Towngas has historically been the sole supplier of town gas in Hong Kong, serving over 1.4 million households. However, the gas industry now faces increased competition. Towngas implemented a customer relationship management (CRM) framework in the 1990s to achieve competitive advantage, focusing on customer service. Key aspects of the CRM framework included a costumer focus team, total quality management, and an enterprise customer management system. This approach helped Towngas maintain over 45% of residential customers and led to increased sales growth and customer retention despite industry challenges. The document recommends further strengthening Towngas' CRM approach through improved customer data and processes, expanding product offerings, and generating new business lines.

1. Achieving Competitive Advantage Through
6 Customer Relationship Management
Sixers

2. about Towngas
Groups of customer: What’s next with
45 % (Resident)
35% (Commercial) TOWNGAS ?
17% (Equipmemt Sales and
others)
3% (Industrial) It was sole supplier of
town gas and related
service of 1.4 million
household
Business:
Production &
Distribution Gas
1993
Costumer
Focus Team 1996
Continues
1960 Transformation 1998
Listed in HK Key Management
Stock Exchange Focus
1992
TQM & Business Process
Re-engineering

3. Challenges

4. Gas Industry Competition
1-Year Sales Growth Number of Customer
Source : Annual Reports of Towngas, CLP, and Hong Kong Electric.

5. Loyal Customer Are More Profitable
Acquisition Revenue
Cost ↓ Growth ↑
Referral↑ Operation
Cost ↓
Base
Price
Profit ↑
Premium

6. Mature Market Strategy
Source : Mullins, Johm W, Orville. Marketing Management : a Strategic Decision Making Approach 8 ed Mc Graw Hill

7. CRM Framework
framework
Source : Winner, Russel (2001), Marketing Management 4ed Pearson

8. Towngas CRM

9. Towngas Key Success Factors
Uninterrupted Gas Supply
Restoration of gas supply within 24 hours
Emergency team arrived within an hour
Availability within 3 working days
Customer Service Hotline calls answer within
5 rings
From TQM (1990) --> SQS (1992) --> FC (1993) --> ECM (1998)
Involvement of 1.4 mio Customer Information
Managing Director More than 2 mio equipment installed
on CT Project & through HK
Department ↓
Managers on ECM Information about potential
Project customer for new product
Consumption pattern for forcesting
and trend analysis
Already Revied in 1999-2002

10. Customer Shared Value
from the corporate value, we can conclude that we have to make sure our customer
knows that we are :
company customer

11. Recomendation
Data Strengthenin through CIS and BI
Up to date information serves better suit the need
of different market segment
WORKING PROCESS through doing
Continues Improvement
• Availability of appointment in hours
• Reduce number of complains

12. Recomendation
Strengthening Towngas position as one
stop solution of gas uses appliance.
– Towngas Avenue
– More Outlet : Opened- gas & kitchen
appliances and bath room accessories
Lifestyle
Cashless payment card
basis with loyalty point
Social Media
Web base
Cooking center
Community

13. Recomendation
GENERATE MORE BUSINESS
• Expansion in mainland china
• Line Business Spa

14. thankyou