1. Customer-centricity APSEZ
Capt Unmesh Abhyankar
Feb 2015

2. Who is the Customer
Do we know our customer?

3. Identifying customers correctly is only the beginning
Who is whose customer?
Exporter / Importer
Vessel Owner
Transporter
Port
Govt Authorities
CHA
Labour Contractor
Surveyor
Vessel Agent
…and others

4. Next step is to serve the customers well
Do we understand our customers’ requirements?
YES. OUR PRODUCT DOES NOT MATCH CUSTOMER REQUIREMENTS. BUT WE HAVE TO PROVE OTHERWISE AND SELL IT TO MEET TARGETS.

5. Port’s Perspective of Customers’ requirements
An illustrative
Importer / Exporter
Information availability on real-time basis
No Pre Berthing Delay
Safe Handling of Cargo
High productivity
Sufficient storage space
Fast Evacuation
No cargo contamination / pilferage
Vessel Agents
Information availability on real-time basis
Berthing on arrival
Timely Registration and declaration of vessel
Safe maneouvering
Fast Turn around Time
Fast & efficient services i.e. Fresh Water, Gangway etc.
Transporter
Adequate road connectivity to the port
Smooth procedures at In / Out Gates
Speedy Operation at Port
Staff’s behaviour towards their people
Ease of parking / finding right place within the port
…and so on for other classes of customers
The spectrum of customers’ requirements is large and complex

6. Customer requirements
Are we fulfilling the customers’ requirements to the desired levels?

7. Fulfilling customers’ requirements: Reality is no effective action
The gap between awareness of customer requirements and actual action is large

8. Monopolistic Mind-set
Are we not fulfilling the customers’ requirements because there is gap in demand-supply?

9. Monopolistic mind set makes us Revenue Focused instead of Customer Centric
Serve and delight Prime customers who can bring in volumes at higher profitability
Company’s value proposition brand equity held intact in customers’ minds
Fully satisfied customers and superlative customer loyalty
Revenue Focused
Chasing each and every customer and serving at low-profitability
Lower pricing and profitability
Disturbing the customer dynamics with minimal / no loyalty
X Mn MT
X + X Mn MT
As we become customer-centric, prime customers see us as strategic partners and will give larger pie of business to us. In long run, business would only increase.

10. Moving ahead
Can businesses sustain the monopolistic mind-set and current practices?
Some examples
Automobile
Banking
Telecom
Airlines

11. Businesses which had monopolistic attitude are on the downward trend
Telecom sector
1985
1995
2005
2015
Getting a New Telephone / Mobile Connection
No. of Companies in the market 1 2 9 11
Time Taken for New Connection
In years
In Months
In Days
In Hours
Customer Service Levels
Not thought of
Negligible
Good
Key Differentiator
With the entry of Service Focused private sector players, business landscape has completely changed for telecom sector
All numbers / years are indicative for illustration purpose and are not exact

12. Changed business landscape for telecom
Source: TRAI, Telecom Sector in India: A Decadal Profile

13. Businesses which had monopolistic attitude are on the downward trend
Banking Sector
1985
1995
2005
2015
Element
Monopolistic Attitude
Customer Centric
Players in the market
Limited number of banks yielding no choice effectively
Large number of options to customer for choice
Dominance
Banks could dictate one-sided terms
Customer is king
Accessing bank
Thought to be difficult
Easy and Convenient, bankers coming to home
Customer Service
Not thought of
Much enhanced services to customers
Value-added services
At bank’s mercy
eStatement / Internet or Mobile banking / advisory etc
Customers chasing bank versus bankers chasing the customer
With opening of banking for private sector, services levels have increased and traditionally strong players find it difficult to sustain their market positions
Years / notations are indicative for illustration purpose

14. What has changed
As new options became available, customers switched to the companies providing better services and delivering value for money

15. What will happen in our sector
As new options becomes available, customers would prefer companies providing better services and delivering value for money

16. Future scenario: number of choices for the customer
Port A
Port C
Which port should be chosen
Port B
Port D
I have to also deliver cargo to my clients in timely manner
Measure
Port A
Port B
Port C
Port D
Pre Berthing Delay (in days)
Nil
0.5 1
2.8
Productivity per Ship-berth day (in MT)
18000
15000
12000
9000
Vessel Turn Around Time (in days)
3.1
4.0
5.4
8.3
Responsiveness / Customer Services
Excellent
Good
Average
Poor
Port’s Tariff
1.5X
1.2X X
0.8X
Effective Cost to Customer
0.8Y
0.95Y Y
1.6Y
All numbers / notations are indicative for illustration purpose

17. How the market dynamics would change in future
Superior infrastructure and excellent operations translates to minimum effective cost while Customer Services acts as Key Differentiator

18. What do we do about it
Day is not far when companies have to put customers first and sincerely think about customer satisfaction as prime goal

19. How do we become customer centric
Customer centricity is building and developing business around customers.
The Journey of a thousand miles must begin with a single step

20. Illustrative Enhanced Customer Centricity
Initiatives to enhance customer centricity 3
Information through Mobile / App 2 4
Operational Information available on Website
Customer Satisfaction Survey 1 5
Vessel Performance Index
Customer Service Cell
Enhanced Customer Centricity

21. Would being Customer Centric help
Parameters
Customer Centric Companies
S&P 500
Shareholder returns
130%
0.6%
Sales growth
233%
10%
Research shows customer centric organizations achieve far better results
Basis Customer-centric companies tracked by Harvard Business School professor Ranjay Gulati, an expert on leadership, strategy, and organizational issues in firms

22. Way Forward Choice is ours
Short term sights
(Revenue Focused) OR
Long term vision
(Customer Centric)
Nurturing and sustaining the business for years to come