BANKING ACADEMY OF VIETNAM FOREIGN LANGUAGES FACULTY GRADUATION THESIS EFFECTIVENESS OF CUSTOMER CARE PROGRAMS: THE CASE OF CANIFA JOINT STOCK COMPANY Instructor : Assoc.PhD Pham Thi Hoang Anh Student : Pham Thi Binh Class : K21ATCB Student ID : 21A7510014 Academic year : 2018 - 2022 Ha Noi, May 2022 17014126214671000000 CERTIFICATE OF ORIGINALITY I would like to reassure that my thesis graduation is researched by myself with the support of Ms. Pham Thi Hoang Anh, my instructor and does not copy from any previous research. All information consulted by the author in secondary sources is fully cited. I will take full responsibility if there is a copy of other research found in this thesis.
Hanoi, May 2022 Author Phạm Thị Bình i ACKNOWLEDGEMENTS To complete this thesis, I have received a lot of support and help. First of all, I would like to express my sincere gratitude to my supervisor, Assoc. PhD Pham Thi Hoang Anh, for following me from the start of writing the thesis. Ms Hoang Anh always responded to my questions in a very short time and without her detailed guidance and precious comments, this research could not be as complete as it would be.
Secondly, I want to acknowledge the help of the staff of the customer care Department of Canifa – where I did my internship, especially, Ms Trang – leader of the department, Ms Ly, and Miss Linh who did not hesitate to give me all necessary data for my research and honest answers for my queries as well as facilitated me to finish this graduation thesis successfully. I had a truly happy time getting to know and working with the team. Furthermore, I would like to thank all my beloved lecturers in the Faculty of foreign language and other faculties who I had the chance to meet in the Banking Academy of Vietnam, all my friends, who together with me to create unforgettable four years in the university. I want to give the biggest thanks to Thanh Huyen (Banh Bao) and Khanh Huyen (Huyen Beo), my two closest university friends for sharing the best memories with me in the last four years and always being by my side.
Finally, from the bottom of my heart, it is my deep appreciation for my Mom for never failing to unconditionally support me on the studying journey regardless of the fact that sometimes we have different opinions. ii LIST OF ABBREVIATIONS Canifa Canifa Joint Stock Company VNPT Vietnam Posts and Telecommunications Group CX Customer Experience CSAT Customer Satisfaction VIP Very Important Person TV Television SMS Short Messaging Service CRM Customer Relationship Management KPI Key performance indicator C-point Canifa point VND Viet Nam Dong iii LIST OF DIAGRAMS Diagram 2.1: Formation of customer expectation………………………………….2: Model of customer expectation……………………………………….3: Relationship among customer expectations, customer experiences and customer satisfaction………………………………………………………………….1: Data collection procedure…………………………………………….25 iv LIST OF TABLES Table 2.1: Customer satisfaction definitions………………………………………….1: Fundamental anthropological information of participants……………….1 Timeline of the “Excellent” voucher - free shopping program…………….2: Target customer of the “Excellent” voucher - free shopping program….3: SMS content of the “Excellent” voucher - free shopping program.4: Sales gained from the “Excellent” voucher - free shopping program………29 Table 4.5: Massage success of the “Excellent” voucher - free shopping program.6: Timeline of the Autumn voucher program… ………………………….7: Target customer group of the Autumn voucher program ………………….8: Sales gained from the Autumn voucher program ………………………….9: Message success of the Autumn voucher program…………………….10: Timeline of the Private sale program - 20 years mark……………………39 Table 4.11: Target customer group of the Private sale program - 20 years mark…39-40 Table 4.12: SMS content of the Private sale program - 20 years mark……………….13: Sales gained from the Private sale program - 20 years mark…………40-41 Table 4.14: Message success of the Private sale program - 20 years mark……….41-42 v LIST OF FIGURES Figure 3.1: Marketing channels of Canifa ……………………………………………21 Figure 4.1: Sale of 50 percent-discount voucher in provinces ……………………….2: Sale of 30 percent-discount voucher in provinces ……………………….3: Sales in provinces ……………………………………………………….4: Customer satisfaction level about Canifa’s customer care gift quality in 2021………………………………………………………………………………….5: Customer satisfaction level about the way to give gifts of Canifa in 2021.6: Customers’ contribution ideas to Canifa ’s gifts in 2021 ……………….7: Gifts that customers expect to receive in the future ………………………46 vi TABLE OF CONTENT CERTIFICATE OF ORIGINALITY. ii LIST OF ABBREVIATIONS. iii LIST OF DIAGRAMS.
iv LIST OF TABLES. v LIST OF FIGURES. ix CHAPTER 1: INTRODUCTION .2 Background of the study .3 Objectives of the study .4 Significance of the study .5 Scope and limitations of the study .1 Scope of the study .2 Limitations of the study .6 Definition of terms .7 Structural organization of the study. 5 CHAPTER 2: REVIEW OF RELATED LITERATURE .2 Theoretical and Conceptual framework .1 Overview of customer.2 Overview of customer care.
16 CHAPTER 3 – RESEARCH METHODOLOGY .1 Locale of the study .1 Canifa Joint Stock Company.2 Customer care Department of Canifa .5 Data collection procedure .7 Reliability and validity. 25 CHAPTER 4: FINDINGS AND ANALYSIS .1 “Excellent” voucher - free shopping program .2 Autumn voucher program .3 Private sale program - 20 years mark .2 “Customer satisfaction level of customer care gifts in 2021” Survey. 47 CHAPTER 5: CONCLUSION AND RECOMMENDATION. viii ABSTRACT The importance of customer care to the development of businesses is undeniable in the context of current competitive markets.
It is possible to claim that the better customer care activities businesses have the more successful they are the businesses. According to changes in the market and consumers’ demands, customer care programs also need to be improved day by day, so evaluating them is an essential task to make suitable changes. The thesis “Effectiveness of the customer care programs – the case of Canifa Joint Stock company” is conducted with the aim of assessing the effect of some customer care programs of Canifa in 2021. Through quantitative and qualitative research methods, the author assessed the effect of each program: the gift-giving programs in 2021 generally had positive results while two out of three discount voucher- giving programs had modest outcomes.
At the same time, the author analyzed possible factors resulting in that effect of the program. And finally, based on the findings and the author's own experience during serving the internship at the Customer care Department, the author also made several recommendations to the Department to advance the effect of customer care programs in the future. Key words: Customer care, customer care programs, Canifa ix CHAPTER 1: INTRODUCTION 1.1 Introduction In the past, when the economy was not developed that much and the range of goods was poor, consumers just tried to save money to get what they needed for their lives and did not have many alternatives of where to buy them. What they cared about the most were the prices and the quality of the goods.
However, nowadays following the development of the economy, the emergence of many businesses which supply large collections of products, relatively similar, for buyers in the market, customer care matters more to the buying decision of customers. Buyers tend to be concerned about how comfortable shopping at that store is and what benefits they can get if they become a customer of that store. 67% of customers are willing to pay more to get better customer service experience (data-backed fact of HubSpot Service Blog, 2021). Importance of customer care for the success of businesses has been appreciated more over the last ten years due to the fact that it is the era of rapid advances in communication technology and social networks like Facebook, Instagram or your website where one can easily see others’ reviews about your companies’ products and customer services (Customer care statistics).
In consequence, good customer care can work as a marketing channel and becomes a crucial priority of any business. Probably, the first time someone buys a product because of its price and quality; however, later then, the customer care will decide whether they continue to shop at your stores or not. Especially, in this competitive business environment, the more satisfied you make your customers feel the more profits you will earn and inverse. Fortunately, most businesses have acknowledged this issue and always launch programs to attract and retain their buyers along with training qualified customer care employees.
According to a Business Queensland report in 2019, about 80% of companies use customer satisfaction as an indication of performance.2 Background of the study Customers are the means of existence of any shops and business. Therefore, customer care should be considered a surviving element by businesses. With statistics from conducted conveys: 47% of customers will not continue to buy products of a company if they had had a bad experience there, 76% of them said that it is easier to find a different seller or 91% of buyers will leave brands without any complaint if they are not satisfied with the brand services (Entrust Consulting group report, 2020), it is not exaggeration to say that customer care is the most important factor to retain customers with your companies in current time. Actually, some people may confuse customer care with customer service, but they are quite separate concepts.
Customer service is to provide advice or assistance to customers who need help or get problems with your products. It often occurs after the buying decision of customers, for example, they complain about shipment delay or they want to change the products or sizes. On the other hand, customer care is not that simple. It is to build a personal and emotional connection with your customers, to satisfy or beyond their expectations, to put yourself into the customers’ shoes to know what they really need from pre-purchasing to purchasing to post-purchasing, ultimately, to make them feel they are cared for as a person, not just treated like an interchangeable part of the customer mix.
These activities aim at creating a loyal customer base and entice customers from competitors. Participating in the market late, with their youth and dynamic, Vietnamese businesses are not out of trend. Being aware of the significance of customer care, especially in this integration time, most of them have executed their own theses to attract customers. Canifa Joint Stock company is no exception.
Over the last 21 years, from establishing, Canifa, a leading fashion brand in Vietnam and region with nationwide distribution network and large customer range, has been launching many customer care projects such as the loyalty policy, voucher-giving programs and gift-giving programs. However, it may be a misconception to state that the more customer care programs the more customers and profits your business will get. The programs must be of buyers’ 2 psychological and demand hits, unique and more favorable to customers than opponents. Therefore, assessment of the programs executed is an essential task for all businesses.
That is the reason I decided to carry out the research “Effectiveness of the customer care programs: the case of Canifa Joint Stock company”.3 Objectives of the study The study aims at evaluating some customer care programs of Canifa Joint Stock company in 2021.4 Significance of the study Canifa Joint Stock company The study is a reference for Canifa to make changes for its customer care programs. More effective ones will reduce cost burden for the company because retaining existing customers is significantly cheaper than acquiring new ones (Customer care statistics). In addition, taking care of customers more effectively will increase Canifa fashion brand value in customers’ hearts, enhance competitiveness in the market and help the brand access more customers. The Customer care Department of Canifa Through assessment of effectiveness of programs, this research can give Customer care employees of Canifa an overview of outcomes of their projects.
The information can help them to know which one should be promoted more; which one is not suitable in this time and should be innovated. From that, the researcher hopes that the Customer care Department of Canifa will be better and better in the future.