Our keen understanding of local markets enables us to be agile, to respond quickly to ever-changing customer needs and expectations enabling our customers to make sound purchasing decisions. Our market leadership stands firmly on strong and positive customer support.
This statement defines CHI's foremost core value. Operationalizing this core value requires discipline that builds from right attitude that evolves from a strong commitment to be of service.
In a highly competitive environment where differentiation draws the line between leaders and the rest of the pack, real estate developers are in constant search for critical advantage.
Inspired by the mantra, "Creating Landmarks, Setting Standards and Building Relationships", Cebu Holdings, Inc. has brought differentiation to a higher level, riding on not just one but many vehicles of innovation to effect changes.
The Balanced Scorecard (BSC) in Performance Evaluation, ISO certification on Quality Management, Environment, Health and Safety, Total Customer Satisfaction Management System (TCSMS), System Application and Products (SAP), and other management tools have been put in place in a little over 5 years to transform the organization.
Central to the transformation is the customer.
The Company's Quality Policy reads:
This illustrates succinctly the underpinnings of change anchored on involvement of each person, each unit and each group in the value delivery chain, with each link focusing on the customer. The product, therefore, is not just passed on flawlessly from one group to the next but delivered in quality in the interest of the customer.
Achieving Customer Delight
CHI's business groups: Real Estate Development Group and Retail Business Group discuss measures of external customer satisfaction and how they achieved customer delight through each of their marketing initiatives.
Real Estate Development Group (REDG)
In REDG, cascading the corporate goals to every person on the job rides on the value delivery chain, with market insights on the customer generating inspired ideas and concepts spurring delivery of the value proposition.
And here lies the difference that ultimately provides us the critical advantage: An impassioned, well-informed and genuinely caring individual – whether answering the telephone, crafting the masterplan, building the village or presenting a sales proposal- is the face of the Company that the customer remembers.
AMARA is market leader in high-end residential subdivisions in Cebu. In a survey on customer satisfaction, a respondent was asked for comments and suggestions and the answer was, "None other than to keep up the good work."
This reply sums up our customers' response to Amara since its October 2005 grand launch. From their first contact with a broker or property specialist up to the time they signed the deed of sale, Amara buyers have generally been happy. So happy, in fact, that they have influenced around 22 percent of our buyers in 2007 through word of mouth, the equivalent of positive endorsement. Satisfied customers sell for us.
The acid test of market leadership is performance versus the competitors. Real Estate Development Group maintained dominance in relative market shares of Amara and other projects, and contributed 59 percent of CHI's gross revenue in 2007.
This is further validated by high customer satisfaction ratings that exceeded the target of 7.1. REDG scored high in the internal customer satisfaction survey. Individual units in the group fared very well: Sales, 8.61; Sales Admin, 8.65; Marketing, 8.39; Project/Business Development, 7.58; Technical Planning, 7.57; Construction Management, 7.34.
Best of all, our Amara buyers proved that we are on the right track with the customer satisfaction rating of 8.58.
What is the story of Amara worth telling? The customer is king. The ultimate decision to buy and sign the deed of sale is his. The sum total of his experience with the brand stays in his consciousness and everything else related to the product will be filtered through that experience.
Defining the brand values of an Ayala Land Premier development and going beyond it was an exercise that paid off. The unprecedented sell-out of phase 1 in a matter of two weeks and Amara's continuing high take-up is proof of that.
Creative Innovations for Global Reach
To make customers overseas make informed purchase decisions, we offered a virtual site tour through our website with 360 degree photographic views in tandem with a 3D tour of the development and of each lot. This came with
real-time reservation access that we have just enhanced with credit card payment capability through myayala.com. This has accelerated lot selection and reservation for customers from anywhere in the world.
On-site Tours
On the ground at the site, we ensured that we had road tracing and lot markers to allow prospects to stand on each lot with site development plans and topo maps as reference. Before our site office was completed, whether the day was hot or rainy, we had umbrellas, cold towels and a tent with tables and chairs to run to for rest and refreshments. Our guards were given a product orientation and strict guidelines on how to treat customers. We hired and trained a site officer to tend to our customers' needs - from providing key information, assistance with their inquiries through access to our website or arranging consultation with our technical group. All these were done with the objective of delighting the customer.
All efforts are made with the customer as central to our mindset. This customer focus is the formula that reigns supreme in the operation of our business, as proven in Amara.
Property Management Division
The Real Estate Property Management Division conducts its own External Customer Satisfaction (ECS) surveys every six months. This ECS survey is geared towards getting the feedback from the owners/customers on the division's performance regarding customer satisfaction. The division is rated by its customers on aspects concerning: 1) administrative services, 2) facilities and equipment, and parking, 3) utilities and service charges, 4) building security and safety, janitorial and maintenance services.
In 2007, PMD was rated by its customers (homeowners and condominium corporations) an average of 8.4 out of 10. The division's target is 8 out of 10, higher than the corporate target of 7.1 out of 10, and was higher than the 8.25 rating in 2006.
Retail Business Group (RBG)
Ayala Center Cebu has always been in the forefront of introducing new concepts to Cebu as well as bringing in world-class entertainment in a pleasurable and safe environment.
The mall's shoppers are at the core of the group's business. As such, the group ensures that its products, services, facilities, events and promotions are targeted towards the shoppers' ultimate satisfaction, determined through the annual shoppers and merchants surveys. Improvements in services and products are executed based on the feedback generated from the survey.
In 2007, customer satisfaction feedback results showed a score of 8.0 (10 being the highest) from the merchants' survey rating areas on facilities, systems and procedures, utilities, security, personnel and marketing initiatives. The mystery shoppers' survey generated a score of 7.6 which rated facilities, services, entertainment, shops and Food Choices, open spaces and utilities.
New Outlets
The opening of its expansion building in July 2007 strengthened the mall's foothold on its market. Likewise, the marketing initiatives, events, loyalty programs and customer service sustained the brand and maintained its dominance in the AB market.
Ayala Center Cebu's recently-opened expansion building is the first to host much-awaited foreign brands like Mango, TOPSHOP, Promod, EP Espada, Schu, Crocs and Levi's Girls.
An IT Zone on the third level is another innovative concept in Cebu where all leading brands in telecoms, computer, electronics and a wide selection of gadgets spun off from the different stores.
The expansion building also houses Rustan's Fresh supermarket that caters to the mall's primary target market.
The mall has sustained its re-zoning program adding more leading foreign brands on the top list. New outlets like Arrow, IZOD, Skinfood, 158 Designers Blvd. were among the few merchants added in the list.
To address the needs of the C+ market, popular brands were introduced in 2007. These include Essenxa, Red Alert, Maldita, Diego, Regatta, Arrow, Surfer's Paradise, Karimadon, NewsFlash, KFC and Gmask.
High demand in third party exhibits, especially from car companies and BPOs, indicated Ayala Center Cebu's strengths to attract the same market these companies want to serve.
Mall Enhancements
To better serve its customers, Ayala Center Cebu enhanced its facilities in 2007. Fully-renovated comfort rooms ensured a clean and comfortable shopping experience. The installation of a full paging system also allowed for the dissemination of important advisories to shoppers.
To improve the keen sense of place inside the mall, outlet renovation is encouraged. Almost 60 percent of the outlets were renovated, adapting full glass frontage.
A number of kiosks in the ground level were transferred to provide spacious common areas to create a more leisurely shopping experience. A grand sense of arrival was created with the enhancement of the mall entrances' landscaping, lighting and painting works.
Another cinema's audio facilities were upgraded to digital sound, allowing more movie-goers to fully appreciate the movie experience. A total of three cinemas are now equipped with fully digital surround sound systems.
Support to Mall Merchants
CHI continually builds partnership with its merchants to ensure ultimate shopper satisfaction. A dedicated Merchants Service Team was formed to focus on merchant operational needs. Regular communication with them is done through Merchant Service Team meetings and annual merchants' meeting.
The Retail Business Group helps grow merchants' business by bringing in fresh and engaging events and sales promotions. In 2007, eight major events were organized to target families; six exciting concepts, some of which were in partnership with companies such as the Philbex Construction Show and Worldbex Car Show; 13 tactical events for hallmark occasions; and over 831 third party events and exhibits in the mall. To reinforce events, the mall had over four promotions that were targeted to niche markets, as well as six Mall-Wide Sale weekends that boosted the sales of merchants to double-digit growth.
Our communication plan in 2007 was maximized to ensure awareness of the mall's product offerings, events and promotions.
Merchant employees are also considered our partners in ensuring good customer service to our shoppers. They are the front-liners and the face of our business. Hence, initiatives to further boost camaraderie and unity among all merchant employees and mall administration personnel were implemented. These include the annual fellowship and Christmas party.
Distinct to Ayala Center Cebu, these events build pride in being able to work in this particular mall, fostering a feeling of belongingness and ownership.
The total number of regular merchants' employees increased by 75 percent compared to last year's figures. Ayala Center Cebu makes sure that current employees and new hires are equipped with customer service skills through the conduct of free annual customer service and Emergency Preparedness seminars and workshops.
Initiatives for the Tourist Market
Ayala Center Cebu has seen the continuous increase in tourist arrivals in Cebu. The mall's Turista Program was enhanced to provide excellent customer service for this growing market. Better systems to facilitate access to mall information – specialty shops, facilities, shows, movies – were implemented. More than just mall information, attendants are available to provide information on places to see in Cebu, making their experience more relaxed and hassle-free.
Support to Industry Partners and other External Organizations Ayala Center Cebu in 2007 developed strategic partnerships with external organizations and extended support through various event sponsorships to promote Cebu's economic drivers, tourism and ICT.
The mall collaborated with the Cebu Chamber of Commerce and Industry for the Cebu Business Month, an annual event highlighting major businesses, SMEs and the ICT initiatives in Cebu. Ayala Center Cebu also supported the Cebu City Tourism Commission for Balik Cebu, an annual event which brings together overseas Filipinos who are coming home for Sinulog.
Ayala Center Cebu also extended support to the local and national government offices and agencies, charitable institutions, schools, civic and non-government organizations in providing a venue for events and exhibits, with over P2.5 million worth of free or discounted rentals of the mall's activity center and exhibit areas.
All of these initiatives serve to address the needs and preferences of the mall's stakeholders. |
