Week 4: "Getting to Know You"

[Frances]

Kimsoong, a Korean car maanufacturer, wants to strengthen customer
loyalty as a way of dealing with increasing competition. After reading
this case, please REPLY to this topic and present your ideas about how
you'd like to implement this customer loyalty program.

[Rich]

In my opinion, Kimsoong has a very serious problem with their
customers. According to column from the case, we can know that most
clients do not want to repeat for purchasing Kimsoong's cars; however,
there are many reasons for this problem. First, I think they need to
cut the price for sure. And the material should change into a stable
one. For example, replace the present model. Then, the car design must
redesign. They have a tubule with the after-sales care, too. As the
passage mentioned that about 61% clients think that the Kimsoong after-
sales care is fair. In fact, this is also related to the reason why
they do not have a high circulation. I believed that they need to
build up a strong customer service through companies. For staffs and
employees, they should be more active to call their customers at least
once per month. At last, they can cooperate with an insurance company
such as Fidelity. As prior to that, the clients can get a discount for
their insurance fees. In conclusion; on the other hand, this will help
to bring the most margins and profits to Kimsoong.

[jeongp...@gmail.com]

Suggested Customer Loyalty Program

A. Discounts to new customers who buy their first car in life.
1. Because of love and carefulness, they will maintain their car in a
good condition.
2. This carefulness not only keeps their cars with reliable functions
but also prevents a harmful problem in advance.
3. As a result, they feel satisfy with cars and company.

B. Discounts to existing customers who buy a new Kimsoong car
1. This can be attractive to them if they have had no serious problem
while using our car
2. This can reduce that existing customers leave from our and
3. This can increase the percentage of repeat buyers (currently 15%)
and build up long-term customer relationships
4. This purchasing pattern gives other people a good feeling that our
car has satisfactory quality

C. Make warranty plans longer than that of competitor's
1. For the first five years and 60000 miles of ownership
- Covers repair or replacement of any component under normal use and
maintenance
2. For the first 10 years and 10000 miles of ownership
- Apply to power-train components including engine and transmission
3. Some other categorized warranty plans not mentioned above.

D. Enhance customer management by on-line membership
It can be very effective method for customer management.
1. Registration
a. When customer registers to on-line membership, we can collect
information as much as we want
b. To encourage the registration, we can use mileage point which can
be used the same as cash when it reaches to some amount, for example,
1 dollar per100 points
2. Member management
a. Regularly, we can collect customer's status by giving some mileage
point as a reward.
b. Based on this collected information, we can feedback to customer
something like maintenance schedule, which can be easily forgotten.
c. Based on customer interests, we can send related information or
coupons regularly.

E. Manage our used car values
1. When people buy a car, its used car value is considered
importantly. If the initial retail price is lower than competitors but
a used car value is also lower, it cannot be a merit.
2. Used car value is closely related with the reputation for the
reliability of our cars. So, special attention and management should
be paid to that.

[Venus]

Kimsoong must analyze better customer needs and, upon those, improve
what they haven't been focused on.
>From the charts some important information come out:
Customers like to eat and drink: Kimsoong has to implement devices
able to host bottles/glasses, sockets available for mini-refrigerators,
...
Customers like to travel: Kimsoong has to introduce easy-to-use and
well-functioning route planners.
Customers like to stay wealthy: Kimsoong must design comfortable
interiors.
Other than these improvements; Kimsoong needs to reduce cars prices,
since it comes out that the quality doesn't correspond the prices.
After-sales service must be improved, because clients need to keep in
contact with the company to resolve problems occurring in the future,
so customer service is the main point on which Kimsoong needs to work
on.
Discounts are another track to reach customers loyalty. They can
provide discounts for repairing and change of electronic/mechanic
items. At the same time, protracting the length of warranty allows
customers to trust better in quality.
To summarize, improvements must be:

-Excellent customer service;
-Good relation with the clientele;
-extension of length of warranty;
-reduction in prices;
-Implementation of onboard items to have a better comfort and a good
driving (devices able to host bottles/glasses, sockets available for
mini-refrigerators, easy-to-use and well-functioning route planners,
comfortable interiors).

[chaom...@yahoo.com]

> In my case to implement this customer loyalty program is : i like to organize a customer fair in everyyear, and have some customer's service care for a new customer . Moreover, if they bought your vihecles , they would not only use for work , but they would also go to travel , so we should connect with some hotels ,resturants or travel service to have some coupons or special services . And we will have a special price or discount for the costomer who want to buy more vihicles .

On Feb 10, 3:47 pm, "Frances" <francesli...@gmail.com> wrote:

[lovemorn...@hotmail.com]

According to Kimsoong customer profile, we know that a lot of people
want to buy other competitor's model for their second car. And after-
sales care couldn't satisfy over half of customers. I suggest four
suggestions to promote customers' loyalty:
First, Kimsoong should remind customers of fix their cars on a regular
time. After tat, Kimsoong can teach customers how to maintain cars
correctly and also provide 24hrs telephone service.
Second, 48% of Kimsoong's customers' age are under 30,if the company
wants to design a new model they should makes it looks fashion because
Kimsoong can maintain original clients.
Third, the price is an important thing to consider because most of
clients are middle class. Kimsoong should keep the price to be
available for them.
Forth, lengthen of warranty.

[Victoria]

Victoria~
One way to increase customer loyalty is to offer better incentives to
existing customers. The company might offer three different levels of
customer incentives. For example, customers who have been buying this
auto brand up to five years may see a free upgrade, or small cash back
bonus, etc. Customers who have been buying this brand for 6 to 10
years will get a free upgrade, and their choice of a longer vehicle
warranty at no charge or a cash back bonus. Lastly, customers who have
been buying this brand for 11+ years would receive something like a
free upgrade, cash back, better warranty and a lower interest rate
regardless of credit. These suggestions may help to increase existing
customer loyalty, but there is always the issue of new customers. In
order to attract new customers, the company could try offering
incentives to new customers, such as promotional periods which offer
deals within certain dates, buy bonuses or enhanced customer service
options, etc.

[meryl...@hotmail.com]

The most decisive reason that customers haven't had repeating purchase
is because they bought competitor's model. That means Kimsoong doesn't
have powerful influence to their customers, and some of them are not
satisfied with something. For example, as we can see, after-sales care
can be a one of the reason. To attract customers and strengthen
loyalty program, the first, after-sales care should be intensified.
Like door to door service, kimsoong can provide service that reduces
customer's time and effort to pick and drop their car. The second,
Discount and non interesting rates can be provided when customer has a
repeating purchase. As customer profile says, most customers are in a
middle income group; therefore, there is no doubt that it can be a one
of the solutions. The third, promoting active and exiting image for
recreation will be working, for most of customer is interested in
eating, drinking, sport, and travel.

[Brook]

From Kimsoong Customer Profile, Most of the customer that buy
Kimsoong car are people in the middle income, simple life style, not
very interested about the performance of the car, not very care about
the design and they don't need the branded car. They thought that car
is a vehicle for transportation. They don't want to know anything
under the hood. So this group of customer only concern about the
prices. it has to be cheaper than the competitor's car. but quarity
and prices are going opposit way. These car might have a lot of
problem after they bought the car. They will come back and complained.
Kimsoong needed to improve their customer service and after sell
service to keep the loyalty of the customer. And make up some weekend
activity for customer such as meeting at the good restaurant or some
club, sports activity or roadtrip rally for traveling.

[kiyo]

I think the biggest problem of Kimsoong is the after-sales care and
its prices. according to the chart, the customer of Kimsoong is the
middle income people and not interested in the performance. So it
makes no meaning to change the design or the car's efficiency. Now the
33% of the customer think the after-sales care is good, very good, or
excellent. We have to increase the number to more than 50%. And to
improve the customer service costs not so much money, because it
depends more to the salesmen or customer representatives. In this
reason, we have to educate or improve their motivation to implement
the customer loyalty program.