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Archive for the category “Marketing Relationship Ladder”

Perception of client retention from client’s perspectives

Interviewed by Truong Thien Kim Long – s3324490 – Group 1 SGS

Readers know how agency does good to keep clients. It may be objective or subjective based on a writer’s perspectives. Have the readers ever thought of the opposite view? Join this post and imagine, what client thinks of the agency in one case study, presented in an interview.

(Colgate, n.d)

(Wpp, 2007)

 

 

 

 

 

 

 

 

 

An interviewee is Ms Nguyet Minh, Colgate’s Brand Manager. She specializes in FMCG industry and has 9-year working experiences; Ms Minh shows her professionalism and worldly-wise statement through her commitment to Colgate.

(Minh’s facebook, 2012)

“Colgate’s people concentrate on core values: Care – Global Unity – Nonstop Improvement. Minh said, three values are a basis of business strategy since they reflect Colgate’s lifework. Due to these values, its people have grown with Colgate and this is also the reason why Minh has become expert in being Colgate’s brand manager.

Minh gave the case study of Y&R and presented her perspectives about client retention. “Y&R works for Colgate-Palmolive in 4 years; however, there was a campaign, Y&R failed to satisfy us seriously”, said Minh. The campaign presented new Colgate toothpaste in Vietnam market that had the same functions but better quality than a competitor P/S. It was anti tooth decay and gave consumers pure breath, firmer and whiter teeth. Y&R helped Colgate run the campaign and attract customers (Minh 2014).

The problem is mutual communication. Y&R did not understand a brief but no asking at all. No pro-activeness in getting client updated with the campaign that made Colgate feel no more as the client who is buying a service. Y&R dissatisfied Colgate by offering few options and unreasonable rationale for the campaign.  These facts resulted in Y&R’s unprofessionalism, damage to Colgate’s trust and bad reputation (Minh 2014). Y&R also had no understanding of client’s market and insights.

Development of Trust

“Y&R is our long-term partner but the failed campaign destroyed our trust”, said Minh. Sobel (2010) stated Trust is a critical key in client relationships. Client trusts in agency’s capability by doing creative work and everything said must be supported with accurate facts and figures. Product’s image satisfies client’s needs so as to make them trust the agency (Casul 2012).  Solomon (Chapter 3, 2008) asserted the agency must live the client’s brand by being open and seeking new information and insights. You only live your client’s brand when you have research on their brand and product’s insights. You see the brand as yourself that helps you understand it clearly. The way you love yourself is the way you love the brand!

To give and keep Promises  

“Colgate pays for Y&R but we feel we depend on them for helps” (Minh 2014). Lack of pro-activeness and no understanding of the brief caused this fact. Solomon (Chapter 6, 2008) stated the agency must take the brief seriously. It was Y&R’s failure in understanding the brief. A good brief is important to obtain great creative work; if you cannot make yourself an expert on client’s product, you fail to keep promises with them (Solomon, Chapter 9 2008). Deliver what you promise and do not promise what you cannot deliver (Casul 2012). Y&R’s bad performances resulted in no keeping promises with Colgate. No understanding the brief matters since you do not ask anything so we cannot support you; “it is a bad attitude towards your promise”, Minh’s viewpoint.

Quality-Price-Time Triumvirate Model

(Blackboard, 2012)

(Blackboard, 2012)

“Colgate pays a service but Y&R does not assure the quality” said Minh. Casul (2012) asserted the agency should educate clients on quality and price; however, Colgate did this task instead. Minh added, Colgate has to pay additional fees because we want to speed the process up. It is costly to get the quality fast; without additional fees, everything seems slow. “Although we pay fees, it still seems like we do not pay anything for the service” said Minh. This point argues with Casul’s view, you can neither get the work cheap nor fast and it is either not a good quality. Moreover, “you can get good work cheap but it takes a long time” (Casul 2012); Y&R case study pointed a serious problem not to get the work cheap, good and it was a long time, too.

Hence, differences are in comparing communication theories and practices. The problem arose from the agency’s bad performances. Thanks to Minh’s advice, I present recommendations in client retention. Y&R is excellent; however, its local agency fails to satisfy clients and face bad reputation. Solomon thought the agency must get the client involved in the process early (Chapter 18, 2008); the process will be better. The client feels happy because they do not work alone. Additionally, client’s observation helps the agency check the work’s quality. “Y&R should have been proactive in contacting with Colgate during the process”; “quality does matter and we want Y&R assure it for us” (Minh 2014). “Don’t hesitate to ask, this is a way keeping us updated”, shared Minh; “We are willing to answer the questions”. Asking questions makes sure you understand us and go on right track. Without interpreting the brief, it is impossible to start. It is a must to understand the client’s insights and market. Nevertheless, Y&R had little research on Colgate and got briefing wrong. You should live your client’s brand (Solomon 2008), feel it, love it as love yourself then you know to do the best work for your client.

Proof of life: Ms Minh and the author (taken by another person)

Proof of life: Ms Minh and the author (taken by another person)

References

Casul, M, 2012, “Lecture 2: The relationship marketing ladder”, Blackboard materials, pp. 4-6, viewed 5th May 2014.

Minh, P, 2014, Interview for Client Management assessment, 3rd May, 2014.

Sobel, A, 2010, “How strong is your client relationship?”, Blackboard materials, pp. 2-3, viewed 5th May 2014.

Solomon, R, 2008, The art of client service, KAPLAN, NY.

 

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“If the creative work fails, the account fails, If the account fails, the creative fails.”

Interview by Elaine Calibara – s3461778 – Group 1

Within an advertising communications agency, one would know that there is a strong difference between the creative team and the accounts team. On one hand there are the creative thinkers, the innovators, the artistic brain behind the work, and on the other hand there are the analytical, result-oriented, logical thinkers. In such a parallel atmosphere, does the “us vs. them” concept exist?

“It shouldn’t be considered like that, why does one have to be either of the two?” Ramon Calibara, Executive Creative Director of Chuo Senko Vietnam responds to my question in asking whether he thought his company is account driven or creative driven. From the outset I was taken back hearing this after only the third question of the interview as expectations led me to think there were two opposing sides within an agency.

IMG_4428

Proof of Life photo: Ramon Calibara, ECD, Chuo Senko

Upon hearing that a key member of the creative team could view the relationship between his own team and the accounts team as not a notion of differences, there is now a desire to learn how Chuo Senko Vietnam demonstrates effective teamwork. When discussing his team, there is a drive and passion in his voice, “There is an existing team spirit that everyone has, motivating each team member to commit to every job that is received by the agency. Every job is a common task. Each member is responsible for the job ensuring that we are doing the best work at its highest potential”. This is a clear depiction of a strong corporate culture.

Following the discussion of effective teamwork, Mr.Calibara offered to share insight to when the accounts team and his own team illustrated, in his opinion, one of the better successes of the agency. This success is at the root of his creative team, the accounts team and the client’s leap to help the agency. In 2013, Century pacific group hired Chuo Senko to create a campaign for them, “the client gave us a reasonable amount of time to work the campaign out and so the client service team came to the creative with a brief form the client that was so clear and well understood simply because the client side brought Vietnamese counterparts. The brief was written in Vietnamese and was only translated back to English for me to understand it.” After hearing how language barriers were no longer an obstacle he further added, “this translated in perfect harmony with the client service team and of course us, the creative team. It was very successful, the creative images were created a year ago and are still being used as we speak.”

This display of harmony between the accounts team and the creative team solidify Darryl Ohrt’s view that “there is a clear difference between the two cultures. And it’s not that creative-driven agencies don’t care about their clients, or that account-driven agencies can’t conceptualize. They do, and they can.” (Ohrt 2010)

After learning more about the internal environment of Chuo Senko Vietnam, I wanted to know how the practice of effective teamwork contributes to the external environment – their clients. In building their relationships with their clients “The quality of service needs to be taken into account and giving the client the best quality possible at the lowest price.” What Chuo Senko offers is the most ideal for their clients and displays the concept of the quality-price-time triumvirate model:

 

qualitytriumvirate

(Morelos, 2012)

Although Mr.Calibara does not mention time as a factor to provide the best for their clients, he does point out in his example that client’s give them an honest timeline of when the work is needed.

Mr.Calibara shared valuable opinions and knowledge on how the creative team and the accounts team work harmoniously to achieve the best work for their agency. His last remark as the interview ended he said, “There will always be disputes between the creative team and account team. It is all a process. It is a metamorphosis of the work. We are one voice, one name, and one team. If the creative work fails, the account fails, If the account fails, the creative fails.”

Word count: 688

References:

Darryl Ohrt, (Oct 12 2010) Advertising Age, http://adage.com/article/small-agency-diary/advertising-agency-account-driven-creative-driven/146361/, 02/05/2014

Monica Morelos, (22 March 2012 ) ClientManagementvn, https://clientmanagementvn.wordpress.com/2012/03/22/quality-vs-price-triumvirate-model/, 01/05/2014

 

Building a culture for your organization. First step before accquisition and retention.

Building a culture for your organization.

First step before accquisition and retention.

Interviewed by Tran Mai Thao _ S3410167 _ SGS _ G2

I had a chance to spend a week as an internship student in Minh Ngoc Anh (MNA) Limited Company. MNA is the top 5 of “Yamaha 3S* Dealer” in Ho Chi Minh City. They maintain their motorbike business since 2007.

I spent time to chat with two different people here. The director is Nghiem Minh Anh, he inherited this business from his parent so he seem inclined to traditional.

10270025_218586228351593_2122933190_n

Prood of Life- Director- Nghiem Minh Anh at Yamaha Minh Ngoc Anh with an author

 

He just keeps relying on their long-term customers, run business by family’s reputation. He doesn’t’ consider customer is the important core to run and expand business. He thinks customer needs him and his business.

However, from 2012 until now, the motorbike market faces to a biggest challenge. People don’t want to buy common motorbike any more. “I defined that MNA needs to focus on other fields: services and selling spare parts” – the general manager of the store in Binh Tan, Dai Thanh Tuan Anh, thinks quite modernly. “And the most important thing, i must look for the new customers for these fields too because almost customers have known MNA as a store which selling motorbike only”, he said.

 

General Manager – Dai Thanh Tuan Anh at Yamaha Minh Ngoc Anh with an author

Proof of Life- General Manager – Dai Thanh Tuan Anh at Yamaha Minh Ngoc Anh with an author

Tuan Anh proposed his new strategy which focus most on CRM (Customer Relationship management) and test it on Binh Tan’s store. He focuses on acquisition step on wholesale customers and retention step on retail customers.

 

 

Realtionship Ladder - Reproduced from Payne (1995)

Realtionship Ladder – Reproduced from Payne (1995)

He started to change his organizational culture of his company first. He said “defining own culture for my company is also the way i create our brand image in customer’s minds”. In the new strategy, Tuan Anh tries to deliver the new and professional image of MNA’s services to his customers. There are 7 employees included: 1 receptionist, 2 sales, 3 technicians, 1 warehouse keeper who work in this new strategy. Involving this campaign, employees must always smile and learn how to listen customer’s insights. Everyone in his store must have the basic knowledge about motorbike even the female receptionist. “That could increase the trust among customer because customer could think they came to the right place where everyone here can help them and their motorbike”- He also said.

 

Reproduced from Pinterest.com, 2014

Reproduced from Pinterest.com, 2014

In June, 2012, they tried to call back all customers who used to buy motorbike in Binh Tan’s store. He started to fill up customer’s database professionally, and remind customers about the maintenance duration. His employees also announced all promotions to customer through messages, phone-call and email also.

 

Reproduced from Tom, T, 2012 in imedia.com

Reproduced from Tom, T, 2012 in imedia.com

 

In the part of building trust in customer’s mind, he said “customer trust us while we know their problems and show the most effective and professional way to help them solve problems, so i realized me and my employees must improve our expertise first and then oriented customer to the right way because customers usually don’t know what they really want, they need effective helps”.

Reproduced from mya3chat.com, 2013

Reproduced from mya3chat.com, 2013

 

About how MNA found out new customer for their wholesale part, Tuan Anh indicated that he took a long time to research, took many field trips in Binh Tan to find out the demands in this area. At the end, he found out that, Binh Tan has many unprofessional garages want to buy real genuine spare-parts from Yamaha with good price but don’t need go too far to buy. Therefore, he assured that he serve exactly what the customer’s want.

 

Reproduced from Maren, A, 2013, naturallawsblog.com

Reproduced from Maren, A, 2013, naturallawsblog.com

According to all Tuan Anh’s thoughts, these are very similar to Solomon’s thoughts in “The Art of Client Service” book. Solomon also asserted that people need to make sure all things we said to customer, provide the reliability they “know” not “think” (Solomon, R, Chapter 42). Then, provide what customer’s want before suggest or serve what customer’s need (Solomon, R, Chapter 43). After campaign, MNA gained a lot of contracts with wholesale customer in Binh Tan. MNA also has known as the experts in repairing motorbike. It’s wonderful that i can see the real experiences from MNA Company to strengthen all knowledge from textbook.

 

Some corners at Yamaha Minh Ngoc Anh – Binh Tan Store

Some corners at Yamaha Minh Ngoc Anh – Binh Tan Store

Some corners at Yamaha Minh Ngoc Anh – Binh Tan Store

Some corners at Yamaha Minh Ngoc Anh – Binh Tan Store

 

Word count: 660

REFERENCE:

Solomon, R, 2008, “The Art of Client Service”, chapter 42 & 13, pp.107-109, Kaplan Publishing, N.Y

*3S: Sales, Services and Spare parts.

 Contact information of the interviewee:

General Manager of Minh Ngoc Anh Co. Ltd, – Dai Thanh Tuan Anh

Address: 147 Bis Nguyen Tat Thanh Street, District 4 // 506 Tinh Lo 10, Binh Tri Dong Ward, Binh Tan

Email: anh.dtt.2222@gmail.com

 

 

“WHO NEEDS RELATIONSHIPS? I DON’T NEED RELATIONSHIPS” – says no businessman EVER.

Interviewed by Le Dao Tuong Vy – s3309943, Group 1, RMIT SGS Campus.

 

“Business is about relationship and relationship allows great work to flourish” (Solomon 2008). What about relationship? How can you build it? How can you keep it? These questions are possibly among the oldest questions in any business. Without a doubt, relationship is one of the most important factors to a business. Building a relationship is hard and it is even harder to keep it. Before my holiday on April 30th, I had a very interesting conversation with Mr. Vo Hung Dung about relationships in business. Mr. Dung is the Director of Chamber of Commerce and Industry Vietnam, also known as VCCI.

dialoose_1291590629_VCCI Chamber of Commerce and Industry Vietnam

(Reproduced from VCCI 2014)

In 1963, Vietnam’s government established VCCI. It has been the bridge connecting foreign business with Vietnam’s market ever since Vietnam’s government decided to allow foreign business to enter. This is the most important communication channel from overseas to Vietnam and vice versa.

According to Mr. Dung, after joining VCCI, he has been managing three main services: import and export Certification, short-term classes and event-planning service. These services contribute to the relationships between Vietnam and foreign business. VCCI gets involve with the communication field by developing its event-planning service. The event-planning department differentiates itself from other agencies by organizing solely big-scale conferences, seminars and shows for VIPs. The guests invited to these events are expertise in their fields from many big companies in other countries.

Mr. Dung shared a story about how VCCI got its first client in event service. As mentioned earlier, VCCI has provided another service, which is education. The courses provide businessman from other countries knowledge about Vietnam’s market so they can invest and adapt more easily. Vietnam’s companies through these courses can also have better understanding about foreign market. By providing the education service, VCCI attracts more Corporations and firms seeking for business opportunity in Vietnam. Since VCCI and Mr. Dung himself have become such experts in this category, the Corporations that took part at first decided to entrust Mr. Dung again with event-planning service. These foreign Corporations then became his first clients. In other word, the relationships that VCCI has with their clients go way back in the past. With his network, Mr. Dung invited many experts from Vietnam and overseas to talk at the conferences and seminars. Moreover, not only that Mr. Dung helps strengthen this bridge, he also makes it easier for Vietnam business to strive into the international zone. This service under management of Mr. Dung has contributed greatly to the profit of the organization and also to Vietnam’s economy.

10298879_1438205646427393_9029733810713793945_n

VCCI International Bridge

(Illustrated by author)

Mr. Dung kept repeating relationship is not a one-day and one night thing, people have to put effort into it. Relationship needs to be nurtured. Once you win a client from your competitor, be aware that it is still not the end for your competitor. Mr. Dung emphasized about the quality of service, the most important thing that will maintain the relationships in the long run. There is millions of organization competing with each other everyday and the only thing keeping them survive is the quality (Martin 2009). Since the day Mr. Dung joined VCCI, he has never seen any loss of clients. He shared the key to these success relationships was mutual understanding. To him, good communication leads to quality service and quality service maintain the relationships. 10264848_1438200563094568_1194264900265996164_n

Keys to Successful Relationships in Business

(Illustrated by author)

Apparently, Solomon (2008) also agrees with Mr. Dung’s point of view about how important it is to build and maintain good relationships in doing business. In addition, Martin (2009) and Mr. Dung both have identical opinions on the crucial impact of quality service to relationship between the company and the clients. You can win the client with good pitch, but the quality of the service will keep them. That is exactly what Mr. Dung believes in and work hard for it.

10155264_1438207976427160_1274879603488619897_n

 Interview with Mr. Vo Hung Dung – Director of VCCI

(Taken by author’s friend)

 

Word Count: 626 (Not include Title and Captions)

Reference

Martin, W. 2009, Quality Customer Service: Satisfy Customers – It’s Everybody’s Job, 5th edn, Axzo Press, US, viewed 28th April 2014.

Solomon, R. 2008, The art of client service: 58 things every advertising and marketing professional should know, Kaplan publishing, viewed 28th April 2014.

VCCI 2014, image, Chamber of Commerce and Industry Vietnam,vcci-hcm, viewed 27th April 2014, <http://vcci-hcm.org.vn&gt;

 

 

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