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 VINA

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

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 1 st , 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

i

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

ii

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

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,

2

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

3

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

4

- 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

5

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

6

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

7

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

8

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

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

Look for informa-tion

10

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, b ut 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

11

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

12

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:

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

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

15

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

16

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

17

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

18

At this stage, unnecessary need arises from customers that businesses can actively stimulate is the desire of customers Enterprises can be through direct marketing, leaflets, internet, and mail to provide information to customers The content of customer care during this period is to introduce the characteristics, price, quality of products, utilities, instructions for use

Purchase decision stage

After the evaluation, select the customer to decide to buy However, there are obstacles such as purchasing conditions, purchase locations, payment methods, after-sales services, from purchasing decisions to purchasing In order

to promote the process of purchasing businesses, it is necessary to eliminate those obstacles by arranging convenient points of sale, diversifying payment methods, rich and attractive after-sales service content

Another obstacle to buying decisions is the fastidious customer So it is important to grasp the psychology of customers to please them

Stage after purchase

Any customer after purchasing also attaches importance to the after sales care of the business and takes it as a criterion to choose Customer care activities

at this stage focus on consulting, helping customers in using products and services and building relationships between customers and businesses to improve customer capabilities will be back to business next time

1.2 Service and quality of customer care services in the field of Telecommunications

1.2.1 Features of Telecommunication service

1.2.1.1 Materiallessness

Telecommunications services are responsible for moving information from senders to recipients This shift results in the operation of the Telecommunications industry This feature makes the quality of the service depend mainly on customer perception, a variable that is not always identical Different customers and groups always have different needs and interests The study of customer characteristics and fluctuations plays an extremely important role for telecom service providers

Also because the Telecommunications service is not a specific material, exists

1.2.1.2 Heterogeneity

Telecommunication services are more volatile than physical and standardized products

non-1.2.1.3 Inseparable between production and consumption

Due to the characteristics of the Telecommunications industry is the production process and the consumption process takes place simultaneously So there must be customers, the process of producing services has just started

1.2.1.4 Uneven load over time and space

The demand for information transmission of customers determines the existence and development of the Telecommunications industry However, the need for information transmission is diverse and uneven in time and space The uneven fluctuation of the load plus the standard of service quality requires that telecommunication companies must ensure the actual transmission time is less than

or equal to the prescribed time

1.2.2 Customer service Telecommunications and maintenance of customers in the telecommunications sector

1.2.2.1 Concept:

Telecommunication service customers are all organizations and individuals who have demand for such post, telecommunications and informatics services which are and will use the above services

1.2.2.2 Classification of customer services Telecommunications

Existing customers:

Are customers currently using the service

Customers are operators:

Businesses participating in the provision of postal services, telecommunications, informatics, content service providers in the market, have their own exploitation network and connect to the network of service providers

Special business customers:

As businesses wishing to use postal services, telecommunications, informatics

in large numbers, need to bring large-scale internal information with scope of activities nationwide and internationally

Large customers:

As organizations and enterprises with large scale and scope of activities in many provinces and cities, there is a need to use many postal, telecommunication and informatics services with high and unpaid rates special business

Small and medium customers:

As small-scale organizations and enterprises and operating in a province, a city needs to use post, telecommunications and informatics services with low monthly payment rates

Individual and household customers:

As individuals and households using post, telecommunications and informatics services to meet the communication needs of individuals and families of users

Service agent:

Service points that have signed agency contracts with service providers to

undertake service delivery for remuneration

21

1.2.2.3 The work of maintaining customers in the telecommunications field

1.2.2.3.1 The purpose of customer retention

In fact, many service enterprises have put their focus on attracting new customers But the reality has shown the importance in the strategy of maintaining and keeping customers Many companies implement specific programs to increase trust and enhance customer trust with the products or services they offer Doing so will ensure that the company will have higher sales and profits because of the following reasons:

Business is maintained; revenue, initial costs, marketing activities will be effective in a long time; the number of customers returning to the company is inversely proportional to the cost; satisfied customers will cause many side effects that benefit the company's reputation; Those customers may be willing to pay for a higher price

The reasons mentioned above may not apply to certain types of services, but more or less suggest important capabilities and opportunities for businesses to improve sales and profits Also an important issue to keep in mind is: if customers come to the company without being satisfied, they will turn their backs and come to the competition Therefore, keeping customers is a strategic requirement for service providers This in addition to helping companies predict profitability but also provides

a very good management tool to evaluate the success of service quality and customer service programs Maintaining and keeping customers allows the company to develop relationships, encourage and increase repeat purchases more frequently That is when customers put their trust in the company with very high prestige

It is very important to understand the deep causes of customers leaving and not using the company's services This process requires meticulous analysis to see the real, underlying reasons of the problem

The effectiveness of maintaining and retaining customers also brings another benefit; That is the company's employees are satisfied Because this plays a role as

an incentive to motivate employees and promote their readiness to deliver the best quality customer service services Therefore, trying to avoid losing customers is

22

considered an active tool to maintain customers and is therefore an important content of synchronous service quality management measures

1.2.2.3.2 Five ways to build lasting relationships with customers

First - personal beliefs: the goal is to build trust and reassure customers by ensuring that they promise to do, respond quickly to questions, problems and complaints and contacts regularly (but not to the extent of infringement), arranging for customers to visit the company's location, factory, social contact with customers

Secondly - technical support: the purpose is to provide the information and knowledge necessary for customers to use the service in the best way

Thirdly - supporting resources: the aim is to reduce the financial burden for customers through the promotion of sharing funds, deferred payment, providing credit, and lending light interest

Fourth - service level: the purpose is to improve the quality of service shown

by reliable and fast service

Fifth - reduce risk: through free service trial programs or lower service costs, product warranty, active monitoring

1.2.3 Quality of customer care service

From the point of view of service quality, the leading quality research experts

in the world, for Telecommunications industry can consider:

"Telecommunications service quality is the level of customer satisfaction in the process of perceiving, consuming services, being the overall service of Telecommunications enterprises, bringing the most complete and satisfactory chain

of expected value of service ”

Customers hardly recognize and evaluate the quality of Telecommunications services Therefore, to assess the quality of customer service, it is often based on factors such as price, availability of services, location of service providers

If you consider the quality of Telecommunications service is a comparison between the expectations of customers about the value of a service with the actual value of the service provided by the customer to the customer, then this comparison occurs The following possibilities:

23

Service value received > Expected value Very high

Service value received = Expected value High

Service value received < Expected value Low

1.3 The criteria to assess the quality of customer care services in the field of Telecommunications

In the current conditions of Vietnam, it can be said that the scientific research

on the telecommunications market is very necessary because the market is still the same but the number of suppliers increases And customers, from the position of

"give - take" suddenly become "gods", they can decide to choose the mobile network to use and are hunted by suppliers with enough free promotions and repairs charges, enhanced value added services The competition in the telecommunications service market cannot be without three factors: service quality, price and customer service It is possible that in recent years, competition in the telecommunications service market has only paid much attention to price reduction and promotion step by step improving service quality But the mobile network providers in the Vietnamese market are aware of the importance of scientific research and are now actively investing in customer care

Using the quality assessment model of SERVQUAL service of Parasuraman in

1985, the quality of customer care service in the telecommunications sector was evaluated according to the following criteria:

1.3.1 Type of service provided

The type of provided service is the form of services carried out by the provider’s customer care department to bring the value (beyond the overall value) to the customer It can be said that the type of provided service to customers is the basic factor affecting customers' love for suppliers The type of telecommunication service provider offers is rich, diversified, creative, bringing a lot of perceived value

to customers to be preferred by customers

In the current telecommunications service market, the general purpose of

24

customer care service for telecommunication service providers is to always find ways to benefit customers and satisfy the most demanding customers With that in mind, those phone subscribers are treated as customers, not just like inanimate numbers with parameters that are used as before This interest is reflected in the promotion policies of suppliers not only for new subscribers but also for those subscribers joining the network Various forms of promotion to attract new customers to join the network and maintain old customers are increasingly rich and attractive Get free money when connecting, increase card usage time, fold 2, 3, 4 when charging the next card, or free of charge, free 6-month subscription, free 1000 minutes of internal calls for rent Post-paid coverage, that really has a positive impact The number of subscribers joining the network has also increased, the number of outgoing subscribers has increased The content of customer care will be specified in each different provider Promotions, free repairs, value added services

of suppliers for customers are increasingly diverse and rich If someday you receive

a birthday card from a mobile service provider A, B, C then don't be surprised that it is just one of the ways to retain customers during the day " The market is the battlefield " now

1.3.2 Service quality

Service quality is the level of customer satisfaction in the process of perceiving service consumption, which is the overall service of the business that brings the most benefit and satisfaction chain to the expected value of customers in the business production, supply and distribution of output services

The factors determining service quality in general and customer care services

in particular are generalized according to the following diagram:

25

(Source: Marketing in service business)

Diagram 1.1: Determinants of service quality received

Service quality is the main factor determining customer satisfaction with the service of the provider Therefore, in the current market of telecommunications services, the investment in customer care activities has been carried out on a regular and much more professional basis The investment in scientific research is not only about investing in infrastructure but also investing in human resources, developing service processes so as to achieve the highest results Such clinical activities are conducted in a more professional way Establishing individual customer service departments, specializing in the implementation of customer care work and policies related to providing additional customer value to customers Thereby the customer values get more and more and they are less loyal to the suppliers they are using, because there are so many interesting "temptations" for them when they used Mobile Number Portability

The responsiness, accessibility and problems of transaction staff of customer care services of suppliers in the Vietnamese market in the recent period are not high Customers who want to join the network often have to find themselves with suppliers When there is something you want to ask, you can go directly, call or post

Oral information

Personal

26

a question on a media When coming to live, people often have to wait for a long time However the service numbers are usually free, when you call the most familiar sentence, any customer will hear that "All the lines are busy, please wait a moment" The waiting time is very long, luckily, it is only possible to connect with the answering staff or work with an answering machine Although the service numbers are free, the feeling of waiting so long makes the customer very easily inhibited

In the current period, suppliers need to invest more for customer care to improve the quality of services provided to customers: invest in a system of switchboards to support customers in both technology and human resources , to select, train and train employees thereby enhancing competitiveness for survival and development

1.3.3 Method of providing services

The mode of service delivery is the way that the provider uses to bring the service

to the customer or the way through which the customer can use, access the service The method of providing services in the telecommunications service market is assessed as good when it ensures that the service reaches customers in a timely, accurate manner and ensures the use of customer services is easy

In the current telecommunications service market, there are two methods used

by service providers that are direct and indirect methods Direct customer care is the way to place direct transactions between customers and providers' providers This method mainly takes place at the customer care centers, at stores and agents located

in the distribution channel of suppliers Indirect customer care is the customer care activities that are conducted through certain tools, through which the customer care department can perform its tasks and functions Normally, this indirect customer care method includes: through customer support system, via the internet, through the press Some specific quantitative criteria to assess the quality of customer care about the method of supply the service is: total number of incoming calls / total number of answered calls, total number of complaints resolved / total complaints, average waiting time to use the service

27

Overall assessment of the method of providing services of suppliers in Vietnam mobile phone service market is still a lot of weaknesses: waiting time to use of customers when coming to customer care centers or calling to the switchboard is long, the extra service for customers when it comes to service is not much Customers who come to the customer care Department of any customer care Center, while waiting, just stop by looking around, reading leaflets, introducing services meanwhile, at customer care centers in countries such as Korea, Singapore customers can be consulted directly on how to use cosmetics, makeup , to use the Internet in the meantime

1.3.4 Customer satisfaction

Satisfaction is the degree of a person's emotional state stemming from comparing the results after using the service with those expectations Therefore, customers can only be satisfied when their supplier values are greater than their expectations, from which they will be satisfied, happy or excited

When it comes to customer service when it comes to customer service, the problem they often care about is whether or not their inquiries are resolved and resolved If their inquiries are resolved satisfactorily, accurately and promptly, they will usually be satisfied But to create joy or pleasure, it must depend on a number

of factors such as material conditions, the context of the transaction, additional values The work of customer care in the service market Mobile phones need to fully implement the functions of consulting, warranty, complaint settlement in the spirit of benefiting customers and both the most demanding customers

Through a number of factors to assess the quality of customer care in the Vietnam Telecommunications service market, we realize that, although the customer care work of the Vietnam Telecommunications service market has some Significant progress, but compared to the customer care system of countries where telecommunications technology has developed, Vietnam still has many weaknesses

In the coming time, when Vietnam Telecommunications market is active with many suppliers, with many value-added services for customers, customer care also needs more changes pole In the context of price competition is no longer a factor to

28

attract new subscribers, the value for customers is the same, competition through customer care is also a trend in the future And competition through customer care will certainly be an effective competitive tool if certain suppliers do well

1.4 Factors affecting the quality of customer care services in the Telecommunications sector

1.4.1 External environmental factors

1.4.1.1 The situation of world economic development:

Recent changes around the world have created new challenges in business Especially in recent times, the impact of the world economic crisis has made businesses aware of the important role of quality, especially the quality of services The characteristics of this period forced enterprises to pay attention to quality issues:

Globalization trend with participation in the economy of every country

The promotion of international trade freedom

The rapid change of social progress with the role of customers is increasing The role of quality productivity advantages is becoming top

1.4.1.2 Level of scientific and technological progress

The strong development of scientific and technological advances, especially information technology in the field of telecommunications has changed the consumption structure of people and created new trends in consumption and many products New replacement of old products

With the convergence trend of information and computers, in the 21st century, Telecommunications service provision will move to a new development in the form of automation and computerization, and at the same time on information needs Peanuts will increase rapidly The application of modern technology to the Vietnam Telecommunication network has created great conditions in exchanging and collecting and grasping information processing in markets Thus to serve customers more fully and promptly and improve the quality of services on the basis

of cost savings and efficient use of resources

1.4.1.3 Market situation

29

The telecommunications service market is currently in the trend of eliminating monopoly, encouraging competition The form of competition is still very primitive, the level of competition is still fierce With the trend of integration into the international market, the State allows competition in the legal framework and especially when other businesses besides the VNPT VinaPhone have joined the market to make Telecommunications service marketing is becoming more and more exciting In order to survive and grow in competition, attracting more customers to use their services requires businesses to improve the process of exploiting, changing technology, ways of serving, finding benefits Competitive position creates its position in the market, increasing customer satisfaction

1.4.1.4 Mechanism of state management policies in the field of telecommunications

Any business operates in a certain business environment in which the legal environment with economic policies and mechanisms has a direct and tremendous impact on the creation and upgrading Product quality of businesses Countries in the world have previously managed the monopoly of the Telecommunications industry, but since the end of the 20th century many countries have separated telecommunications from the post and the state has only monopolized the postal administration and allowed the edge Free paintings in telecommunications Vietnam January 1, 2008, officially divided Telecommunications It also creates pressures to push telecom service businesses to improve their autonomy and creativity in improving and improving service quality and satisfying customers best

1.4.1.5 Cultural and social requirements

The cultural, ethical, lifestyle, customs and consumer habits have a direct impact on the quality of customer service quality of service businesses Quality is all the characteristics that satisfy the needs of consumers, and must satisfy the needs

in accordance with the cultural tradition, social ethics of the community, it depends closely on the cultural environment, society of each country

1.4.2 Factors within the enterprise

1.4.2.1 Human factors

People are a direct factor and decide on service quality Clients evaluate the company through the teller who serves them The quality of customer care services

30

depends greatly on the professional qualifications, capabilities, skills, working attitudes of the transaction staff, management staff of the company The sense of responsibility and the spirit of cooperation among members and departments within the company has a profound impact on the quality of customer care Quality of service not only satisfies the needs of external customers but also satisfies the needs

of external customers but also satisfies the needs of customers inside the enterprise The formation and development of human resources is to meet the needs of implementing quality objectives as one of the basic contents of quality management

in the current period

1.4.2.2 Effects of facilities and operational processes

The quality of equipment, networks and operational processes directly affects the service Often the facilities are also part of the physical signs of the service The facilities that promote services progress more smoothly, through the facilities customers have better awareness and evaluation of services

1.4.2.3 Landscape, environment, atmosphere where the service takes place

The physical environment includes the system of facilities directly impacting

on services and other physical signs due to the requirements of service provision and service consumption Such as room layout, transaction counters, interior, lighting, sound, people, costumes Many physical properties in the environment are highly concerned by customers and appreciated for the quality Customer care and it is considered part of the product and service

1.4.2.4 Factors belong to the business itself

Prestige, corporate responsibility for customers, price policy If the business retains its reputation with its customers and has high responsibility to customers and has a reasonable price policy, it will be highly appreciated by customers

1.4.2.5 Organization management level of the enterprise

Quality management based on system theory perspective In each business is

a system, in each system has a uniform synchronization between the functional units The level of quality achieved on the basis of cost reduction depends greatly

on the level of management organization of each business The quality of

31

management activities reflects the quality of operations of enterprises In which, the combination of rational exploitation of existing resources to create products depends on awareness, understanding of quality and quality management, construction level and organization of guiding implementation process, policy, quality plan objectives of enterprise managers Therefore, perfecting management is

a good opportunity for improving service quality, satisfying customers' needs

32

CHAPTER 2 CURRENT SITUATION OF QUALITY OF MOBILE PHONE CUSTOMER

CARE SERVICE AT VNPT VINAPHONE

2.1 Overview of Telecommunications Service Corporation - VNPT VinaPhone

2.1.1 Functions, tasks and organizational structure of VNPT VinaPhone

Vietnamese name: Telecommunication Service Corporation - VNPT VinaPhone International name: VNPT VinaPhone Corporation

Headquarters works

Address: Post and Telecommunications High-Tech Building, Ward Xuan La, Tay

Ho District, Hanoi City, Vietnam

Phone: (8424) 33661166 Fax: (8424) 33992299

Website: http://www.vinaphone.com.vn

VNPT-VinaPhone Telecommunication Service Corporation was officially established on July 1, 2015 according to the Prime Minister's Decision No 888 / QD-TTg approving the scheme on restructuring Vietnam Post and Telecommunications Group Under the Restructuring and restructuring scheme of the Vietnam Post and Telecommunications Group, there is a Network Infrastructure Corporation (VNPT-Net) dependent accounting and 2 independent cost-accounting subsidiaries are the Communications Corporation (VNPT-Media) and Telecommunications Service Corporation (VNPT-VinaPhone)

VNPT VinaPhone was established with a charter capital of VND 5,200 billion, owned by VNPT Group and 100% owned by the parent company - subsidiary company model VNPT VinaPhone will represent VNPT to provide all telecommunications, information technology and communication services, including: mobile services (VinaPhone brand), Broadband (Internet access like MegaVNN, FiberVNN, MegaWAN ), Fixed and television (fixed phone, Gphone, MyTV ), Transmission (Domestic and international data transmission .), Value-added services, Integrated solutions telecommunications and information technology, trading telecommunications and information technology equipment