 Home  Business Decision MakersCase Studies Appliance manufacturer improves marketing strategies, decisions with CRM edge | |
| Appliance manufacturer improves marketing strategies, decisions with CRM edge "We chose Microsoft Dynamics CRM because it is a world-class program that guarantees easy and reliable service and support." Victor Leong, Chief Operating Officer, Khind Holdings Bhd Khind is a leading Malaysian manufacturer of electrical and electronic appliances. Its products are sold under the Khind and Mistral brand names in Asia, the Middle East, Africa and Europe. Khind found that its home grown application for managing warranty card information had become grossly inadequate for its rapidly expanding business. It was unable to detect duplication of information and this meant Khind could not verify the validity of warranties. Khind selected Microsoft Dynamics CRM as it wanted a web-enabled solution that ensures multi-sites log-in using the same application and to reduce work duplication. Microsoft Dynamics CRM provides Khind with assurance of data integrity, churns out comprehensive reports quickly, thus enhancing its decision-making process. The system also improves staff efficiency and productivity by automating various manual processes.  Situation Khind is a leading Malaysian manufacturer and marketer of electrical and electronic appliances. Its products – electrical fans, kitchen appliances, emergency lights, washing machines and wiring ccessories – are sold under the Khind and Mistral brand names in many countries in Asia, the Middle East, Africa and Europe. Its headquarters is in Shah Alam, Selangor, while its branches are nationwide including Sabah and Sarawak. Back in 1961, Cheng King Fa started a modest business in Sekinchan, Selangor, trading electrical goods. Driven by his clear vision, the business flourished and in the late 70's, developed to include the manufacture of electrical accessories and lamps. The Khind Group is now listed on Bursa Malaysia and its array of products can be found in over 50 countries worldwide. With retail customers numbering in the hundreds of thousands from eleven branches in Malaysia, oversea subsidiaries from China, Singapore and UAE, Khind has been managing its warranty card information using a homegrown application built on a Microsoft Access database since 2004. However, with the Group's rapid expansion, the need for an online application with customer relationship management (CRM) capabilities became imperative given the limitations of its initial system. According to Khind Holdings Bhd Chief Operating Officer, Victor Leong, the Group faced the following challenges:
Gan says they were also saddled with the tedious manual work of updating data onto the central database, while having to also capture reward points from the Bonus Link customer loyalty program. "It was also difficult to get external support because the consultants who come in to fix problems or build new features were usually independent vendors. Eventually, we knew we needed an international standard program that offers reliable support and service." "Under the old system, which did not have an automated workflow, a new employee might not be able to pick up from a previous staff." Leong says it was also a challenge for management to get reports and analyses out quickly with half a million customer records in the system. Solution After evaluating several local CRM offerings and Microsoft Dynamics CRM, Khind chose the latter to help plug the data management problems. "We chose Microsoft Dynamics CRM because it is a world class program that guarantees easy and reliable service and support. Unlike the previous solution when we were dependent on one or two vendors only," Leong says, adding Microsoft's worldwide experience and ongoing development ensures that the company would enjoy continual enhancements to the solution. "We benefit from updates whenever other parties report problems." Microsoft Certified Partner CWT Consulting Sdn Bhd was appointed the implementation partner to achieve the following objectives for the CRM initiative:
"And we get to enjoy customized features like contact leads, accounts, product maintenance, product rewards and loyalty programs," Gan adds. CWT Consulting Director Then Keng Huat explains the new solution enables Khind to have field control in CRM maintenance and to avoid wrong data entry, duplication of records and repeated entries by CRM users. "Microsoft Dynamics CRM also ensures that the reporting of CRM-related information is accurately presented. It basically provides flexible reporting tools for users." Then says the Group would be implementing the marketing and service modules phase by phase, aiming at bolstering its loyalty program. Benefits Data integrity Microsoft Dynamics CRM provides Khind with assurance of data integrity. With the previous system, the company could not detect duplication of information, says Leong, adding they could not verify the validity of warranties. "At the end of the day, the quality of the information itself was suspect because the users could never be sure how accurate the data was." The Microsoft Dynamics CRM system works in such a way that it provides an alert whenever it detects any data duplication. The new solution helps to maintain accuracy of records from the point where data is first cleaned and validated. Gan says when the company operated on two databases previously, they did not have any tool to validate double records in the database. "Now, when we key in data on a customer named 'Ahmad' and the matching NRIC number, the system tracks that record and ensures we won't key in the same entry for another person with the same name." Leong adds: "The quality of the information then was a bit suspicious. Now with Microsoft Dynamics CRM, we are assured that the data is cleaner and more accurate." Better decision-making Leong says Microsoft Dynamics CRM ensures better decision-making because it helps to accurately identify the kind of customers the company has. "Without accurate analyses, we can't know for sure if we're targeting the right market," he says. "The solution helps us to recognize repeat purchasers and appreciate valued customers." "Microsoft Dynamics CRM inevitably leads to better and faster decisions." Leong explains how the data enables Khind to modify strategies according to changing market conditions. "The system alerts us all the time. We are acting on current information that is less then two months old. He quips: "We can now make good decisions to fix problems quickly. In our consumer-based business, if we base our decisions on old data, we'll be out of business in no time." Leong says the solution enables Khind to track the demographics of customers such as their age, profession, location and so on. "Our direct customers are mainly dealers and distributors who rely on the warranty cards to get information on end customers. We leverage on this same information to make better decisions affecting sales and our customers," he adds. Gan says that because Khind runs on very tight margins, the Group needs technologies like Microsoft Dynamics CRM to give it a competitive advantage. Automates manual processes Under the old system, half of the system processes involved a lot of manual input. "We didn't have an automated work flow then, and this translated into inefficiency and much manual work," says Gan. For example, the old process of generating reports was not automated. The warranty information had to be printed out, and the information exported to Microsoft Excel to generate the reports required by management. With Microsoft Dynamics CRM, a host of reports can be easily generated directly from the solution. In addition, the new system automates routine functions such as generating birthday alerts. "We benefit from the birthday alerts as we can send SMS, e-cards or email to wish our customers," adds Gan. Enhances productivity The user-friendliness of Microsoft Dynamics CRM empowers users, especially in doing searches on the database and generating reports. CRM users can now make changes, modify the search criteria and do advance searches on their own without having to rely on the information system (IS) staff. In the past, even simple reports had to be generated by the IS department because the previous system was inflexible and not user-friendly. The Microsoft Dynamics CRM solution increases efficiency where everything gets done faster without the intervention of the IS staff. The solution facilitates analyses and churns out reports quickly every time it is needed. "In the past, users would depend on the IS staff to go into the system to extract relevant information before manually compiling them into reports. The old process took far too much time and effort," says Gan. Instead of taking up to a week to produce a report, staff can now generate a report on the spot by simply keying in the appropriate parameters. Gan says this translates into a 50 percent savings of time while ensuring better accuracy and increased multi-tasking. The IS department consequently gets fewer requests for help – about 80 percent reduction – thus freeing them up to do other value-added work. "With the new system, we are certain of getting accurate and faster analyses each time," concludes Leong. ------------------------------------------------------------------------------------------------------------------------------------------ Microsoft Dynamics Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like familiar Microsoft software such as Microsoft Office, which means less of a learning curve for your people, so they can get up and running quickly and focus on what's most important. And because it is from Microsoft, it easily works with the systems that your company already has implemented. By automating and streamlining financial, customer relationship, and supply chain processes, Microsoft Dynamics brings together people, processes, and technologies, increasing the productivity and effectiveness of your business, and helping you drive business success. For more information about Microsoft Dynamics, go to: www.microsoft.com/dynamics | Overview Country or Region: Malaysia Industry: Manufacturing  Customer Profile Established in 1961, Khind is leading manufacturer of electrical and electronic appliances. Its products are sold in Asia, the Middle East, Africa and Europe under the Khind and Mistral brand names. Business Situation Its application for managing warranty card information was inadequate for its expanding business. The system was unable to detect duplication of information and this meant Khind could not verify the validity of product warranties. Solution Khind deployed Microsoft Dynamics CRM Small Business Edition running on the Microsoft Small Business Server platform in mid-2007. Benefits
Victor Leong, Chief Operating Officer, Khind Holdings Bhd "The quality of the information then was a bit suspicious. Now with Microsoft Dynamics CRM, we are assured that the data is cleaner and more accurate." Victor Leong, Chief Operating Officer, Khind Holdings Bhd For More Information For more information about Microsoft products and services, call the Microsoft Sales Information Center at (800) 426-9400. In Canada, call the Microsoft Canada Information Centre at (877) 568-2495. Customers who are deaf or hard-of-hearing can reach Microsoft text telephone (TTY/TDD) services at (800) 892-5234 in the United States or (905) 568-9641 in Canada. Outside the 50 United States and Canada, please contact your local Microsoft subsidiary. To access information using the World Wide Web, go to:www.microsoft.com/malaysia For more information about CWT Consulting Sdn Bhd products and services, call +603 7726 4632 or visit the Web site at: www.cwt.com.my For more information about Khind Holdings Berhad products and services, call +603 7847 1900 or visit the Web site at: www.khind.com & www.mistral.com.my For other case studies in this series, visitwww.microsoft.com/malaysia/casestudies |