Managing and improving customer services in electric power industry a case study of cau giay electric power company

Bachelor’s Thesỉs

MANAGING AND IMPROVING
CUSTOMER SERVICES IN ELECTRIC
POWER INDUSTRY - A CASE STUDY OF
CAU GIAY ELECTRIC POWER COMPANY
Instructor
Student

: MSc Hoang Cuong
Pham

: Thu Huỵen Le

School year

: 2014-2018

Class

: CLC 5.1

Faculty

: I.S.E.F

Major

: Foreign Economỉcs

Student code

: 5053106017

Hanoi, 05 - 2018


ACKNOWLEDGEMENT
To be able to complete this graduation dissertation, I would like to send special
thanks to Mr. Cuong Hoang Pham. Besides teaching in the class, he spent his time step
by step to suggest and edit my ideas in the progress.
I would also like to thank all of employees at Cau Giay Power Company who
have dedicated and helped to build up the information and background of this
dissertation.
In addition, during the course of the lecture, I received a lot of encouragement
and help from my friends and teachers at the Academy of Policy and Development.
This dissertation is my deepest thanks to everyone.
Student
Huyen
Le Thu Huyen

1


TABLE OE CONTENTS
ACKNOWLEDGEMENT..............................................................................................1
INTRODUTION.............................................................................................................4
CHAPTER I: OVERVIEW OF THE THEORIES OF CUSTOMER SERVICE
QUALITY IN THE POWER SECTOR.....................................................................................6
1.1. Theoretical background on Service quality in the electricity industry............................6
1.1.1.

s ervice overview......................................................................................6
1.1.2.
Electricity Service...................................................................................12
1.2. Customers and the role of the customer.........................................................................19
1.2.1.
Customer concept...................................................................................19
1.2.2.
Customer classiílcation...........................................................................19
1.2.3.
Client’srole..............................................................................................20
1.3. Customer care................................................................................................................21
1.3.1.
Deílnition................................................................................................21
1.3.2.
Role.........................................................................................................23
1.3.3.
Factors that create customer satisfaction................................................23
CHAPTER II: QUALITY OF TRANSACTIONS WITH CUSTOMERS IN
CAU GIAY ELECTRICITY COMPANY - THE NEW BACKGROUND.............................28
2.1. The introduction of Cau Giay Electricity Company......................................................28
2.1.1.
The process of formation and development...........................................28
2.1.2.
Functions, missions and scope of activities of the company.................28
2.1.3.
Organizational structure and customer Service......................................30
2.2. Analysis of customer Service quality at Cau Giay Power Company............................33
2.2.1.
Customer care through product groups..................................................33
2.2.2.

Customer Service through the íavorable factor......................................41
2.2.3.
Customer Service through the factor of human......................................44
CHAPTER III: SOME SOLUTIONS TO IMPROVE TRANSACTION
QUALITY WITH CUSTOMERS IN CAU GIAY ELECTRICITY COMPANY...................46
3.1. Development orientation of Cau Giay Power Company in the Corning years.... 46
3.1.1. Target.....................................................................................................46
3.1.2. Main targets...........................................................................................48


3.2.

Some Solutions to improve the quality of transactions with customers in Cau

Giay Electricity.........................................................................................................................48
3.2.1. Group Solutions related to product elements.....................................48
3.2.2. Group Solutions related to convenience factor..................................53
3.2.3. Group Solutions related to human factors.........................................55
CONCLUSION.............................................................................................................62
RECOMMENDATION................................................................................................63
REEERENCES.............................................................................................................65


INTRODƯTION
1. Reason for choosing the topic:
Customer Service plays a very important role in enhancing the advantage of
businesses, helping businesses differentiate their image of Service quality in the minds
of customers, attracting potential customers and reduce business costs for businesses.
Customer Service is a key activity in the promotion activities of the business to direct
the management activities of the business to the target customers and bring satisfaction

to customers when consuming Services with the best quality customer.
The power sector is a key economic sector that plays a particularly important
role in the national economy, as the basis for developing other economic sectors.
However, besides what has been achieved, there are many deíiciencies and
shortcomings in the field of electricity business as well as customer Service. With its
unique characteristics, the electric industry has a large number of customers, so those
who work in the electricity industry are unaffected by mistakes and misunderstandings
from customers.
The power sector has invested in electricity and power grids to ensure the
production and life of the people such as Hoa Binh Hydropower Plant, Thermoelectric
Power Plant, North-South 500kV transmission line,... and constantly improving power
quality. Currently, in Vietnam, electricity supply and retail are still monopolistic (only
competitive in the electricity generation market) but comply with Electricity Law and
decrees, circular and selling price. The State has formed many restrictions in serving
customers using electricity. In the period of integration and development of the
country, after the govemment approval, is expected to form a competitive retail
electricity market in the period from 2021 to 2023, there will be new challenges
appearing, strong and direct iníluence on the existence of Vietnam's power sector.
Thereíồre, the innovation and improve the quality of customer Service is one of the
goals to regain customer coníidence with the slogan EVN "Light up the trust".
Starting from that practice, I chose the topic of "Managing and Improving
Customer Services in Electric Power Industry - A case study of Cau Giay Electric
Power Company." Through this research project, Cau Giay Power Company has re-


evaluated the status of customer care in recent years, identifying
the
problems
that
customers are looking for and the level of response of the Power Company

to
promote
more customer care activities and response better and better requirements
of
customers
in the Corning time.
2. Purpose of the study:
- Analysis of customer care quality at Cau Giay Power Company
- Proposing Solutions to promote customer Service activities at Cau Giay Power
Company
3. Subjects and scope of study:
- The subject of the dissertation is to study and evaluate customer Service
activities at Cau Giay Power Company with 94,047 customers including 88,291
living customers and 5,786 economic customers.
- Research scope of the thesis is the activities of customer care Electricity in 8
wards in Cau Giay District
4. Research Methodology:
- Research methods used:

Statistics,

typical

surveys,

comparison,

synthesis,

situation and data analysis;

-

Primary data is collected through discussions with leaders of Cau Giay Power
Company and its affiliated units.

-

Secondary data was collected on the basis of inheriting research results, surveys
of Electricity Magazines and reports of EVN, EVN SPC, as well as on the
Internet.

5. Structure of thesis:
- Chapter I: Overview of the theories of customer Service quality in the power
sector
-

Chapter II: Background of Customer Care in Cau Giay Power Company
Chapter III: Solutions to improve the quality of transaction Services with
customers at Cau Giay Power Company


CHAPTER

I:

OVERVIEW

OE

THE

THEORIES

OE

CUSTOMER

SERVICE

QUALITY IN THE POWER SECTOR
1.1. Theoretical background on Service quality in the electricity industry
1.1.1. Service overview
1.1.1.1. Service ’s defìnỉtỉon:
Service is a broad economic sector in the society, the more developed the
society, the higher level of specialization and division of social labor, the more
enhance the Service to response the diverse needs of society. The Service also bring
beneíits to the receiver as a tangible product. Service is understood as many different
types of activities and commercial business.
Philip Kotler deíines Service as: "Service is any measure or beneíit that one
party may provide to the other and is essentially unobtrusive and does not lead to the
appropriation of something. Service implementation may and may not involve goods
in its physical form”.
According to Valarie A. Zeithaml and Mary J. Bitner (2000), "Services are
behaviors, processes, and ways of doing things that create value for the consumer and
satisíies the needs and expectations of the customers".
1.1.1.2. Service Features:
Service is a "special product" that has many characteristics in addition to other
types of goods such as invisibility, heterogeneity, inability to store, inseparable and
non-transferable ownership. These characteristics make the Service difficult to quantify
and cannot be identiíied with the naked eye, which can only be felt through the process

of use as follows:
a. Invisibility:
This íeature shows that the Service does not exist in the form of tangible
material, the customer's senses are difficult to recognize beíồre buying the Service.
This is a difficulty when selling a Service compared to selling a tangible product
because customers find it difficult to try the Service beíồre buying it, it is difficult to
assess the quality and value of the Service often determined by the actual experience of


the customer. It is difficult for advertisers to advertise their Services.
For

example,

when it comes to barbering, it is difficult to know the result after the haircut
will

be

beautiful or ugly.
In order to provide customers with sufficient information to support the
purchase decision process, the company should provide the necessary information
about the product through the staff of consultants, sales, customer care. , print
advertising. At the same time, businesses need to maintain a friendly relationship with
customers, build prestige, good brand image.
b. Inseparability:
The indivisibility of the Service is expressed in the fact that it is difficult to
divide the Service into two distinct stages, the production stage and the stage of use.
The creation and use of the Service usually takes place simultaneously. If goods are
usually produced, stored, distributed and íinally delivered to consumers, Services are

created and used right throughout the creation process. For commodity Products, the
customer only uses the product in the íinal stage, while for Services, the customer
companion throughout or part of the process of creating Services. In other words, the
affinity of these two processes makes the Service complete.
For commodity Products, goods can be produced centrally in one place, then
stored in warehouses, transported for consumption elsewhere where there is a need, it
is easy to balance the supply and demand in the market. The production of goods and
consumption can go through many stages. But for Services, the process of providing
Services and consuming Services occurs at the same time. The two sides must contact
each other at the appropriate place, time with no intermediaries.
The impact of this íeature on customers and businesses is as follows:
- For customers:
Must be present to consume the Service; must go to the places where the Service
is provided; Affected by the Service delivery process, the attitude of the Service
provider and the environment where the Service delivery process occurs.
-

For Businesses:


It is difficult to achieve economies of scale and quality consistency because it
depends on supplying staff, it is also difficult to reach a balance between supply and
demand, the relationship between customers and suppliers. Services have a great
impact on the customer perception of Service quality. Therefore, businesses need to
use the network of agents to reach customers, use the modem telecommunications and
Internet to serve the process of providing Services, have policies to manage personnel
separately for the employees directly contact customers, build friendly relationships,
stick with customers.
c. Heterogeneity, instability:
The Service cannot be mass-produced, concentrating on the production of

goods, so it is difficult for the supplier to standardize, measure and standardize the
quality of Services in a uniform manner. Quality of Service depends on factors beyond
the control of the Service provider such as the supplier's representative, the customer
and the Service delivery environment. This feature is also known as Service
differentiation. On the other hand, the customer perception of Service quality is
strongly iníluenced by the skill and attitude of the Service provider. Accordingly,
implementation ìen varies depending on how the Service is rendered, the Service
provider, the Service provider, the implementation time, the Service area, the Service
object, and the Service location. Moreover, the same type of Service has many levels of
implementation from "high", "universal" to "secondary". Thereíồre, the assessment of
perfect or weak Service quality is difficult to determine based on a Standard
measurement, which must take into account many other relevant factors in the
particular case.
Thereíồre, enterprises need to implement industrialization and automation in
Service provision. Special attention to the staff directly períồrm the Service. Friendly,
friendly attitude is important to attract customers.
d. Inability to store:
The Service only exists at the time it is provided, so they cannot be stored,
stored and sold as other goods. We can prioritize the Service in the following order but
cannot take the Service and then use it because the Service is complete, cannot be


reserved for "reuse" or "Restore". Thereíồre, the Service is the
product
that
is
used
when it forms and ends immediately afterwards. Production and
consumption
of

Services are tied together from start to tinish.
Under unchanged demand conditions, non-stockpiling is not a big issue, but if
demand íhictuates with a wide margin, Service providers will have trouble.
This characteristic makes it difficult for businesses to balance supply and
demand. Therefore, the company needs to regularly monitor the level of customer
satisfaction, maintain quality management, accurate demand íồrecasts, employ ílexible
labor policies, time, apply pre-reservation...
e. Non-transferability of ownership:
When buying a product, customers are allowed to transfer ownership and
become owners of the goods they have purchased. But when buying Services,
customers are entitled to use, enjoy the beneíits that the Service brought in a certain
time. With this feature, Service delivery intermediaries are not allowed to transfer
ownership of Services, they are merely participants in the Service delivery process. In
other words, the consumer cannot receive fúll ownership of the Service from the
provider, which both períồrms in the delivery of the Service. For Service, due to
invisibility and inseparability, the researchers split the Service into two classes:
- The íirst layer is basic Service:
Meet the basic interests of customers. The basic Service is the Service that
satisíies the customer's main demand, which is the main reason for customers to buy
the Service. However, basic Services are not the reason for customers choosing a
Service provider, but the basis for choosing the Service.
-

The second layer is secondary Service, in other words, the secondary Service is
a combination of both tangible and intangible (which is mostly customer
Service):

Thanks to secondary Services, the Service provider helps customers differentiate
their Services from those of their competitors. Secondary Services vary widely and
vary according to market competition. It helps customers choose which Service

provider to use, it helps the Service provider to increase its competitiveness.


1.1.1.3.

Service model:

In Service, there are two classes, the core Service and the secondary Service:
Core Services:
A Service that satisíies the needs of the customer, is the main reason for
customers to buy Services. The core Service will answer the question of what the
customer is actually buying. Customers do not buy the Service but buy the beneíits of
the Service. For example, customers do not buy electricity, but they buy the beneíits of
electricity that is used to provide energy for living and production equipment. The core
Service determines the nature of the Service rather than the other, which is the type of
Service that the business provides to the market. However, the core Service does not
allow customers to choose one or the other provider from the same Service, but to
choose what type of Service they are offering.
- Secondary Service:
As additional Services, secondary, added to them to create additional value for
customers, giving customers a better sense of core Service. Thanks to secondary Services,
Service providers help customers distinguish theữ Services Ểrom competitor Services.
Secondary Services are varied and changing with competition in the market, which helps
customers choose which vendor to choose, which helps them to improve their
competitiveness. In the secondary Services, there are certain types of Services that are
requữed to períồrm core Services, such as: to use electricity, Services such as registration
of new meters, the number and issuance of invoices, the collection of electricity, the repaữ
of electricity, etc. Currently, Service providers are attempting to reduce the need for
secondary Services or improve the way in which they are implemented. Customer Service
is faster, improving the competitiveness of the product.

1.1.1.4. Service qualỉty:
Quality of Service differs depending on the research subject and the research
-

environment and the quality of Service is the basis for the implementation of measures
to improve the quality of Services of the business. Thereíồre, the deílnition of Service
quality is not only important in setting development goals but also orienting businesses


to promote their strengths in the best way. Although there are many
different
definitions,

but

overall,

Service

quality

includes

the

following

characteristics:
a. Outstanding features:
For customers, Service quality is the Service expressed superiority of

"superiority" of their own compared to other Products. This superiority makes Service
quality the competitive advantage of Service providers. It must be added that the
appreciation of the superiority of Service quality is greatly iníluenced by the quality of
Service provided by customers in marketing activities and the study of customer
satisfaction.
b. Product features:
Quality of Service is the core of the core and most quintessence crystallized in
Products and Services that make up the characteristics of Products and Services.
Therefore, the Service or product or Service creates the characteristic of the product or
Service. Therefore, high quality Services or Products will contain more "superior"
features than low-end Services. This distinction is linked to the identiíication of the
tangible or intangible properties of a Service product. Thanks to these features,
customers can recognize the quality of their Services differently than their competitors.
However, in practice it is difficult to identify the core features of the Service in a
complete and accurate manner. Therefore, these features are not absolute values but
rather relative, which makes it easier to recognize the quality of Service in a particular
case.
c. Supply features:
Quality of Service associated with the process of delivering / delivering Services
to customers. Therefore, Service deployment, Service style, and Service delivery will
determine good or bad Service quality. This is the intemal factor that depends on the
manifestation of the Service provider. Therefore, to improve the quality of Service, the
Service provider first needs to improve this intrinsic factor to create its own long-term
strength in Service delivery to customers.
d. Satisfaction features:


Service created to meet customer needs. Thereíồre, the quality of Service must
satisíy the customer's needs and take the customer's requirements as the basis for
improving Service quality. If customers feel the Service does not meet their needs, they

will not be satisíied with the quality of Service they receive. It must be added that in
the modem business environment, this feature becomes ever more important because
Service providers must always be on the lookout for customers and try their best to
meet their needs. It is useless and of non-quality to provide Services that the customer
judges are not worth. In terms of "customer Service," "satisfaction" includes the
meaning of "supply". This is because the quality of Service starts when the customer
grasp the needs of customers until the implementation of Services, but in the process of
providing Services that customers will feel satisíied or not and feel the quality of
Service good or bad. If supply is inherent, then demand satisfaction is more affected by
extemal effects.
e. Value Creation:
Apparently, quality of Service is associated with the value created to serve the
customer. The Service does not produce any value, it is considered as not quality. The
business creates value and the customer is the recipient of those values. Thereíồre, the
consideration of Service quality or more speciíically the value of giving to customers
depends on the assessment of the customer rather than the business. Normally, customers
receive value for theữ Services and compare them with what they expect to receive. In
other words, the value of Service quality is also more iníluenced by the extemal factor
(customer) than the intrinsic (business). High quality Service is a value creation Service
that not only meets customer needs, but also exceeds customer expectations and makes
the business stand out Ểrom the competition. Value creation is, thereíồre, the basic
characteristic and the basis for building and developing the quality of Service.
1.1.2. Electricity Service
1.1.2.1. Overview of electrỉcỉty Services andpower Service specỉficatỉons:
Based on the íìmctions and duties of all stages, from the stage of power
production and bringing electricity to the ílnal consumers, the electricity industry can
be divided into íìmctional units as follows:


-

Power generator: includes power plants, which are responsible for generating
electricity to supply to customers.

-

Transmission: includes the whole System of transmission lines and substations
of high voltage from HOkV to 500kV. This System is supposed to be an
intermediary, receiving electricity from power plants for transmission to the
distribution System.

-

Distribution

power:

includes

the

entire

power

transmission

line,

medium

voltage transformer station with voltage from 35kV down to 220 / 380V. This
System is responsible for receiving power from the grid and supplying
electricity directly to each customer.
According to Article 19 of the Electricity Law passed by the National Assembly
on December 3, 2004, the electricity market in Vietnam comprises the following:
> Power generation units;
> Power transmission units;
> Power distribution units;
> Electricity wholesalers and
> Electricity retail units;
> National power grid regulator;
> Electricity market transaction executives and
> Electricity customers.
However, in the present, because there is no clear separation between electricity
distributors and wholesalers and retailers, local power companies now perform the
same tasks. It is a distribution unit, both wholesale and retail units for customers.
As a distribution company, power companies carry out power distribution
Services, which are íìmctionally related to a distribution of power Products to enable
the transíer of ownership. Electricity generated from power plants to consumers
consumes electricity.


As an electricity trading unit, the provincial power company buys power from
power plants and transmission grids for resale, including wholesale and retail sales to
consumers in price frames by the government. Thus, electricity Services are
understood as the activities of the provincial power company in the implementation of
electricity distribution and distribution Services, including the following activities:
Management of distribution grid operation to ensure supply customers quality electric
Products and business activities to sell electricity to customers in order to collect and

remit electricity into the State budget.
Electricity Services include a broad range of interrelated activities aimed at
ensuring both the supply of electricity to customers and the efficient sale of electricity.
Electricity is a commodity that cannot be stored in warehouses like other
commodities.

This

particular

characteristic

leads

to

speciEic

characteristics

of

production and business activities and electricity consumption. The electricity Service
is not a commodity-speciíic product, it carries many of the characteristics of a Service
product. Specitically, it has the following characteristics:
a. Invisibility of the product:
Electrical Products have invisible feature, quality inspection and measurement
is done only through specialized measuring devices, so buyers can not touch or feel
what are they buying and quality before buying, customers also find it difficult to
evaluate the quality of power is good or bad if there are no specialized equipment to

support. On the other hand, it is difficult for consumers to imagine how much
electricity has been produced at the cost of production, and it is difficult for them to
tigure out how much electricity is affordable. At present, the society is very concemed
about the transparency of electricity prices. Most customers find it difficult to estimate
the cost of electricity because the calculation of power consumption has many
difficulties due to many technical parameters. In addition to the technical factors, the
human factor plays a decisive role in the quality of electrical Services, which depends
on the attitude, behavior and skills of employees to operate grid and customer Service.
Customers cannot experience the quality of electrical Products beíồre using but only in
the Processing.


b. Independence between production and consumption:
The process of Service provision and Service consumption occurs at the same
time. In electricity Services, consumers usually impact directly with the supply Chain. In
addition, customers must have certain power consumption locations, where have the
power supply and electrical appliances to convert electrical energy into useful íồrms of
energy customer needs, such as air conditioners, electric cookers, lights, electric engines
... Thereíồre, in order to attract and expand the customers, the suppliers need to invest in
the development of the grid System to the users. Power quality issues are a top concem
for the electrical and electronics industries, if quality is not ensured in the course of use,
it will immediately cause the equipment to fail. Customers cannot operate well,
sometimes they cannot make machine work, causing interruption in production, living,
damaging to economic interests of customers and prestige of the electricity industry.
Since the power is not available, there is no other altemative, and if using a standby
power source it will also have to be switched to a new power source, which will also
disrupt the consumption process. Thus, the process of producing electricity and
consuming electricity always occurs simultaneously, linked together. The Service
provider must always be available at all times to provide customers with quality
assurance and make sure that the production, distribution and consumption of electricity

is ensured at the same time and continuously. Quality of Service directly affects the
customer, but at the same time, the level of use of the Services of customers also directly
affect the quality of Service. Consequently, suppliers need to pay attention to training
attitudes, behaviors and skills, and at the same time provide iníormation about Services
and take measures to support and guide clients to use the Service. It is safe and effective.
For example: safe and economical manual; provide iníormation on power cuts,
procedures for supplying power, encourage customers to join new gadgets,...
c. Non-transferability of ownership:
The electricity Service is very unstable as it depends on a lot of íactors such as:
technical íactors, human Service, customer needs, customer impact customer. A natural
íleld with objective íactors causing instability, such as íloods, windstorms, may cause
interruptions in power supply. In terms of technical aspects, due to the ability of the
power distribution depends on the technical conditions of the grid in different areas,


the quality of power supply is not uniform among the areas, energy
losses
during
distribution process also cause unstable electrical quality at different
locations
in
the
same area. For example, on the same line, the quality of electricity near the
upstream
transíồrmer station is usually better than at the end of the line due to the
technical
loss
during power transmission. The demand for electricity of customers is
unstable,
due

to
consumer characteristics, there should be a large íluctuation between
consumption
demand during peak hours and low hours of the day, between the seasons
of
the
year.
For example, during peak hours from 17h to 20h daily, hot and dry season,
the
demand
for electricity will increase. The lack of stability due to the demand for
electricity
causes difficulties for Service providers, because the problem is that the
electricity
sector wants to ensure good Service to customers but the investment
ability
to
meet
Full response to peak demand will be very large, but will be less effective at
low
points. Apart from the technical factors, the human factor plays a decisive
role
in
the
quality of electricity Services, which depends on the attitude, behavior and
skills
of
employees. On the other hand, the grid is very wide, so many customers
need
to

have
many employees involved in different departments so the quality of
customer
Service
is not uniform. Even consumer customers have implications for Service
instability
that
affect other customers, such as damaged customer devices that affect the
outside
world. Supplier's electrical equipment, the customer's electrical equipment
causes
the
source of the disturbance to affect the quality of electricity of other
customers
...
(such
as the Steel fumace of the Steel mill, the welding machine causing ílashing
voltage
...).
In addition, the power grid extends hundreds of kilometers so the risk of
interruptions
in electricity supply due to objective factors such as birds, beans, crawling
on
the
line
... often happens. In order to ensure the quality of electricity supply
Services,
the
Electricity can reduce the instability by implementing preventive measures
to

prevent
the causes of Service instability through the implementation of Technical
standards
for


installation, technical maintenance, building staff with good professional
capacity
and
application of modem technology in Service delivery.
d. Inability to store:
Electricity cannot be stored as other commodities; electricity production and
consumption are simultaneous, coincident. Technically, electricity Services should be


kept out of the reach of unbalanced power supply and demand over
the

electricity

grid.

An imbalance of supply and demand with large quantities of power will
seriously
affect the quality of electricity supplied to customers and could damage the
grid.
Because electricity is not available, electricity Services must also be carried
out

in

parallel to ensure that the product reaches consumers as soon as it is
produced.
Therefore, the demand for quality of transmission and distribution Services
must

be

very strict, othenvise it will directly affect the customers consuming
electricity.
1.1.2.2. Components of electrỉcỉty Services:
As other Services, the electricity Service consists of two components, the core
Service component and the secondary Service component.
-

Core Service components:
Electricity supply Services, including distribution and sale of electricity. This

component ensures to provide customers with full and timely electricity demand of
customers and sell electricity according to the price frame by the Government. The
core Service activities include:
❖

Install new meters to supply electricity, increase capacity to response consumer
demand;

❖

Managing the operation and repair of electricity distribution grids to ensure
operation of electricity supply in a safe, continuous and stable manner, meeting

the customers' demand for electricity;

❖

On-going

electrical

repair

to

recover

unexpected

electrical

incidents

at

customer's home;
❖

Write electricity indicator, calculate electricity bill and collect money from
customers;

❖

Settle complaints of customers about electricity and electricity quality.

-

Secondary Service components include:


❖

Customer Service:


Consult and support customers how to use electricity safely, economically and
effectìvely through training programs, customer support programs to replace
incandescent bulbs with energy saving lamp, support price of solar water heater ...
Provide information to customers through hotline telephone reception and
answer customer requests by telephone, provide information on the website,
mass media such as newspapers, radio...
Implementing Utilities to improve the quality of Service, convenience for
customers such as various forms of payment of electricity bills, improved
manual recording of electric signals by remote recording, , announcing the
electricity bill by switchboard ...
Listen to customer feedback by sending letters of feedback, surveys and
customer surveys.
Carry out care activities, gratitude to customers such as organizing annual
customer conferences, presenting gratitude gifts to customers in traditional
Lunar New Year, organizing exchanges to create a close co-operative
relationship between electricity and customers. These customer Services are
currently of great interest to the industry, aiming to bring customers more
convenience, convenience, comfort and ílexibility to better meet the needs of

customers. The use of electricity Services.
> In addition, in order to satisíy customers in the use of electricity, electricity also
provides customers with value added Services according to customer
requirements such as design, construction, testing specialized electrical works
for businesses
> In order to satisfy customers, Electricity Power needs to take care of customers
in a comprehensive way from product to Service man. Theretồre, the power
industry must constantly improve its capacity to ensure core Services, diversify
secondary Services to meet the needs of customers faster and faster. At the same
time, we must pay attention to build up our staff with good professional ability,
sincere Service attitude, and respectful customer to provide customers with
reliable and reliable electrical Service.


1.2. Customers and the role of the customer
1.2.1. Customer concept
For any business enterprise, long-term existence and development in the market
is important. To do that, the business must constantly keep existing customers and
attract new customers
Thereíồre, customers of all business enterprises play a very important role.
Customers are the "breath", without customers, it is difficult for businesses to survive.
So who are the customers? In a general understanding, customers are all organizations
and individuals who need the Products and Services they provide. Already, will and
will use Products, Services of enterprises. In broad terms, customers are the ones that
businesses serve whether they pay for business Services or not. In this sense, customers
include the following: users, buyers and beneíiciaries (Business edge, 2008)
> Users: are individuals or organizations that actually use the Products or Services
of the business.
> Buyer: A person who collects information about a product or Service, chooses,
makes a purchase decision and pays.

> Beneíiciary: Individuals or organizations that beneíit (or are affected by) from
the use of the product or Service.
Electricity customers are the most important partner in the electricity market,
with no electricity users going to produce, transmit, distribute, sell, and sell electricity.
Electricity customers participate in the electricity market as the direct purchase of
electricity. Electricity customers are organizations and individuals that buy electricity
for use, not to resell to other organizations and individuals.
1.2.2. Customer classiíìcation
a. Extemal customers:
- These are people who make deals with businesses, in many forms: face-to-face
meetings, telephone transactions or Online transactions. Without customers like
this, business cannot last long.


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Customers have the option, if our Products and Services do not satisíy
customers, they will choose another supplier. Then the business will suffer
damage. The satisíied customers are the source of proíit for the business and
they are the ones who create the success for the business.
b. Intemal customer:
- Employees are the "customers" of the business, and the employees are the same
customers. On the business side, they must meet the needs of employees, there
are policies to promote the enthusiasm of employees. In addition, employees
need attention and help each other in working.
- With the concept of customer understood in a broad sense, only when the
enterprise has the attention to employees, build the loyalty of employees and at
the same time employees in the business have the ability to work With each
other, care to meet the needs of colleagues, they have the spirit of good work,
can serve customers outside of the business efficiently and consistently.

1.2.3. Client’s role
Customers are extremely important to the business. In the market mechanism,
when buying goods or Services, customers have a lot of Products to choose from. The
purchasing power of customers is the starting point of market operation mechanism:
- Purchasing power causes competition among suppliers and gives customer
choices.
-

The mechanism has a great impact on businesses, because they have the option,
if customers do not like the product or Service, they will choose the product or
Service of other businesses. And when the number of customers doing so is big
enough, they have enough power to damage and even eliminate businesses
whose Products are not accepted by the market. Thereíồre, businesses need to
listen carefully to the message that customers send through their choice,
businesses must always try to make customers happy.

-

The business exists or not due to the proíltability of the sale of goods and
Services in the market, so the business is completely dependent on its
customers. Businesses have no choice but to compete for the power of the


customer. Thereíồre, every business that wants to succeed must
clearly
deíine
what the business is providing its customers (Business edge, 2008).
- - In the end, in fact, in business, customers always want to be satisíied and
business must do to sell customers satisfaction. Enterprises want to survive,
they must meet the needs of customers. However, the demand of customers is

not only in the goods and Services that the business is providing but also more.
If a business is found to have a lack of access to customers, try to do something
to overcome deíiciencies, especially the staff must have a correct view on the
customer to work properly which customers want.
1.3. Customer care
1.3.1. Dìnition
In the increasingly competitive tendency, under competitive pressure,
enterprises must strive to serve customers better. Businesses that are unbearable
competitive pressures will fail. The current trend of businesses is how to satisfy the
customer completely, because the needs of customers are not just in Products and
goods business Services are providing. Consequently, customer care plays an important
role in ensuring the success of the business.
It is often thought that customer care is a warm, polite, thoughtful, thoughtful
attitude that salespeople spend with customers and only employees who interact with
new customers. Interested in customer care. It is good to have good salespeople,
behave politely but if that is not enough, and not necessarily only. If other parts of the
enterprise, such as product maintenance department, accounting department, do not
understand their roles and responsibilities in taking care of customers, they will lose
customers, while the representatives sales, marketing and sales staff have worked hard,
spending a lot of effort to win a new customer.
As documented by Business edge, 2008, customer care can be deílned as
-

follows:
-

"Customer care is to serve customers the way they want to be served and do the

things they need to keep their customers engaged."

-

So, while it is difficult, business managers must maintain a balance that is both

satisfying customer needs and ensuring that businesses achieve proílt goals.
Customer care must be done comprehensively on every aspect of the product
and Service provided to the customer. This can only be achieved if all the activities of
the business, from product to customer information and all members of the business
are oriented and determined to satisfy the needs of customers. If only focus on the
product only customer care will not work.
The relatỉonshỉp between customer care and marketỉng
Customer care is an important part of marketing, playing an important role in
ensuring the success of the business. There are differences between customer care and
marketing activities. Marketing is recognizing and satisfying the needs of customers in
a way that meets the needs of the business for proíit, growth or for survival ...
Marketing includes all activities, from design product to delivery method. Marketing
involves both important issues that are attracting new customers and retaining existing
customers. Customer care is a marketing activity aimed at maintaining existing
customers and at the same time providing customer support for other marketing
activities. In other words, marketing includes all activities from the mining to capture
the market share. Customer care is the activity to keep market share acquired by
occupying the mind and emotions of the customer.
Marketing and customer care are closely linked, and good customer care will
help keep customers going and will encourage customers to buy more of the goods
they are offering. However, businesses will increase market share, save money and
effort for marketing activities for new Products.
Thereíồre, customer care is not about conquering new customers, but rather
about satisfying existing customers, thereby facilitating the sale of new Products to
customers. Customer care will make it easier for your business to keep your customers

engaged, more ìen than not, because it takes a lot of time and energy to conquer new
customers. Sales and Marketing to get a new replacement for the lost customer
(Business edge, 2008).