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A STUDY OF CUSTOMER SATISFACTION LEVEL AT TELEKOM MALAYSIA

PADILAH BT. HJ. MD. YUNUS

THESIS SUBMITTED IN PARTIAL FULFILMENT FOR THE DEGREE OF BACHELOR OF SCIENCE (HONS) INFORMATION TECHNOLOGY

FACULTY OF INFORMATION TECHNOLOGY AND QUANTITATIVE SCIENCES UNIVERSITI TEKNOLOGI MARA SHAH ALAM
2005

DECLARATION
I certify that this thesis and the research to which it refers are the product of my own work and that any ideas or quotation from the work of other people, published or otherwise are fully acknowledged in accordance with the standard referring practices of the discipline

DECEMBERS, 2005

PADILAH BT. HJ. MD YUNUS

2002382596

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APPROVAL

This proposal is accepted to be pursued under my supervisions.

PN SALWANI BINTI JAAFAR 21 NOVEMBER 2005

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ACKNOWLEDGEMENT

BISMILLAHIRRAHMANIRRAHIM In The Name Of Allah, Most Compassionate, Most Merciful,

Alhamdulillah, 'His' willing has made it possible for me to complete my research successfully. Here, I would like to gratefully acknowledge the contributions of several people who have direct or indirectly involve during my research.

First, thanks go to my supervisors, Puan Salwani bt. Jaafar from Faculty of Information Technology and Quantitative Science, Pn. Zaidah Ibrahim as Coordinator and who have contributed immensely towards the completion of my research. They have spent their time patiently, guidance, advice and gain me with a lot of knowledge.

Second, I would like to convey my heartfelt gratitude to all Telekom Malaysia staff especially to Puan Rozila Manager CRM Unit, En. Mohd Wazir Awang , Manager TM Retail Unit, Mr Lee Hon Knew CRM Project Coordinator also Pn. Fadilah bt. Nordin Executive Marketing Unit for their collaboration and support really helped me to fulfill my research's requirement.

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Last but not least, to my lovely husband, my daughter and son, both of my parents and also my friends for being so understanding and encouraging me during this research period.

Thank you very much.

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ABSTRACT

This research focuses on the efficiency and effectiveness of customer satisfaction survey at Telekom Malaysia. To examines the needs of Customer Relationship Management (CRM) system and analyze the interaction between Telekom Malaysia and customer. Information is gathering through interviews with TM employee, distribute questionnaire to TM customer. This research process involves the whole TM organization, from top management to down, in a closed loop system that integrates all areas of the business, including sales, marketing, service, and customer communications. The information gathered during this study was obtained were primary data: interview and distributing questionnaires and also the secondary data. The findings from this research indicate that Customer Relationship Management (CRM) has implemented in TM. However, all the system used is run without knowing system performance and achievement with customer point of views. For the suggestion, e-Survey web based Customer Relationship systems are developing to improve their satisfaction survey.

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TABLE OF CONTENTS

Content DECLARATION APPROVAL ACKNOWLEDGEMENT ABSTRACT TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES LIST OF ABBREVIATION

Page ii iii iv v vi xi xii xiii

CHAPTER 1 INTRODUCTION 1.1 TM Background 1.1.1 1.1.2 1.2 1.3 1.4 1.5 1.6 1.7 1.8 2.0 TM Vision TM Mission 1 1 2 2 3 3 4 5 5 5 5

Research Project Background Problem Definition Objectives Benefits Scope Research Target Research Planning Conclusion

CHAPTER II LITERATURE REVIEW 2.1 2.2 Introduction Definition of Terminology 2.2.1 Customer 6 6 6

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2.2.2 2.2.3 2.2.4 2.3 2.4

Relationship Management Customer Relationship Management (CRM)

6 7 7 11 13 14 14 16 17 19 19 19 20

Analysis Method Customer Relationship Management in TM 2.4.1 2.4.2 TM CRM Road Map Current CRM Initiatives in TM

2.5 2.6 2.7 2.8 2.9 2.10

Customer Satisfaction Ratings Service Quality Measuring Customer Satisfaction Using IT Why CRM hitemet Web e-Survey Summary

CHAPTER III METHODOLOGY

3.1 3.2 3.3 3.4 3.5 3.6

Introduction Methodology approach Primary Data Secondary Data Hardware and Software Platform System Development Life Cycle (SDLC) 3.6.1 3.6.2 3.6.3 3.6.4 3.6.5 3.6.6 3.6.7 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

21 22 22 23 24 24 24 24 25 25 25 25 25 25 26

3.7 3.8

Research Planning Summary

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CHAPTER IV RESULT AND SYSTEM DESCRIPTION 4.1 Introduction 4.1.1 4.2 4.3 4.4 4.5 4.6 Result from Questionnaires 27 28 29 30 31 32 33 33 34 35 35 36 37 39 39 40 41 42 42 43 44 46 47 48 49 50 51

Customer Category Level of Education TM Subscriber's Profession Telephone Installation 4.6.1 4.6.2 Timeliness Reliability

4.7

Fault Restoration 4.7.1 4.7.2 4.7.3 Easy access to 100 Timeliness attend fault Staff Professionalism

4.8

Billing Service 4.8.1 4.8.2 4.8.3 Timely Billing Accuracy of Billing Accessibility of Payment Location Resolving Complaint Effectively Being Friendly and Helpfial Staff Knowledge

4.9

Customer Complaint Service 4.9.1 4.9.2 4.9.3

4.10

TMnet Services 4.10.1 Ease of Application 4.10.2 Qualities Services Provided 4.10.3 Accuracy of billing 4.10.4 Accesses to TMnet Helpdesk

4.11

Public Phone services

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4.11.1 Service availability 4.11.2 Strategic Locations 4.11.3 Conditions of public phone 4.11.4 Ease of getting card phone 4.12 Overall about TM services 4.12.1 TM always responds 4.12.2 Receive fast respond 4.12.3 Satisfied with TM service 4.13 4.14 Results from Interviews System Description 4.14.1 Physical Design 4.14.2 Logical Design 4.14.3 User Interface Design 4.14.4 Flow chart diagram 4.14.5 Data flow diagram 4.14.6 Context Diagram 4.14.7 User's Pages 4.14.8 User's main page 4.15 Database 4.15.1 Table Data 4.15.2 Table Admin 4.16 4.17 Screen Outputs Summary

52 53 54 55 57 57 58 59 61 61 63 63 63 64 66 68 69 69 71 72 73 74 76

CHAPTER V RECOMMENDATION AND CONCLUSION 5.1 5.2 5.3 5.4 5.5 5.6 Introduction The e-Survey web based CRM System Proposed e-Survey CRM system Summary Recommendation Conclusion 77 77 77 78 79 79

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REFERENCES APPENDIX A - Survey Question APPENDIX B - Interview Question APPENDIX C - System Interface

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LIST OF TABLES

Table

Page

4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20

The rating on measuring Customer Satisfaction Index Result on Customer Category Result on Level of Education TM Subscriber's Respondent Profession Timeliness Reliability CSI for Telephone Installation Service Easy access to 100 Timeliness Attend Fault Staff Professionalism CSI for Fault Restoration service Timely Billing Accuracy of Billing Accessibility of Payment Location CSI for Billing Service Resolving Complaints Effectively Being Friendly and Helpful Staff Knowledge CSI for Customer Complaint Service

24 25 26 27 28 29 30 31 31 32 33 34 35 36 37 38 38 39 40 41

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4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35 4.36 4.37

TMnet Service Ease of Application Qualities of Services Provided Accuracy of Billing Accesses to TMnet Helpdesk CSI for TMnet Service Public Phone Services Service Availability Strategic Locations Conditions of Public Phone Ease of Getting Card Phone CSI for Public Phone service TM Always Responds Receive Fast Respond Satisfied With TM Service CSI for Overall about TM Services CSI Average for Each Service

42 43 44 45 46 47 47 48 49 50 51 52 53 54 55 56 57

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LIST OF FIGURES

Figure

Page

2.1 2.2 2.3 2.4 3.1 4.1 4.2 4.3: 4.4 4.5 4.6 4.7 4.8 4.9: 4.10 4.11 4.12 4.13 4.14

CRM Implementation Model Customer Relationship Management Model TM CRM Road Map SERVQUAL gap model Methodology approaches Number of customers according to Residential and Business Level of Education TM Subscriber's Respondent profession Timeliness Reliability Easy access to 100 Timeliness Attend Fault Staff Professionalism Timely Billing Accuracy of Billing Accessibility of Payment Location Resolving Complaint Effectively Being Friendly and Helpful

8 9 13 17 18 25 26 27 28 29 30 32 33 34 35 36 37 39 40

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4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23

Staff Knowledge TMnet Services Ease of Application Qualities of Services Provided Accuracy of Billing Accesses to TMnet Helpdesk Public Phone Services Service Availability Strategic Locations

41 42 43 44 45 46 48 49 50 51 52 54 55 56 60 62 63 64

4.24: Conditions of Public Phone 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 Ease ofGetting Card Phone TM Always Responds Receive Fast Respond Satisfied With TM Service Flow Chart Diagram (User Site) High Level Data Flow Diagram (Front - End System) Context Diagram User's main page design

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LIST OF ABBREVIATION

1. 2. 3. 5. 6. 7. 8. 9. 10. 11. 12.

TM CSI

- Telekom Malaysia - Customer Satisfaction Index

COINS - Corporate Information Superhighway CRM - Customer Relationship Management ISO - International Standard of Organization

MSC - Multimedia Super Corridor NSPI - Nova Scotia Power Inc. PERS - Public Emergency Response System SPI - Service Performance Index

SPSS - Statistical Package for Social Sciences VPN - Virtual Private Network

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CHAPTER 1

INTRODUCTION

1.1

TM Background

Telekom Malaysia (TM), the national communications and multimedia provider and largest telecommunications company in Malaysia, is now in its fourth year as provider of telecommunications services for the Multimedia Super Corridor (MSC). With its broadband data network infrastructure Corporate Information Superhighway (COINS), which forms the telecommunications foundation of the MSC and provides managed virtual private network (VPN) services to corporate customers, TM is expanding the use of its own Internet based and broadband communications with business users. TM delivers voice, broadcast, data, and a host of multimedia services to consumers and businesses. For its widely diverging client base, the company provides services ranging from fixed line and cellular telephony to Internet delivered products. The latter includes urban broadband multimedia and radio in local loop for rural communities. Of all of TM products and services, basic telephony still contributes the majority of revenue. However, the company is aggressively expanding its reach into new business areas, such as Internetdelivered services. With a customer base of more than 4.4 million, TM remains committed to increasing market penetration of the telephone, while recognizing that it's advanced, Internet based functions are keys to future growth

1.1.1

T M Vision "TM vision is to be the Communications Company of choice focused on delivering Exceptional Value to TM customers and other stakeholders".

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1.1.2 TM Mission
To achieve TM vision, TM is determined to do the following: Be the recognized leader in all markets TM serve. Be a customer-focused organization that provides one-stop total solution. Build enduring relationships based on trust with TM customers and partners. Generate shareholder value by seizing opportunities in Asia Pacific and other selected regional markets. Be the employer of choice that inspires performance excellence.

1.2

Research Project Background

Customers today face multitudes of choices regarding delivery channels, product packaging, loyalty rewards, service level guarantees and pricing. In millenniums environments, service and customer loyalty have become the predominant factors influencing customer decision making. CRM or Customer Relationship Management is process of acquiring, satisfying, retaining and growing profitable customers. Its also knovra as a methodology used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. TM launched its key of CRM project since 2001 and its take good care of all their system to achieve customer satisfaction. Recently TM customer in conflict with TM services provided to them and dissatisfied with quality of TM product.

Meanwhile TM doesn't have full information in spite of customer satisfaction. Furthermore TM implements traditionally method of survey by distributing questionnaires to their customer. Its required problems to TM staff where're they distribute questionnaires, input data through Microsoft excel, analyze data and create bar chart and compiled with report analysis and hand over to their Top Management monthly, yearly.

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1.3

Problem Definition

TM is the largest Telecommunication Company in Malaysia. TM also faces problems to retrieve data regarding customer satisfaction level after delivering their product or services. Furthermore TM has CRM system implemented, but TM only measured their customer satisfaction traditionally and manually. Distributing questionnaires through TM point, interview, customer opinion or informal discussion is current approach to retrieve data. Some of the problem arises when answering the questionnaires are as follow : The questionnaires distribute to wrong customers and they answers the question with their own understanding Process of distributing the questionnaires is in traditional method or manually Collecting, Storing and analyzing data are needed more time and cost Process of calculation Customer Satisfaction Index (CSI) are using Microsoft excel. This process could lead to human error on calculation of CSI.

1.4

Objectives

The main objectives of this research are:-

To identify the problem arises between TM and Customer To help TM members understand customer behaviors, their need and expectation

To gauge the customer satisfaction level in the service quality and customer service provided by TM To develop an e-Survey web-based system incorporating of Customer Relationship Management (CRM) elements.

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1.5

Benefits

The benefits on this research are to improve relationship between TM and customers. From this evaluation method it is for managing customer relationships to optimize revenue, profitability, customer satisfaction and customer retention. TM members can track all the ways of information regarding the interactions between TM and customers to understand customer behavior and group them into segment of similar characteristic. By using customer comments directly, they can help TM member to look at their work from the customer's point of view and to freat each customer as an individual. This system is also encourage an attitude of competition between different units in TM and allows progress to be measured. Comparing the customer care rating of different services allows them to take action to improve under performing units and reward achievement. Provide an easy method of TM members to retrieve customer satisfaction level information because current process using Microsoft excel to calculate Customer Satisfaction hidex (CSI) is unnecessary in year 2000.

Customer's benefits are, they receive higher standards of service and they can confident that their concerns will be recognized. When this system is uploaded, users can access from the Internet and Web Based Learning. The creation of esurvey environment through the implementation of Personal Digital Computer (PDA) technologies helps to build both a complex and dynamic working community. Customers and TM members put more interest on giving their ideas and information's through these Information technology (IT) tools.

1.6

Scope

This research only concentrates on the research survey, data analysis and elecfronic Survey CRM system implementation. Distributing questionnaires and face to face interview are implemented to gather CRM information. These approaches are to measure customer satisfaction level at TM products and services. TM CRM unit. Marketing Unit and TM Retail Unit are involved in
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collecting CRM data. TM Customer Kuala Lumpur area is chosen randomly to get their collaboration in answering this research question.

1.7

Research Target
The research target is for whole TM customer that are facing problem with their TM product and services.

1.8

Research Planning
Research planning is to developed e-CRM survey system that allows customer complaint through web. This system will be completed on time and on the right schedule.

2.0

Conclusion

For conclusion, this research will be as guide lines to TM members cooperating in knowing their customer and dividing them into segment and entertaining them using the most appropriate method in solving their problems. TM can analyze their customer satisfied in anytime through web and they will improve their service quality, product by data and information from that system. This system is on the web that can use by anyone at anytime at any place. The quality services can be measured faster. Turning an unhappy customer into a happy one close to the point of the problem makes for loyal customers.

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CHAPTER II

LITERATURE REVIEW 2.1 Introduction

This literature reviews for this research have several main areas. It includes the pertinent technical terminology of Customer Relationship Management (CRM) concept, Measurement on Customer Satisfaction Index and information on CRM at Telekom Malaysia (TM). There are some articles from different authors that can be useful in literature review.

2.2

Definition Of Pertinent Terminology

While finishing this research study, there are several term of pertinent technical terminology which are related to this study are discuss below.

2.2.1

Customer

According to the Oxford-Advanced Learner's Dictionary, customer means a person or organization that buys something from a sop or business.

2.2.2

Relationship

Relationship in the Oxford-Advanced Learner's Dictionary means links, contacts or dealing between people, group or countries. It is also mean the way in which certain things, ideas, events or others are connected.

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2.2.3

Management

According to the Oxford-Advanced Learner's Dictionary, management means the control and making of decisions in a business or similar organization. It is also means the process of dealing with or controlling people or things.

2.2.4

Customer Relationship Management (CRM)

According to [Kenneth C. Laudon, 2005] in his book defines CRM

is both a

business and technology discipline for managing customer relationships to optimize revenue, profitability, customer satisfaction and customer retention. Many firms are turnings to CRM to maximize the benefits of their customer assets. This management technology system is to track all the ways in which company interact with its customers, analyze the interaction by maximize lifetime value of customers for the company and increase customers satisfaction level. Different customer represents different levels of profit for the company. Some customers cost a great deal to attract and to service, while the others cost very little to service.

Research from internet explained, CRM is a process or methodology used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. It is a process of gathering and collecting information about customers, sales, marketing, effectiveness, responsiveness and market trends.

Focusing on the customer is becoming a key strategy for companies big and small to survive in the global market. It takes up to five times more money to acquire new customer than to get an existing customer to make new purchase. This system knows the customer and his /her problem allows acquiring new

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customers more easily and facilitating targeted cross-selling [Adrian Payne, 2002].

[Francis Butttle,2004] explained Customer

that there are many different views about

Relationship Management (CRM) he defines CRM, is the core

business strategy that integrates internal processes and functions, and external networks to create and deliver value to targeted customers at a profit. It is grounded on high quality customer data and enabled by information technology. He mentioned that CRM value chain sets out a five step process for developing and implementing CRM Strategy. Each of the five primary steps is performed

with the deployment of a number of tools and process. The model also identifies a number of supporting conditions that facilitate successful implementation.

[Robin A. Robinson, 2000], he discussed the integrating a CRM system, a company must first review the business processes, applications and technologies it uses to deal with customers. It should also consider its schedule, its budget and what it hopes to gain fi-om a CRM implementation. It's also worth noting that CRM used to focus on the telephone as the primary means of contact, with little attention is paid to e-mail or the Web. However, electronic messaging is overtaking voice as the most common form of communication. Corporate call centers aren't going out of business, but they need new people and equipment to deal with e-mail and Internet inquiries. The three main areas that CRM systems focus on are sales, customer service and marketing automation.

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