketing activities
such as advertising, marketing .... In the experience of traders, retaining an existing
customer is much easier and more cost-effective than attracting a new customer.

13


Therefore, businesses now focus on maintaining existing customers rather than
conquering new customers. Customer care will help them do that.
Customer care is serving customers the way they want. Along with the
reliability of products, customer care services bring customers satisfaction and
satisfaction equal, even higher than they expected. Most of the time, customers tend
to come back to their familiar suppliers, so just to please them they will stay.
Customer care creates an invisible rope binding and retaining customers.
From customer retention to turning them into loyal customers there is
absolutely no difficulty. Therefore, customer care helps businesses build a loyal and
large number of customers. This is the origin of valuable assets for businesses
today. Obtaining loyal customers will reduce the burden of competitive pressure.
Customer care helps businesses attract potential customers
Although the object of customer care is current customers and the goal is to
maintain existing customers, but if customer care is good, it will have a positive
impact on conquering potential customers. Some recent research shows that: A

satisfied customer will tell four other people and an unsatisfactory customer will tell
four or more people. That means that if a customer is well served they will tell other
people (family, friends, colleagues ...) about their satisfaction. In a case, this
customer advertises the business to potential customers. The image and prestige of
the business are highlighted in their eyes and the ability that these people will come
to the business when it is in need is great. Attracting potential customers in this case
is done indirectly through existing customers. This is a free advertising method that
is very effective.
However, it would be disastrous if the customer was unhappy with the
business and complained to the people around him. Customers are often the ones
who tend to be better at complaining than praising, no matter how good your
business is, only a mistake is bad for your business. The impact of these complaints
is hard to measure and will make the image and reputation of the business shaken.
At that time, the enterprise not only lost its current customers but also lost a
considerable amount of customers in the future.

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Customer care helps businesses reduce business costs
Many expenses will be significantly reduced if good customer care is done.
First, businesses will save the cost of finding customers. A business to survive
must maintain a certain number of customers. This goal can be achieved in two
ways: keeping existing customers or finding new customers. Every year, companies
have to invest heavily in advertising, marketing, and sales programs to attract
potential customers. Economic experts calculate that the cost of conquering a new
customer is about five times the cost of maintaining an existing customer.
Therefore, if businesses do well in customer care, they will retain customers and
will maintain a relatively stable number of customers, thereby saving significant
costs of finding new customers.

Secondly, for patrons, businesses will reduce travel costs and advertise new
products and services. Enterprises just need to call, fax or send mail to customers
informing them of new products and services, long-term customers can still order
through this form.
Thirdly, good customer care makes customers happy right from the first time
so it helps businesses save time and money in the process of resolving customer
complaints and inquiries.
Customer care helps improve competitive advantage in the business
The development of marketing in general and the emergence of new
marketing activities such as customer care or customer relationship management stem
from a deep cause that competition in the market is increasingly fierce. The trend of
globalization in the world economy has a significant impact on the current level of
competition, not only competing within a country but also opening the region and the
world. More and more domestic and foreign companies can provide the same products
and services. Attracting customers is a vital element of a business.
In addition, the rapid development of science and technology has enabled
businesses to provide products and services with the same quality and price. That
gives customers more choices. In addition to quality and price factors, customers
increasingly pay attention to customer care activities of enterprises. The price and

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quality competition will gradually give way to competition in customer care.
Businesses who take good care of their customers will get customers. Customer care
becomes a powerful competitive weapon for businesses in a new era.
1.1.4. Some principles of customer care
1.1.4.1. Meeting customers' needs
Although customer care activities aim to increase value for core products, it
only really makes customers happy when it is needed with customers. Enterprises

cannot create customer care content based on their own subjective thinking but need
to rely on what customers want, how and what they want to be served. With this
principle, enterprises need to identify two issues: Customer care content and
customer care level.
Customer care content is specific activities that businesses will conduct to
serve customers as customers desire. For this, enterprises need to regularly
investigate and grasp the needs and wants of customers.
The level of customer care shows the indicators of quality, volume, scale,
frequency of conducting the above activities. A customer conference can consist of
a few dozen or several hundred customers, which can be organized every half year
or once a year. Anniversary gifts for customers on the occasion of the New Year
can be just a postcard, a good calendar can also be a more expensive gift.
The more customer care content is and the larger the level, the more satisfied
the customer is. However, the implementation of a customer care program depends
on the ability of the business (financial resources, human resources) means to
ensure the customer care plan is feasible.
Normally, enterprises will decide on the content and level of customer care
according to the following factors:
Customer's need
Customer care activities of competitors
Responsiveness of the business itself
The most basic thing is that businesses have to pay between the efficiency
achieved and the cost.

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1.1.4.2. Divide customers into groups
The division of customers in groups for care is similar to the market
segmentation in marketing in general. Grouping customers can also be based on

differences in needs, personality, and behavior. However, the most important
division that businesses often use is revenue (profit) that each customer brings.
Based on this criterion, customers are divided into:
Special customer group
Large customer group
Average customer group
Small customer group
The purpose of this customer grouping is to understand the needs of each
group and identify the key customer groups that need care.
The demand of customers on how to serve as well as the demand for products
is very rich and diverse. If all these needs are met, businesses will have to spend a
lot of money but not necessarily. Each group of customers has certain needs.
Grouping customers, understanding exactly the needs of each group, businesses will
satisfy customers but limit the cost.
In customer care activities, businesses often get special care for large groups
of customers. According to the 80:20 Pareto rule (common law in economic
activity) 20% of customers bring in 80% of revenue (profit), 20% of this customer
plays an important role for the business. Keeping this 20% of visitors, enterprises
will gain relatively stable revenue (profit). Therefore, based on the report on
revenue (profit) at the end of each period, enterprises must determine 20% of large
customers to prioritize care. In addition, businesses can go deep to determine 10%
or 5% of the largest customers are particularly interested.
1.1.4.3. Take care according to the stages of the purchase process
The purchase process is usually divided into three stages: the pre-purchase
stage, the buying decision phase, the post-purchase period. At each stage the
customer has different interests so the level of care is also different.
Pre-purchase stage

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