Rising consumer expectations set policy [Bangkok Post, Thailand]
(Bangkok Post (Thailand) Via Acquire Media NewsEdge) Oct. 07--More than 90% of Thai companies plan to increase spending on customer service next year amid intensified competition and rising consumer expectations across Asia, a regional survey released yesterday shows.
Thai companies' awareness of these greater expectations and measures taken to address them are higher than the regional average of 83% from 10 markets surveyed, says the Economist Intelligence Unit, which compiled the report.
"Thai firms are aware of rising expectations and have done their best to keep pace with greater customer demand. Still, there is room for improvement, as demand has risen so much," said Sudhir Vadaketh, senior editor at the EIU.
Most Thai companies said they placed greater priority on overall customer service than they did five years ago, with a focus on customer analytical systems and loyalty programmes, he said.
Commissioned by the global logistics leader DHL, the survey found that demand for service is rising across the board in Asia. Consumer spending on the continent is expected to surge from US$4.3 trillion annually in 2008 to $32 trillion by 2030, amounting to 43% of global consumer spending.
For Thailand, customer service is the most important factor for consumers in the sectors of financial services, travel and transport, and hospitality, said Mr Vadaketh.
The research, conducted between June and September, involved 764 consumers in 10 Asian countries, with at least 70 consumers in each country, along with 313 senior executives of companies from sectors such as manufacturing, telecommunications, services and retail.
Mr Vadaketh said customer satisfaction was low across Asia even in high-profile industries such as consumer electronics. Rising expectations are driven mainly by consumers' greater access to information, market competition and increasing online activities.
"Price is no longer the only factor in purchasing decisions. Many consumers are willing to pay for better services, but some Asian companies don't seem to understand customer needs," he said.
"The gap between what companies are providing and what consumers want is an opportunity. As competition in the region intensifies, those companies who put more emphasis on customer services should gain an edge." Chananyarak Phetcharat, the managing director of DHL Express Thailand and Indochina, said the subsidiary planned to excel at customer service and use this study as a guide to a better understanding of expectations and managing client needs.
Operating in 220 markets around the world, DHL handled 3.5 million shipments in Thailand last year for more than 20,000 customers.
This year, DHL has opened three new service points including one in Hat Yai for greater reach to tourists and the hospitality industry in the South, said Ms Chananyarak.
She said despite the impact of strong baht appreciation on Thai exports, import shipments have risen. The growth prospect is positive for DHL's allies, given the economic growth being seen in Asia.
To see more of the Bangkok Post, or to subscribe to the newspaper, go to http://www.bangkokpost.com/.
Copyright (c) 2010, Bangkok Post, Thailand Distributed by McClatchy-Tribune Information Services.
For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com, e-mail services@mctinfoservices.com, or call 866-280-5210 (outside the United States, call +1 312-222-454
Thai companies' awareness of these greater expectations and measures taken to address them are higher than the regional average of 83% from 10 markets surveyed, says the Economist Intelligence Unit, which compiled the report.
"Thai firms are aware of rising expectations and have done their best to keep pace with greater customer demand. Still, there is room for improvement, as demand has risen so much," said Sudhir Vadaketh, senior editor at the EIU.
Most Thai companies said they placed greater priority on overall customer service than they did five years ago, with a focus on customer analytical systems and loyalty programmes, he said.
Commissioned by the global logistics leader DHL, the survey found that demand for service is rising across the board in Asia. Consumer spending on the continent is expected to surge from US$4.3 trillion annually in 2008 to $32 trillion by 2030, amounting to 43% of global consumer spending.
For Thailand, customer service is the most important factor for consumers in the sectors of financial services, travel and transport, and hospitality, said Mr Vadaketh.
The research, conducted between June and September, involved 764 consumers in 10 Asian countries, with at least 70 consumers in each country, along with 313 senior executives of companies from sectors such as manufacturing, telecommunications, services and retail.
Mr Vadaketh said customer satisfaction was low across Asia even in high-profile industries such as consumer electronics. Rising expectations are driven mainly by consumers' greater access to information, market competition and increasing online activities.
"Price is no longer the only factor in purchasing decisions. Many consumers are willing to pay for better services, but some Asian companies don't seem to understand customer needs," he said.
"The gap between what companies are providing and what consumers want is an opportunity. As competition in the region intensifies, those companies who put more emphasis on customer services should gain an edge." Chananyarak Phetcharat, the managing director of DHL Express Thailand and Indochina, said the subsidiary planned to excel at customer service and use this study as a guide to a better understanding of expectations and managing client needs.
Operating in 220 markets around the world, DHL handled 3.5 million shipments in Thailand last year for more than 20,000 customers.
This year, DHL has opened three new service points including one in Hat Yai for greater reach to tourists and the hospitality industry in the South, said Ms Chananyarak.
She said despite the impact of strong baht appreciation on Thai exports, import shipments have risen. The growth prospect is positive for DHL's allies, given the economic growth being seen in Asia.
To see more of the Bangkok Post, or to subscribe to the newspaper, go to http://www.bangkokpost.com/.
Copyright (c) 2010, Bangkok Post, Thailand Distributed by McClatchy-Tribune Information Services.
For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com, e-mail services@mctinfoservices.com, or call 866-280-5210 (outside the United States, call +1 312-222-454
