Is Great Customer Service Important to Thais? Can it Improve ROI?

[rakshell]

Is great customer service important enough to Thais that it would improve the ROI on a local business?

Been wondering if it is possible for foreign owned/managed businesses to make a significant impact on local competition simply by adding good customer service to the mix.

It could be possible that offering a similarly priced product or service with customer service standards that are comparable to the Japan, Korea, US etc, would make a huge or at least marginal return. There would have to be realistic limitations on this as you can't go about offering 'free' or 'money back' guarantees etc.

Big department stores, private hospitals and some large chains have better customer service than other local businesses but at a higher price.

Of course it's important to note that the markup for local B2C can be very small, but could they improve if they up'ed the game by adding good customer service?

Not trying to bash Thais, but they don't seem to care or maybe it's that they don't really expect too much from local businesses when it comes to this sort of thing. Maybe they just gave up.

So is it possible for the little SME to make a difference in the local market simply by adding quality customer service?

[thhMan]

Right now its a ... "couldnt give a f$%k attitude"

50% is based on lack of knowledge of the industry they are in

50% is based on such a poor salary that they just dont make the effort.

You will see the rare individual that does give a damn, but its very rare.

Wish you luck, but remember it wont happen if you decide to be a "cheap charlie"

[Card]

Customer service is part of professionalism in the service sector. Professionalism doesn't really exist to the same extent in Thailand compared to the west and I think it's been shown and is shown that you can't change the mindset that causes it by western techniques (selection, support, training, salary). This is because professionalism means subsuming one's personality in a sacrificial way. It requires discipline and it means putting someone else before yourself and that is not the Thai practice because of the face and vain thing. What professionalism there is is a thin facade that dissolves quickly whenever it is challenged. That can be seen in western chains like supermarkets in Thailand. I certainly wouldn't bank on a business that relies on professionalism in Thailand to edge out the competition.

[fittobethaied]

Let's use Global House as an example of what it might take to give professional customer service. You approach a sales clerk to ask advice on where to find a particular product in the store, what product to use for a certain "fix" or ask him/her to explain to you how a certain product works. Did you ever hear one say "excuse me Sir, but I don't know the answer to that question, but I will find someone for you who knows exactly how to help you"! Dream on my friend...you will get pointed in the direction of the back of the store where someone else can deal with you because the guy hasn't a clue where anything is in the store. If he doesn't know the answer to your other questions, he will make up something rather than tell you that he doesn't know. Or, he will smile and walk away and leave you standing in the aisle with your finger up your nose. I've had them go for a manager at my request and never return. Telling a bold face lie to save face is not uncommon. It's impossible to rely on any information that you receive from most Thais who are in the work place. I have a practice of asking three separate persons for an answer before I can even come close to making a decision The whole idea of good customer service is not compatible with the concept of "face". If you think you can improve customer service using Thai labor in your business, then good luck!

[oneday]

I can't tell you how many times I have walked away from a Thai owned business, shaking my head, saying, "How in the h_ell do they stay in business". The only explanation I can come up with is because so many of their competitors also have zero customer service skils.

I remember walking away from a little restaurant that made the best Kai Ya Sai (stuffed omelette) I'd ever had, never to return, because of the owner's disgusting attitude when I had a simple question about pricing. What this does is make me feel very strong about any business I find that does have good customer service. It makes me want to go out of my way to do business with them.

[Pii Kate]

I would be delighted to be acknowledged by a clerk. I would be over the moon if that clerk knew anything about the product. As it is, I have to break into the gang of 5 at the check out counter at Central to ask for help and then it usually takes at least three more people to find what I am looking for. All done with an attitude of bare tolerance to my presence. YES, I would shop somewhere else and maybe pay a bit more if it meant getting good customer service. Thais copy the worst aspects of American and Western culture. Time to learn the good stuff.

[attrayant]

I was a Service Delivery consultant for 12 years back in the USA, where end user satisfaction was of paramount importance. Firms - both government and private sector - were paying big bucks to have me analyze and improve their service delivery business processes, as well as implement best practice process improvements for their development and operations lines of business. These companies understood that this would mean a better business model and bigger bottom line down the road.

Unfortunately, two experiences I've had here in Thailand have convinced me that the culture simply doesn't permit change because that would be seen as faulting the existing processes which translates into a loss of face for whoever's in charge. I've tried to point out unnecessary or redundant processes that could be eliminated to make operations run leaner, but that would mean getting rid of (or reassigning) some special employee (probably a relative), which of course can't be permitted to happen. I've suggested improvements in supply chain management that could shorten customer waiting times by days. But - nope, can't have that because so-and-so works in that office and his daddy is a friend of the director. In summary, I've been asked to look at two different businesses here and specifically to pinpoint opportunities for process improvements and cost savings, but when I identify those opportunities, they are rejected as culturally unfeasible.

So I've pretty much given up any hope that I'll ever get work as a service delivery consultant in Thailand, unless it's with an international company that has an office here. In general I agree with this post:

Customer service is part of professionalism in the service sector. Professionalism doesn't really exist to the same extent in Thailand compared to the west and I think it's been shown and is shown that you can't change the mindset that causes it by western techniques (selection, support, training, salary). This is because professionalism means subsuming one's personality in a sacrificial way. It requires discipline and it means putting someone else before yourself and that is not the Thai practice because of the face and vain thing. What professionalism there is is a thin facade that dissolves quickly whenever it is challenged. That can be seen in western chains like supermarkets in Thailand. I certainly wouldn't bank on a business that relies on professionalism in Thailand to edge out the competition.

I'm now teaching (what I did in the US back in the 80's and 90's) and of course there are dozens of antiquated and broken business processes in both of the schools that I've been in, but I'm not even going to open my mouth because I know it won't do any good.

Edited January 7, 2014 by attrayant

[kurnell]

Thai customer service is sales clerk walking behind you like a shadow, then coming out with useful tips like "40% off!" when you are standing next to a sign 3 metres wide that says 40% off. "Absolutely brilliant, I missed that SUV sized sign, thanks!!"

[itsrebel]

Thought I will add a positive. At one of the book stores yesterday, not only did the girl escort me to the right section but helped me look for the book as well. And when we realized it was not there, she looked it up and told me which location had it in stock. And all this with a genuine smile.

Sent from my GT-S5310 using Thaivisa Connect Thailand mobile app

[Riverman63]

But has the world ended due to this bad service? Has Thailand gone broke? Do Farangs go back home because of this attitude and shop in friendly British shops.... err no. It's Thailand, like it or lump it. Up to you ;-)

Sent from my iPad using ThaiVisa app

[loong]

Let's use Global House as an example of what it might take to give professional customer service. You approach a sales clerk to ask advice on where to find a particular product in the store, what product to use for a certain "fix" or ask him/her to explain to you how a certain product works. Did you ever hear one say "excuse me Sir, but I don't know the answer to that question, but I will find someone for you who knows exactly how to help you"! Dream on my friend...you will get pointed in the direction of the back of the store where someone else can deal with you because the guy hasn't a clue where anything is in the store. If he doesn't know the answer to your other questions, he will make up something rather than tell you that he doesn't know. Or, he will smile and walk away and leave you standing in the aisle with your finger up your nose. I've had them go for a manager at my request and never return. Telling a bold face lie to save face is not uncommon. It's impossible to rely on any information that you receive from most Thais who are in the work place. I have a practice of asking three separate persons for an answer before I can even come close to making a decision The whole idea of good customer service is not compatible with the concept of "face". If you think you can improve customer service using Thai labor in your business, then good luck!

I don't often speak up for the Thais, but I have only ever visited Global House once. They didn't stock the item that I was looking for, but the extremely helpful young man apologised because they did not have it and then drew a map to show me where I would be able to get it. Maybe not good customer service from Global House's point of view, but good for me and it will make me return there in future when I need something. Unfortunately, most experiences of customer service have not been so good.

BTW, OP, IKW ROI means, but B2C and SME, IHNo Idea.

[brit1984]

generally yes but obviously depends on the business' type and location

customer service is very important for a fine dining restaurant in central bangkok

customer service is not so important for a gas station on a remote highway in isan

let us know your business plan and maybe we can provide more useful insights

[Card]

But has the world ended due to this bad service? Has Thailand gone broke? Do Farangs go back home because of this attitude and shop in friendly British shops.... err no. It's Thailand, like it or lump it. Up to you ;-)

Sent from my iPad using ThaiVisa app

And most of us choose to lump it. Doesn't mean we have to go around with rose tinted, misted glasses.

Edited January 7, 2014 by Card

[Riverman63]

Those glasses never fit, I was being slightly sarcastic in that post but the bottom line is that it's the way they operate.

Sent from my iPad using ThaiVisa app

[Card]

Let's use Global House as an example of what it might take to give professional customer service. You approach a sales clerk to ask advice on where to find a particular product in the store, what product to use for a certain "fix" or ask him/her to explain to you how a certain product works. Did you ever hear one say "excuse me Sir, but I don't know the answer to that question, but I will find someone for you who knows exactly how to help you"! Dream on my friend...you will get pointed in the direction of the back of the store where someone else can deal with you because the guy hasn't a clue where anything is in the store. If he doesn't know the answer to your other questions, he will make up something rather than tell you that he doesn't know. Or, he will smile and walk away and leave you standing in the aisle with your finger up your nose. I've had them go for a manager at my request and never return. Telling a bold face lie to save face is not uncommon. It's impossible to rely on any information that you receive from most Thais who are in the work place. I have a practice of asking three separate persons for an answer before I can even come close to making a decision The whole idea of good customer service is not compatible with the concept of "face". If you think you can improve customer service using Thai labor in your business, then good luck!

I don't often speak up for the Thais, but I have only ever visited Global House once. They didn't stock the item that I was looking for, but the extremely helpful young man apologised because they did not have it and then drew a map to show me where I would be able to get it. Maybe not good customer service from Global House's point of view, but good for me and it will make me return there in future when I need something. Unfortunately, most experiences of customer service have not been so good.

BTW, OP, IKW ROI means, but B2C and SME, IHNo Idea.

In Nan, a new Global World recently opened. The new recruits were so enthusiastic and I had to run a gauntlet of 'Sawadi Khaps' all around the store. They were so polite, stood to attention and overwhelming in their attention to me, but totally useless at any info. A few months later nothing had changed - they still wanted to be noticed and expected all the 'sawadi khap' rigmarole, except that I could spot some of them at a distance play fighting each other down an aisle when the boss wasn't around and more inclined to giggle when I shook my head at finding out that they had every version of something except what I wanted. No request to order, no apology, just the usual 'mai mee'. Now I just grin and bear it all.

[Card]

Let's use Global House as an example of what it might take to give professional customer service. You approach a sales clerk to ask advice on where to find a particular product in the store, what product to use for a certain "fix" or ask him/her to explain to you how a certain product works. Did you ever hear one say "excuse me Sir, but I don't know the answer to that question, but I will find someone for you who knows exactly how to help you"! Dream on my friend...you will get pointed in the direction of the back of the store where someone else can deal with you because the guy hasn't a clue where anything is in the store. If he doesn't know the answer to your other questions, he will make up something rather than tell you that he doesn't know. Or, he will smile and walk away and leave you standing in the aisle with your finger up your nose. I've had them go for a manager at my request and never return. Telling a bold face lie to save face is not uncommon. It's impossible to rely on any information that you receive from most Thais who are in the work place. I have a practice of asking three separate persons for an answer before I can even come close to making a decision The whole idea of good customer service is not compatible with the concept of "face". If you think you can improve customer service using Thai labor in your business, then good luck!

I don't often speak up for the Thais, but I have only ever visited Global House once. They didn't stock the item that I was looking for, but the extremely helpful young man apologised because they did not have it and then drew a map to show me where I would be able to get it. Maybe not good customer service from Global House's point of view, but good for me and it will make me return there in future when I need something. Unfortunately, most experiences of customer service have not been so good.

BTW, OP, IKW ROI means, but B2C and SME, IHNo Idea.

Yes, you occasionally meet a really helpful sales person who is actually informed and useful - they are rare and usually underpaid and under appreciated, but make up a bit for the rest. Thailand can be surprising in that unexpected way, but then again, it is a surprise and shouldn't be.

[hellodolly]

I can't tell you how many times I have walked away from a Thai owned business, shaking my head, saying, "How in the h_ell do they stay in business". The only explanation I can come up with is because so many of their competitors also have zero customer service skils.

I remember walking away from a little restaurant that made the best Kai Ya Sai (stuffed omelette) I'd ever had, never to return, because of the owner's disgusting attitude when I had a simple question about pricing. What this does is make me feel very strong about any business I find that does have good customer service. It makes me want to go out of my way to do business with them.

Some how explaining the restaurants pricing system seems to me to not fall in the good customer service category.

Thought I will add a positive. At one of the book stores yesterday, not only did the girl escort me to the right section but helped me look for the book as well. And when we realized it was not there, she looked it up and told me which location had it in stock. And all this with a genuine smile. Sent from my GT-S5310 using Thaivisa Connect Thailand mobile app

Yes I to have had better than Western service in a book store. Not only did the clerk take me to the section she found the books and explained each one to me. Many other examples of excellent service and many examples of terrible service.

To each their own. For me it is a package deal. The good the bad and the ugly. I try to judge on Thai principals and will occasionally fall back to judging on western standards but I am not stupid enough to cry every time I get less than standard western service.

As for opening a restaurant with good service good luck. Staff can be a big problem once you get them trained up to your standards they are liable to quit on you.

Good service will attract foreigners also the HISO's so location would be a matter of concern.

The Thais as a rule will take what ever comes to them. The every day Thai will accept what we in the west call bad service as good service.

[onvacation]

Absolutely!

My friends (Chinese and Thai ladies) and I walked out of two different clothing stores because the staff was so unfriendly. Both times the staff didn't even acknowledge our presence, she looked sad, tired and disinterested. Had she been nice and pleasant the three of us would have spent thousands of baht in both stores.

[unclueng]

The customer service manager at Central Chidlom is Japanese.

[Chao Lao Beach]

SME http://en.wikipedia.org/wiki/Small_and_medium_enterprises

B2C http://www.investopedia.com/terms/b/btoc.asp

Let's use Global House as an example of what it might take to give professional customer service. You approach a sales clerk to ask advice on where to find a particular product in the store, what product to use for a certain "fix" or ask him/her to explain to you how a certain product works. Did you ever hear one say "excuse me Sir, but I don't know the answer to that question, but I will find someone for you who knows exactly how to help you"! Dream on my friend...you will get pointed in the direction of the back of the store where someone else can deal with you because the guy hasn't a clue where anything is in the store. If he doesn't know the answer to your other questions, he will make up something rather than tell you that he doesn't know. Or, he will smile and walk away and leave you standing in the aisle with your finger up your nose. I've had them go for a manager at my request and never return. Telling a bold face lie to save face is not uncommon. It's impossible to rely on any information that you receive from most Thais who are in the work place. I have a practice of asking three separate persons for an answer before I can even come close to making a decision The whole idea of good customer service is not compatible with the concept of "face". If you think you can improve customer service using Thai labor in your business, then good luck!

I don't often speak up for the Thais, but I have only ever visited Global House once. They didn't stock the item that I was looking for, but the extremely helpful young man apologised because they did not have it and then drew a map to show me where I would be able to get it. Maybe not good customer service from Global House's point of view, but good for me and it will make me return there in future when I need something. Unfortunately, most experiences of customer service have not been so good.

BTW, OP, IKW ROI means, but B2C and SME, IHNo Idea.

[Sam Gold]

For it to work you need to have Western customers and deal with them yourself. In this case, yes, good customer service will be very appreciated and drastically improve your business' potential.

In any other configuration, personally I'd rather not even think about it. Working with Thais - Nightmare!

[unclueng]

"Customer Service" is an oxymoron. I had a recent experience dealing with the call center of a major bank:

My credit card was cracked and I needed a replacement. She said for security reasons she would have to cancel my current card and the issue a replacement card. She said it would take 6 to 8 days. I did not want to be without a credit card for that length of time and asked to talk to a supervisor. As usual the supervisor was not available. I gave her my saving account numbers and asked her to look at my balances. I told her my son had a similar situation with another bank and they sent him a replacement card and only cancelled his other card when he called to activate the new card. She said she could not do that. I asked her if I should change banks. She replied, "It's up to you sir."

I then went to the banks website and got the name of the VP of Customer Service. I called him, spoke with his secretary. Problem solved with no inconvenience.

[rickirs]

Perhaps better customer service could be encouraged with better employee rewards. Aside from the traditional sales commission ther are other options related to benefits and education.

[Mudcrab]

"Customer Service" is an oxymoron. I had a recent experience dealing with the call center of a major bank:

My credit card was cracked and I needed a replacement. She said for security reasons she would have to cancel my current card and the issue a replacement card. She said it would take 6 to 8 days. I did not want to be without a credit card for that length of time and asked to talk to a supervisor. As usual the supervisor was not available. I gave her my saving account numbers and asked her to look at my balances. I told her my son had a similar situation with another bank and they sent him a replacement card and only cancelled his other card when he called to activate the new card. She said she could not do that. I asked her if I should change banks. She replied, "It's up to you sir."

I then went to the banks website and got the name of the VP of Customer Service. I called him, spoke with his secretary. Problem solved with no inconvenience.

I also have never had any hassles in general.

[Mudcrab]

The simple answer is yes. Every customer from wherever they come from likes to be treated well. Whether that translates into profit is up to you.

[Mudcrab]

The simple answer is yes. Every customer from wherever they come from likes to be treated well. Whether that translates into profit is up to you.

In the village there are a couple of shops. In one I get sawadee kaa every time I go there . Feel welcome every time and spend money.

The other shop is the missus favourite. Reads the paper everyday. Owned by the village boss. Nice guy. But no business sense.

Edited January 7, 2014 by Mudcrab

[brit1984]

Perhaps better customer service could be encouraged with better employee rewards. Aside from the traditional sales commission ther are other options related to benefits and education.

very true... happy staff provide better service (with a smile) than sad staff (with a grimace)

most thai managers / business owners use too much stick and not enough carrot

but (as the OP has recognized) this is an opportunity for westerners / westernized thais to get ahead here

[Johnny99]

Great topic. My (Thai) wife and I own and operate a small business here in Thailand supplying wholesale products to Thai pharmacies. I am the business owner and she is the sales staff (& bookkeeper, etc). Starting out, the only way we could compete with other larger companies, who were offering essentially the same products and were there first, was to provide a better quality of service. It really wasn't very difficult to stand out from the competition as customer service and quality control are virtually unknown here.

A few of our customer care policies are:

1) To have a pleasant and knowledgeable person answer the phone whenever a customer calls, including after hours. Usually my wife or our (adult) daughter. We don't use a receptionist or answering machine. This policy insures that our customers know that when they call us they will be able to place their order with no time wasting call backs or conversations with staff who are unable to help them.

2) We cheerfully accept returns of products that the customer has difficulty in selling with a 100% money back guarantee. This policy allows us to introduce new products that the customer might otherwise be reluctant to try out and also increases bulk sales to those who would like to take advantage of our promotions but are afraid of getting stuck with products that might go past the expiration date. If promotion products are partially returned we simply recalculate the original sale.

3) We treat each of our customers on an individual basis with regard to credit terms, difficult deliveries, special promotions and seasonal gifts.

Our level of customer service is one of the main reasons that we are still operating a successful business here today.

[rakshell]

While I do think (perhaps naively so) that starting small, building from the ground up with a good work culture and hiring the right employees, that a small business can successfully compete in the local market simply by using customer service as a point of difference.

However, I don't believe that your business model should be solely based on this. Staffing issues and future competition can very easily disrupt that. You can't use customer service as the only differentiator.

In the past, whenever I wanted to buy something or get something done, I was always refereed to their family member or someone in their community that they knew who could (allegedly) do the deal. I think this is changing, I notice that the Generation Y are far more open minded about shopping around to get the better deal.

The 'village culture' (doing business with someone you know and trust) still exists but as the cities become more and more impersonal and alienating for many busy people, they will start to accept the friendly person (your business) as one of the 'clan' that they become comfortable dealing with.

Ok, getting back on track..

Offering an incentive (financial or other) to employees to encourage them to be proactive seems like the best motivator. It should make sense that an employee who has taken the time to learn the products and makes an effort to assist customers could see a tangible sales commission. Of course this need to be monitored to avoid staff being dishonest with customers and telling them anything to just sell and make commission.

Build from ground up by hiring slow and getting the correct employees and avoid nepotism unless that family member/employee can be a real asset and has the relevant skills to contribute. It should be made clear that the family member would still be held accountable for performance.

Jonny99 gives an example of how this is being done. Starting small, positive work culture and accountability (ie. if they don't work together they don't have a business/income).

[belg]

lets see what asean will bring

except thai getting out of it, because competition & service are 2 words not found in a thais dictionary