Contents ! Message from the Editor
==QTSA FOCUS !=Message from the Editor OMMR !=== !"#$% OMMR ! Embrace Opportunities in 2005 Uplift Service Standards Thoroughly !=Feature Talkss !"#$% nqp^ !"# QTSA Scrutinizes Your Needs !W= Embrace Opportunities in 2005 Face to Face with QTSA Governing Council Member: Mr Simon Wong Uplift Service Standards Thoroughly !"#$ %&'()*+,-./0 Notice on Relocation of HKTB Visitor Information & Services Centre
!=QTSA Updates OMMR !"#$%&'()* !"#$%&'()*+,-./012 !"#$%&'()*+% !"#$%&'()*'+,-./01234567%896:;<=5 QTSA 10th Annual General Meeting !"#$%&'()*+,-./01234056789(:;<=>? !"#$%&'ff Star-grade Speakers Shining in Sharing of Business Elites II !"#$%ON !"#$%&'()*+,%- ./012 !"#$%&'()*+,-nqp nqp^ !"#$%&'()*+,- !!"#$%&'()*+,-./01234+ !567 !"89: First Infotainment TV Program of QTSA on ATV !"#$%&'OMMR !"#$!%&'()*+ ,-./012 !"#$%&'()*+,-.'/0 !"#$%&'()*+,-./012 3,-456789:;!<= Understand Total Quality Management to Achieve Services Excellence !"#$%&'()*+,-./'01 23*456,7 89:;$ !"#$%&' !"#$%&'()*+,-./012 Cast Light on the Operation of China Unionpay Cards !"#$%&= !"#$%& !"#$%&'()*+$ ,-./012345 623789:;<> “Winning the Heart of Tourists“ – Sales Technique Enhancement Seminar !"#$%&'()*+,-./01 Understand International Visitors' Characteristics, Enhance To the tourism and retail industries, 2005 is seen as a fruitful year which Servicing and Communicating Techniques is filled with opportunities for further expansion. The continuous surge of != INDUSTRY FOCUS mainland visitors has been boosted by the expansion of cities allowing Individual Visitors Scheme and relaxation of the limit for mainland visitors != Quick Captures in bringing the total amount of remenbei to Hong Kong. Furthermore, the !=Words of Wisdom openings of the long-awaited Hong Kong Disneyland and other mega tourism infrastructures are also expected to bring the total number of visitors totaling = MEMBER FOCUS 21 million set in 2004 to another peak and tapping into more opportunities !=Member Close-up for the tourism and retail industries. !"# Interview with Sa Sa Cosmetics With a view to helping QTSA members explore new business opportunities
!=Inspiring Article and ensure their services cater to the visitors’ needs, QTSA has arranged and !"#$%&'W= !"#$%&'( planned ahead an array of training activities for its members. After the arrival HKPC Column: Coaching Skills for Onsite Management of 2005, the Association conducted a survey to scrutinize members’ needs, to !"#W= != ! make sure the Association’s training activities address their needs. It also helps ICAC Column: Integrity – Our Winning Edge the participants of the forthcoming training activities to keep pace with the !W= !"#$%&'()* (+, latest tourism and retail industry developments and equip themselves with !\ useful techniques in capturing business opportunities. The Association has Academics Column: Has your “Customer Loyalty Program” been Really Targeting Loyal Customers? currently arranged several training activities and each has received an overwhelming response from members. Details of the activities are revealed separately in this issue of the newsletter.
QTSA = !"#$%&'()*+,-./ Lastly, we hope you can solicit your continuous support to QTSA, give us !"#$%&'(NU !"#$V your valuable comments and let us serve you better. =2807 6280=== =2807 6360 [email protected]=== www.qtsa.com !"#$QTSA !"#$%&'()
“QTSA News” is published quarterly by Quality Tourism Services Association Address: 9th Floor, Citicorp Centre, 18 Whitfield Rd., North Point, Hong Kong Tel: 2807 6280 Fax: 2807 6360 Email: [email protected] Website: www.qtsa.com If you want to receive more copies of “QTSA News”, please feel free to call the Secretariat for arrangement.
!"#$%QTSA !" Please contact us for “QTSA News” advertising enquiry. != QTSA FOCUS ! Feature Talks
!"# !"#$%&'( )*+,-.+/0)*1' 2345 !"#$%&'()*%+,-./0123456789:%+;<0====== !"# !"#$%&'( !"#$%&'()*+,-./012 OMMR N QTSA Scrutinizes !"#$%&'()*+,-./*+012*3456789:;<=> !"#$ Your Needs !"#$%&' NK !"#$%&'()*+,-./01234 Uplifting service quality through training and seminars is one of the missions ! of the Quality Tourism Services Association (QTSA). To assist the Association in !"# planning the direction of members’ training, QTSA has conducted a survey !"#$ regarding members’ training needs in January 2005. !"#$%& The survey encompassed more than a hundred of members and provided some !"#$%& valuable comments relating to the arrangement and content of seminars.
OK !" Parts of the survey findings were as follows: 1. Topics of training activities that members would like to join (in !"# consecutive order) ! • Sales Technique !"#$%& • Customer Service Enhancement • Interpersonal Communications & Presentation Skills PK !"#" !"# • Emotional Self-mastery & Complaint Handling !"# •Creativity in Problem-solving !"# 2. Members’ preferences for training format !"#$%&'( • Half-day Seminar in the Morning • Small Group Discussion QK !"#$% !"# •Training for Frontline Staff !"#$%& !"#$% 3. Purposes of members joining QTSA’s training activities (in consecutive order) !"# •To uplift service standard •To acquire useful knowledge !"#$%&' ()*+,-./0*1 •To fulfil staff need for external training !"#$%&'()TMB !"#$%&' !"#$%&'()*+,-./01234 4. Benefits after attending QTSA’s training seminars (in consecutive order) !"#$%&'()*+,-./01234 • Better Understanding the Key points in Serving Tourists !"#$%&'()*+ ,-./012+ • Improvement in Service Quality !"#$%&'()*+,-./012$3 • Boost Staff Moral !"#$%&'()*+,-./0 !" = QTSA is very pleased with members’ active participation in training activities to !"#$%&'()*+,-'./0 !1 uplift their service standards. Many of the respondents (70%) revealed they have !"#$%&'(")*+,-./0123 participated in QTSA’s training activities in the past year and some of them even !"#$%&'()*+,-./01234 revealed that they joined the Association’s activities up to 4 times. In view of !"ïïïKèíë~KÅçã !OUMTJSOUM their increasing demand for training activities on serving tourists and sales techniques and local tourism development, we will consider their suggestions and promise to provide training seminars responsive to their needs. In the first quarter of 2005, QTSA has already arranged a series of training seminars for members including the “Winning the Heart of Tourists” – Sales Technique Enhancement Seminar and “Total Quality Management Towards Service Excellence” Seminar. We look forward to your continued support and valuable comments towards the forthcoming training seminars. For details, please visit QTSA website (www.qtsa.com) or contact the Association at 2807-6280.
QTSA NEWS Jan - Mar 2005 1 ! Feature Talks
!W = BIOGRAPHY !"#$%&'()*+,-./01,2301456 !"#$%&'()*+,-"#./01234&56 !" !"#$ %&'()*+,-( !"#$% &' !"#$%&'()*+,-./012345678/ !"#$%&'()*+ !,-./$0'('12 Face to Face with !"#$%&'()*+ QTSA Governing As well as being the elected member for Quality Tourism Services Association Governing Council, Mr Simon Wong is also the Chairman of Kampery Group. The company Council Member: specializes in drinks, health and organic products and owns various brand names such as Dai Pai Dong, Greendotdot and Organic Garden. Mr Wong is also enthusiastic in participating in activities relating to catering industry and public affairs. Mr Simon Wong He is also the Chairman of the Hong Kong Federation of Restaurants and Related Trades, General Committee Member of the Chinese Manufacturers’ Association of Hong Kong and Chairman of the Story of Hong Kong – Fishery & Agriculture Committee.
!"#$%!&'W=OMMP ===vÉ~ê=çÑ=gçáåáåÖ=nqp^=dçîÉêåáåÖ=`çìåÅáäW=OMMP
NK !"#$%&'()*+,-./$0 1. In addition to running your business, you actively participate in !"#$%&'()*+ ,-\ activities relating to the catering industry. How can you handle such !"#$%&'( )*+,-&'(.$ a heavy workload? First of all, you should have an interest in your jobs. If you are doing something !"#$%&'()*&+ ',-./0 you are interested in, you do not feel like you are under a heavy burden. !"#$%&'()*+,-.$/012 To handle the jobs from different associations, I have to sacrify some of my !"#$%&'()*+,-./0123 personal time. Sometimes, I enlist the help from my staff to share my workload. !"#$%&'"()*+,-.//01 However, no matter how busy I am, I would personally go through all the !"#$%&'()*+ relevant materials to keep track of their latest progress. 2. From your personal perspective, what are the greatest challenges OK !"#$%&'()*+,-./0 that the catering industry is now coming to grips with? \ The greatest challenges are the skyrocketing operating costs including rent, !"#$%&'()*+,-.) /01 product price, staff salaries. Other than these, retaining outstanding staff and !"#$%&'()*+,-./0123 improving their service attitude always put trade practitioners in a difficult !"#$%&'()* +,- ./01 corner. To retain outstanding staff successfully, the pre-requisite is to make !"#$%&'()*+(!,-./01 sure they cultivate a sense of belonging and satisfaction while working at the !"#$%&'()*+,- company. Giving them ceaseless encouragement and more promotion opportunities can also help improve the situation. PK !"#$%&' ()*+,\= ! 3. Why did you use “Dai Pai Dong” as the theme for your restaurant? !"#$%&'()*+,-./%0 In the catering industry where competition is very stiff, if business !"#$%&'()\ owners want to explore creativity in order to build up an impressive !"#$%&'()*+!,-./0123 brand, do you have any recommendations? !"#$%&'()*+,- ./012 The image of “Dai Pai Dong” has been lingering in the mind of Hong Kong people and many of them have visited it before. My restaurant was established !"#$%&'()*+%,-./012 before the handover of Hong Kong in 1997. During that period of time, Hong !"#$%&'()*+,-$./0123 Kong people were uncertain of the future and loved to recall the good days of !"#$%&'( Hong Kong, therefore, I chose “Dai Pai Dong” as the theme of my restaurant.
!"#$%&'()*+,-./012 To explore creativity, management should take their initiatives and demonstrate !"#$% &'()*+!,-./01 their staff a good model and be open-minded to accept staff’s new ideas and comments. Through practising and fine-tuning of new ideas, a new idea and !"#$%&'()*+,-./01 impressive brand will be created. QK !"#$%&'() *+,-.// 4. Your restaurant is renowned for producing Hong Kong-styled cuisine. !"#$%&'()*+\ Of the various styles of Hong Kong cuisine, which one you like !"#$%& '()*+,-./012 the best? !"#$ %& !'()*+$'(,- I like dishes with no heavy seasonings or dressings. When I am free at home, I love cooking dishes for my family. I like cooking a vegetable soup. Its !"#$%&'()*+,-.#/0 ingredients include organic beet root, carrot, red cabbage, tomato, pieces of !"#$%&!'()*+, -./0 mint and some meat. It’s very delicious and mouth-watering. !"
2 QTSA 1 - 3 != QTSA FOCUS
RK !"#$%&'() *+,-.'( 5. We learnt that you studied arts at university. Are there any similarities !"#$\ !"#$%&'() between arts and running a restaurant. What benefits have the subject \ brought to your career? !"#$%&'()*+,-)*#./0 I think both of them need creativity because creativity is the driving force to uplift quality. Learning arts is very useful for me in running my restaurant. I !"#$%&'()*+,-./0 12 always put what I have learnt in arts into my business. Most of the promotional !"#$%&'() *+,*-!./) materials and slogans in my group companies are my creative efforts. !"#$%&'()*+, 6. If Hong Kong wants to maintain its status !"#$%&'()*+ as the “Gourmet Paradise”, which areas need SK !"#$%&'()*& to be improved? It has to make a breakthrough in its food types and a !"#$%&'()*+\ lift in staff service attitude. Practitioners are also !"#$%&'()*+, encouraged to learn from successful cases in !"#$%&'()*+, improving their service quality. In recent years, many !"#$%&'()*+, good restaurants from the mainland have taken root !"#$%&'()*+, in Hong Kong, posing a threat to the Hong Kong !" #$%&'()*+ restaurants. In this regard, practitioners have to work harder and carve out their niches. 7. To uplift the service quality of the catering TK !"#$%&'()*+ industry, do you have any experience to be !"#$%&'()*+\ shared? !"#$%&'()*+# As the development of the industry changes very !"#$%& '()* rapidly, trade practitioners should be very responsive to the changes. In addition to this, they !"#$%&'()*+, have to keep on enhancing their knowledge in the !"#$% industry and improving their service quality.
!"#$ %&'( !"#$% Notice on Relocation of HKTB Visitor Information & Services Centre !"#$%&'()%*+,-./ 012 OMMRPOQ !"#$% EcF !"W= !UWMM UWMM !"#$%&'()*+,-./0123/456789:;89<=> !"#$%&'()* +,UWMM UWMM !"#$%&'( =ORMU=NOPQ Effective from 24 March 2005, the HKTB Visitor Information & Services Centre in Central has been relocated to Causeway Bay MTR station (near Exit F). Operating Hours: 8am-8pm daily. Meanwhile, the operating hours of HKTB Visitor Information & Services Centre at Kowloon Star Ferry Concourse in Tsim Sha Tsui, has also been extended for 2 hours, serving visitors from 8am – 8pm daily. For details, call the Visitor Hotline 2508 1234.
QTSA NEWS Jan - Mar 2005 3 ! QTSA Updates
!"#$%&'()*+% QTSA 10th Annual General Meeting
!"#$% !"#$%&'(()"*+ ,-./0123456 !"#$%&'()*+,-./012(3+4567/89:;<=> !"#$%& '()*+,-./0%1234567895:;<=/ !"#$%&'()*+,-./0123456789:;<=>5?@ !"#$%&'()*+,"-./01(234566(789:;
!"#$%&'()*"OMMPLMQ !"#$%&'jççêÉë=oçïä~åÇ j~ò~êëOMMQLMR !"#$%&'()*+,-./0%123$%OMMPL MQ !"#$%&'() *+',-./0123456789:";8< !"#$%&'()*+,-./0123456789:+,-;<= !"#$%&
QTSA 10th AGM was held on 17 March 2005 at Picasso Room, Intercontinental Grand Stanford Hong Kong. To celebrate the 10th Anniversary of the Association, QTSA has invited not only Members to participate but also the Hon Mrs Selina Chow, GBS, OBE, JP, the Chairman of Hong Kong Tourism Board as the Guest of Honor, while Ms Eva Cheng, JP, Commissioner for Tourism and Mr Roy Tan Hardy, Vice President, Marketing & Sales of Hong Kong Disneyland were invited as guest speakers delivering addresses under the theme, “Let’s Maintain Hong Kong as the World’s Premier Destination to Tourists”, adding glamour to the event. In the Annual General Meeting, the Association unanimously approved the Annual Report and Accounts for the year 2003/04 and appointed Moores Rowland Mazars as the Auditor for financial year 2004/05. Mr Vincent Fang, JP, the Chairman of QTSA also reported the Association’s activities in 2003/04 and revealed the future development of Association in the coming year. In addition, the appointments of two new advisers: Professor Andrew Chan, the Chairman of Consumer Council and Mr Bankee Kwan, the Chairman of Hong Kong Retail Management Association were announced with term of service of one year.
4 QTSA 1 - 3 != QTSA FOCUS
!"# ! ff Star-grade Speakers Shining in Sharing of Business Elites II
nqp^ ! !"#$%&'()*+,- “Sharing of Business Elites” is coming again! The 2nd “Sharing of Business Elites” will take place on April 26, 2005 (Tuesday) pm at the Miramar Hotel OMMRQOS !"#$%&'()*+,-. Hong Kong. This time with the theme of “Going Extra Miles on Service Quality !"#$%&'()*+,-.$/01234 to Win Customers”, the focus will fall on how to grasp market share through !"#$%&'()*+,-./ 01#2 continual enhancement of service quality! Nowadays, facing the heightened !"#$%&'()*+,-*./0123 service expectations of local customers and visitors, businesses are constantly !"#$%&'()*+,-./%01 challenged in developing the ideal strategy for achieving optimal return. !"#$%&'()*+,-./0123 For this upcoming event, it is our great honour to have three prominent ! retailing leaders sharing their successful experiences with us. They include: Mr Simon Kwok, Chairman & CEO of Sa Sa !"#$%&'()*+,-./01234 International Holdings Limited; Mr Brian Li, President of !"#$%&'()*+,,-"./012 Broadway Photo Supply Ltd and Vice-Chairman of QTSA; !"#$%&'()*+,-./0123! and also Mr Peter Lau, Chairman & Chief Executive of !"#$%&'()*+,-./ 0123 Giordano International Limited and QTSA Governing Council Member. In addition, famous scholar from the !"#$%&'()*+,-== !" Faculty of Business Administration of The Chinese !"#$%&'()*+,-./012 University of Hong Kong, Professor Andrew Chan, !"#$%&'()*+,- ./0123 adviser of QTSA has also been invited to take the role as guest moderator to host the Discussion and Q & A session. With such a “dream cast” in the upcoming “Sharing of Business Elites,” you surely cannot afford to miss this great opportunity for business development and idea exchange!
QTSA NEWS Jan - Mar 2005 5 ! QTSA Updates
!"#$%&'( !" nqp nqp^ !"#$%&' !"# First Infotainment TV Program of QTSA on ATV
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QTSA will jointly launch a TV program on Asia Television Limited (ATV) Home Channel starting from 23rd April with a series of 8 episodes. This infotainment program, which is hosted by famous ATV artist Mr. Kenneth Chan, will introduce ! !"#$ nqp^ !"W regional hotspots in Hong Kong in each 30-minute episode with interactive !"#$%&'()*++,-./%&' game elements. Through a vivid approach, our members mertchant’s unique !"#$%&' ()* +,-./%& selling points and quality offerings will be introduced. Since ATV can be viewed !"#$%& '()*+,-./0 by 21 cities in the Guangdong Province, this program will raise the interest of !"#$%&'(%)*+,-.!"#$% our potential Mainland tourist segment and also engrave quality Hong Kong merchants’ names in their minds. !"#$%&'()*"#$%&+,-./ !"#$%&'() *+,-./ oÉîäçå eh=iíÇKJräíáã~=ff !" #$%&'() !"#$%&'()*!+,$%-. !" nqp qçééó=`çKehiíÇK= !"#$%& !"#$%> Special Acknowledgements to the Supports of OPJMQJOMMR= !> Hong Kong Tourism Board and the following !"#$%&'()*%+,- QTSA members: ïïïKèíë~KÅçã== !> Broadway Photo Supply Ltd, Chow Sang Sang Jewellery Co. Ltd., Chung Yuen Electrical Co Ltd., City Chain pí~ó=íìåÉÇ=íç=çìê=cáêëí=qs=mêçÖê~ã> Company Limited, Dai Fat Swallow’s Nest Co., Ltd., qç=ÄÉ=ä~ìåÅÜÉÇ=çå==OPJMQJOMMR Emperor Watch and Jewellery (HK) Co. Ltd., bîÉêó=p~íìêÇ~ó=çå=^qs=eçãÉ=`Ü~ååÉäW=UWPMéã=J=Véã Hang Cheong Loong Bird’s Nest & Ginseng Ltd., `äáÅâ=ïïïKèíë~KÅçã=íç=aáëÅçîÉê=jçêÉ> Halewinner Ltd., Hang Fa Lau Holdings, Hong Kong Catering Management Ltd, Kwun Kee Tailor, Oriental Watch Co Ltd., Pak Shing Tong Ginseng Co. Ltd., Prince Jewellery And Watch Company, Rainbow Seafood Restaurant, Revlon (HK) Ltd.-Ultima II, Sa Sa Cosmetics Co Ltd., Tai Lin Radio Service Ltd., Tai Sing Bird’s Nest and Ginseng Co., Thailand Bird’s Nest Ltd., Toppy Co.(HK)Ltd., Tse Sui Luen Jewellery Company Limited
6 QTSA 1 - 3 != QTSA FOCUS
!"#$%&'()* !"#$ Understand Total Quality Management to Achieve Services Excellence
!" !"#$% &'()*+,-.$%#/0 1234567 !"#$%&'()*+,-./012345
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In the pursuit of service excellence, company should not only count on the efforts of frontliners in uplifting their service standards, a total quality management system should also be implemented within each company. In view of this, QTSA introduced a seminar, particular for senior management staffs, on “Total Quality Management Towards Service Excellence” to assist members in applying total quality management system into their business so as to facilitate frontliners to achieve service excellence. Delivered by Mr Thomas Chow, a veteran in corporate trainings in Hong Kong, mainland China and overseas, the seminar was successfully completed on 8 March at the Joint Professional Centre. Mr Chow also has extensive and hands-on experience on enterprises of different sizes in implementing Total Quality Management (TQM). After the promotion of seminar rolling out, the Association received an overwhelming response from members and all the seats were reserved immediately. During the seminar, Mr Chow first introduced participants the concept of TQM and identified the importance and gist of implementing TQM to companies. In addition, he also suggested participants a systematic approach for uplifting customers satisfaction and fostering good customer relationships and customer loyalty. In order to improve participants’ understanding, Mr Chow also supplemented with cases in retail and catering industries to analyze the reasons for success and failure and shared participants with useful insights on promoting total quality management to achieve service excellence.
QTSA NEWS Jan - Mar 2005 7 ! QTSA Updates
!"#$%&' Cast Light on the Operation of China Unionpay Cards
!"#$%&'() !"#$%&'( With the increasing number of the mainland tourists, China Unionpay Card !"#$%&'()*++,-./012, (CUP) has become one of the most popular payment means among retailers. In a bid to promote QTSA members, especially frontliners a better understanding !"#$%&'( )*+,-./01O towards CUP Cards, QTSA teamed up with China Unionpay Hong Kong !"# $%&'()*+# ,--./0 OR Representative Office to organize a seminar on 25 February to share with !"#$%&'()*+,-./01234 members some useful information on the operation and administrative issues of !" CUP Cards.
!"#$%&'()*+,-./01234 As the seminar was the most comprehensive one on CUP Cards, many members !"#$%&'()*+,-.#/0123 had registered their frontline staff to the seminar immediately. In this regard, we !"#$%&'()*+ had organized an additional seminar on the seminar date in order to cater to their needs. !"#$%&'()*+,-./01234 Conducted by Mr Carlson Li, the Head and Mr Peter Ku, the Senior Business !"#$%&'()* !+,-./0.1 Manager of Market Services Department at the China Unionpay Hong Kong !"# $%&# '( )*+,-./0 Representative Office, the seminar was divided into two sessions. The first session !"#$%&'( )*+,-./01234 shed light on the circulation of CUP Cards, business development in Hong !" #$% &#'()*+,-./01 Kong, different types of CUP Cards such as debit cards, credit cards and dual- currencies cards and their features, while the second session focused on the !"#$%&'()%*+,-./0,1234 CUP Cards functions, procedures of accepting CUP Cards transactions and !"#$%&'()*+,-./ %01" operational flow etc. !"#$%&'()*+,#-./0+1234 To provide better services to customers when settling their payment with CUP !"#$%&'()*+,-./01234 cards, participants were enthusiastic in asking questions during the seminar, especially related to the handling of Dual-Currencies Cards and double debits. !"#$%&'()!*+,-./0123 In order to share the practical information with more members, especially those !"#$%&'()*+ ,-./0123 who were unavailable to join this seminar, we have highlighted the key points as !" below for members to share with frontliners.
8 QTSA 1 - 3 != QTSA FOCUS
!"#$$KKK Learn More About Unionpay Cards… NK= !"#$ %^qj\= !"#$%\ 1. Is CUP card an ATM card? How many types of CUP cards are there? !"#$%& '() "# *+^qj CUP cards have both ATM and credit cards. At present, the number of ATM !"#$%&'()*&+,-./ 01 cards is 700 million, which is much larger than those of credit cards in circulation but the development of credit cards is at the explosive rate with 20 !"#$%&$'( !"#$ OIMMM million CUP credit cards in the market. To differentiate between ATM and !"#$%&'()*+$,-(./ credit cards, you can identify by the laser anti-counterfeit sign as imprinted !"#$%&'()*+,-$./* on the top right corner of the card. If the sign is found, it is a credit card. If ! not, it should be an ATM card.
OK= !"#\= !"#$%\ 2. What is dual-currencies card? What are their characteristics? Dual-currencies card is a unique type of China Unionpay Card. Judging from !"#$%&'()* +,-./+ its card face, dual-currencies cards are similar to Visa and Master credit cards !"#$%&'() sfp^ j^pqbo and a laser anti-counterfeit sign has been imprinted on the top right corner of !"#$%&'(" )*+!,-./ the card. Dual-currencies cards can be accepted in both CUP and other !"#$%&'()*+,-./0123 payment networks. However, card holders will be charged at different exchange !"#$%&'()* +,"&'!-. rate. Comparatively speaking, card holders who settle their payment via CUP payment networks can enjoy better exchange rate due to the following reasons: !"#$%&'()*W (i) Since the clearing currency is RMB in the CUP network and the settlement !"#$ !%&'% ()*+,-. EáF currency of local merchants is Hong Kong dollars, there would be one !"#$%&'()* +$ !,-. exchange transaction from Hong Kong dollars to RMB if the payment is !"#$!%&'()*+,-./01 settled via the CUP network. However, if the customer payment is settled !"#$%&'()*+,-./0$1 via Visa and Master cards networks, since the clearing currency of these !"#$%&'()*+,-'( networks is US dollar, this will involve double exchange transactions from !"# Hong Kong dollars to US dollars and from US dollars to RMB. (ii) Card holders do not need to pay currency exchange fee through the CUP EááF !"#$%&'()%*+,-./01 network for payment whereas there will be handling fee for !"#$%&'()*+,- . currency exchange levied by other international payment networks.
PK= !"#$% &'()*+,\ 3. What should merchants do if customers use dual-currencies CUP !"#$%&'()*+,-"./012 cards to settle their payments? Since dual-currenices CUP cards can be accepted in both CUP and other !"#$%&'()#*+,%-./01 international payment networks, merchants are advised to ask the card holders !"#$%&'()*+,-.%/012 to choose their preferred network in settling payments and to remind them of !"#$%&'()*+,-./0123 the different charges that would be levied for different payment networks. !"#$%&'()*+ 4. Are signatures required for all CUP card transactions? QK= !"#$%&'()*+ ,-.\ Ye s. Card holders should sign on the receipts regardless of the transaction is !"#$%&'() *+, -./'0 settled by ATM or credit cards. Merchants are also required to check if the signatures are consistent with those indicated on their cards. However, if card !"#$%!&'()*+ ,-$%!& holders have not yet signed their cards, you have to request them to sign their !"#$%&'()*"+,-)./01 cards immediately. Since the card issuance banks can refuse accepting any !"#$%&'(%)*+,-./0$% card payment with no signature on receipts, you are suggested to stop the !"#$%& '()*"+,-.&/0 transaction if the card holders insist not to sign their cards. !"#$%&'( $)*+,-./ 5. How to handle double debits? You can inform your bank to confirm if double debits have been incurred. At RK= !"#$%&'()* +,-\ the same time, you can also assure the card holders that if double debits have !"#$%&'()*+,-./012% been incurred, the payment will be refunded to their banks accounts. If card !"#$%&'()*+,-./01*2 holders still have any other enquiries, merchants can suggest them to dial !"#$%&'()*+,-./0123 CUP hotline 852-83328330 (24-hour) for assistance. !"#$%&'()*+,W=UROJUPPOUPPM OQ !"#$%&'()*+,-.
QTSA NEWS Jan - Mar 2005 9 ! QTSA Updates
!"#$% !"#$%& “Winning the Heart of Tourists” Sales Technique Enhancement Seminar
!"#$% !"#$%& '()*+ In today’s market environment, tourists are high potential customers for many !"#$%&'()*+,-./0"123 businesses. As they form a unique segment that possesses distinctive consumption !"#$%&'()*+,-./01234 behavior and preference, how to win tourists’ heart successfully requires an in- depth understanding of their behaviour and requires the adoption of a tailored !"#$%&'()*+,-./0123 approach in sales force management. In view of the importance in this regard, !"#$%&'()*+,-./0.123 QTSA has organized a half-day seminar entitled “Winning the Heart of Tourists – Sales Technique Enhancement Seminar” for middle to senior executives on ON !"#$%&'()Q !" 1 February 2005 at the Exhibition Hall of HKPC Building in Kowloon Tong. !"#$%&'( !"#$%&'()* = The veteran speaker, Mr Raymond Tsang from Tiptop Consultants, specializes !"#$%&'()*+,-#./0123 in the design and execution of large-scaled customer care and management !"#$%&'()*+,-./012%3 development projects, and has conducted many service training events for a !"#$%&'()*+,-./0123 number of organizations.
!"#$%&'()*+,-./0123% In this seminar, Mr Tsang has demonstrated the new translation of selling procedures by value-adding the traditional A.I.D.A. model (Awareness, Interest, !"#$%&' !" #$ ^KfKaK^K=E Desire, Action): Adopting “Interest Creating Remarks” to draw the attention of F W= !"#$%&'()*+îë tourists with different backgrounds (Eastern vs Western) Making use of the fK`KoKfåíÉêÉëí=`êÉ~íáåÖ=oÉã~êâë !"#$= “Unique Selling Point” to highlight the difference of product or service so as to !"#$%&'råáèìÉ=pÉääáåÖ=mçáåí !" arouse interest Pinpointing the benefits through V.A.K. (Visual, Auditory, !"#== !"sK^KhK= sáëì~äI= Kinetics) for amplifying desire and Facilitating action by applying flexible sales closing skills. ^ìÇáíçêóI=háåÉíáÅë !"#$%&'(= !"#$%&'()*+,- The speaker has also elaborated on the 80/20 rule for strategically targeting tourist needs. As a closing for the seminar, the management planning flow is also !"#$%&'UMLOM !"#$%&' touched upon to highlight to participants the essentials behind the mindset !"#$%&'()*+,-./01234 breakthrough in the 21st century. !"#$%&'()*+,-./0123 According to the evaluation results from participants, nearly 80% of respondents !"#$%&'()*+,-./' 012 found that the seminar could meet 80% of their expectations. In consideration of the initial overwhelming response with over 300 registrants for this !"#$%&'()*+,-./012 UMB seminar, QTSA has organized one more seminar on 31 March to cater to !PMM !"#$%&'()*+,-" the needs of the members! !P PN !"#$%&'()*+
10 QTSA 1 - 3 != QTSA FOCUS
!"# !"#$%&'() *+,- To maintain Hong Kong’s position as the premier tourists’ destination, !"#$%&'()*+, -./01 2 it is indispensable for tourism and retail trade practitioners to serve and !"#$%&'()*+,-./01234 communicate with visitors across the world effectively. In this regard, QTSA teamed up with the University of Hong Kong School of Professional and !" #$%&'()*+,-./01234 Continuing Education (HKU SPACE) to organize a seminar called “Mastering !"#$%&'()*%+',-./0123 the Skills in Serving and Communicating with International Visitors” in early !"#$%&'( December to equip members, especially frontline staff, with some practical techniques on serving and communicating with international visitors. !"#$%&'()*+,-.*/0123 !"# $%&'()*+,- ./01 Speakers of this seminar were Mr Raymond Siu and Mr Stephen Wong from HKU SPACE, who are veterans in serving international visitors in the hospitality !"#$%&'()* and public relations industries. The seminar first led participants to understand their customers from various
!"#$%&'()*+,-./01 Understand International Visitors’ Characteristics, Enhance Servicing and Communication Techiques
!"#$%&'()*+,-./01234 cultural backgrounds and highlighted cultural differences, especially the do’s and !" #$%&'()*+,-./012 don’ts in serving and communicating with international tourists. They were also !"#$%&'()*+,"-./0123 introduced to the concept of multiculturalism and advised to be open-minded !"#$%&'()*+,-./0123 and avoid stereotyping – the obstacle for effective communication. !"#$%&'()*+,-./012 3 To communicate with international tourists effectively, Mr Siu advised !"#$% participants to avoid using slang or colloquial language because it might lead to miscommunication due to cultural differences. To overcome language barriers, !"#$%&'()*+,-./01234 he also suggested participants to use body language when communicating with !"#$%&' ()*+,-./ 012 international tourists. When introducing services or products, they can use simple !"#$%&'(!)*+,-.(/!01 sentences to provide detailed explanation. !"#$%&'()*+,-#./ 012 To furnish participants with some practical experiences on serving international !"#$%&'()* visitors, two guest speakers, Mr Edwin Chan from Kimberly Hotel and Mr Simon Sin from Princeton Custom Tailor were also invited to share their experiences in !"#$%&'()*+,-./0123 the catering and retailing industries respectively. W= !"#$%&' ()*+,-./ !"#$%&'()*+,-./0123 !"#$%
QTSA NEWS Jan - Mar 2005 11 != INDUSTRY FOCUS ! Quick Captures
!"#$ ! "#$ %&'()* '+,-. fåíÉêå~íáçå~ä=éÉêÑçêãáåÖ=Öêçìé ë=ëéÉÅí~Åìä~ê=éÉêÑçêã~åÅÉ=~í !"#$%& qÜÉ=OMMR=`~íÜ~ó=m~ÅáÑáÅ=fåíÉêå~íáçå~ä +,-./ =`ÜáåÉëÉ=kÉï=vÉ~ê=káÖÜí=m~ê~ÇÉK ! "#$ %&'()* eçåçê~ÄäÉ=ÖìÉëíë=Ö~íÜÉêÉÇ=íçÖÉíÜÉê=íç=éÉêÑçêã=íÜÉ=çéÉåáåÖ ÅÉêÉãçåó=çÑ=íÜÉ=OMMR=`~íÜ~ó=m~ÅáÑáÅ=fåíÉêå~íáçå~ä=`ÜáåÉëÉ kÉï=vÉ~ê=káÖÜí=m~ê~ÇÉK
! Words of Wisdom
!"#$%&'()*+,-./0 !"#$%&'(!)*+,-.$ !"#$%&'()*+,-."/ !"#$
To explore creativity, management should take their initiatives and demonstrate their staff a good model and be open-minded to accept staff’s new ideas and comments. Through practising and fine-tuning of new ideas, a new idea and impressive brand will be created.
!"# "#$%&'()*"#+,-./0123456789:; jê=páãçå=tçåÖI=íÜÉ=nqp^=dçîÉêåáåÖ=`çìåÅáä=jÉãÄÉê=êÉîÉ~äÉÇ=Üáë=íáéë=çÑ=ÅêÉ~íáåÖ áãéêÉëëáîÉ=Äê~åÇë=áå=íÜÉ=c~ÅÉJíçJc~ÅÉ=ïáíÜ=nqp^=dçîÉêåáåÖ=`çìåÅáä=jÉãÄÉêëÅçäìãåK
12 QTSA 1 - 3 != MEMBER FOCUS !=Member Close-up
!"# fåíÉêîáÉï=ïáíÜ p~=p~=`çëãÉíáÅë
!"# !"#$%&'()*+ Women love using beauty products to enhance !"#$%&'()**+,-./ their appearance, men’s expenditure on skin care and !"#$%&'()*+, -./0 beauty products is also on the rise, providing opportunities for retailers in selling beauty and skin !"#$ products for further development. When mentioning !"#$%&'()*+",-./ local beauty retail shops, every of us would think of !"#$%&'()*+,-./01 Sa Sa Cosmetics immediately. !!"#$%&'()*+,-. !"##$%&'()*+,-./0 Carrying the commitment of placing customers as the !"#$% &'( first priority and providing quality service to customers !"#$%&\= !"#$%&'() From left: Ms Macy Leung, Director !"#$%&'()*+,-./01 of Corporate Communications and Ms help Sa Sa outstrip her counterparts to win wide Janet Wong, Director of Training at Sa Sa acclaim. Judging from Sa Sa’s stunning performance, International Holdings Limited !W= !"= ! what is her success formula? Does the company have any tips to be shared? In this issue of “Member Close-up”, we interview Sa Sa in !"#$%&'()*+,-./0=j~Åó= order to provide useful insights for members in serving clients. !"##$%&'()*+ W !"#$% !"#$%&'()$*+,-./01&2 Secrets of Success: Place Customers as the First Priority and Treasure !"#$%&'()*+,-./0123( Each Staff Ms Macy Leung, Director of Corporate Communications of Sa Sa International !"#$%&'()*!+,-./0123 Holdings Limited simply indicated “Place Customers as the First Priority, Make !"# Continuous Improvement and Treasure Each Staff” were the company’s success formula. In view of these points, Sa Sa has placed a high priority on !"#$% &"'()*+,-./"0 customer service and is always the forerunner in the market and dedicated !""#$%&'()*+,-./01\ itself in staff training. !"#$%&'()*+ ,- As outstanding staff and quality customer service are vital for the company’s !"#$%=g~åÉí= !"#$%&'()* success, how does the company provide staff training and promote quality service? !"ST !NRM !"#$%"# A Comprehensive Training System to Elevate Staff Quality !"#$%&'()*+,-./0#123 Ms Janet Wong, Director of Training said each new staff at Sa Sa is required to !"#$%&'()*+",-./0123 undertake around six to seven months training, totaling 150 hours which cover !"#$%&'()*+,-.'/0122 products and beauty knowledge, customer service and sales techniques. In addition, techniques of serving the mainland tourists are also covered. For existing !"#$%&'(") !"#$%& T staff, they are also required to receive around a total of 7 days’ trainings each year !"#$%&'()*+#,-./0123 and the company will arrange different activities to assess their service standards !"#$%&'()*+,-./01 23 in order to fine-tune training content to cater to their needs for elevating their !"#$%& service standards.
!"#$%%&'(#)*+,-./012 As mainland tourists has been one of the large market segments for Sa Sa, in !"#$%&''()*+,-./ 0 order to enhance staff ’s Putonghua proficiency, Sa Sa specially produces Putonghua CD-ROMs and distributes them to each outlet. Supervisors and !"#$% &'()!"#*+,-./0 staff are also encouraged to practise and share experience in using Putonghua !"#$%&'()*+,-./0123 before the opening hours so as to improve their Putonghua. For some retail !"#$%&'()*+,-./01234 outlets in tourists’ areas, Sa Sa specially arranges “mystery shoppers” to assess !"#$%&' their performance.
QTSA NEWS Jan - Mar 2005 13 !"#$%&'()*+,-"./01234=g~åÉí= !"#$%&'( !"#$%&'()*+,%-./0&123-.456789:%0&;< !"#$%&'()*+,-./01223 456789:;<=>>9 !"#$%&'()*$+,-./ 012' !"#$%&%'()'*+,-./0123 While retaining outstanding staff is one of challenges to the industry, Janet also !"#$%&'()*+$%,-./ 0123 admitted that competition in the retail industry was very keen. To successfully retain outstanding staff, companies should cultivate a sense of belonging for !"#$%&Pp their staff when they join the company and continuously enhance their team !"#$%&'()*+,-.//012 spirit. Towards this end, Sa Sa has arranged a mentor programme, “Big Sister Programme” for each recruit in order to help them learn from the experienced !"#$%&'()*+,-.\g~åÉí staff to familiarize themselves with the new environment. In addition, supervisors !"#$%&'()*+,- =Epí~åÇ~êÇI Pp would provide communication opportunities to enhance mutual understanding. póëíÉãI=pìéÉêîáëáçåF=W The 3 “S” in providing Quality Services pí~åÇ~êÇ=J= !"#$%&'()*+,-.X As a comprehensive system has been put in place in the company, how has Sa Sa comprised with it to implement quality service? To ensure quality services, Sa Sa póëíÉã=J= !"#$%&'()*+,-./0 has successfully implemented 3 S: (Standard, System and Supervision). !"#$%&'()*+,-./0%1/ X Standard: To set a service standard for staff; pìéÉêîáëáçå=J= !"#$%&'()*+,-% System: To provide good communication and supervision systems in order to !"#$%&'()*+,-./%012 help the company and staff understand their mutual needs and requirements;
!"#$%&'(Pp !"#$%&'( Supervision: To keep track of the progress of staff. If staff have any needs, the company can offer support and guidance immediately. Extra Concern is the Tip of Serving Mainland Tourists !"#$%&'()* In dealing with the increasing number of mainland tourists, does Sa Sa have any !"#$%&'()*++,-./0123! tips to share with trade practitioners? Janet said the pre-requisite in providing !\=g~åÉí=W= !"#$%&'()*+ quality service was giving them a sense of respect and also dedicated extra concern !" #$%&'()*+,-./0 123 and attention. One point that trade practitioners should take note of was because !"#$%&'()*+,-.%/012(3 of cultural differences, frontliners should accept their different communication style and be willing to devote more time and care to serve them. !"#$%&'() *+,-. /01,2 !"#$%&'()*+,-./0123)4 Expansion in the Mainland and Establishing a Strong Foothold in Hong Kong !"#$%&'()*+,-./012345 In view of Hong Kong’s current prosperous economic and tourism development, Sa Sa is very optimistic towards its future development and will spread its wings !"#$%&' ()*+,-./01234 in the mainland. Macy said Sa Sa has opened its first mainland retail outlet in !" Shanghai in March and planned to open more than 20 retail outlets in key cities such as Beijing and Guangzhou, while in Hong Kong, it will open 5 or 6 outlets !"#$%& within this year and the one in Mongkok which occupies 8,000 sq feet, will !"#$%&'(!")*+#,-.//0+ become its largest store in Hong Kong, keeping alive its legendary development. !"#$%&'()*+,-./%0-123 j~Åó= !"#$%&'()*+,-./012345 66789":;<= !"#$%&'()*+,-./0123456789:;()<=>?./ !"#$%&'( ) *+,-./012 3445678( ) 9:; !"#$%&'
14 QTSA 1 - 3 = MEMBER FOCUS ! Inspiring Article
!"#$%&' Hong Kong Productivity Council Column: !"#$%&'( Coaching Skills for Onsite Management
!"# !"#$%&'()*+,,- !"#$%&'()*+,-./ !012 !"#$%&'( )*+,-.+/0#1 !"#$%&'()*+,-(./0123 Facing fierce competition in market and heightened expectation amongst !"#$%&'()*+,- './012 customers, service industry practitioners are dedicating in upgrading their !"#$%&'()*+,-./0#123 service level by all means. As good management and effective operation are backbones for corporate development, it becomes crucial for senior management !"#$%&'()*+,-./0*1)* to undertake the coaching role for leading fellow staff to perform at their best !"#"$%&'()*!"#+,-.'/ and render top quality service. Outstanding coaching skill would be the key !"#$%#&'()*"#+#&,-./ element to success for managers. !"# $%&'()*+,-./(01+ When talking about coaching, we mean the “process” involved. During this !"#$% &'()*+,-% ./01 process, management should thoroughly understand their staff’s working !" #$%&'()*+,-./0123 status. Throughout discussion, staff would be led and facilitated to complete their tasks in order to enhance productivity, professionalism and all-round !"#$%&'()*+,"-./0&1 service skills. Actions such as performance monitoring, guidance to new and !"#$% &'()*+,- ./(01 inexperienced staff and encouragement to job independency are essential. !"#$%&'()*+, !-.!/"0 When their performance needs to be improved, concrete instruction and !"#$%&'()*+,-"$./012 constructive criticism should be given. For time that they well perform, !"#$%&'()*+,-./+01 immediate appreciation is the most effective way to boost staff confidence and satisfaction. In this way, they would become more independent at work. !"#$"%&'()*+,-./0123 Managers are always good role model from whom staff can learn for cultivating !"#$%&'()*+,-./01 2 mindset of quality service pursuit and sharpening professional skill. !"#"$%&'()*+,-./0'1% As market and customer demands keep changing, effective coaching !"#$%&'()*+,-./01234 would facilitate staff to cope well with the dynamic world. Especially in facing !"#$%&'()*+,-./01234 the expanding Mainland tourist segment which is composed of Northern !"#$%&'()*+,-./01203 and Southern customers with various preferences, habits and even way of !"#$%&'()"*+!,-./012 communication, staff should be provided with guidance in how to serve them respectively with professionalism. Catering staff should take extra note of !" #$%&'()*+,-.!"/0 this aspect by studying customers’ different preferences and mastering their !"#$%&'()*+ ,-./012 language for better communicating. During coaching process, managers should !"#$%&'()*+,-. /012 demonstrate to staff on how to complete individual task for making them feel !"#$%!&'()*+,- !./0 more impressive and picking up more smoothly. Coaching is not only advantageous to staff but also to management and company as a whole. When staff can complete their tasks smoothly, their loyalty to !"#$%&'(")*+,-./0%1 the company would be boosted. For managers, better way in staff management !"#$%&'()*!+,-./0123 would benefit service standard ultimately. For company, effective coaching !"#$%&'!"()*+,-./0(1 is undoubtedly in positive correlation with productivity and staff morale !"#$%&'()*+,-./012!3 enhancement. Coaching is not sophisticated when management can demonstrate !"#$%&'()*+,-.*/0123 patience and passion in daily managerial role. The benefit of coaching would be !"#$%&'()*+,-./0123. clearly seen if managers can grasp the gist of it. !"#$%&'()*+,-./012
!"#$%&'()*+,-.%/01234 Article contributed by Total Enterprise Management Consultancy Division of Hong Kong Productivity Council. QTSA NEWS Jan - Mar 2005 15 ! Inspiring Article
!"#== ICAC Column: !"#$%& !"#$%&'()*+,=J !"#$ !"%&' ! !"#$%&'()*+,-. /0$%123(45 6789:;<= !"#$%&'()*+,-.*+/01234567%89:;<=>?@ ! !"#$%&$' ( )*+,-./01!2345678%9:;<=> !"#$%&'( Integrity — In the last issue of this ICAC Column,wewould like to deal with another area of concern - conflict of interest. A conflict of interest is a situation in which a staff Our Winning member’s personal interests interfere with the proper discharge of his official duties. Such conflicts may lead to split loyalty, which is conducive to corruption and can Edge undermine a company’s interests. Ignoring such conflicts can lead to complaints, grievances or even corruption. The following hypothetical case illustrates the dire consequences of mishandling of conflicts of interest.
! A Happy Coincidence !"#$%&'()*+,-. Cindy joined a retailing group as a trainee since graduating from !"#$%&'()*%+,- secondary school several years ago. She !"#$%&'()*+,-. has worked in various posts and is !"#$%&'()*+,- recently promoted to personnel manager of the group. The company !"#$%&'()*+,- is planning to expand its number of branches ! "#$%&'( throughout Hong Kong. Cindy and one of her subordinates have been entrusted with the task !"#$%&'()*+,-. of handling the recruitment drive for shop !"#$ %&' ()*+, managers and sales assistants. !"#$%&'()*+,-. During a day of interviews, Cindy suddenly !"#$%&'()*+,$- realizes, to her great surprise, that one of the applicants is her relative. She sees the situation as a !"#$%&'()*+%,-. happy coincidence and, without informing anyone within the company of their relationship, conducts the interview herself. !"#$%&'()*+,!"#-. /0 She also comments favourably on her relative’s performance at the interview. !"#$%&'()*+ !,-./ Cindy’s relative was shortlisted finally. Being grateful to Cindy’s helping hand, her relative treats Cindy to lunch on her first day of work and presents her with a gift. !"#$%&'()*+,-./01234 Analysis !"#$%&'()*+,-./0123 Cindy is responsible for conducting the interview but given that one of the !"#$%&'()*+,(-./#0 applicants is her relative, there is a conflict of interest. Cindy should declare to !"# the company their relationship as early as possible and observe the company’s code of conduct over the issue of conflict of interest. !"#$%&'()*+,-./01234 Even though Cindy acts impartially and her relative turns out to be the best !"#$%&'()*+,-./0123 candidate in the selection exercise, Cindy is still involved in a perceived conflict !"#$%&'()*+,-./0123 of interest situation and may also be perceived to be exerting her influence over the interview. People may think that she is being unfair to other applicants. !"#$%&'()*+,-"./ 0 Cindy should demonstrate her impartiality by avoiding and declaring the conflict !"#$%&'()*+,-./" of interest in accordance with the company’s guidelines. !" Conflict of interest situations, if mishandled, may lead to malpractice or even corruption. Although Cindy has no intention to abuse her position at the !"#$%&'()*+,-./0+123 beginning, she may still commit an offence if she favours her relative during the !"#$%&'()*+,-./012 3 interview and later accepts gifts as a reward for doing so. Therefore, individual companies should formulate corruption prevention measures and set !"#$%&'()*+,$%-./"01 clear guidelines on which kinds of conflicts need to be declared and !"#$%&'()*+,-./01234 set proper procedures on dealing with the declarations. For assistance, !"#$%&'()*+,-./01% please call Programme Coordinator (Business Sector), Community Relations Department, ICAC at 2543 0000. !"#$%&'()*+,-./012 W= ! "#$%&'()*%+,-./0123456789:;$%<#=>?@ABCDEF-.;$% !"#$%&'()*+,-./ !"#$%&'()*+,-./012(345678%9:.!;<=>?@(AB3CDEFGHI(JK E ORQP=MMMM=F !"#$%& '()*+",-./ Remark: The names of characters and companies in the scenarios are fictitious and the scenarios given in this series are based on a mixture of past prosecutions and hypothetical cases for illustration only. Explanations of legal requirements under the Ordinances are necessarily general and abbreviated and are not a substitute for the need to review the Ordinances in detail and where appropriate to obtain specific legal advice on any issue arising.
16 QTSA 1 - 3 = MEMBER FOCUS
!==Academics Column: !"#$%&' For new customer acquisition, !"!#$%&' !"#$% service industry launches various !"#$%&'() kinds of sales promotions from time to !"#$%&'\ time. For example, telecommunication !"#$%&'( services providers are fond of making !"#$%&'( use of marketing tactics such as “free !"#$%&'( Has your “Customer handset” and “monthly service fee !""#$%&' discounts” whereas credit card !"#$%&'( Loyalty Program” companies usually compete for new !"#$%&'( clients by waiving annual fee or been Really offering welcome gifts generously. As !"#$%&'( market matures and competition turns !"#$%&'( Targeting fierce, customers always shift around !"#$%&'( merchants on similar products or !"#$%&'' Loyal services. As time goes by, industry !"# practitioners would realize that Customers? investing excessive marketing resources !"#$%&'( in these kinds of customer acquisition !"#$%&'( marketing activities would not bring !"#$ %& the desired effect on their bottom line. !"#$%&'# As market matures, businesses should !"#$%&L focus more on customer retention !"#$%&' () *+,-./(0# rather than customer acquisition since loyal customers tend to purchase more !"#$%&'()*+, -./012 and are relatively less price-sensitive than new customers. Generally speaking, their loyalty would drive their higher spending in preferred products or services. !"#$%&'()*+,-./0'12! In addition, merchants would also be benefited from the streamlined operation !"#$%&#'()*+, and customer referrals brought by this loyal group. !"#$%&'()*+,-./01234 In fact, service industry has derived various kinds of customer loyalty program !"#sfm !"#$%&'()*+,- such as VIP membership plan, frequent shopper redemption scheme, etc. !"#$%&'()*+,-./01234 However, from observation, it seems that many service managers in the market do not have a clear understanding on how to implement an effective customer !"#$%&!'()*+,-./0123 loyalty program. They might have mixed up between sales promotion with !"#$%&'()*+,- customer loyalty program.
!"#$%&'()sfm !"#$%& For instance, certain fashion chains would issue VIP membership cards to their !"#$%&'()*++,-./012%& customers for discount offers. This kind of “customer loyalty program” sometimes !"#$%&'()*+,-./0123% turns out only attracting a group of bargain hunters rather than loyal customers. Another typical example is the bonus point redemption scheme of supermarket !"#$%&'()*+,-. !"#/0 and department store which draws the attention of housewives who have keen !"#$%&'()*+,-./0123#4 interest in the gifts. However, as these customers have usually cultivated loyalty !"#$%&'()*+,-./01234 for the incentive only rather than for the merchant, they will be easily influenced !"#$%&'()*+,-./01234 and turn to anyone that can offer better incentives. In view of this, customer retention rather than customer acquisition would be a !"#$%&'(")*+,-./0+,1 more effective approach under competitive mature market environment. While genuine customer loyalty cannot be simply cultivated through materialistic !"#$%&'()*+,-./0123 incentive, heart-felt sincerity would be most essential. Thus, service managers !"#$%&'()*+,-./0123%45 are suggested to reallocate the resources put in developing the unreliable “customer !"#$%&'()*+,-./012'3 loyalty program” (= sales promotion) to frontline staff training and motivation !"#$%&'()*+,-./012345 aspects. In this way, staffs would be benefited from their learning of service skill !"#$%&'()*+,-. !"/01 enhancement. Also, with the motivation to serve customers sincerely, staff would !"#$%&'()*+,-./01234 easily win customers’ hearts and attract repeat customers who are genuinely loyal to them. !"#$%&'()*+,-./ As a reminder for service managers, customer loyalty program is not a must for !"#$%&'()*+,-./01234 all market segments. In some occasions, expanding customer base in new market !"#$%&'()*+,-./01 23 would be a more appropriate approach. !"
!"# $%&'%()*+,-. /01!"23$%&'%(45+,678/09:; Article contributed by Dr. Michael Hui, Chair Professor of Marketing, The Chinese University of Hong Kong and Dr. Henry Fock, Assistant Professor of Marketing Department, Hong Kong Baptist University. QTSA NEWS Jan - Mar 2005 17