Distinguished Guests

Ladies and Gentlemen

Good morning

I am pleased to be here this morning to officiate at the Excellent Service Award presentation ceremony.

Customers are the lifeblood of the organisation. Without customers (external or internal), the organisation cannot grow and succeed. The key to keeping and growing our customer base is the quality of our service.

Getting customers back once we lose them costs five times more than to win and keep a new customer. The quality of service is the key to keep customers coming back.

Research by Bain & Company shows that companies improve their profit by 25% to 125% merely by retaining another 5% of their customers.

The Global Competitiveness Report provides an assessment of the quality of service in Singapore. In the latest 2002 report, Singapore was ranked 15^th out of 80 countries in terms of the extent to which close attention is paid to customer satisfaction. This is a decline from our 8^th position five years ago. Does this mean that the quality of our service has declined?

An analysis of the scores showed that Singapore’s score remained relatively constant over the past five years. We have not moved much but other countries have improved and overtaken us.

Many countries are rapidly improving their customer services. For example, Malaysia and Thailand have aggressively marketed themselves as destinations for medical tourism. They have improved greatly in capability and management, and are cost competitive. Some of the private hospitals there have reported 200% to 300% annual growth in patient numbers. Singapore’s port is also facing increasing competition from Malaysia’s Port of Tanjung Pelapas (PTP) and has lost two major shipping lines, Maersk and Evergreen to PTP.

Changi International Airport faces competition from Kuala Lumpur International Airport, which has waived parking and landing fees for new flights. Taiwan’s Kaoshiung International Airport, Hong Kong’s Chep Lap Kok International Airport and the Philippines’ Clark International Airport have plans to enhance their logistics capability to become major aviation facilities. Singapore’s education services are also facing competition from India, Hong Kong and Malaysia as these countries have either attracted well-known universities to set up operations in their country or have entered into collaborations with key overseas universities.

To succeed in the new economy, we need to move beyond service quality to service excellence. Customer service now is no longer about meeting requirements. Consumers are spoilt for choice, this means that we need to exceed the expectations of our customers and to delight them.

One company that is well known for delighting customers is The Ritz-Carlton. Many of us may be familiar with how the hotel staff anticipate customer requests by thinking ahead what the customers want, and providing the services before they are asked for.

For instance, a guest with a preference for chocolate would be provided with his favourite chocolates, while guests travelling with young children will find their room already fitted with childproof electrical plugs and table protectors. The guest seen jogging may find himself being greeted at the hotel entrance the next time with a bottle of water and a towel.

The guest found consuming only Diet Coke might return to find his mini bar stocked with his favourite beverage.

The secret to The Ritz-Carlton’s success is ‘Attention to details’. Through its collection of guest preferences, the hotel is able to provide a personalised hospitality experience that fulfils even the unexpressed wishes and needs of guests. Staff members are trained and required to anticipate customer needs. Each staff member notes down the habits and preferences of the guest. These reports are reviewed everyday and acted upon.

Singapore Airlines stands out in the airline industry because it anticipates customer needs in detail. On long flights, passengers often make special requests, such as special meals or a particular seat. Singapore Airlines tries to meet each and every request, and trains its cabin crew to do so. To ensure that service levels are maintained, staff are scheduled to undergo refresher training regularly. Their performance and customers satisfaction are closely monitored.

I am glad to announce that SPRING is now developing a Service Excellence 21 blueprint with industry captains. The objective of the blueprint is to help transform organisations to provide world-class service. The vision is to make Singapore a global service capital synonymous with service excellence.

I am glad to note that your interest in actively recognising excellent service is growing. The number of Excellent Service Award has grown since its launch in 1995. From 377 in 1995, we are giving out 5,913 awards this year. This is the highest number so far. It represents an increase of some 36% from the 4,339 awards given out last year.

I congratulate all winners and urge you to keep scaling new heights in the service you provide. In an increasingly competitive world, ‘staying put’ means to be over-taken – a decision we can ill-afford.

On that note, let me wish you every success in your endeavours.

Thank you.

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