CAVENDISH UNIVERSITY

PROPOSED RESEARCH TOPIC

AN EVALUATION OF THE IMPACT OF THE CUSTOMER

BOOKING SYSTEM ON THE RETAINTION AND EXTENSION
OF CUSTOMER BASE: A CASE OF TOYOTA ZAMBIA, LUSAKA

BY

JOCELYN ZYONGWE

STUDENT # 06703023

BBA 7E

2010

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TABLE OF CONTENTS PAGE No.

BACKGROUND TO STUDY 3

PROBLEM STATEMENTS 4

RESEARCH OBJECTIVES 5

LITERATURE REVIEW 5

SIGNIFICANCE OF STUDY 6

THEORETICAL FRAME WORK 7

PREVIOUS STUDY 8

COMPARATIVE ANALYSIS 9

RESEARCH METHODOLOGY 9

CONCLUSION 11

BIBLIOGRAPHY 12

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 CHAPTER 1

This chapter provides an introduction and background to the booking system in Toyota
Zambia, Research problem, significance of the study and the organization of the
dissertation.

1. INTRODUCTION AND BACKGROUND TO THE STUDY

Toyota Zambia Limited is a wholly owned subsidiary of Toyota Tsusho Corporation of

Japan. Toyota Zambia has two outlets - in Lusaka and another branch in Kitwe. It also
has temporal operational facilities next to the head office branch in Lusaka Lumwana in
the mining town of Solwezi, North western province of Zambia. Its principle business is
the marketing and distribution of Toyota vehicles and provision of world class after sales
service offerings in parts and service. Previously owned by the Lonhro group of
companies until 2001, the company has operated in the Zambian automobile industry
for over 40 years providing the Zambian public with unparalleled motoring solutions.

Now more than ever, the Zambian economy is buzzing with growth as GDP posted
positive growth of over 5% for the eighth consecutive year by the end of 2007.(source :
Standard bank, economic outlook, February 2010)
With increasing prospecting into copper and other minerals, the discovery and opening
up of new mines, coupled with government’s policy to revamp the agricultural, tourism
and manufacturing sectors, investment inflows into the country have soared over the
past five years.

The resulting demand for motoring solutions from various solutions from the various
booming sectors has never been so promising. Indeed, there has never been a better
time to do business in Zambia.

This has enabled more customers to purchase and enjoy the Toyota brand. Vehicles
that are purchased are serviced at stipulated intervals of 5000km and there after every

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5000km - of utilization. Customers are obliged to adhere to the service schedule for
optimal performance of their vehicles. Toyota Zambia commitment is to provide
guidance on service schedules and ensure timeous servicing of all vehicles brought in
for service.

A booking system has been put in place in order to level the workshop load and ensure
a highest level of quality service is achieved. Service booking is normally done five days
before the actual appointment date. Customers agree to the appointment date and
reminded of the appointment date and time before service is due. Customers are also
advised on cost estimates of the works to be carried out on the vehicle to help them
plan for payment of planned works. Works to be done is agreed with the customer prior
to commencement of works.

PROBLEM STATEMENTS

The numbers of Toyota vehicles that are on the market have tripled in the last five years
(Toyota Zambia’s financial report, April 2010). This has created capacity problems as
the number of vehicles that can be acceptable at current facility is limited to an average
of 50 vehicles per day. Efforts by Toyota Zambia in mitigating this problem by opening
an express lane facility next to the main workshop in Lusaka which can handle an
additional 20 vehicles per day have not helped much. A lot of customers are sent back
due to capacity problems as the facility is fully booked for up to 6 weeks in advance.

Customer vehicles arriving at given time for service are not well controlled and
monitored, a condition that causes congestions and long queues for bookings and
consequently a lot of frustrations for customers.
Due to this congestion, it has been difficult to allocate adequate time to clearly identify
the service needs of each customer that arrives at our workshop centers. Customers
are being over promised and ultimately under delivery of services.

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 Five years ago, Toyota used to offer while you wait service but not any more because of
the congestion. This service cannot longer be offered due to congestion and the need
for pre service parking areas which has become a big concern for Toyota Zambia
workshop service delivery.

A diagnosis master technician is one who helps in advising on serious problems that
some vehicles have in the workshop. Due to the congestion of the workshops, he is
unable to offer any adequate support for repair requests.

The use of the JPCB (Job process control board) as a visual system to identify available
technicians and appointment times has not been accurately used because the booking
system has not been accurately used by the service team.

RESEARCH QUESTIONS

 Is the workshop overloaded?

 Are customers informed on maintenance?
 Do we handle maintenance/repairs according to customer needs?
 Do we over promise and under deliver?
 Do we provide accurate time with each customer?

RESEARCH OBJECTIVES:

The objectives of this research are:

• To inform customers when maintenance is due based on vehicle use

• To propose maintenance and handle additional repair requests based on
customer needs
• To reduce overloading by leveling the workload (heijunka in Japanese)
• To provide adequate time with each customer to increase customer satisfaction

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 SIGNIFICANCE OF THE STUDY

It is important to make this study because every employee and management can learn
from the results and recommendations to make the Toyota experience much more
exciting for the customer as shown below:

• Use leveling (heijunka) ,to control the number of customers and vehicles arriving
at any given time, thus preventing congestion
• Allocate adequate time to clearly identify the service needs of each customer that
arrives
• Promote “while you wait” maintenance to improve technician productivity and
reduce the need for parking areas
• Request Diagnosis Master Technician support for repair requests
• Use the JPCB as a visual system to identify available technicians and
appointment times

ORGANIZATION OF DISSERTATION

The thesis consists of five chapters. Chapter one deals with the introduction and
background to the study and statement of the problem. The rest of the chapters are as
follows;

Chapter two- literature Review:

This chapter looks at the Toyota global operations booking system and researches
carried out in the region. It further dwells on the Toyota tuosho Africa booking system in
Southern Africa and finally the booking system in Toyota Zambia

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Chapter three – Research methodology
The chapter consists of the research design, sampling design, data collection method,
data analysis, limitations of the study and the generalization of the results.

Chapter four – Research findings and Analysis

The chapter outlines the findings and analysis of the study.

Chapter five – Conclusions and recommendations

In this chapter, the conclusions and recommendations of the study are detailed. The
recommendations for further research are also stated.

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 CHAPTER 2

LITERATURE REVIEW

INTRODUCTION

This chapter looks at the Toyota global operations booking system and researches
carried out in the region. It further dwells on the Toyota tuosho Africa (TTAF) booking
system in Southern Africa and finally the booking system in Toyota Zambia

GLOBAL OPERATIONS GUIDELINES

While the Toyota Motor Cooperation operates under an advanced booking system
compared to the Zambian situation, we can not avoid making references to it because,
ideally, our vision is directed towards such highly advanced system

AIMS OF THESE GUIDELINES

Toyota distributors have shown efforts to strengthen activity for integrity of overall
customer service with an aim to achieve Toyotas goal of maximum customer
satisfaction. Meanwhile, the efforts in service operations need to bring assured
accomplishment of “reliable, customer- oriented service in timely manner” as one of
customer service missions.

To realize the above, it is essential to reestablish the basic Toyota Principle for
Customer service that has accumulated in the past, and clarify to the ideal State of local

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service operations. Besides, it is significant for both Distributors and Dealers to clearly
recognize the ideal state and share the status between them.

Moreover, it is necessary to “promote further standardization of operations to

achieve both customer satisfaction and high productivity” toward the realization
of the ideal state.

Toyota has prepared these guidelines to support distributors’ activity to work for
realization. Theses guidelines include [ideal state] showing the ideal state of dealer
operations and [ideal operations Models] indicate concrete actions for the ideal
operations.

Toyota believes that these guidelines will help distributors and dealers cooperate in
continued promotion of kaizen activity toward “achievement of the best customer
service in town” and creation of local operation standards that reflect the local market
situations (laws, regulations, cultures e.t.c) based on full understanding of theses aims.

Maintenance Reminder and appointments

Ideal State

Without any oversights, timely and efficient

[Reminding the customer of the correct maintenance in advance, in a timely and
efficient manner, without leaving anybody out.]
 “Timely” means that Toyota can offer maintenance to all customers based on the
appropriate maintenance due date for each customer, by considering the enough
time to adjust his/her schedule for appointment.
 “Efficient” means that Toyota can propose not only the periodic maintenance but
also the recommended additional jobs for each customer vehicle state, based on
service history with his/her maintenance interval.

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  “Without leaving anybody out” means that Toyota can surely offer maintenance
reminders to all customers whose vehicles are in maintenance due date.
[Understanding customer requests and confirming/securing workshop and
technician availability for appointments]
 Ask customer requests and record them
 In order to keep an appointment with a customer, ensure workshop
availability of technicians and stalls by controlling appointment schedule
shared with all staffs to prevent overbooking.

Major points and concrete actions in “ideal state”

1. Maintenance reminder by Mail

 Propose appropriate maintenance to each Customer

• Select maintenance category and recommended additional jobs for
each customer, based on his/her service history and maintenance
intervals.
• Enter appropriate maintenance category, recommended additional
job and staff name in any communication tool, such as direct mail.
 Send a maintenance reminder for every customer at the best timing.
• Send any communication tool, such as direct mail on a day to day
basis in accordance with maintenance due date of each customer

2. Maintenance reminder/appointment by direct Communication

 Propose appropriate and high quality maintenance to each customer

and check any additional requests
• Explain maintenance job contents in each category and necessity
of recommended additional jobs clearly.

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 • Ask all customer concerns such as vehicle reception/delivery date
and time, any additional requests and any problem with his/her
vehicle.

3. Appointment Management

 Indicate and monitor appointment schedule and information and

input in data monitoring System(DMS)
• Ensure proper workshop availability ( stalls/technicians) in
accordance with the details of appointment
• Make sure to input the appointment information in data monitoring
system (DMS)

APPOINTMENT PREPARATION

Ideal State

Completing the preparation for receiving appointment customers and their vehicles
 Confirm if the customer want to change the appointment date/time by reminding
him/her of the appointment, and explain the service, such as the job details, the
job time or the cost, based on customer requests
 Order required parts in the best timing (considering delivery lead time) to ensure
required parts before vehicle reception date and manage their special order parts
classified by customer and reception date/time.
 In order to prevent a customer from waiting for reception due to insufficient
preparation, prepare required materials in advance and create a job plan to
secure on-time delivery.

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 4. Appointment confirmation

 Confirm the job details of appointment and check additional requests

• Confirm whether there is any change in the appointment, such as
requested job or vehicle reception/delivery date/time
• Confirm any additional requests and concerns

5. Required Parts Order

 Prepare the required parts for reception date

• Order required parts based on the reception date, by considering
the delivery lead time of required parts
 Manage the special order parts classified by customer and
appointment date
• Handle all special order parts by customer and reception date to
enable smooth and accurate job

6. Creation of job plan for the following day

 Schedule all jobs for the following day

• Create a job plan to enable job completion by the promised vehicle
delivery time

One of the implications for the Toyota Zambia case that came out from the Global
operations guidelines is that Toyota Zambia booking system is a ‘stand alone’ system.
That is, it is not connected to any other automated system in the region. This is one of
the critical issues Toyota Zambia should look up to in its future developmental
programs. Other service providers’ i.e. zain or MTN who enrich the system with latest
technologies should also be made to partner with Toyota Zambia booking system. This
is how Toyota Motor Cooperation has enriched its system.

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As stated earlier, Toyota Zambia booking system is evaluated based on a manual
booking book. However, the Toyota Motor cooperation work hand in hand with TTC to
help in analyzing the system.

TOYOTA TUSHO AFRICA (TTAF) BOOKING SYSTEM IN SOUTH

AFRICA

Toyota South Africa has set themselves a national approach towards modernization of
their existing booking system. This is in recognition of the need for an efficient and
effective booking system
OGLO OBJECTIVES
The main objectives of Toyota South Africa booking system are:
• To inform customers when maintenance is due based on vehicle use

• To propose maintenance and handle additional repair requests based on

customer needs

• To reduce overloading by leveling the workload (heijunka) and to provide

adequate time with each customer to increase customer satisfaction

Customer Expectations
• “Remind me when maintenance is due so that my car can be serviced on time.”

• “Give me an appointment on a date and time that is convenient for me.”

• “Offer me advice and accurate estimates based on the work that needs to be
done.”

Requirements
• Use heijunka (leveling) to control the number of customers and vehicles arriving
at any given time, thus preventing congestion

• Allocate adequate time to clearly identify the service needs of each customer that
arrives

• Promote “while you wait” maintenance to improve technician productivity and

reduce the need for parking areas

• Request Diagnosis Master Technician support for repair requests

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 • Use the JPCB as a visual system to identify available technicians and
appointment times

Detailed Job Flow

1. Maintenance reminder by direct mail (DM)
 Preparation for maintenance reminder DM
 Creation of maintenance reminder DM
 DM mailing
 Follow-up for returned DM

2. Maintenance reminder/appointment by phone

 Preparation for maintenance reminder phone call
 Phone call for maintenance reminder
 Determination of vehicle reception/delivery date/time

• Obtain and record the customer’s preferred dates/times for vehicle

reception and delivery

• Decide on and record the finalized reception and delivery dates/times

 Notification and confirmation of other required items

3. Appointment information management

 Appointment order processing
 Storing the repair order

DETAILED OPERATIONS
Maintenance reminder by direct mail
 Preparation for maintenance reminder DM

• Retrieve a list of target customers from the database and print

• Check the customer information
• Check the vehicle information

 Creation of maintenance reminder DM

• Print and affix a mailing label
• Check the service history
• Fill out the DM
• Fill out the follow-up card
• Store the DM and follow-up card
 DM mailing
• Check the information entered in the DM

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 • Mail the DM
 Follow-up for returned DM
• Check the returned DM
• Record the reason it was returned

Maintenance reminder/appointment by phone

 Preparation for maintenance reminder phone call
• Check the follow-up card
• Check the Appointment Scheduling Board for workshop technician availability

 Phone call for maintenance reminder

• Confirm and record customer information
• Confirm and record vehicle information
• Explain the job details, then confirm and record whether the customer would like
an appointment

　*Customer does not request an appointment

　*Customer calls the dealer for an appointment
[If you receive a phone call from the customer for appointment]
 Confirm and enter the customer information.
 Confirm and enter the vehicle information.
 Obtain and enter the customer requests.
• Obtain and record any additional customer requests

 Determination of vehicle reception/delivery date/time

• Obtain and record the customer’s preferred dates/times for vehicle reception and
delivery
• Check the ASB for workshop technician availability
• Propose dates/times for vehicle reception and delivery and adjust the schedule
• Decide on and record the finalized reception and delivery dates/times
• Find out who will bring vehicle to dealer and record their name

 Notification and confirmation of other required items

• Notify the customer what items are required

• . Confirm and record customer contact information
• . Read out the details of the appointment
• Record the results of the maintenance reminder/appointment process and record
staff name

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 Maintenance reminder/appointment by phone
If a customer does not accept the appointment proposal:
• Find out why the customer does not want to make an appointment for
maintenance
• Record their answer on the follow-up card
• Create a plan for the next service reminder contact

Why?
 To time the next maintenance reminder
 To find out the customer’s preferences

Key point
 Offer advice about required maintenance items after asking for the current
vehicle odometer reading (kilometers/miles)

Handling additional repair requests

If a customer requests additional repairs during a maintenance reminder phone

call, you must determine whether diagnosis appointment is needed and whether
the repair is covered by warranty
-

Customer request Action

Give
estimate?
Repairs Service advisor must request technical support from a
Diagnosis Master Technician (DMT) No
Warranty repairs Service advisor must see the vehicle before commenting and
request technical support (DMT or B&P Estimator) if N/A
necessary

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Customer calls to request an appointment
Optional
Dealer receives a customer appointment request by phone
Procedure
1) Greet the caller, introduce your department and give your name, then request the
customer’s name and vehicle information

2) Check the customer’s service history to review previous work done and vehicle
odometer reading, then check for any recommendations or Special Service
Campaign/Service Campaigns for the vehicle

3) If parts must be ordered, explain to the customer that the appointment date will
be finalized once the parts have been delivered

Customer calls to request an appointment

Optional
 Database accuracy
• Revise any customer information in the dealer database that is outdated,
such as old telephone numbers
 New customer
• If this is the customer’s first contact with the dealer, enter customer and

Vehicle details into the DMS to enable follow-up

Why?
 To maintain accurate, up-to-date customer information

 To build the customer contact database

Key point
 If customers’ information is not in the database, ask for their contact and vehicle
details and carefully enter it.

Always provide options

 Use “we can” instead of “we can’t” statements
 Be flexible about basic maintenance requests

Promote the benefits of appointments

Key point
 During customer contact, staff must explain to the benefits of making an
appointment

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Customer benefits  Reduced waiting time at reception
 On-time vehicle delivery
 Same-day service (express maintenance)

Dealer benefits  Parts can be prepared and pre-picked

 Level service department workload (heijunka)
 Jobs can be planned and allocated based on required
technician skill levels

How to promote appointments

Non- Display appointment contact details
verbal  In the reception area
 On the dealer website
 On service advisors’ business cards
 On maintenance reminder postcards and emails
 On all documentation (repair orders, invoices)
Verbal  Promote appointments when speaking with customers on the phone
or face-to-face

Appointment information management

 Appointment order processing

• Put the magnetic chip on the ASB

• Record the appointment information
• Print the Customer Order Form
• Print the estimate
• Confirm and record the stock status/ETA of any required parts

[If you receive a phone call from the customer for appointment]
 Check the service history.
 Check and enter unapplied SSC/SC, if any.

 Storing the repair order

• File the repair order in the appointment cabinet

Appointments (general repairs)

 Phone call for appointment (incoming)

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 • Confirm the customer’s name and purpose of the phone call
• Confirm and record customer information
• Confirm and record vehicle information
• Obtain and record customer requests
• Obtain and record details about when and how the problem occurs

 Determination of vehicle reception/delivery date/time

• Obtain and record the customer’s preferred times/dates for vehicle

reception and delivery
• Check the ASB for workshop technician availability
• Propose dates/times for vehicle reception and delivery and adjust the
schedule
• Decide on and record the finalized reception and delivery dates/times
• Find out who will bring vehicle to dealer and record their name

 Notification and confirmation of other required items

• Notify the customer what items are required

• Confirm and record customer contact information
• Read out the details of the appointment
• Record the results of the maintenance reminder/appointment process and
record staff name

Key point
 Request Master Diagnosis Technician support for diagnosis of repair jobs

Required Skills
• Communication

• Customer database handling

• Maintenance plan development

• Price estimation

• Appointment loading

• Visual control management

• Workshop planning

• Repair order writing

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Category #1 Category #2 Category #2 definitions
Communication Listening Can listen carefully to customer need
concerns, can empathize with cu
experiences
　 Reflecting Can accurately repeat back what the custom
said
　 Questioning Can ask the questions to obtain ac
information
　 Writing Can write guidance and what customers say on the
order and other documents
　 Explaining Can give easy-to-understand explanations and
service proposals
Speaking Can speak clearly on the phone and has good te
manners
Customer DB handling Searching/selecting in Can search, sort, and select target customers us
DB database

　 Updating DB Can regularly check and update/revise the c

database
　 Processing DB Can utilize database information to plan and im
service and parts marketing activities
　 Printing/chart-making Can print and make charts from processed d
information
Maintenance plan Utilizing service history Can find and refer to the service history for each
development serviced by the dealer
　 Developing appropriate Can make a maintenance or repair proposal ba
maintenance proposals vehicle usage, current condition, and odometer read
　 Future suggestion ｓ Can recommend when the next maintenance is du
on the average kilometers/month
Price estimation Estimating Can identify and advise customers on parts and lab
needed for maintenance and light repairs

Category #1 Category #2 Category #2 definitions

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Appointment Can schedule based on Can schedule/write on the appointment sheet
loading available time/technicians or board to maximize productivity
　 Providing options Can suggest options if the date requested is
unavailable
　 Heijunka Can reduce overloading by leveling the
workload based on available appointment
times
　 Scheduling the workshop Can schedule and determine delivery
dates/times based on technician workload, skill
level and availability
　 Writing appointment Can write appointment sheets accurately
sheets based on customer requests and available
appointment times
Visual control Using the JPCB Can use JPCB tools to accurately represent
management the current status of each job and the expected
delivery time
Moving forms Can move repair orders, parts forms, QC
forms, and invoices at the right time
　 Identifying irregular Can recognize irregularities (delays) or Jidoka
conditions (stopped) jobs
　 Stoppage management Can respond quickly to job stoppage (take
action and communicate)
Service workshop Technician skill control Can match jobs with the appropriate technician
planning based on skill level
　 Dispatching Can dispatch jobs to the appropriate technician
based on required skill level, time, and
promised delivery time
　 Heijunka Can make daily job plans to reduce
overloading
　 Rescheduling Can reschedule job plans when circumstances
change
Repair order writing Accurate writing Can write repair orders that reflect customer
requests accurately
　 Parts availability checking Can identify parts availability immediately

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What to Monitor

KPI Formula Gu

Result Process

List-up rate Total no. of customers listed on target sheet*/

(monthly MR total no. of target customers in DMS/MRS
list) database
90
(measures (*based on new vehicle sales)
database
accuracy)

Implementation Total no. of customers successfully

rate contacted /total no. of customers on MR target
sheet 90
(contact rate)

Appointment Total no. of customers who show up for

show-up rate maintenance /total no. of customers on MRS
target list 90

Appointment Total no. of appointments

rate Re
achieved through MR contact /total number of dis
（For MR activity customers contacted through MR activities gu
only)

Required Knowledge
• Maintenance reminder targeting

• Service menu

• Appointment system

• Flat Rate Time (FRT) system

• Job Process Control Board (JPCB)

• Maintenance Interval

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 • Warranty Policy

• Repair order (RO) standard

How Customers will Evaluate You

Scoring: 5: Good, 3: fair, 1: poor

No Evaluation Items Score

1 Service reminder before appointment

2 Provide method to make an appointment.

3 Provide appointment on date requested by customer.

4 Days waited if not available on day requested. (provide options)

5 Provide reasonable lead-time for appointment.

Total

As regard the general development that has taken place in Toyota South Africa, Zambia
is one of the few countries that have made notable achievement where booking system
is concerned. The booking system has been introduced.Relatively,this is a great
achievement.However,there are a lot more lessons Toyota Zambia has to learn from
countries like Japan and South Africa. In South Africa, Various Toyota dealers have
joint ventured in order to facilitate the smooth functioning of the Dealers booking
system. A lot of such advanced functions have come out, in this study, as customers
expectations.
BAL

Objectives
GLOBAL OPERATIONS GUIDELINES

THEORECTICAL FRAMEWORK
There are several ways in which booking system is done; by direct mail and by phone

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6. Detailed Operations
1. Maintenance reminder by direct mail

1) Preparation for maintenance

3) DM mailing
reminder DM
1. Retrieve a list of target customers 1. Check the information entered
from the database and print in the DM
2. Check the customer information 2. Mail the DM
3. Check the vehicle information

2) Creation of maintenance
reminder DM 4) Follow-up for returned DM

1. Print and affix a mailing label 1. Check the returned DM

2. Check the service history 2. Record the reason it was
3. Fill out the DM returned
4 .Fill out the follow-up card
5. Store the DM and follow-up card

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 6. Detailed Operations
2. Maintenance reminder/appointment by phone
3) Determination of vehicle
1) Preparation for maintenance reception/delivery date/time
reminder phone call 1. Obtain and record the customer’s
1. Check the follow-up card preferred dates/times for vehicle
2. Check the Appointment Scheduling reception and delivery
Board for workshop technician 2. Check the ASB for workshop technician
availability availability
3. Propose dates/times for vehicle reception
2) Phone call for maintenance and delivery and adjust the schedule
reminder 4. Decide on and record the finalized
1. Confirm and record customer information reception and delivery dates/times
2. Confirm and record vehicle information 5. Find out who will bring vehicle to dealer
3. Explain the job details, then confirm and and record their name
record whether the customer would like 4) Notification and confirmation of
an appointment other required items
*Customer does not request an 1. Notify the customer what items are required
appointment 2. Confirm and record customer contact
*Customer calls the dealer for an
information
appointment
4. Obtain and record any additional 3. Read out the details of the appointment
customer requests 4. Record the results of the maintenance
reminder/appointment process and record
kodawari items shown in red text staff name

PREVIOUS STUDY

According to business commentator Roy Chit wood, the achievement of customer

loyalty and hence the retention of customers is the brass ring that nearly every business
is striving to reach.  

It is by far one of the most talked-about topics in business today, keeping customers
once you have sold to them.  It is a concept that seems as complicated as it is

25
 elusive, everyone wants to do it but very few understand how. It is important to
remember that customer acquisition and retention evolve far beyond service.   

The key to retaining customers, explains Chitwood is not very complicated. In fact, it
can be quite simple because customers come to you when they have problems.
However, in order to both serve them well and keep them coming back; your company
has to provide better solutions than do your competitors.  Any company can tout a
mission statement or lofty philosophy of striving to offer effective solutions and many
companies spend millions of dollars advertising how committed to service and solutions
they are.  But most do not understand that although advertising may bring customers in
initially, it is only continual action that keeps them coming back.  

In today's global, competitive marketplace, choice is abundant and customers have

more control and purchasing intelligence. Consequently, businesses must be intelligent
about their markets and customers, and more aggressive than ever in their efforts to
retain them.  

And why is there so much emphasis on retention? Because retained customers are
loyal, which means they spend more with you and advocate your brand. Growing loyalty
among the right customers means increased profitability for your business.  
 

Consumers today are smarter, better educated, have access to unlimited information
and are more product-savvy than ever. In fact, today’s consumers have been created,
to a large extent by modern marketing methods and the mass media.  They are: 

1. Sceptical - Dishonesty has become part of every industry.

2. Cautious - They do not want to make a commitment until they see the whole
picture, and gather all the facts. They want to think through their decision.
3. Tired of Sales Pressure - Whether it’s tele-marketing or junk mail, consumers
are fed up!
4. Seeking Instant Gratification - for example “fast foods”.
5. Discerning - They have more information than at any time in history.

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Recognise good service - They have travelled overseas where they have developed
certain product and service benchmarks. These consumer characteristics have made
it more important than ever to build meaningful relationships and trust with customers in
an effort to retain loyalty.

With 80% of revenue usually gained from just 20% of your customer base, it is critical to
business success that you not only maintain existing customer relationships, but nurture
them.   

The primary purpose of any business is to create and keep customers. Customer
acquisition and retention evolves far beyond service.  Consider the fact that you can get
“service” just about anywhere you go. So how do you stand out from the crowd? What is
your business doing to guarantee more repeat customers, more referrals, increased
sales and ultimately increased profits?  

Based on a worldwide survey conducted across a range of industries, every year since
World War II, these figures highlight the reasons why customers leave one business in
favour of another:  

68% Perceived indifference

14% Product/price
9% They were sold by a competitor
5% They buy from a friend
3% They move away from the area
1% They die

The reasons why customers leave are rarely the ones that they tell you and the biggest
reason of all is perceived indifference.   Once a customer has left it becomes more
difficult and costly to regain them.  
 

27
  

The Statistics on Customer Retention

The most important marketing investments for businesses are to be made in nurturing,
retaining, and maintaining existing customer relationships.  Consider these statistics: 

 Companies that prioritize the customer experience generate 60% higher profits
than their competitors.
 A commitment to customer experience results in up to 25% more customer
retention and revenue than sales or marketing initiatives.
 A 5% increase in customer retention can increase business profits by 25% -
125%.
 80% of your future profits will come from just 20% of your existing customers.

This confirms that business is not necessarily about spending more on mass and
traditional marketing to unknown targets, but about setting in place initiatives to retain
your existing customers.

Lifetime Value of Customers

According to marketing commentator Ian Grayson, it makes no difference whether you

are running a corner store or selling luxury real estate; satisfied customers generate
repeat sales and can even act as unpaid ambassadors for your business.  

Industry research shows that it can cost between 6 and 10 times more to attract new
customers as it does to retain existing ones.  For that reason, a solid base of loyal
clients with a profitable projected lifetime value can significantly increase business
profitability.  

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 COMPARATIVE ANALYSIS

Currently Toyota Zambia’s booking system is in a terrible state. Toyota Zambia uses a
booking book that is displayed on the counter with minimal supervision. Customers who
walk in fill in the book by themselves.Followup to confirm booking date with clients is not
done by the front office assistants and service advisors.
The Toyota service kodawari program explains in detail the Toyota way of booking in
vehicles. The program states that: customers should be reminded of the correct
maintenance in advance in a timely and efficient manner, without leaving anybody out.
Further more Toyota Zambia should understand customer requests and
confirming/securing workshop and technician availability for appointments. Lastly the
service advisor completes the preparation for receiving appointment customers and
their vehicles.

RESEARCH METHODOLOGY

RESEARCH DESIGN (SCOPE)

This research will be carried out within Lusaka Toyota service department. It will involve
the workshop foreman, warranty officer, service advisors, front office staff, members of
the CSI department, technicians and wash bay attendants.

DATA COLLECTION TOOLS

 Structured Interviews
 Unstructured interviews
Focus group meetings

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CONCLUSION

The warranty system has been put in place in order to level out the workshop load. This
is one of the most important processes that are carried out in every Toyota distributor or
dealer. The warranty system also informs customer when they should bring in vehicles
and at what time. This will enable service advisors to plan the processes well and to
also have adequate time with the customers.
This process has equipped other Toyota distributors and the researcher is positive that
the same process will work wonders for Toyota Zambia.

30
 BIBILIOGRAPHY

Philip Kotler, Kevin Lane Keller.(2006),Marketing management, Twelfth edition, by

prentice – hall Inc. USA

Bridges, W. (1991). Managing transitions: making the most of change. Reading, MA:
Wesley Publishing Company.

Coetsee, L. (Summer, 1999). From resistance to commitment. Public Administration

Quarterly, 204-222.

de Jager, P. (2001, May/Jun). Resistance to change: a new view of an old problem. The
Futurist, 24-27.

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^ a b Armstrong, Michael (2006). A Handbook of Human Resource Management
Practice, 10th edition, London: Kogan Page. ISBN 0-7494-4631-5. OCLC 62282248. 

Roy Burke.(2003),project management, planning and control Techniques,

Fourth edition
www.hbsp.harvard.edu

Folger, R. & Skarlicki, D. (1999). Unfairness and resistance to change: hardship as

mistreatment, Journal of Organizational Change Management, 35-50.

Hultman, K. (1995, Oct). Scaling the wall of resistance. Training & Development, 15-
22.
^ Haugan, Gregory T., Effective Work Breakdown Structures, pp7-8

Cole, G.A (2004), management theory and practice, sixth edition, Thompson learning

Saunders, M, Lewis, P and Thorn hill, A (2003), Research methods for

Business students London: prentice hall

Toyota Zambia Warranty Policy and Procedures Manual (2007)

Toyota Zambia Operations and processes Manual, 2001

Customer Service Planning Division, dececember, 2008

Toyota Service Management Kodawari Program Bullitin, 2010

Chapter 4 – Research Methodology

http://upetd.up.ac.za/thesis/available/etd-10192001-
124625/unrestricted/05chapter4.pdf

Chapter 3 – Research Methodology

http://upetd.up.ac.za/thesis/submitted/etd-02192003-
161649/unrestricted/03chapter3.pdf

Data Collection tools

http://www.nationalgangcenter.gov/content/Documents/Assessment-
Guide/Assessment-Guide-Chapter-9.pdf

Data Needs and Data Collection

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http://www.ctre.iastate.edu/gasb34/dataneeds.pdf

A HANDBOOK OF DATA COLLECTION TOOLS:

COMPANION TO ‘’A GUIDE TO MEASURING
ADVOCACY AND POLICY
http://www.organisationalresearch.com/publications/a handbook of data
collection tools.pdf

Bulletin
http://ohioline.osu.edu/b868/pdf/b868.pdf

Function & Data Analysis Tools

http://www.techdocs.ku.edu/docs/excel 2000 functions.pdf

GUIDE TO MICROSOFT EXCELS DATA ANALYSIS

TOOLS
http://www.willamette.edu/~dnegri/courses/econ230/Data Analysis Tool pack
Guide.pdf

15 Methods of Data Analysis in Qualitative Research

http://qualitativeresearch.ratcliffs.net/15methods.pdf

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