Low performing customer service staff in lazmall channel of lazada vietnam

Companybackground

Foundedin2012,LazadaVietnamisapartofLazadagroup–aSoutheastAsia‘sleadingE- commerceplatformpresentinginsixcountries.LazadaGroupismajorityownedbyAlibabaGro upHoldingLimited.

Lazada Vietnam is a leading player in the e-commerce industry, aiming to transform Vietnamese consumer behavior from traditional markets to online shopping The platform features a diverse range of product categories, including fashion, health and beauty, groceries, electronics, and toys, making it easy for shoppers to find what they need Lazada's mission is to provide an "effortless shopping experience" by offering a vast marketplace with millions of products from thousands of sellers Committed to delivering excellent customer service, Lazada Vietnam supports multiple payment methods, including cash-on-delivery, and ensures hassle-free returns through its own delivery network and various logistics partners.

JamesDongistheChiefExecutiveOfficerofLazada VietnamandLazadaThailand.Jamesjoine dLazadai n J u n e 2 0 1 8 ast h e C E O o f LazadaThailandandwasappointedC E O o f LazadaVie tnam oneyearlater,in addition to hisexistingrole.Prior to joiningLazada,hewast h e HeadofAlibabaGroupGlobalizationCorporateDevelopmentandBus inessAssistanttoGroupChiefExecutiveOfficer,DanielZhang.UndertheCEO,therearesixdif ferentdepartments,ofwhichCustomerServicebelongtoCustomercaredepartment.

Figure1:Companystructure of Lazada–Dec2019(Source:InternalLazada report 2019)

Launched in August 2018 on the Lazada platform, LazMall connects shoppers with over 1,500 leading authorized brand distributors, serving as Lazada's flagship store Its mission is to provide genuine products, trusted service, and quality assurance, establishing a new standard in retail Shoppers can enjoy a 100% authenticity guarantee, 15-day hassle-free returns, and next-day delivery LazMall features products from top brands like Apple, Samsung, Xiaomi, Laneige, Vichy, Za, Huggies, and Pampers Additionally, it offers brands and sellers the opportunity to create a customized experience for their customers.

Lazada,hence,decidedtobuildaspecialteamtotakecareofconsumersforthismall,calledLazmall customerserviceagent(LazmallCS).Therequirementsforthoseagentstoberecruitedtothischanneli sveryhigh,inordertodeliverthewowexperienceforcustomers.Ithasbeenabighonorforthoseempl oyeeswhowerechosentoservecustomersinthisspecialchannel.

Accordingt o aninternals u r v e y ofLazadaC u s t o m e r Care,Lazmallb u y e r s ‘ b a c k g r o undi s i llustratedin thefollowingfigure:

Firstofall,thecustomers‘agein 2019 is shown below:

Figure 2:Lazmallcustomersby age–2019(Source:InternalLazada report 2019)

35yearsoldaccountedforthegreatestportion with 41%,andthesecondmajorityaregroup between36to45yearsold.Meanwhile,thegroupofunder25andover 45 account forthesmallestpart,whichareat16%and13%respectively.

ForonlineshoppingonLazada,it iswitnessedthatwomenandmen populationaccountforalmostequalpart,whichare55%and45%respectively.However, theproportion offemalebuyersis stillhigherthanthepercentageofmaleconsumersingeneral.

Figure4:L a z a d a customers‟incomebychannel(Source:InternalLazadareport2019)

Ata glance,figure4 s h o w s t h a t Lazmallcustomershavet h e m a j o r p o p u l a t i o n (35%)w i t h i n c o m e variesbetween16-20million VND,whilenon-

Lazmallcustomers‘monthlyincomem o s t l y under15millionVND(33%at10-

15milliondongand31%under10milliondong).Itis obviousthatLazmallcustomers‘earningstend to behigherthannon-Lazmall‘s.

Symptoms

Inrecentm o n t h s , f r o m October2 01 9, i t i s observedt h a t Lazmallchannelhavet h e lowestcusto mersatisfactionscore(CSAT)amongotherchannels,and thescoreseems todecreasebyt i m e andevenundertarget.Forlotsofenterprises,controllingcustomerdissatisfact ion(DSAT)isextremelyessentialtomaintainastableandprofitablegrowth.

(1)Intheconditiono f growingmarketsandunderintensecompetitivepressures,manycompanies arespendingt h e i r effortso n r e t a i n i n g a loyalcustomerb a s e Loyalconsumers helpo n savingt o service,arewillingtospendmoretheirtimeandmoneywiththeservice&pro ducts,andopenupap o t e n t i a l sourceforfurtherbusinessopportunities(1).

Thebelowgrapht h e targetsetbyCustomerc a r e departmentf o r t h e c u s t o m e r satisfactionscore(CSAT).ThistargetissetbyregionalLazadateam,alloversixcountrieswhereLazadai s operatedin,basingontheaverageCSATscoreofhistory.

Figure 5:LazadaCustomerservice structure(Source:InternalLazada report 2019)

Theformulato measure CSAT is:%CSAT TotalCSAT

TotalCSAT+DSAT ThewayLazadac a l c u l a t e t h e scoreo f C S A T i s throughcustomerr e s p o n s e aftertheya r e be ingservedbyCustomerserviceteam.Foreveryissueraisedbycustomers,agentwillcreatea ticketons ystem,aftertheticketisresolved,systemwillautomaticallysentoutasurveytogetfeedbackfromc ustomers,whethertheyaresatisfied with thesolutionsprovidedornot.

Eightin-depthinterviewsw i t h k e y p e r s o n s o f LazadaCustomerservicedepartment,theLazmallC S agentandLazmallcusto mershavebeenconductedt o f i n d o u t t h e possibleproblems.Mr.Thien-CustomerService manageralsoprovided hisideathat:

„CSATscoreo f Lazmallt e a m h a s beena crisisi n t h e lastquartero f 2019t h a t drawsconcern f r o m n o t o n l y LazadaVietnam‟sC EO b u t a l s o t h e regionalmanagementteam.T h i s refle ctsthefactthatallthecustomers‟attitudetowardLazmallteamhasbeengonea g a i n s t ou rexpectationofgivingcustomersabetteronlineshoppingexperience‟ (PhamH o a n g T hien,CustomerServicemanager, 38 yearsold).

Mr.ThienraisedabigconcernaboutthedropinCSATscoreofLazmallandemphasizedthatt h i s pro blembringsa l o t o f attentionfrommanagementt e a m w i t h t h e purposeo f d r i v i n g Lazmalltea mto therighttrack.

Channel Target Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19

Lazmall has consistently exceeded targets, while CSLazmall's performance became unstable, falling below expectations in the last quarter of 2019 Prior to October 2019, customer satisfaction with Lazmall hovered around 91%, but this figure dropped to 88.89% and remained below 90% throughout the quarter This decline poses a significant threat to Lazada Vietnam, as the Lazmall customer service team was specifically designed to deliver an exclusive customer experience Over a three-month period, the Customer Satisfaction (CSAT) score for Lazmall customer service was even lower than that of non-Lazmall agents, with a difference of up to 2% in December.

Accordingto thesharingfromMs Tu–Teamleader ofLazmall:

„TheCSATofLazmallteamhadbeenalwaysretainedovertargetof90%sincethefirstd a y westarted.However,recently,thatnumberbecomesthemostseriousconcernforallo f us.T herearetoomanycustomersraiseDSATeverydaythatitbecomesmoredifficultf o r ustoin creasetheoverallscore.‟(NguyenThiCamTu,LazmallTeamleader,29yearso l d )

Asm e n t i o n e d byM s T u , t h e C S A T s c o r e o f Lazmalldecreasesi n recentt i m e ands h e claimedfortheaccretionofDSATnumberraisedbycustomers.ThetrendofCSAT/

Figure 6:Lazmall CSATandDSATmonthly(source:Internal Lazada report 2019)

HaveaglanceattheDSATnumberingreenhasthefluctuatedtrendinthefirsthalfof2019andthen umberalwaysstayedsmallerthan40duringthisperiod.Meanwhile,inthesecondhalf,itobservedt hecommontrendofDSATcount,whichwasincreasefrom46inJulyto85i n December.Consequentl y,the

%CSATscorealsodroppedfrom91.65%to88.76%insameperiod,whichcanproveforwhatMs Tu wassharing.

Figure7:CSATLazmallbreakdownbyagent‟stenure(source:InternalLazadareport2019)

Figure7 s h o w s t h a t , t h e groupo f agentsundert h r e e m o n t h s o f experiencei n Lazmallarealw aysundertargetofCSAT,andthisgroupisalsothemostfluctuatedinCSATscoreovert h e year. FunctionalstructureofCSLazmall:

Figure8: Lazmall functional structure(Source:Internal Lazada report2019)

WithinLazmallcustomerserviceteam,therearethreemaindepartments,whichareTraining,Q u a l i t y assurance(QA)andOperationd e p a r t m e n t Trainingteami s responsiblef o r o n b o a r d i n g andqualifyingn e w C S a g e n t,w h i l e Q A t e a m ‘ s d u t y i s t o m a k e s u r e agents performwellinqualitymetric.Operationteamisinchargeofproductivity,CSATscoreandheadco untarrangement,tomaintain theservicelevel ofLazmallchannel.

Problemidentification

Potentialproblems

Throughin-depth interviewwith keypeopleinthe company, theinitialcause- effectmapisf o u n d with somepotentialproblemsforlow customersatisfactionofLazmallCSteam:

Threesymptomswerefoundincluding:thenumberofcustomers‘complainincreases,moreticket sarereopenb e c a u s e customersdisagreewi th resolutiono f LazmallC S agentandt h e decreaseofc ustomersatisfactionscore.Problemsleadingtotheinflationofcustomercomplaintsarecompetitive marketwithincreaseincustomerdemandandthebadexperienceo f buyersw i t h Lazmallproductq u a l i t y andd e l i v e r y service.Besides,t h e problemsl e a d t o m o r e reopenticketsarecomplicat edprocessofLazmall andlowperformingCustomerservicestaff.

„Thiswasourbabyprojectforalongtimeandsofar,Lazmallremainsourfirstconcernf o r a n y o f o u r decision.Wew o u l d liket o b u i l d a s t r o n g a n d effectiveL a z m a l l team,i n o r d e r topulluptheexperienceforLazadabuyers,byprovidingthemaspecialcarethatt h e y ha venevergotbefore.‟(TranDang Khoa,HeadofcustomercareofLazada,35yearso l d )

Itwasprovenbypriorresearcht h a t customerservicehaspositiveimpactinincreasingcustomersatis faction,fromtherethepurchaseintentionsisdevelopedthroughword-of- mouthrecommendations( 2 ) Incustomerservice,t h e employeesplayt h e m a i n r o l e t o definet h e successintermsofbringingcustomer‘sexperience.Thereexistsaninterdependencebetweencusto mersandservice employeesandtheactivitiesorbehaviorsofonecouldmutuallyimpactt h o s e o f theother.(3)

AtthebeginningoftheLazmallproject,Mr.Khoawilldirectlyinterviewinthefinalroundtop i c k up everyCSagentwhohadenoughskillsandexperience.Itwassuchabighonorfortheselectedagentsto workinLazmall.Inadditiontothat,theywereundergoneanadditionalin-depthsoft- skilltrainingtobeabletohandletoughcomplain.However,aftermorethanayearo f runningproject,t hetittleLazmallCS is nolongerfancyinagents‘mindasit usedto be.

Lazmallteam,andIwasquitecomfortablewiththat.However,sinceIwaspickedtoLazmall, myperformancetendstodecrease.‟(DuongThiSuong,LazmallCS,22yearsold)

Accordingtothesharingfromagents,recently,therewasnointerviewedconductedtoselectC S for Lazmallteamandtheywerepickedupfromotherchannels.Moreimportantly,someo f themwe reforcedtomovetoLazmallratherthanbeingwillingtojoin.Thisisbecauseoft h e factthat,ther eisaruleLazadahassetupforthisteamthatLazmallagentsshouldbetopperformingCS.Incasethe agentsnomoreperformwell,hewillberemovedandreplacedbyo t h e r C S fromnon-

Lazmallteam.However,t h e overallK P I o ft h e t e a m continuest o dropd o w n withtheabove strategy.Mr.Thiensaid that:

„TheKPIofLazmall team isacrisisprobleminthese months,while allthenumbersoftr ansactionquality,responsespeedarefalling,andthenumberofbacklogsincreasesmorea n d mo re.Thisis unacceptabledueto the fact thatwehaveselectedthebestperformedagenttoworkh ere‟.(PhamHoangThien,CustomerServicemanagerofLazada,38yearsol d)

Iti s observedt h a t fromsecondh a l f o f 2 0 1 9 , t h o s e K P I scoreso f t h o s e criteriahavebeenfluct uatedandevengonebelowtarget:

Figure11:Lazada CS monthly qualityscore2019(source:InternalLazada report 2019)

Figure12:Qualityscorebytenureof Lazmallagent(source:Internal Lazada report 2019)

Iti s observedt h a t tenuredagentsh a v e s t a b l e q u a l i t y s c o r e inallcalls,w h i l e newj o i n s ‘ q u a l i t y u s u a l l y f l u c t u a t e s T h e q u a l i t y i s m o s t l y decidedbyh o w welleachagentp rovidesappropriatesolutionforcustomers,basingontheprocessofLazada.AllnewbiesofLazm allwererecruitedf r o m n o n - L a z m a l l channelandt h e selectedcandidatesm u s t haveexcellent

21 performancepreviously.However,whencomingtoLazmall,theirqualityperformanceseemsd o w n significantly.

Figure13:Lazada monthlybacklogper headcount(source:Internal Lazada report 2019)

Lazmallo n e overm o s t t h e m o n t h s i n 2 0 1 9 , whilet h e backlogp e r a g e n t i s higher.T h i s indicatest h a t , b o t h q u a l i t y andp r o d u c t i v i t y ofLazmallteama r e n o t asgoodastarget o f Lazada.

Moreimportantly,fromtheobservationofQualityteam,theDSATmadebyCSmistakehast h e i ncreasingtrendi n Lazmalldepartmentthroughoutt h e l a s t quartero f 2 0 1 9 , w h i l e t h e figure fornon-Lazmallagentremainunchanged:

Figure14:LazmallDSATdeepdive(source:Internal Lazada report 2019)

Inpreviouspart, fromthe incomedata, onesc a n seethatLazmallcustomersare usually ofp remiumlevelandtheywerepromisedbyLazadat o beservedi n a s p e c i a l channel,atpremiumcla ss.However,accordingtoasharingfrom–

„LazadaadvertisesalotofbenefitforcustomersbuyingLazmallproducts,however,whenIhavepro blemwiththeitemreceived,thewaythataLazmallCShandlemyissueissimilart o thetimeIbou ghtanormalproductandcontactedtonon-

Lazmallagents.Ididnotseeanyspecialp r i o r i t y r e g a r d i n g t h e p o s t - purchases u p p o r t here‟(Ms.H o a n g MinhA n h , customerof Lazmall, 30yearsold)

Lazmallagenthandlet h e callf r o m customers.M e a n w h i l e , i n t h e termandc o n d i t i o n o f Lazada,customerswerepromisedtoenjoyaspecificserviceever,whichisatrade-offfor themtobuyLazmall– more expensive productsonLazada.This isthemostdisappointing partbecauseLazad ais not deliveringwhatbuyersdesire.

CSLazmallstaffistheonlyonesdirectlydealingwithcustomersandinotherword,theyaret h e repr esentativef o r L a z m a l l brandimagei n c l i e n t s ‘ eye.Customers e r v i c e s s t a f f playsa vitalrole inbuilding customer‘interestfor aparticularserviceprovider(4).One ofthecriticalfactorst h a t leadt o t h e customersatisfactionw h e n u s i n g a s e r v i c e p r o v i d e r i s employeebehavior,comprisesoffriendliness,responsivenessandthepromptnessof theemployee.

ThedataLazmallD S A T root- causeshowedt h a t customerservicestaffmistakesaccountedf o r 20.45percentoftotalfactorsth atleadtodissatisfactionamongconsumers.ThatnumbertendedtoincreasemonthovermonthTh eCSmistakesinclude:lackofcommunicationskill,courtesy,knowledgea n d transactionhandling s k i l l Bellowfigures h o w s t h e C S m i s t a k e contributionintotalDSATin 2019,dataannalyzedbyQualityteam.

Figure15:CSmistakecontribution to DSAT in2019(source:InternalLazada report 2019)

AscitedbyWu(5),Ar t h u r andBennette m p h a s i z e d t h a t customerserviceagentswhoow n good communicationskillincludinglisteningwelltoothersandexpressingtheirideasclearlycouldresult in abetterunderstandingofcustomers‘demandsandhelptobuildatrustworthyrelationshipwitht hem.CommunicationmistakeiscountedwhenaCSagentdoesnotshowe m p a t h y tocustom ers,ignorecustomers‘questionsorconcernandanswertheminaroboticway.AccordingtoWie sekeetal.ascitedbyBahaduretal.

(6),empathyisillustratedas―aperson‘sabilitytosenseanother‘sthoughts,feelings,andexperien ces,toshareother‘semotionalexperience,andtoreacttotheobservedexperiencesofanotherpe rson‖.IthasanimportantroleincustomerservicethatinLazada,especiallyLazmall,empathizingbec omesam a n d a t o r y requirementf o r anyC S agent.Thisisbecauseo f t h e factthate m p a t h y i s a powerfultoolfor adequatehuman intercommunicationandin theserviceindustryanda keyfactorforsuccessfulinteractionsbetweenclientsandfrontlineemployee s(7).Customerscanfeelthattheyareunderstood,fromthereturninginto positiveemotionsandattitude towardtheservicebrand(6).

Courtesym i s t a k e i s whent h e agentss h o w badattitudew i t h customers,andf o r t h i s fault,t h o s e willbeterminatedrightaway.ListenerscouldbeabletosensetheinadequatemannerofC S employ eesthroughtheirtoneofvoice,wordsuseandtherhythmofresponse.Forexample,thestaffwhointens elyarguewithcustomers,intentionally leavealongdeadairtoavoidansweringqueries,orjumpi ngintoclients‘mouthwhiletheyaretalking.AccordingtoBienstocketal.ascitedbyBeatsonetal.

A lack of knowledge and transaction handling skills among agents results in their inability to meet the quality standards required for managing calls or chats from buyers This deficiency can lead to the provision of incorrect information and resolutions for customers, often resulting in escalations to inappropriate departments and longer wait times Quality specialists frequently identify these errors, with reports indicating that mistakes due to insufficient knowledge account for 27.85% of issues, while 15.07% of agents fall short in transaction handling skills According to Wu et al., Boshoff, and Allen, employees lacking essential workplace competencies may struggle to meet customer needs or deliver satisfactory service quality When employees provide reliable and accurate service, consumers are more likely to perceive the enterprise as offering high-quality service, leading to increased customer satisfaction.

Firstt o m e n t i o n i s t h e c a l l - transferprocessf o r Lazmall.W h e n customerscontactt o C S agentstoraisespecific issues,allth eirneedistohaveaquick answerstraighttothe point.However,dueto the routing systemof Lazada,itis stillindefinitethataLazmallcustomercandirectlyconnectto aLazmallCSagent.Thereis aprocessfor thosecases:

Figure16:Processof handling transaction(source:Internaltraining process)

Lazmallagent,theirproblemsa r e n o t s o l v e d rightaftertheye x p l a i n , b u t theyh a v e t o w a i t anothert i m e t o be redirectedt o correctline.F o r s o m e customers,i t i s annoyingandM r NguyenD u c Hungsharedt hat:

„IdonotunderstandwhysometimeIcallLazada,thestaffasksformyissuesandstatedt h a t theyunderstoodmyissue,buttheyaskedmetowaitforthemtotransfertoLazmallcustomers ervices t a f f I t reallytakesm y t i m e a n d sometime,I d e c i d e d t o h a n g u p t h e p h o n e b ecauseofthat.I donot carewhowill solvemyproblem,Ijust wantto havethes o l u t i o n in time.‟(Mr.NguyenDucHung,customerofLazmall,28yearsold)

The thingthatmakescustomersdisappointedistheyhavetowaitlongertimetoactuallymeetLazmallCS,a ndmore frustratinglyistheyhavetopayfor thoseminutesofwaitingviaphonechannel.Whenpurchasersarecomplaining,theydonotreallycare aboutwhoissolvingtheirproblem,but ratherhowlo ng their problemwill b e solved,accordi ngtothesharingofMr.NguyenDucHung.Comparedthistonon-

Lazmallchannels,thebuyersarealwayssupportedrightawaywhenevertheycanreachtoaCS,bec ausethetransferprocessdoesnotapplyfort h i s channel.Theevolvingofcustomers ´satisfactioniscountedalotontheeffectivenessofanappropriatemethod,thespeedofprocessing andtheirresult,alongwithtimelyandspecializedcommunicationwithcustomer(9).Inotherword, whencustomerscontacttoCSagentstoraisespecific issues,alltheir needistohaveaquick ans werstraighttothe point.However,asmentionedearlier,theprocessoftransactionhandlingfora Lazmallcustomerism o r e complicatedthannon-Lazmall ones,whichcauseslongerwaitingtime.

2019werecausedbyprocess.T h e topcomplainsforprocessare:LongwaitingtimeofReturn&refu nd,ordertrackingandtransactionhandlingprocess.T h e t a b l e belowreferst o t h e contributiono f ab oveprocessest h a t buyersoftencomplain:

Aboutt h e r e f u n d & r e t u r n process,Lazmallp r o d u c t s havethep o l i c y toreturnt o Lazada,w h i l e non-Lazmallproductscanreturnd i r e c t l y t o Sellers.Becauseo f t h e factt h a t Lazada doesnotsellthoseproducts,sothetimeforqualitychecking(QC)isoftenlongerthanwhencusto merscontactstraightawaytomerchants.ThetotaltimethatLazmallconsumershavetowaituntilt heirproductisrefundedsincerequestinganonlinereturnformis20days,whilet h e number remainonly15daysfornon-

Lazmallproducts.Thebadexperienceofwaitingnoto n l y influencescustomers‘perceptionsofser vicequalitybutalsocauseimpatience,whichiso f the toprootcausefordissatisfaction(5).

Forano r d e r tracking,i t dependsq u i t e m u c h o n t h i r d p a r t y logistic(3PL),s o f o r anyl a t e or der,customersh a v e t o wait2 m o r e daysbeforeLazmallC S canescalatet o transportdepartmen t.A s citedbyW u etal.

(5),DavisandVollmannalsoprovedt h a t i n serviceexperiences,waitingtimebecamemorecrucial thanqualityofserviceinconcernwithcustomersatisfaction.Moreover,theexperienceofcustomers willbecomeworseiftheyhavet o c o n t i n u e waitingwhileLazada cannotmeet deliverypromiseddate.

Att h e r o l e asa HeadofCustomerc a r e d e p a r t m e n t , M r K h o a h a s anoverviewaboutt h e Ec ommerceindustryinVietnamthat:

„WewellawarethatLazadaalwayshavetodevelopandimprovedaybydaytonotbeleftbehindb y o u r friendsShopee,T i k i a n d S e n d o Consumersbecomew i s e r t o c o m p a r e betweens ellersi n o r d e r t o chooset h e bestservice.Theyhavea c o m m u n i t y o n l i n e a n d evenofflineto shareshoppingexperienceonEcommerce.Hence,ifwedonotstayfocusf o r asecond,asmall mistakecanbemadeandgoneviral,eventuallycustomerswillgotoo t h e r shoppingplatform.‟(T ranDangKhoa,HeadofcustomercareLazada,35yearsold)

Fromw h a t M r K h o a m e n t i o n e d , i n t h e m o d e r n marketplacewherec u s t o m e r s hav em o r e choicesofshopping,itisveryseriousifcustomersarenothappywiththeservice,astheycane a s i l y f i n d a similarv e n d o r elsewhere.Ina d d i t i o n , acknowledgingt h a t ShopeeM a l l , T i k i T r a d i n g andSenMallwerealsobuiltandpromotedtobespecialprojectinrespectiveplatform ,Lazmallis nottheuniqueandcompetitivebrandanymore.

„Whencustomerscomplaintous,theyalwayscomparethatwhyShopeeandTikiagentsp r o v i d e solutionforthem inthisway butLazadaagentsanswerinother way.Theyalsoc omparet h e policy,t h e productsa n d t h e p r i c e w i t h o t h e r platforms.Theys h o u l d be understoodt h a t d i f f e r e n t o n l i n e p l a t f o r m h a s d i f f e r e n t policya n d wejust follow ourpolicy.‟(DuongThiSuong,LazmallCSagent,22yearsold).

AccordingtoMs.Suong,customersoftenbearintheirmindacomparisonwiththeirshoppingexperien cei n o t h e r Ecommercesiteso r w i t h t h e i r friend‘sexperienceo n t h o s e platforms.W i t h a s imilarsituation,f o r e x a m p l e mutualcheckpolicy,c u s t o m e r s alwaysaskt h a t whyT i k i allo wthemtopre- checkthepackagebeforeprocesspayment,butLazadadonot.Informationissharedamongbuyersver yfastthatalmosteverypolicyofallEcommercesitesareperceived veryquicklyandthoroughly. Belowdatais thetrendoftrafficuse in top 4 topEcommerceguysin Vietnamesemarket:

Within1year,fromquarter3of2018toquarter4of2019,Lazadahasdroppeditspositionintermsoftra fficuses,from2 ndposition to4thposition.

Thisalsomeans,customersareturningt h e i r habittovisitoth ersites,withnumberonebelongtoShopee.ThisisadisadvantageforLazmallteambecausewit hthistrend,customerscanhavetheirownprooftocomplainmorew h i l e makingacomparisonwi thservicein ShopeeMall, Tiki TradingandSenMall.

Ino n e hand,t h e ecommercemarketi n V i e t n a m i s consideredt o b e a fiercecompetitionbetw eenmanybigguys.Thebiggestcompetitorsofe- commercestartupshavebeennotonlyShopee,T i k i o r Sendob u t a l s o a socialn e t w o r k (social commerce)( 1 0 ) W i t h s u c h manychoicesofuser,customersarenowabletocomparetheservice betweendifferentplatform.

(Source:AsiaPlus Inc.(Tokyo,Japan),VietnamECMarketSurvey)

Table3 showedt h a t i n t h e year2 0 1 8 and2 0 1 9 , Shopeehasbeent h e l e a d i n g ecommerceplat formusedbyonlineshoppers(75%ofonlineconsumersuseShopee).Meanwhile,Lazada‘spopu larity hasbeendeclined8%ofusersandthepercentageofloyalty customersdecreasedfrom20

%in2018 to11%in2019 OthercompetitorslikeTiki alsoonthegoodtrendo f increasingi t s coverageamonge - c o m m e r c e b u y e r s , whichm a k e t h e marketm o r e competitive.

Lazmall products are priced higher, attracting consumers with higher income levels who possess distinct personalities, motives, and values associated with their prestigious occupations Research indicates a significant relationship between occupation and complaint behavior, with managerial and professional individuals often being more vocal about their grievances Consequently, Lazmall faces elevated expectations from its customers, necessitating greater effort to achieve satisfaction, which occurs when products and services align with consumer expectations In the context of globalization and service liberalization, the e-commerce industry must prioritize building and maintaining consumer relationships, as buyers can easily switch to competitors offering better deals that meet their needs For online buyers, the ease of accessing alternative services heightens the need for e-businesses to demonstrate a strong commitment to customer satisfaction and loyalty.

AccordingtoaresearchbyYounetMedia,ProductqualityandDeliveryservicearetoptwoconc erno f customersa f t e r b u y i n g p r o d u c t s Customersatisfactionandp u r c h a s i n g d e c i s i o n of tenhavepositivelyassociatedwitheachother.

Figure18:Criteriacaredbycustomerduring shopping(source:Younet 2019)

Lazmallp r o d u c t s havetotype:t h e firsto n e i s Retailitem– meanst h e productss o l d byLazada,andthesecondtypeisMarketplace item– soldbyMerchant(Seller).

For Retailitems, Ms.Quyen–Lazmallagentsharedthat

„InLazmall,morethan5 0 % ofthecontactreasonforcomplainisabout“Problemwith itemsreceived”and“whereismyorder”.TheLazmallproductsfulfilledbyLazadaoftenm i s s freebiesandthisissueoncehappens,itwillalwayshappensystematically‟(DoMaiQuyen,L azmall CSagent,21yearsold)

Lazadaitselfi s j u s t ano n l i n e platformw h e r e buyersandconnectwithsellers,andt h e productsaredelivere dbyathirdpartypartner.Therefore,likeMs.Quyenstated,mostissueso f customersarerelatedtop roductqualityanddeliveryservice- whichisdifficultforLazadathemselvestocontrol.AccordingtoMs.Tu,themostcommonissuewi thproductismissingfreebies.ThisisbecauseofthesystematicissuesfromtechnicalteamwhenSKUofproductsi s notattachedwithSKUoffreegiftsappropriately.Thatwillleadstotheconsequen cethatt h e warehousestaffdonotreceivetheinformationoffreegiftsSKUandthereforeallorde rsf o r thatproductshavesame issue ofmissingitems.

ForMarketplacep r o d u c t s , s i n c e Lazadai s a platformt h a t allowsellerst o p o s t t h e i r a llproductsforsell,there isnotany pre- checkprocessfromLazada‘ssidet o make surethoseproductspassthequalitycheck.Inadditionto that,fromearly2019,Lazadahasstopallowingcustomert o mutualcheckproductsw i t h shippers.T h i s increasest h e badexperiencew i t h productsquality,hence,reducecustomers‘trust andsatisfaction.

„WhenIpurchasedonLazmall,theitemstillgotproblemslikewrongdelivered,brokenorm i s s i n g freebies.ThisreallygotmelosehopeaboutLazmallproductsingeneral,becauseI knowt h a t I h a d t o paymore,b u t t h e q u a l i t y s t i l l n o t t o o outstandinga n d w o r t h y ‟ (Ngu yenThucHien,Lazmallcustomer,27yearsold).

Afterinterviewingwith buyers ofLazmall,theysharedthatactualqualityofLazmallproductss t i l l makethemdissatisfied.They docompare andknowthat Lazmallproductshavehigherpricethannon-

Lazmallones,becausecustomerscanenjoyagenuinequality.However,theys t i l l havetoreturn becauseofonesoftheproblem:wrongitems,notasadvertise,defectiveproducts,etc.T h e n e x t t h i n g theyhavet o d o afterwardi s r e t u r n i n g t h e item,whicht a k e s about15-20workingdays ofprocessanddefinitelyis not withincustomers‘expectation.

Whengettingtheideasfrom customers, Ms HoangMinh Anhsaidthat:

„Ic h o s e L a z m a l l productb e c a u s e L a z a d a g u a r a n t e e genuineq u a l i t y a n d a n e x p r e s s delivery.L a s t time,I b o u g h t a L a z m a l l p u r s e form y friend‟sbirthday,bu t t h e y d i d n o t delivero n t i m e a n d i t r u i n e d m y p l a n Sucha t e r r i b l eexperience‟. ( H o a n g MinhA n h , L a z m a l l customer,25 years old)

Fordelivery,Lazadahasnotownedanylogisticdepartment.Alldeliveryserviceishandledbythirdp artylogistic,whichisstilldependingalotonthecontractbetweenthepartner.Theexpressdeliveryof Lazadaiswithin24hours,whileShopeeoffers4hoursfastdeliver,Tikipromisesanexpressd e l i v e r y w i t h i n 2 h o u r s , a n d Sendow i t h i n 3 h o u r s T i k i eveno w n s a teamoflogistic,which can support them to prioritizeordersthemselves.

TheExpressd e l i v e r y service(samedaydelivery)i s n o t alwaysasLazadacommitw i t h custo mer,andevenw h e n 3PLsd o n o t fulfilltheirpromise,C S agentshaven o rightt o escalateorpush themto deliveryfaster.AgentSuongsharedthat:

„Wereallyu n d e r s t a n dw i t h customert h a t whent h e y chooset h e E x p r e s s servicemeanst h e y arewillingtopaymorefordeliverywiththedemandofgettingthegoodsforurgent

30 purpose,otherwise,customers h o u l d h a v e c h o s e n S t a n d a r d o r E c o n o m y method. Mostcustomercomplainwithusaboutthe“Samedaydelivery”,becauseit‟salready beyondt h e y da te t h a t l o g i s t i c partnercommits.It‟sn o t o u r f a u l t a n d t h e irrationalt h i n g i s w e cannotpush3PL‟(DuongThiSuong,LazmallCSagent,22yearsold)

Figure19:DSATcountsbycontactreason(source:InternalLazada report

2019)S h i p p i n ganddeliveryrelatedarethemostfrequentconcernfromcustomers,causing33. 56%o f totalD S A T Accordingt o M o t h ascitedbyCaoetal.

( 1 6 ) T h e researcho f U P S andComScoreshowedt h a t s h i p p i n g andd e l i v e r y a r e prove nt o b e d o m i n a n t factoraffectst o shoppersatisfactionine- business.Itwasalsofoundthatthetopconcernofonlineconsumersarerelatedtoshipping,including: freeordiscountedshippingfee,on- timedelivery,flexibilityo f shipping,andreturnservice(16).Meanwhile,forLazmall,thetopcomp lainsaboutd e l i v e r y are:

Figure20: Shipping anddelivery issuescontributionin Lazmall(Source:Internal

Timely delivery is crucial for predicting buyer satisfaction, often considered as important as price by e-commerce researchers Notably, 65% of complaints regarding Lazmall products are related to the "same-day delivery" service, which tends to be costly and many customers are reluctant to pay extra for it despite its promise of instant fulfillment Customers generally expect minimal delays, yet express delivery frequently leads to complaints about late orders As highlighted by Yun et al (cited by Raquel et al.), dissatisfaction arises when there is a mismatch between buyers' expectations and their perceptions of service quality.

FromFigure19,thecontactreasonrelatedto―Problemwithproductreceived‖accountforthesecondra nk,whichis22.15%oftotalDSATtickets.Asmentionedearlier,Lazmallproductsi s guaranteedb yLazadaaboutt h e a u t h e n t i c i t y ande a s y returnpolicy.Inadditiont o t h a t , becauseLazmallse llersarecharged3-5%highercommissionfeescomparedtonon-

Lazmallone.W i t h t h e guaranteefromLazadaands u c h m o r e e x p e n s i v e price,customere xpectationaboutproductsthereforehasbeensetatgreaterlevel.AccordingtoGrửnroosascitedby Xuetal.

( 1 8 ) therei s n o t a clearc r i t e r i a t o evaluateproductq u a l i t y becausei t i s m o r e aboutt h e p e r c e p t i o n o f customer.Ind e t a i l s , i t isdefinedast h e differenceb e t w e e n t h e productexpe ctationandt h e productperception( i n caset h e productperceptioni s n o t ashighastheproduct expectation,productqualityperceptionbythecustomerispoor).

Ingeneral,fromin- depthinterviewandliterature,fourpotentialproblemsareidentified.Lowperformingcustomers e r v i c e s t a f f andcomplicatedprocessa r e t h e c a u s e s f o r l o n g averagehandlingtimeofatransacti on,hencecustomershavetowaitlongertimeorevenhavetore- contactmanyt i m e s t o gett h e issuess o l v e d T h e restp o t e n t i a l p r o b l e m s arecompeti tive

32 marketwithincreaseincustomerdemandandbadexperiencewithproductquality&deliveryservice. Forthesepoints,theconsequenceisconsumerscaneasilycompareandincreasinglydemandab etterservice,therefore,more badcomplains aredelivered.Allof these resultin l o w customers atisfactionscoref o r Lazmalld e p a r t m e n t Int h e n e x t part,t h e authorw i l l d e e p l y val idatethepotentialproblemsusing literature toeventuallyidentifythemainproblemt h a t givethemost impacts oncustomersatisfactioninLazmall.

Problemvalidation

Fourp o s s i b l e problemsidentifiedfromp r e v i o u s partincludes:l o w performingc u s t o m e r servicestaff,complicatedprocess,competitivemarketwithincreaseincustomerdemandandbad experiencewithproductsanddeliveryservice.Toclarifythemajorproblemamongtheabo ve,validatingeachproblem isnecessary.

AccordingtosharingfromMr.Khoa,theprocessofLazadaisnotonlydecidedbycustomercaredep artment,b u t a l s o monitoredbyo t h e r internalandexternaldepartment.T h e reasonbehindi s Laza daande s p e c i a l l y Lazmalldoesn o t earnp r o f i t frombuyersonly,b u t fromsellersalso.Lazmal lsellersarecharged0.5%to12%additionalcommissionfeecomparedtonon-

Lazmallseller,andadvertisingormarketingactivitiesaremorefocusedont h i s typeofseller(19).Th erefore,thelongandcomplicatedprocessforrefund&returnisdifficulttobechanged,becauseitde pendsonSelleralso.Mr.Khoaemphasizedthat,anychangeorupdatefromtheprocessneedstohave agreementfromallparties,Customercaredepartmentcannotm a k e thedecisionthemselves.

Furthermore,therei s j u s t s o m e minoradjustsrelatedt o t h e processs i n c e th e t i m e Lazmallstart edoperatinguntilpresent,andasdatashownintable1,theCSATscoreofLazmallusedt o beveryh igh(abovetargetof90%)inthefirsthalfoftheyear.Thismeanstheprocessisn o t t h e mainimpacton thedeclineofcustomersatisfaction.

Meanwhile,whencustomersdecidedtoexit,theywillstoppurchasingfromthiscompanyands w i t c h their buyinghabittothe competitor.Inthis case,those customerrarely givecomplains(17) Accordingtot h a t , i f buyerskeepcomparingwith Lazada‘scompetitorsandraisingDSATtoLaz mall,meanstheyhardlyturningtheirbackonLazadaforothersitelikeT i k i , Shopee,Sendo,etc

Fromt h a t , competitivemarketw i t h i n c r e a s e i n customerdemandi s n o t t h e m a i n problem,be causeitdoesnotimpactmosttothe repurchaseintentionofcustomersandtherefore,notimpactto therevenueofcompanyasawhole.

Therea r e 2 typicalwaysofr e a c t i o n whenc o n s u m e r s a r e dissatisfiedw i t h a productors ervice:tovoiceandtoexit,whichpresentthecomplainersandnon- complainers(20).Whencustomerschoosetovoice,meanstheystillgivethecompanychancetoim proveandcomplainersarere- purchaser(17).Whencomplainersreceivecourteousandempatheticresponsest o t h e i r complai nts,t h e y a r e m o r e l i k e l y t o besatisfied.E m p i r i c a l studiesh a v e shownt h a t attentiveness e x e r t s significantp o s i t i v e effectso n complainersatisfactionandrepurchase intentions(20).

When purchasing goods from online platforms, the product itself represents customers' desires, while services indicate how those desires are fulfilled Both aspects are crucial for determining customer satisfaction Research by Sun suggests that product quality has only an indirect impact on customers' feelings towards e-business For instance, Lazada offers a 15-day easy return policy for any issues with received items, allowing buyers to get their money back if they contact Lazada within this period Consumers who faced a failure but received satisfactory recovery were 1.130 times more likely to repurchase compared to those without service issues This highlights that a negative experience with a product is not the primary cause of dissatisfaction among Lazmall consumers.

Asseeintable5,missingfreebieandmissingaccessoryaretoptworeasonforproductsissue.Forthose tworeasons,Mr.Khoaacknowledgedthatitwasdifficulttoresolvedbecausether o o t causebe hindistheunexpectedbugfromtechnologyteam,whichpreventwarehousetoreceive informationabout thefreebiesandaccessorySKUs.

Lex).WehaveaseparatecontractbetweenLazadaandthethirdpartylogistic,however,weackn owledgethattheydoserveotherbusiness,likeShopee,Tiki,etc.Becauseo f that,inthe high s e a s o n ofsaleswithhigh v o l u m e s oforders i n alle- commerce sites,problemwithdeliveryhappensthemostoften.‟(Ms.NguyenThiCamTu,L azmallTeamleader,29yearsold)

The delivery service issue is primarily seasonal, occurring when logistics partners are overwhelmed with orders from multiple vendors during the peak sales period in the last two months of the year (November 11 to December 12) During this time, order volume can triple compared to normal days Additionally, improving delivery service is beyond the capacity of the customer care department, as it impacts processes and benefits other departments Consequently, both product quality and delivery service are not prioritized as major problems to address in the current situation.

Customer service is essential for ensuring customer satisfaction across all service providers, as employee behavior—particularly friendliness, responsiveness, and promptness—significantly influences customer perceptions Research by Bahadur highlights the critical role of frontline staff in shaping customer assessments of service, especially regarding satisfaction and loyalty due to direct interactions However, Ms Tual has noted a decline in the performance of CS Laz mall agents over the past three months, with key performance indicators including response speed, transaction quality, and backlog management for unresolved tickets exceeding 48 hours.

Mr Thien has been personally interviewing and selecting Lazmall agents to ensure their quality meets his expectations from the outset As a result, he has been minimally involved in staff performance during Lazmall's operational period Various factors impact staff performance, including workplace environment, job-related aspects, and employee-related factors The Lazmall management team primarily focuses on employee-related factors as the foundation of agent performance, which has led to unresolved issues Consequently, the author aims to analyze the low-performing staff as the main problem requiring further investigation.

Justifythe importanceofLowperformingCS staff

Customer serviceincludesthestaffworkinginasetofprocedureinordertocreatesasatisfyingexperienceforcus tomers(22).Foranycompany,thisdepartmentisakeyt o m a i n t a i n , nurtureanddevelopt h e res ourceofcustomers.Accordingt o DomeganandDonaldsonascitedbyM c G u i n n (22),t h e advantag eo f customerservicei s t o enhancet h e customer satisfactionandprofitability,resultingin improvingbusinessimage.

Int h e researchofE k m e k c i (23),w i t h t h e company'sfrontlineemployeesthroughm u l t i p l e tra nsactions,customerservicerepresentstheholisticexperiencewiththebusiness.Inreality,f o r a nyserviceenvironment, frontlinestaffis theonerepresentingthecompany inorder tod i r e c t l y communicatewithcustomers.Fromthisspecificperspective,intheopinionofCadwalladeret al.,citedbyEkmekci(23),itiscriticaltodevelopbetterconnectionbetween clientsandstaff,andatthesametimeshouldlookforthemethodstomotivatethoseemployeesif companywants tocreateasustainablecustomerservicemodel.

Employeeperformancereflectst h e efficiencyoft h e s u p p o r t t o customer.Performancei s ack nowledgedasworkperformanceori n o t h e r word,i s certainachievementgainedbysomeone.Iti s definedastheworkq u a l i t y a n d q u a n t i t y carriedo u t byanemployeeinaccordancewith theresponsibilitiesassignedbyhisfunction(24).

Furthermore,accordingtoYangetalcitedbyUtin(24),performanceisalwaysdependentonvarious factors,including:employeeworksatisfaction,t h e levelo f recognitiongiven,andinfluencedbypers onalskills, abilities,andtraits.

Firstly,basing ontheinterviewanddatafromLazadaVietnam,thepercentageofcustomer diss atisfiedw i t h LazmallC S agentsincreasedovert he l a s t year.Therefore,t h e y arelosing t h e i r t rustonwhatLazadapromisedtoLazmallcustomersandpotentiallyturningtheirbacko n thisse rvice.Thisisbecauseofthefactthatcustomerchoiceissignificantlyinfluencedbyt h e customers atisfactionwiththeserviceprovider(6).Theconsequenceisprovenbydataint a b l e 3,thatShop eeandTikiwitnessedtheincreaseinloyaluserportion,whilethefigureofLazada hasdecreasedfrom 20% in2018 to 11% in 2019.

PromoterScore(NPS).T h i s isameasurementforcustomer experience,anditwasproventhatcustomersatisfactionandcustomerloyaltyhadastrongrelationsh ipwitheachother(25).The waytocalculateNPSi s : Subtractingt h e percentageofDetractorsf r o m t h e percentageo f Pro moters.W i t h t h i s calculation,theNPSindexrangesbetween-

100and100.Itnotonlyevaluatesthecustomersatisfactionb u t i t canalsob e us ed asa managemen tsystemwh i c h cani m p a c t t h e organizationperformance(26).InLazada,theNPSsurveyissento uttoeverycustomerwhohaspurchasedatleastonetime.Thedetailofthatsurveyisillustratedinthe Appendix.Therei s aspecificsurveyforLazmallbuyers,inwhichcustomersarealsoaskedaboutthe irattitudetowardo t h e r c o m p e t i t o r s , l i k e ShoppeMall,Senmall,AdayroiandT i k i Trading.T h e s u m m a r y ofNPSisestimatedbelow:

Figure21:Netpromotion scorebetweenEcommercesite(source:InternalLazada report2 0 1 9 )

Accordingtofigure21,TikitradingandSenmallhavethemostloyalcustomer,whileLazmallandAda yroihavetheminusNPSscore(forLazmallis-3%andforAdayroiis-

6%).IntheendofDecember2019,Adayroidecidedtoclosetheirbusiness,sothemarketremain4b i g guys,i n whichLazadahast h e lowestN P S T o increaset h e netp r o m o t i o n score,i t i s essentialt oimprovethecustomerservicequality,especiallytheperformanceofthefrontlineemployees.Th ereasonbehindis,ifcustomersaretreatedwell,theywillgraduallybecomeafollowersandevenpr omoterstothecompany(26).ThedecreasesofNPSmeansapotentialhighr i s k t o t h e b u s i n e s s , asi t i s a symptomofl o s i n g c u s t o m e r s overo t h e r competitor.AccordingtoReich heldascitedbyFaltejskováetal.

(26)maintainingcustomerloyaltyisacriticalmethodtogrowupbusinessperformance.Theimp actonitsoperationcanbefatalincasea corporationc a n n o t preventt h e l o s s o f customers.A res earchs h o w e d t h a t t h e 5 % increasein number of customercaninfluentupto30%to 95%on thenetpresentvalue (NPV)andthe businessprofitalsoreceivesthesimilarimpact.

Lastly,thethree majorsignificantgroupsofstakeholdersinacompanyarecustomers,staffand leaders,andallofthemdonotstandagainstoneanotherbutareabletobuildacoefficientcooperationeff ectwhichleadstosuccessofthewholefirm(26).Theemployeesarethebaset o thedevelopofcusto merresource,andbusinessleaderscannotgrowthecompanywithoutt h e employeeswhoareable togetthejobdone(26).Improvingstaffperformanceiscriticaltot h e overallsuccessoft h e compan y.Therefore,improvet h e p e r f o r m a n c e o f CSstaffi s extremelyimportanti n bringingcustomers a t i s f a c t i o n , f r o m t h a t Lazmalli n specificc a n m a i n t a i n andattractmoreloyalcustomersandthecompanycanmaintainasufficientbusiness structure.

Potentialcauses

Potentialcause1:Stressatwork

Stressis onefactorthatcan negativelyaffecttoemployee‘sperformance(27).Theindicatorst h a t leadtostressinLazmalltea mincludes:Lackofheadcountdueto wrongforecastand toom u c h distractingnoise.

Firstly,d u e t o t h e w r o n g forecast,thecurrentagentscannothandlehigher-than- plannedv o l u m e ofcalls.Ms Tu mentioned in theinterview:

`Inrecentmonths,everydaywereceivedexceednumbersofactualcallscomingincomparingtofor ecast.Forexample,theforecastofcustomervolumeinDecemberis1000calls/ day,howeveractually wehavetotake1500calls.Incasewedropthecall,serviceleveltarg et will beimpacted`(NguyenThi Cam Tu, LazmallTeamleader,29yearsold)

Followingw h a t M s T u shared,t h e actualv o l u m e o f contactsi s alwayshighert h a n t h e f orecastfromWorkforcemanagementteam,thereforeherteamcapacitycannotofferfullyallth e customers`complains However,t o maintainth e requirementofServicelevel (SL),herteam alwayshavetospendmoreeffortin handlingextracallscoming.

Service level refers to a business's responsiveness to client contacts within a specific timeframe For Lazmall, the target is to answer 95% of telephone calls and chats within 30 seconds, which is a mandatory KPI for the operations team This urgency often forces Lazmall agents to handle calls quickly, potentially affecting call quality Research by Johari highlights that performance can decline under increased time pressure, with normal agents averaging a handling time of 4.7 minutes, while Lazmall's customer service staff must complete calls in just 3.2 minutes This pressure is particularly heightened during major online shopping campaigns like Lazada's 11.11 and 12.12 events, where agents are required to manage a significant volume of calls daily.

Accordingto Table6, theaveragenumber ofcallperdayofaLazmallagentisalmost1.5t i m e s higherthanaNon-

Lazmallone,andrespectively,the Averagehandlingtime ofLazmallagentis muchlower.AgentDuongThi Suongsharedthat:

„Wehavetoendupthecallinhurry,andsometimesweavoidtoaskcustomerswhethert h e y s tillhaveandfurtherissues,whichismandatoryinthequalityscorecard.Hence,QAoftenmin usourqualityscorewhenthosecallareaudited.Ourteamleaderalwaysurgesu s t o i d l e a l l t h e t i m e a n d w e cannotl e t a n y customerw a i t i n g o n queuef o r s o l o n g ‟ (DuongThi Suong, Lazmall CSagent,22yearsold).

AlsoaccordingtoMs.Suong,sheandhercolleagueoftenhavetostayextra2-3hours/ daytos o l v e thebacklogcases,becauseduringtheworkingday,theyrarelyhavetimetodoso.Th eworkingprocessofCS is:

Figure23:Processof transaction handling inLazada(InterLazada report 2019)

The data indicates that Lazmall agents face a workload that exceeds the average campaign time, as they not only answer calls but also process tickets, which takes approximately 3.2 minutes each This excessive workload can lead to mental distress among employees, as highlighted in the literature, where pressure is identified as a factor that diminishes job performance While individuals may develop better pressure management skills as they advance in their careers, agents at the entry level often struggle to cope with stress, negatively impacting their performance.

Work-forcemanagementteamis inchargedof volumeandheadcountsforecast.Basingon therequestofforecast,recruitmentteamwillprocesshiring agentsandbringthemtotrainingin1m o n t h s Aftertraining,employeeswillgotoproductionan dreachtoatenureagentsafter3m o n t h s The wholeprocessofproducinginatenureemployeetakesalmost5months,therefore,iftheforecastisin correctatthestart,servicelevelwillnotmeetatthedropofahat,whichmakesall other KPImeaningless.

Anotherfactorcausingagent‘spressureisthenoiseinoperationfloor.IntheinterviewwithLaz mallCS to find outthe difficultiesduringtheirdailywork,Ms.Quyensharedthat:

`Whatmakesmedistractedthemostisthenoisewearehearingeveryday.Usuallyinthep i c k timeoftheday,whenvolumeishigh,theupper– levelpeople,liketeamleaderandServicelevelmonitorarescreamingloudlytourgeustodo morequickly.Wefeelreallystressedbecause oft h a t noise, whilewearev er y focusingi nourtask‟ (DoMaiQuyen, Lazmall CSagent,21yearsold)

Asurveyrelatedtoemployees‘satisfactiontowardcompany‘sphysicalworkingenvironmentwasc onductedto1000employeesofLazada,basingonthescale1to5(1:verybad,2:bad,3 : acceptabl e,4: good, 5: verygood).The responseisrecordedintable7:

Factors Employee satisfaction(scoreout of 5)

Followingt h e t a b l e 7 , n o i s e i s t h e factorst h a t d i s a p p o i n t e d byemployeest h e m o s t N o i s y officecanmakeCSagentsfeeluncomfortableandevenstresswhentheyarealready underhig hpressureofworkload(30).Hearingsuchsoundatworkmakestheagentsmoredisturbingespe ciallyinpeaktimeoftheshoppingcampaigns- whentheyarereallyfocusont h e callresolution.Bythisway,thestressincreaseswhileagentscan hardlyhavechancetofeedbacktotheirsupervisorrealtime.

Potentialcause2: Poorworkengagement

IntheEmployeesatisfactionsurvey(ESAT)2019showedthat,theaverageemployeesatisfaction ofLazmallagentis lowerthannon-Lazmall ones.

Followingtable8,somesignificantpoint sthatleadstothelowsatisfaction(lesstha n3points,o u t of5)amongLazmallteam ,istheagentsdonotfeeltheyaresupporte dbytheirpeer,theyd o notreceivetherig htlevelofpraiseandrecognition,andaren otmotivatedatworkbytheirt a s k s

Teamclimatehassignificanteffecttoind ividual‘sengagementandperformance.Oneoftheeffectivewaystoengageand motivatestaffistocreateopenandsupp ortiveteamculture,toensuretheir job sarecorrespondenttoorganizationalgoa lswhile support employee‘scareerde

43 velopment.Orinotherword,theroleofthete amistoinitiateenvironmenttonurturethew ell- being,commitmentandperformanceofindivid ual(31).Inreturn,indefiningthesuccesso f ate am,eachindividualmustbeconsideredaskeyfa ctortocontributeandtoformtheteamculture

`Ih o p e L a z m a l l t e a m canco- operatew i t h e a c h o t h e r better,especiallywhenthere‟ssomeonen e w j o i n i n g t h e team.I rememberm o n t h s a g o whenI f i r s t j o i n w i t h L a z m a l l team,I f i n d i t s difficultt o get o n w i t h t e n u r e agents.Weh a r d l y t a l k e d t o eacho t h e r becausetheyo n l y commu nicatewithsome oftheirclosecolleagues.`(DuongThi Suong,L azma ll CS ,

AccordingtoMs.Suong,usuallyittakeslong timefornewbiestogetonwellwithcurrentte am.Evenwithinateam,somemightfeellonelybecausetheydonothavechancetotalktoothers.Liter aturehasp r o v e n t h a t t h e largern u m b e r o f teammatesi n v o l v i n g i n i n t e r a c t i o n among eachother,thegreatermutualinterdependenceappears.Inturn,ithelpselevatetheco- operation,whichagain booststeamefficiency.(33)

‗It‟sreallydifficultf o r us t o o r g a n i z e a t e a m activityf o r L a z m a l l team,becauseo f t h e n a t u r e ofcustomerservice,agentsarealwayshave tohandlecustomers‟inquiriesalldayso f week,from7amto10pm.Therefore,theteamhastowor kinshiftandtheworkingshiftsar e differenttoeachother.‘(TranDang Khoa, Head ofcustomercare,35years old)

Thed i f f i c u l t y t h a t p r e v e n t s Lazmallteamt o j o i n engagementa c t i v i t y i s t h a t t h e mem bersworki n differents h i f t s Forn o n -

L a z m a l l team,t h e p o p u l a t i o n i s threet i m e s comparedt o Lazmall,s o i t i s easierf o r t h e m t o f i n d b a c k - u p s u p p o r t fromo t h e r t e a m However,f o r Lazmall,theycanh a r d l y s e e k f o r s u c h s u p p o r t , becausen o n - L a z m a l l agentsd o n o t k n o w aboutLazmallprocess.

Teamb o n d i n g a c t i v i t i e s haver o l e t o improveperformanceofe m p l o y e e s T h i s i s beca useaftere n j o y i n g t h o s e a c t i v i t i e s together,m e m b e r s h a v e chancet o betteru n d e r s t a n d characteristic,weaknesses,strengthsandinterestso f eacho t h e r (33).T o understandm o r e aboutt h e reasonwhyLazmall agentn e e d t h e bo nd in g int e a m , onesc a n refert o figure1

2 m e n t i o n e d i n previousparts h o w i n g t h e q u a l i t y s c o r e t r e n d o f d i f f e r e n t gr oupsofa g e n t Accordingt o figure1 2 , f o r agentLazmall,i t i s observedt h a t tenuredagentsh a v e s t a b l e q u a l i t y score i n allc a l l s , w h i l e newj o i n s ‘ qualityu s u a l l y fluctuates.T h e q u a l i t y is m o s t l y decidedbyhowwelleachagent providesappropriatesolution forcustomers

,basing ont h e processo f Lazada.M o r e importantly,t h i s knowledgeo f processcanb e shared m u t u a l l y d u r i n g theworkingtime,inordertosupportthenewagents,whentheirknowle dgeisnotass t r o n g asoldemployees.Ms DoMaiQuyen–newbies ofLazmallsaid:

„Thes t a n d a r d operationprocesso f L a z a d a i s l o n g , s o i t takest i m e f o r u s t o r ecallknowledgeweweretrained.Itwouldbegreatifwecanhaveimmediatesupportfromour peer,a s youknow,a l t h o u g h m y Teaml e a d e r d o e s s u p p o r t t o answerm y question,b u t t h e r e a r e m a n y timess h e i s b u s y w i t h hertasks,o r maybes h e joinedmeetingw i t h t h e manager.I hopeeveryone inthe teamcandiscussmore and shareexperienceaswell‟(DoMaiQuyen,Lazmall CSagent,21yearsold)

Apparently,thequalityperformanceofLazmallteamcanbeimprovebetteriftheteamcanbem o r e o peninsharingandteambondingisneededtobeconsolidated.Itwasproventhat,staffworkinginacult ureinwhichtheywereabletofreelyexpresscaring,compassion,affection,andtendernessforone anotherweremoresatisfiedwiththeiroccupations,committedbettert o t h e team,andobligated totheirperformance(35)

Thet a s k s t h a t Lazmallteamhandlesaren o t p l e a s a n t t o allo f t h e m , whichleadt o l o w m o t i v a t i o n a t work.Ms Tusharedthat:

LazmallSOP,whichiss o unpleasantandunfairforthem.Thisisoneissueweareencounteri ngwhenrecruitingL a z m a l l agents.Manyofthemwanttobecomenon-

Asmentionedinfigure16,allcalls/ chatsrelatedtoLazmallproductsareabsolutelytransferredtoLazmallteam,howeverthereverse wayisnotapplicable.Itmeans,ifaLazmallcustomerhasanyfurtherissuerelatedtonon-

Lazmall products,theLazmallagentshaveto s u p p o r t rightinthetransaction.Therefore,li kewhatMs.Tusaid,heragentshavetorememberm o r e knowledge.T h e r e a r e 2 0 S O P s o f n o n -

L a z m a l l and1 0 S O P s o f Lazmallproducts(27),soeachagentinLazmallchannelhastolearntot ally30SOPs,whichishalfasm a n y againasthereststaff.Ms.Tualsodeclaredthattheprocessofsel ectingCSLazmallis:whent h e r e i s a n e e d ofheadcounti n t h i s team,t h e LazmallT L w i l l a n n o u n c e t o recruitagentsfromn o n -

L a z m a l l channel.Afterward,e a c h teamw i l l providet h e l i s t o f agentst o nominatetoLazma llbasing ontheir performanceonly.Thoseagentsmust meetthequality scoreof90%andCSATscoreof88%in thelast 2months Thefinaldecision will bemadebyMs Tu–LazmallTL,aftertheinterviewround.

Fortheaboveprocess,agentsarenotaskedtoidentifytheirwillingnesstotransferinanotherteam.In theinterviewwithagentDo MaiQuyen,sherevealedthat:

„Atfirst,Iwasworkingasanon-Lazmallagent,anditwas thetimewhentherewaslackofheadcountamongLazmall,Iwas interviewedandforcedtotra nsfertothischannel.Themanagementteamtoldmethatitispromisingoverthere,butinfact,Ise emoredifficultiesd o i n g Lazmall channel.ThisisthereasonI‟mnothappyworkinginthi stask‟(DoMaiQuyen,Lazmall CSagent,21yearsold)

Ms.Quyenalsosharedthat,herperformancehasdecreasedsinceshemovedtonewteam,asi t more difficultforhertogetonwellwiththistask Employeeswhofelt theyworkedinal o v i n g envi ronmentresultinhigherlevelsofsatisfactionandteamwork,whichisleadingtostaffandcustomerw ell-beingandperformance(35)

OnereasonbehindthattheLazmallagentsarenotengagedtotheirwork,istheappraisalandrecogniti onprogramisnotmotivatedenough.Performanceappraisalisa systematicwaytoevaluateanindivi dual'sperformance(36).A s discussedpreviously,t h e requirementsf o r a Lazmallagentarehigher thananormalCS,forCSATtargetif2%higher,andforSOPtolearnis 1.5 times morethan anon-Lazmallone(27).

„Accordingtoourhumanresourcespolicy,onceagentisinternaltransferredwithinsamedepart ment,customercare,theirsalaryandappraisalcannotbechangeduntilendoftheirl a b o r contr act.Thisisthereasonwhy,sofar,thesalaryandbonusrangefornon-

Lazmalla n d Lazmallagentsarequitesimilartoeachother.‟(NguyenThiCamTu,Lazmall Teamleader,29yearsold)

Performance appraisal systems are crucial for enhancing employee motivation Studies indicate that the fairness of reward and recognition programs significantly impacts performance evaluations, which in turn encourages and motivates employees Despite similarities in compensation plans across different channels, agents at Lazmall face increased task pressures Effective performance appraisals have been shown to improve employee productivity, dedication, and satisfaction, while inadequate appraisals can lead to decreased productivity and motivation In a recent survey, Lazmall staff rated their satisfaction with the reward and appraisal program at 2.32 out of 5, indicating room for improvement compared to their non-agent counterparts.

Lazmallis3.19.Thatisoneofthemajorfactorscausing lowworkengagementinLazmallchan nel.Onerecentresearchhasvalidatedanewinsightofachievingcustomersatisfactionisthroughhap pyandengagedstaff.Ahappierworkforceisapparently inherentincompanies‘competencetode livergreatercustomersatisfaction,specificallyintheonlineshoppingplatformlikeLazadawithc loseinteractionbetweencustomersandfrontlineemployees(38).

Potentialcause3:Roboticstaff

„Apparentlythefrontlinestaffisansweringmelikearobot,allofthemanswersimilartoeac hother Forexample, whenshowing empathytocustomer,everytimeIcontact,they alwa yssay:“Wearesosorryfortheinconvenienceyouarefacing”.Ifeelliketheydonotreallyempathi zewithme.‟(Ms.HoangMinhAnh,customerofLazmall,30yearsold)

Ms Hoang Anh emphasized the importance of Lazmall agents establishing genuine connections with customers rather than mimicking one another This focus goes beyond merely following standard operating procedures; it highlights the necessity of soft skills, which are essential for effective communication and relationship-building Soft skills significantly influence work performance and are crucial for organizational development Consequently, the performance of the Lazmall team is adversely affected if customer service staff lack these vital skills Research indicates that the development of soft skills relies on a combination of innate abilities and learned experiences, where genetic factors facilitate quicker acquisition, while nurtured elements enhance the mastery of these skills.

According to a 2019 internal report from Lazada, only 87.05% of transactions at Lazmall demonstrate the necessary soft skills for maintaining customer engagement during conversations The report identifies six key factors that define these soft-skill requirements: grammar and language use, active listening, tone and pace, empathy and rapport building, professionalism, and ownership of the issue While other criteria, such as compliance with standard operating procedures (SOP) and technical conversation skills, scored above 90%, the soft-skill factor fell below the target of 90% This indicates a need for improvement among Lazmall agents to effectively resolve customer issues in a smooth and pleasant manner while also delivering knowledge of SOP.

Int h e intervieww i t h M s NguyenT h i CamT u t o i d e n t i f y t h e c a u s e o f l o w s o f t - s k i l l CSagent,shementioned that:

„Actually,wecannotblame theagentsthemselves,becauseinitially,therequirementL a z a d a settorecruitCSagentfrom beginningisquitelow.Weacceptallcandidateswhoj u s t graduatedfromhighschoolandfre sherareverywelcome.Manyofthemevenrarelyu s e computerbefore‟(NguyenThiCamTu,La zmallTeamleader,29yearsold)

Pursuantt o M s T u , t h e seto f requirementst h a t Lazadasett o c u s t o m e r servicea g e n t i s s i m p l e atthebeginningduetomassrecruitmentforthispositionneeds.Basically,thebackgroun dsofLazmallandnon-Lazmallchannelare similartoeachother.

L a z m a l l agentsh a v e m a x i m u m educationalqualificationinhighschoolandhavelesstha n1yearofexperience.Soft- skillissomething cano n l y t o b e b u i l t u p d u r i n g studyingandw o r k i n g t i m e , basingo n obs ervation,reading,training,experienceandpractice(41).AsmostagentsinLazmallhavelesstimetos tudyandt o work,theamountof skills theyearn is modest.

IntheinterviewwithMs.Do MaiQuyen–CSLazmall–shesharedthat:

„AlmostthetrainingswecanjoinrelatedtotheSOPofLazmalltraining.Wehardlyhavechan cetojoinanysoft- skilltrainingofcompany.Maybebecauseoftheupdatesinknowledgeistoomuch,sowehavetopr ioritizethetime forSOPtraining,tomakesurewealwaysdelivercorrectsolution.Otherwise,ourqualityscore willbedownseriously‟(DoMaiQuyen,Lazmall CSagent,21yearsold)

Beforehandlingcall/ chat,eachagentisundergoneatraining classin2weeksandcontinuenestinginanotherhalfmont h.Afterthat,everyweek,theyhavetojoinaweeklyrefreshertoupdateanychangesin

SOP.LikeMs.Quyenmentioned, most oftrainingtheycouldjoin wererelatedtofunctionaltraining,notimprovementtraining.Duringthetrainingtime,thetrai nerw i l l deliverf u n d a m e n t a l knowledgeo f S O P t o a classs i z e d 15-

25employees.T o avoidr o b o t i c interactionduringtheconversationofcustomers,agentshavet osophisticatedlym a n i p u l a t e the knowledgeof SOP that theywere taught.

However,in theinterviewwithMr.Thien,headmitted that:

‗AtfirststageofLazmall,wehavenotfocusedmuchonthetraininganddevelopment.Thereasonb ehindiswewanttheserviceleveltobestableallthetime,meansagentscannotleaveforlongtr ainingduringoperationtime.Outsideworkingtime,theyseemtiredandm a n y havetostayt oclear theirbacklog Wedonot wanttoputmorepressureonthem aboutt o o m a n y t hi ng s toachieve‟( PhamH o a n g T h i e n , CustomerS e r v i c e ma na ge r, 3 8yearsold).

ThedifficultyMr.Thienmentionedisaboutthepriorityofservicelevel,whichisoneofthefactor buildupcustomersatisfactionforshortterm.Nevertheless,forlongterm,itwillcauseproblem.Int a b l e 8 , t h e satisfactions c o r e o f Lazmallemployeest o w a r d o p p o r t u n i t y f o r learni nganddevelopmentwas2.85outof5;whichmeanstherewasaroomfortrainingtomeetagent‘sne ed ofgrowing.

Asm e n t i o n e d i n previousp a r t , Lazmallagentsi n i t i a l l y have l i m i t e d potentialo f s o f t - s k i l l , whichcouldb e improvedbyn u r t u r e factor.E v e r y organizationneedstraininganddevel opmentt o i m p r o v e t h e i r performanceandachievec o m p a n y goals(41).Iti s alsoaneffective methodtoinspireemployee‘swillingnessandabilitytopracticewhattheycanlearni n reality(40).

„Thesuddenlyh i g h volumei n L a z m a l l channelm o s t l y happensd u r i n g t h e Megao n l i n e s h o p p i n g campaignofLazada,mainly inNovemberandDecember.Forrestofthe year,w e canalwayscontroltheforecastascloseasrealvolume.‟(PhamHoangThien,CustomerService manager, 38yearsold).

Just aswhatMr.Thien shared,in

MegacampaignofLazada,mostlyLazmallproductswereathighd i s c o u n t t o attractcustomers,the refore,m o r e concernfromLazmallcustomersw e r e received.ThebusytimeofLazmallismostly intheendoftheyear,andsometimeisoutofexpectationo f t h e workforcemanagementteamtom a k e anaccurateforecast.D u r i n g s u c h peakperiod,thenoiseonoperationfloorincrease,becausee veryoneisinahustletopullupt h e servicelevel.Therefore,t h e stresso f Lazmallagentw i t h high v o l u m e anddistractingn o i s e istemporary.

Secondly,f o r t h e r o b o t i c staffissue,t h e c o m p a n y i s p l a n n i n g a l e a r n i n g anddevelopm entcause,basingon thesharingof Mr.Khoa:

„Throught h e yearlye m p l o y e e s a t i s f a c t i o n survey,w e a r e w e l l - acknowledgeda b o u t t h e demandofdevelopinginskillofouremployees.Hence,ourpriorityn owistoup- skilloutagent,fo rt he m tohavebetterperformanceand getmovingfasteron t h e i r c ar e erp at h ‟ (TranDang Khoa,Headofcustomercare,35yearsold).

ThecompanynowisdevelopingtheL&Dhumanresources,andthoseemployeesaresittings i d e bysidewithcustomerserviceteamtoidentifythetrainingneed,aswellastolistenwellt o agent‘s desireofgrowth.Therefore,accordingtoMr.Thien,thesoft- skillproblemwillbes o l v e d absolutelyinashortperiodoftime.Hence, thetwopotential causeabove,includingstressatworkandroboticstaffareeliminated.

Lastly,theauthorisvalidatingthe workengagementcause.Mr.Thienadmittedthat:

„Weseevery lowstaffturnoverrate inLazmallteam,therefore,weourselvesconsiderthatconsolidatingworkengagementinthatte amisexcessive.Butmaybewehavenota p p r o p r i a t e l y appreciatedthisissue,untilwitn essingthegoodperformersinnon-

Lazmallt e a m underperformwhentheymovedtonewteam.‟(PhamHoangThien,CustomerSe rvicemanager,38yearsold).

FollowingwhatMr.Thienshared,buildingworkengagementhasbeenunderestimatedbytheleaders hipt e a m T h i s i s t h e m a i n c a u s e ofl o w performingLazmallC S , asi t w i l l l e a d t o u n h a p p y anddissatisfiedworker,whichisconsequentlyfollowedupbyunsatisfiedcustomers(38).Astu dyhadproventhatworkengagementbroughtagenerousaffirmativeimpactonthei n d i v i d u a l employeeproductivity(42).Engagedworkersarecommonlyreflexedasthewillingnesstoinvest theirsenseandeffortofthemselvesintheirtasks(43).Additionally,allo f themeasurementsofwo rkengagementnamelydedication,absorptionandvigoralsoresultp o s i t i v e l y on i n d i v i d u a l p r o d u c t i v i t y ( 4 2 ) Besides,t h e engageds t a f f i s n o t o n l y willing t o workhardertoachie vegreatlevels ofassignmentperformance,but alsovoluntarilycommitinorganizationalcitizenshipethics(42,44)

Therefore,solvingtheissueofpoorworkengagementcaneffectivelyhelpincreaseLazmallC s staff.Theupdatedcause-effectmapis presented in belowfigure:

Alternative Solutions

Alternativesolution1:Designasetofteambuildingactivities

Thep h r a s e "teamb u i l d i n g " h a s b e c o m e p o p u l a r i n recentyears,whichcontainsa l o t ofmeanings.Regardingorganizationald e v e l o p m e n t , t e a m - b u i l d i n g n o t o n l y leveraget h e realisticexperienceo f t h e team,b u t m o r e importantly,i t incre asest h e communicationandb o n d i n g amongmembers, bybreakingdownpoliticalinflu ence,personalbarriersandenjoyt h e f u n atwork(45).Italsoencouragesi n d i v i d u a l s t o com mitt o c o m m o n goalsoft h e organizationast h e m a i n purposeo f t e a m b u i l d i n g i s t o strengthent h e p r o d u c t i v i t y andm o t i v a t i o n o f employees.(45)

Awell- performedteamhasmemberswithacertainlymutualpurpose,sharedtrustandrespect,greatlevelsof communicationanddedicationtothesuccessoforganization(46).Theadvantageofmakingteamsi ssocrucialthatmanyenterpriseshavebuiltaseparatedepartmenttoestablishthestandardte ambuilding strategy(45).A s mentioned previously,f o r Lazada,itisdifficultforLazmalltea mtohaveteambuildingactivitytogetherbecauseofl i m i t a t i o n oftimeandback- upresource,andthelackofcommunicationbetweennewbiesandtenuredagents.Therefore,thefirst recommendationsolutionistodesignasetofteamb u i l d i n g activitieswithneededcommitmentto complete,includingthese activities:

Firstactivityi s s e t t i n g u p d a i l y andweeklyt e a m h u d d l e f o r agentstosharedifficulty,experience,andt o g e t h e r Byo r g a n i z i n g s h i f t - h u d d l e , teammembersb e c a m e m o r e opent o shareandincreasetrustineachother.Italsoallo wsemployeestogiveandtake ofideas,andi t att h e samet i m e e n a b l e s t h e teamt o f o c u s o n whattheya r e t r y i n g t o achiev e(47).T o ensurethedeploymentofthisactivitywhilemaintaintheproductiontime,theovert imepays h o u l d b e giventoallstaff.

Secondactivityistoorganizebi- monthlyoutdooractivitiesforteamtoconnecttoeachothero u t s i d e workplace.Thepurposeist oletLazmallagentsconnectsoultosoul,discovereachother‘scharacteristics,hobbies,strengthsan dweaknesses.Fromthat, theycaneasilysincerelyt r u l y connectatwork.F o r t h e s e o u t - d o o r activityt o b e deploy,t h e r e s h o u l d b e a b a c k - u p teamf o r Lazmall.T h e c o m p a n y needst o b u i l d andtraina c r o s s - s k i l l t e a m w h o c a n b o t h back-upforLazmallandnon-Lazmallagents.

Botha b o v e a c t i v i t i e s s h o u l d b e m a i n t a i n permanently,s o t h e estimatedcostperyearan dbenefitof thisalternativesolution ispointedoutbelow:

Firstly,ithelpstheteamrecognizethetargetachievement,andfromthat,canalwaysgetwello n trackt oquicklyreachthegoalofmakingcustomersatisfaction.Theteamwillbeabletoconsiderthetea mtargetastheirowntarget(45);hence,memberwillbemorewillingtoshareandtosupporteachothe rwithSOPs,knowledge,toovercomeanydifficultyduringworkingt i m e The goalofLazmallteamcanbereachedfaster.

Secondly,teamb u i l d i n g cancreatebetters p i r i t atwork,andb r i n g h a p p i n e s s t o employeesd u e tomaintainwork-lifebalance(46).Well- beingemployeescaninturnbringouthappinesst o customer.Inresearchaboutabigsampleofthelarg estcompaniesallovertheworld,theree x i s t s a greatp o s i t i v e statisticalconnectionbetweenh a p p y s t a f f andc u s t o m e r satisfaction.E v e r y one- starincreaseinemployeesatisfactionresultin1.3percent improvementincustomersatisfaction scores(38).Intheindustrieswhereemployeeshavecloseandfrequentinteractionwith customers, likeEcommerce,thatnumbercanbedouble(38).

Thirdly,itwillcreatethebrandingofLazmallteam,orinotherword,increase thevalueofLa zmallteam,whichincreasestheencouragementforwillingnessanddesiretojointhisteamo f allage ntsinLazada.Theycanbeabletoseeinadvanceinbenefitstheycanget,fromthat,employeeswill tryharderandworkmoreeffectivelyto bechosenfor thisteam.

Ultimately,thisalternativesolutionhelpsincreasetheincomeofcompany,aswhentheteamreacht hetargetofservicequalityandincreasecustomersatisfaction,thechancethatcustomerrepurchasei n c r e a s e W h e n customersrepurchasemanyt i m e s , theyw i l l becomea brandadvertiserfort hecompany,whocanunintentionallyattracta lotmorepotential clients.

Alternativesolution2:Organizeabuddyprogram

Abuddyprogramisaknowledgesharingandonboardingmethodusedtoorientnewemployees,lett ingthemthechancetoquicklyintegratewithnewworkenvironment(48).Thei d e a ofthisalternativ esolutionistomaketenuredagentsplaytheroleasbuddiesofnewbiesi n pairu n t i l t h e newbiesre acht o normalp r o d u c t i v i t y atwork.T h e r e w i l l b e ana d d i t i o n a l targettoachieveofthebud dypairs,thatisbasingontheperformanceimprovementnewbiesw h i l e t h e tenuredagents‘perf ormances t i l l m a i n t a i n Inc a s e t h o s e pairsreachs u c h target,t h e y cangetanadditionalrewa rd.Mr.Khoaacknowledgedthat:

„ItiscrucialtobuildtheconnectionbetweennewandpresentLazmallagents,sothattheycansupp orteachothermoreeffectively.Itisimpossiblefortheteamleadertosidebysidew i t h newbiesal lthetime,sotherewillbemomentswheretheyfeellostandlackofcare‟(TranDang

The onboarding buddy program provides essential work context for new hires, which is crucial for their understanding of roles and contributions to team success Given that the tasks and KPI targets for Lazmall team members differ significantly from those of non-Lazmall teams, new agents may face challenges in adapting Additionally, buddies enhance employee satisfaction and boost productivity for both new hires and the organization This program is mutually beneficial, offering seasoned agents opportunities to practice and develop their leadership and management skills while reinforcing their own knowledge, ultimately fostering a deeper level of expertise.

Toensuret h i s program,theres h o u l d b e a clearworkloadl i s t andb e n e f i t s thancanbeack nowledgedbybuddies.Insomecase,reassignmentoftaskisneededtobalancewiththisactivity.At ransparentappraisalprogramshouldbegiventothebuddiesoncetheyreachorexceedtheexpect edtarget.Thebuddyshouldideallygoeswithnewhireinthreemonths–apropertimeforanagent toreachtheir stableperformance(27).

- Thebu dd ie s cannotbearw i t h t h e higherworkloadoncet he y havet o helpother,w h i l e havi ngto completetheirowntask

- Itstillneedsupervisorwhocancontrolthequalityofbuddiesduringtheirwork.Thatcanb e alittl e bitdifficultto monitor theKPIofbothtasks.

- Itimprovesemployees‘satisfaction.OnresearchofHarvardbusinessreviewshowedthatafterth eirfirstweekonthejob,newbiewithbuddyis23%moresatisfiedwithhisworkexperiencei n comparisonw i t h t h e o n e w i t h o u t b u d d y T h e n u m b e r o f differencei n satisfa ctionscoreincreaseto 36%inperiodof 90days(49).

- Ith e l p s b o o s t i n g p r o d u c t i v i t y andp e r f o r m a n c e o f t h e t e a m asa w h o l e T h e researchpointedoutthat,th e morefrequentb u d d y andn e w hirec an meet,t h e morepr oductive newhire‘sperformancewillbe(49).Intheirfirst90days,56%ofnewemployeesw ho haveatleasto n e m e e t i n g w i t h t h e i r b u d d y i n f o r m e d t h a t t h e y a r e e n a b l e d t o r a p i d l y becomeproductiveintheirrole.Thatnumbersurgedto73%forthosewhohavet wotothreemeetings,8 6 % f o r t h o s e commiti n eightt i m e s , and9 7 % f o r t h o s e w h o inte ractaboveeighttimesintheirfirst90days.(49)

- Moreimportantly,itcanlevelupthenecessaryskillsofthebuddiesandpreparethemselvesonc ethereisopportunityofpromotioninthecompany.Skillstenuredagentscanlearnwhensup portingothersare:communication,giving feedback,monitoring,etc.

Alternativesolution3:Changeinappraisalschemetomotivateagents

Asanalyzedi n previouspart,Lazmallagentsa r e lacko f m o t i v a t i o n d u e t o t h e appraisalsch emeofLazmallandnon-Lazmallaresimilar,whilethetargetforLazmallagenttoachievei s higherin

CSAT scoreandcall volumehandle.Theappraisalmethodapplyingin theteamisbygradingagentperformanceinthescaleof5formonthlyKPIincentiveandyearlyperfor mancereview.Currently,the solutionthatLazadaisapplyingto fixtheaboveissueis toa p p l y themaximumrating(rating5)forallLazmallinseveralmonthsofthecrisis,regardlesst h e actualperformanceofindividuals.

„InthefirstmonthsapplyingthisexceptionalKPIforourteam,theagentsfounditreallyexcit ed,becausetheycouldgetthefixedmaximumKPIincentive,whichisnoteasyatallt o achieve normally.Gradually,theytookitforgrantedandseemednotappreciatedthatanymore,asi tcausessomeunfairnessintheteam‟(NguyenThiCamTu,LazmallTeamleader,29yearsol d)

Top performers may feel it's unfair when their efforts exceed those of their peers, yet they receive the same incentives at the end of the month Conversely, some underperforming agents lack the motivation to improve Research indicates that financial incentives are intended to boost employee motivation by fulfilling their desires Motivation is the driving force that encourages employees to meet personal and corporate goals Thus, the motivation process should align with employees' needs while also achieving organizational objectives Employee needs are crucial in influencing performance, emphasizing the importance of rewards in maintaining the company's momentum For Lazmall agents, as demands increase, motivation strategies must adapt accordingly.

Withthecurrentincentive scheme,Lazmallteam‘s performancehasnot improvedinperforman ceinthelast6months,sotheauthorwouldliketorecommendalternativesolution3 , whichi s t o de signcleart a s k requirementsa n d benefitsf o r Lazmallagents,f o r t h e m t o appreciatethefactof beingaLazmallagent.

- Apply360degreefeedbackintheappraisalmethod,sothattheperformanceofagentscanbe moreaccurate.It‘salsoachancetomanagementteamandteammemberstocommunicateandgivingc omplimentstomotivateagentsandfeedbacktoimprovetheweaknesses.Thiswaycanhelptheteamto atthesametimeunderstandmoreeachotherasitinvolvesdatacollectionfrommultipledifferentrat ers(52).Thismethodhasbeensuggestedbypractitionersandresearcherst o b o o s t validitieso f p erformanceassessment,becausei t allowsamuchmorecomprehensivemeasurement thansingle- sourcerating one(52).

L a z m a l l agents‘b e n e f i t Alongw i t h t h a t , t h e c o m p a n y s h o u l d s e t u p a standardrangef o r Lazmallagents,incaseagentsarenotintherange,theyareineligibleforLazmallandwillcomebackt o Non-

Lazmallchannel.Thiswaycanmotivateagenttoalwaystrytoadaptwiththecriteriao f Lazmall.W h e n employeesachievehigherc o m p a t i b i l i t y betweent h e i r o w n competenceandthejobde mands,it is morelikelyto increaseworkengagement(53).

Cost ofteaching/training peopleon thenewprocess 70,000,000

• Ithelpsincreasei n d i v i d u a l p r o d u c t i v i t y – t h e a c t o f recognizingd e s i r e d b e h a v i o r increasest h e repetitiono f t h e d e s i r e d b e h a v i o r , andt h e r e f o r e p r o d u c t i v i t y T h i s i s classicbehavioralpsychology.Thereinforce dbehaviorsupportstheorganization‘smissionandkeyperformanceindicators (54).

• Boostingemployeesatisfactionandenjoymenta t workplace,ast h e higherincentiveencoura gesagentstospendmoretimefocusingonthetaskandremainlesstimecomplaining.Itisalsoproven that,positiveincentivehelpsencouragetheknowledgetransferamongstaff,whichfacilitatesthe irworkbetter(55)

• Directperformancefeedbackforindividualsandteamsisobjectivelyprovided,fromt h a t , employeeshavemoreaccurate point of viewabouttheirstrengthsandweaknesses.

• Higherl o y a l t y andsatisfactionscoresfromc u s t o m e r s , ast h e C S A T scorei s t h e fundamentalrequirementf o r LazmallC S t o s t a y int h e team.Inadditiont o t h a t , m o n e t a r y in centivesandrewardsareformsofcontrolledmotivation,whichcancreateefforttoadoptaclientorie ntation(54).

Solutionjustification

Based on a cost-benefit analysis of various alternatives, the author has scheduled a meeting with the management team to determine the best solution for the company Mr Thien noted that the budget for this investment is 800,000,000 VND, with a projected six-month timeframe to observe improvements He also highlighted that the process for proposing new appraisal schemes within the company is complex and time-consuming due to compliance with regional policies Literature suggests that forms of controlled motivation, such as external pressures like monetary incentives and rewards, can lead to negative long-term effects on work performance, causing stress and hindering creativity, focus, and overall employee behavior Consequently, alternative solution 3 is deemed unsuitable for Lazmall's current situation.

In addition to controlled motivation, there exists a second type known as autonomous motivation, which significantly influences employee behavior This form of motivation allows employees to engage in activities driven by personal enjoyment and intrinsic interest, as well as their own values and beliefs Mr Thien emphasized the importance of long-term impacts and the need for solutions that foster volunteer commitment among employees He supports both proposed solutions and suggests combining them for implementation within the Lazmall team.

„Teambu il di ng activitiesi s a n obviousw a y t o inspirea n d refresht h e w o r k i n g s p i r i t o f a gents,especiallyaftertheintenseofshoppingcampaign.Besidesthat,Iamreallyintothei d e a of organizingbuddyprogramfornewbies,sothattheteamcanalwaysmaintainthebehavi oro f s u p p o r t i n g eachother‟(PhamH o a n g T h i e n , CustomerServicemanager,3 8 yearsol d).

Thealternativessolution1and2focusontheintrinsicandidentifiedmotivationforemployees, bythatway,thedesiretoworkhardercanbeautonomouslysupportedbyfeelingso f enjoymentanda p p r e c i a t i o n canb e reinforcedrathert h a n t h e feelingso f obligationandpressure(54).

Organizebuddyprogramisconsideredasthemostappropriateonef o r Lazmall.T h e totalc o s t f o r t h i s s o l u t i o n i s 7 4 7 , 0 0 0 , 0 0 0 VND– w h i c h i s feasiblef o r Lazadatoimplement. Table15: Cost forselectedsolution

Changeplandesign

Objectives

- Consolidatingtherelation ofLazmallteammembers,especially relationbetweennewbie s andtenuredagents

Expectedoutcomes

The study highlights the significant impact of employee engagement on both employee and customer satisfaction Employee satisfaction is assessed through six key elements: pay, autonomy, task requirements, organizational policies, interaction, and professional status In contrast, customer satisfaction is measured using 14 criteria, including employee availability, pricing, payment methods, advice, friendliness, restaurant decor, cleanliness, food quality, variety, waiting time, promotions, operating hours, and exterior layout The findings reveal a strong positive relationship between frontline employee commitment and employee satisfaction, with a beta coefficient of 0.49 Additionally, the standardized coefficient indicating the effect of staff engagement on customer satisfaction is 0.31.

InanotherstudyofGhumanabouttheassociation betweenemployeeengagementandemployeep erformance,theresultshowedthat,foreachunitincreaseinthestaffengagementw i l l resultin 0.5 units intheperformanceofemployees(58).

Combinewiththein-depthinterviewswithMr.Thien,Mr.KhoaandMs.Tuwereconductedt o e x p l o r e t h e expectationfort h e changep l a n Theexpectedoutcomesfort h e selecteds o l u t i o n are:

Afters i x m o n t h s o f applyingt h e s o l u t i o n , t h e Q u a l i t y score,C S A T scoreandempl oyeesatisfactionscorew i l l b e observedt o checkw h e t h e r th e c h o s e n s o l u t i o n haveachievedt h e targetoutcomesofLazmall.

Planimplementation

TheactionplanhasbeenmadebasingonthebestsolutionchosenwhichistoDesignasetofteam buildingactivitiesandsolutionandorganizebuddyprogram.Thetimebouncefort h i s planis6m onthsfrom1 st of

June2020to1 st ofDecember2020.Withthelimitation ofresources,timeand budget,adetailedplanisdesignedforLazmalltoachievethetargetourcomeoflong-termbenefit asbelow:

Stages Task Description Objectives Personin charge

Makeaplan ofteambuildingactivitiesprop osal,includingpurpose,timelin e,budgetanddetailedofeachact ivities

Makeaplan of thebuddyprogramdefinition,purp ose,andh o w t o implement

Stages Task Description Objectives Personin c h ar ge

Finda meetingr oom withenoughequipmentlike:chair s,roundtable,whiteboardfortheteamtodiscussandsha reinteamhuddle

For Lazmall teamt o organizeweeklyanddailytea mhuddle

Findinganagency whichcanmeetrequirement:hasmorethan5yearsofex perienceinorganizingteambuildingforgroupofabove3 0members

Findingareasonableagencywhoh a s e xperiencei n organizingt e a m buildi ngactivities

Issuingt h e jobdescriptionf o r Lazmallt o getapplicati onformfromnon-

Deliver the training about Lazmall productknowledgefortheselectedback- upteam

Basingontheforecastvolumetoarrangetheteambuild ingactivitiesi n thetimewhenl e s s impactt o servicelev el

Toavoidt h e impacto n qualityo f ser vingcustomer

Stages Task Description Objectives Personi nc h ar ge

Buddy matching Letbuddiesandnewbieshaveashortconversationwi theachotherinturn,andthent h e y havetocompletea surveyofcharacteristic.Aftert h e surveyresulta n d aftercollectingfeedbackseparately,buddypairsared ecided

Selectthewell- performedpairsa n d givepraisef o r theminfrontofco mpany,alongwithreward

Stages Task Description Objectives Personinc h ar ge

Reporteva luation and Monthlyreport - Measuretheefficiencyof theplans

Conclusion

The study has identified a significant decline in customer satisfaction scores for the Lazmall channel on Lazada, which has adversely affected its net promoter score compared to other online shopping platforms Unhappy customers limit business growth and increase the risk of losing clientele Analysis of company data, interviews with key stakeholders, and feedback from customers revealed that the primary issue is the underperformance of customer service staff Three potential causes were identified: workplace stress, poor work engagement, and robotic staff interactions Among these, a lack of work engagement emerged as the main culprit, supported by primary data and literature The most effective solution proposed is a combination of team-building activities and a buddy program to enhance employee engagement.

Withtheproposedsolution,Lazadaexpectstoincreasetheworkengagementandmotivationo f e mployees,fromt h a t , LazmallC S agents‘performanceandsatisfactioncanb e boosted,whichcanin return increasecustomersatisfactionof thischannel.

Supportinginformation

Methodology

- Secondarydata:Lazadac o m p a n y structure,Internalr e p o r t o f Lazada,Literaturei n jou rnalsandresearches.

Interviewguide

Researchobjective:ToinvestigatetheproblemleadstodecreaseincustomersatisfactioninLazm alldepartmentin2019,whatisthemaincauseandproposethemostappropriates o l u t i o n t o s o l v e thatcause.

To explorethecriticalproblem thatleadsto lowcustomersatisfactionsymptom, andfindout them a i n causeofproblem

3 Thesolution Tofindout the mostappropriatesolution 5–10 minutes

What doyouexpectto bechanged,inordertoimprovethecurrentsit uation ofLazmallteam? x

What solutionscanyousuggestto solvethe above rootcause, inordertoincrease customersatisfaction? x x

What isyouropinion about theimpacto ftheabovesolutionandwhat arethepossiblerestrictions? x x

Transcript

Location:Lazada office,19 thfloor, Saigoncenterbuilding,67LeLoiStreet,Dist 1, HCM.

Workingexperience:Morethan10yearsofexperienceincustomerservice ofE- commerce i n d u s t r y

Linh:Goodmorning.Firstofall,Iwouldliketothankyouforspendingtimeforthemeetingw i t h m e today.Couldyoupleaseintroduceaboutyourself(name,age,workexperience)

Mr.Khoa:MynameisTranDangKhoaandatthemomentI‘mworkingatLazadawiththep o s i t i o n asHeadofcustomercareofLazadaVietnam.Ihavemorethan10yearsofexperienceincustomer serviceofE-commerce industry.

Mr.Khoa:Thiswasourbabyprojectforalongtimeandsofar,Lazmallremainsourfirstconcern foranyofourdecision.WewouldliketobuildastrongandeffectiveLazmallteam,i n ordertopull upthe experienceforLazadabuyers,byprovidingthema specialcare thatt h e y havenevergot before.

Mr.Khoa:Well,thecustomersatisfactionscoreofLazmallisnotasgoodasmyexpectation,e s p e c i a l l y sincethesecondhalfof2019.

Mr.Khoa:WewellawarethatLazadaalwayshavetodevelopand improvedaybydayto not beleftbehindbyourfriendsShopee,TikiandSendo.Consumersbecomewisertocomparebetwee nsellersinordertochoosethebestservice.Theyhaveacommunityonlineandeven

71 offlinet o shares h o p p i n g experienceo n Ecommerce.Hence,i f w e d o n o t s t a y focusf o r a seco nd,a smallmistake canbemadeandgonevi ra l, eventually customerswill got o other s h o p p i n g platform.

Linh:W h a treasonsd o yout h i n k aret h e c a u s e s f o r t h e l o w - p e r f o r m e d LazmallC S staff?W h i c h o n e is themostsignificantandwhy?

Mr.Khoa:Imyselfbelieve thatthe Lazmallagentsdidnot quite passionateindoing their bes t,althought h e y a r e v e r y goodatfirst.T h e y seemsn o t h a p p y w o r k i n g i n Lazmallandw i t h o u t a happyemployee,wecannot havehappycustomers.

Linh:W h a ts o l u t i o n s canyousuggestt o solvet h e a b o v e r o o t cause,i n ordert o increasecu stomersatisfaction?

Mr.Khoa:Themanagementteamshouldsitforawhiletounderstandtheagent‘svoiceandt h e i r difficulty,fromthere,wecanproposeasuitablesolution.Frommypointofview,itiscrucialt o b u i l d t h e connectionbetweenn e w a n d presentLazmalla g e n t s , s o t h a t t h e y cans u p p o r t eachothermoreeffectively.Itisimpossiblefortheteamleadertosidebysidewithnewbiesall thetime, sotherewill bemomentswheretheyfeellost andlackofcare

Mr.Khoa:T h ec o n n e c t i o n o f teamm e m b e r w i l l increase,andt h e agentsw i l l e n j o y t h e i r workmore,besidesthestresstheyaredealingeveryday.It‘sreallydifficultfor ustoorganizea teamactivityforLazmallteam,becauseofthenature ofcustomerservice,agentsarealwayshavetohandlecustomers‘inquiriesalldaysofweek,from7amt o10pm.Therefore,theteamhasto work in shiftandthe workingshifts aredifferenttoeachother.

Mr.Khoa:Well,Ithink,therecanbesomecoursetoupskilltheLazmallCSstaff.Throught h e yea rlyemployeesatisfactionsurvey,w e a r e well- acknowledgeda b o u t t h e demando f developingi n s k i l l o f ouremployees.Hence,o u r p r i o r i t y n o w i s t o u p - s k i l l o u t agent,f o r t h e m t o h a v e betterperformanceandgetmoving fasteron theircareerpath.

Workingexperience:Morethan12yearsofexperienceincustomerservice ofE- commerce i n d u s t r y

Linh:Goodmorning.Firstofall,Iwouldliketothankyouforspendingtimeforthemeetingw i t h m e today.Couldyoupleaseintroduceaboutyourself(name,age,workexperience)

Mr.T h i e n : MynameisPhamHoangThien,I‘mtheCustomerServicemanagerofLazadaVietna mandI ha ve m o r e t h a n 1 2 yearso f experiencei n customers e r v i c e o f E - c o m m e r c e i n d u s t r y

Mr.T h i e n : Ihaveb e e n d i r e c t l y interviewing a n d p i c k i n g o n e byonet o Lazmallteam,i n ordertomakesuretheirqualitymeetsourexpectationatfirst.Thisisthereasonwhyduringt h e operationperiod ofLazmall,Ihardlyinvolvedin theperformanceofstaff

Mr.T h i e n : C S A Tsc or eo f Lazmallteamhasbeena crisisi n t h e l a s t quarterof 20 19 t h a t dra wsconcernfromnotonlyLazadaVietnam‘sCEObutalsotheregionalmanagementteam.T h i s refl ectst h e factt h a t allt h e customers‘a t t i t u d e towardLazmallt e a m hasb e e n goneagainstoure xpectationofgivingcustomersabetter online shoppingexperience.

Mr.T h i e n : T h eK P I ofLazmallteami s a c r i s i s problemi n t h e s e m o n t h s , w h i l e allt h e numbersoftransactionquality,responsespeedarefalling,andthenumber ofbacklogsincreasesmoreandmore.Thisisunacceptableduetothefactthatwehaveselectedthe bestperformedagenttoworkhere.ThesuddenlyhighvolumeinLazmallchannelmostlyhappens

72 duringtheMegaonlineshoppingcampaignofLazada,mainly inNovemberandDecember.F orrest of theyear,wecanalwayscontrol theforecastascloseasrealvolume.

Linh:W h a treasonsd o yout h i n k a r e t h e c a u s e s f o r t h e l o w - p e r f o r m e d LazmallC S s t a f f ? W h i c h o n e is themostsignificantandwhy?

Mr.Thien:Inmyopinion,theCSagentsthemselvesarehavingproblemwiththeirskill.Al ot ofcustomers‘feedbackthattheyarerespondinglikerobot,withoutfeelingandempathy.A t firststageofLazmall,wehavenotfocusedm uc h onthetraininganddevelopmen t.The reason behindiswewanttheserviceleveltobestableallthetime,meansagentscannotleavef o r l o n g trainingduringoperationtime.Outsideworking time,theyseemtiredandmanyhavet o staytocleartheirbacklog.Wedonotwanttoputmorepress ureonthemabouttoomanythingstoachieve.

Linh:W h a ts o l u t i o n s canyous u g g e s t t o s o l v e t h e abover o o t c a u s e , i n ordert o i n c r e a s e customersatisfaction?

Mr.Thien:Ithinkweshouldinvestmoretime andcostinteambuildingactivityforLazmall,asrightnow,thespiritofthemembersisnotsopositive. Weseeverylowstaffturnoverratei n Lazmallteam,therefore,weourselvesconsiderthatconsolida tingworkengagementinthatteamisexcessive.Butmaybewehavenotappropriate ly apprecia tedthisissue,untilw i t n e s s i n g thegoodperformersinnon-

Mr.T h i e n : Teamb u i l d i n g a c t i v i t i e s i s ano b v i o u s waytoi n s p i r e andrefresht h e w o r k i n g spirit o f agents,e s p e c i a l l y aftert h e intenseo f s h o p p i n g campaign.However,w e s h o u l d concernaboutthetime toscheduleandcost.

Mr.Thien:Besidesthat,Iamreallyintotheideaoforganizingbuddyprogramfornewbies,s o th attheteamcanalwaysmaintain thebehaviorofsupportingeachother

Mr.Thien:It‘smypleasure Haveaniceday.

Linh:Goodmorning.Firstofall,Iwouldliketothankyouforspendingtimeforthemeetingw i t h m e today.Couldyoupleaseintroduceaboutyourself(name,age,workexperience)

Ms.Tu:MynameisTuandI‘mworkingasaLazmallTeamleader.I‘m29yearsoldandIhavemoret han 5yearsofexperienceincustomerserviceofE-commerce industry.

Ms.Tu:TheCSATofLazmallteamhadbeenalwaysretainedovertargetof90%sincethefirstday westarted.However,recently,thatnumberbecomesthemostseriousconcernforallo f us.Therear etoomanycustomersraiseDSATeverydaythatitbecomesmoredifficultforu s t o increasethe overallscore.

Ms.Tu:Forexternalreason,It h i n k i t ‘ s b e c a u s e o f d e l i v e r y i s s u e Rightn o w , all o u r shipmentprovidersareo u r partners,n o t o u r subsidiaries(evenL a z a d a express–

Lex).We havea s e p a r a t e c o n t r a c t betweenLazadaa n d t h e t h i r d partyl o g i s t i c , howeve r,w e acknowledgethattheydoserveotherbusiness,likeShopee,Tiki,etc.Becauseofthat,inthehi ghs e a s o n o f salesw i t h highvolumeso f o r d e r s i n alle- commerces i t e s , problemw i t h d e l i v e r y h a p p e n themostoften.Forinternalreason,Laz mallagentshavetolearnandrememberbothLazmallandnon-LazmallSOP,whichissounpleasantandunfairforthem.

Linh:W h a treasonsd o yout h i n k aret h e c a u s e s f o r t h e l o w - p e r f o r m e d LazmallC S staff?W h i c h o n e is themostsignificantandwhy?

Ms Tu highlighted the stress experienced by the team due to the high volume of customers, particularly during campaign seasons The Lazmall customer service team is required to work overtime, as there are no backup resources available Recently, the actual number of incoming calls has significantly exceeded forecasts, with December expected to handle 1,000 calls per day but actually receiving around 1,500 This increase in call volume affects the service level targets, and it’s important to note that the agents cannot be solely blamed for this situation Initially, Lazada set low recruitment standards for customer service agents, accepting candidates straight out of high school, many of whom have limited computer experience.

Linh:W h a ts o l u t i o n s canyous u g g e s t t o s o l v e t h e abover o o t c a u s e , i n ordert o i n c r e a s e customersatisfaction?

Ms.Tu:Actually,wearefixing thesituationbyofferingthemaximumlevelofKPIincentivef o r allagentsLazmall.Int h e firstm o n t h s applyingt h i s exceptionalK P I f o r o u r t e a m , t h e agentsf o u n d i t r e a l l y e x c i t e d , beca usetheyc o u l d gett h e f i x e d m a x i m u m K P I incentive,whichisnoteasyatalltoachievenor mally.Gradually,theytookitforgrantedandseemedn o t appreciatedthatanymore,asitcausesso meunfairnessintheteam.Therefore,Isuggestchangingtheschemeofapplyingappraisal,inafairer way,likebasingo n 360degreefeedback.

Ms.T u : It h i n k a newappraisalschemew i l l e f f e c t i v e l y worki n termso f m o t i v a t i n g t h e agentstotryharderandperformbetter.However,accordingtoourhumanresourcespolicy,on ceagenti s internaltransferredw i t h i n samedepartment,customercare,t h e i r salarya n d appraisal cannotbechangeduntilendoftheirlaborcontract.Thisisthereasonwhy,sofar,t h e s a l a r y a ndb o n u s rangef o r n o n - L a z m a l l andLazmallagentsareq u i t e similart o eachother.

Linh:ThankyousomuchMs Tu forspendingyourvaluabletimewithme todayfortheinterview.Wishyouafruitfulworkingday

Ms.Tu:You too,goodbye.

Interviewer:HoHoangVietLinhIntervi ewee:Ms DuongThi

Linh:Goodmorning.Firstofall,Iwouldliketothankyouforspendingtimeforthemeetingw i t h m e today.Couldyoupleaseintroduceaboutyourself(name,age,workexperience)

Ms.Suong:HelloMs.Linh,mynameisDuongThiSuongandI‘mtheLazmallagent.Ihavebeenwork ingwithLazada formorethan 1year.

Ms.Suong:Ithinkbecausecustomershaveincreaseindemand.Whencustomerscomplaintou s , th eyalwayscomparethatwhyShopeeandTikiagentsprovidesolutionfortheminthiswaybutL azadaagentsanswerinotherway.Theyalsocomparethepolicy,theproductsandt h e pricewith otherplatforms.Theyshouldbeunderstoodthatdifferentonlineplatformhasdifferentpoli cyandwejust follow ourpolicy.

Linh:W h a tareyourdifficultiess o fart h a t l e a d t o decreasei n yourperformanceandt h e w h o l e Lazmallteam'sinrecentmonth?

Since joining Lazmall, I've noticed a decline in my performance We often rush through calls, which leads to us neglecting to ask customers if they have any further issues—a requirement for maintaining quality scores As a result, our quality assurance scores suffer during audits Our team leader emphasizes the importance of minimizing wait times for customers, leaving us with little room to ensure thorough service.

Ms.Suong:IhopetheprocessofLazmallcanbemoresupportiveandfasterforcustomers,other wise,theyw i l l k e e p comparingandcomplaining.Inadditiont o t h a t , I h o p e L a z m a l l teamcan co-operatewitheachotherbetter,especiallywhenthere‘ssomeonenewjoiningtheteam.

Linh:W h a ts o l u t i o n s canyous u g g e s t t o s o l v e t h e abover o o t c a u s e , i n ordert o i n c r e a s e customersatisfaction?

Ms.Suong:Isuggest thereshouldbesomesharingsessionbetweentheexperiencedagents tonewbieslikeme.

Ms.Suong:Thebenefit isnewbiescanimprovethequalityscoreandhavechancetolearnthewaytodealwithdifficultcustom ersfromtenuredagents.Therestrictionistime,becausewehaveto onlinewithcustomers8hoursperday.

Ms.S u o n g : Ih o p e Lazmallteamcanc o - o p e r a t e w i t h eacho t h e r b e t t e r , e s p e c i a l l y whenthere‘ssomeonenewjoiningtheteam IremembermonthsagowhenIfirstjoinwithLazmallteam,Ifinditdifficulttogetonwithtenureage nts.Wehardlytalkedtoeachother becauset h e y onlycommunicatewith some oftheirclosecolleagues.

Linh:ThankyousomuchMs Suongforspendingyourvaluabletime with meto dayfor theinterview.Wishyouafruitfulworkingday

Ms.Suong:Thankyou,mypleasurefor thissharing.

Linh:Goodmorning.Firstofall,Iwouldliketothankyouforspendingtimeforthemeetingw i t h m e today.Couldyoupleaseintroduceaboutyourself(name,age,workexperience)

Ms.Quyen:HelloMs.Linh,mynameisDoMaiQuyenandI‘manewbieofLazmallagent.I havebee n workingwithLazada forjust less than3 months.

Ms Quyen highlights that over 50% of customer complaints in LazMall are related to issues with received items and order tracking She notes that products fulfilled by Lazada often miss promised freebies, leading to systematic problems Additionally, logistical challenges with their partners result in increased customer complaints While customers opting for Express service expect timely delivery for urgent needs, many express dissatisfaction with Same Day delivery when it fails to meet the promised timeline Ms Quyen emphasizes that these delays are beyond their control and cannot be addressed by pushing third-party logistics (3PL) providers.

Linh:W h a tareyourdifficultiess o fart h a t l e a d t o decreasei n yourperformanceandt h e w h o l e Lazmallteam'sinrecentmonth?

Ms.Q u y e n : W h a tmakesm e distractedt h e m o s t i s t h e n o i s e w e areh e a r i n g e v e r y day?U s u a l l y inthepicktimeoftheday,whenvolumeishigh,theupper– levelpeople,liketeamleaderandServicelevelmonitorarescreamingloudlytourgeustodomoreq uickly.Wefeelr e a l l y stressedbecauseofthat noise, while w eare very focusinginour ta

78 sk.Inadditionto t h a t , almostthetrainingswecanjoinrelatedtotheSOPofLazmalltraining.Weha rdlyhave chancetojoinanysoft- skilltrainingofcompany.Maybebecauseoftheupdatesinknowledgei s t o o m u c h , s o w e havet o p r i o r i t i z e t h e t i m e f o r S O P training,t o m a k e s u r e w e alwaysdelivercorrectsolution.Oth erwise,ourqualityscorewill bedown seriously

Ms.Q u y e n : IexpectLazadacanimprovet h e productq u a l i t y andt h e logisticpartneri n futur e.Inthemeantime,Ihopethenoiseissuecanbesolvedsoon,especiallyduringcampaigntime.

Linh:W h a ts o l u t i o n s canyous u g g e s t t o s o l v e t h e abover o o t c a u s e , i n ordert o i n c r e a s e customersatisfaction?

Ms.Quyen:ThestandardoperationprocessofLazadaislong,soittakestimeforustorecallknowledg ew e w e r e t r a i n e d Itw o u l d b e greatifw e canh a v e immediates u p p o r t fromo u r peer,asyouk now,althoughmyTeamleaderdoessupporttoanswermyquestion,buttherearemanytimessheis busywithhertasks,ormaybeshejoinedmeetingwiththemanager.Ih o p e everyonein theteamcandiscussmore andshareexperienceaswell

Ms.Quyen:IbelieveLazmall‘squalityscoreandCSATscorewillincrease,becausewecangivequ icksolution to customerwithourpeers‘support.

Lazmallagent,anditwasthetimewhentherewaslacko f headcountamongLazmall,I w a s intervi ewedandforcedt o transfert o t h i s channel.Themanagementteamtoldmethatitispromisingove rthere,butinfact,Iseemoredifficultiesd o i n g Lazmallchannel.T h i s i s t h e reasonI‘mn o t h a p p y w o r k i n g i n t h i s t a s k Therefore,IsuggestthattheprocessofrecruitingLazmallagentsshoul dbechanged,basingo n b o t h interestandperformanceofemployees.

Linh:ThankyousomuchMs.Quyenforspendingyourvaluabletime with meto dayfor theinterview.Wishyouafruitfulworkingday

Linh:Goodmorning.Firstofall,Iwouldliketothankyouforspendingtimeforthemeetingw i t h m e today.Couldyoupleaseintroduceaboutyourself(name,age,workexperience)

Ms.MinhAnh:Goodmorning,mynameisHoangMinhAnhandIhavemorethan3yearss h o p p i n g onlineon variouswebsite,includingLazada.

Lazadaa d v e r t i s e s a l o t o f b e n e f i t f o r customersb u y i n g Lazmallproducts.I expectano utstandings e r v i c e quality.H o w e v e r , w h e n I h a v e problemw i t h the itemreceived,the wa ythata LazmallC S handlemyissueis similartothetime I boughta normalp r o d u c t andc o n t a c t e d t o non-Lazmalla g e n t s I d i d n o t seeanyspecialp r i o r i t y regardingthepost- purchasesupporthere‘.

Linh:What doyouexpectwhencontacting customerservice staffofLazmall?

Ms.Minh Anh:Fasterresolution,lesswaitingtimeandnicerbehavior

IchoseLazmallproductbecauseLazadaguaranteegenuinequalityandanexpressdelivery.Lasttime, IboughtaLazmallpurse formyfriend‘sbirthday,b u t t h e y d i d n o t delivero n t i m e andi t ruinedmyplan,s u c h a t e r r i b l e experience.

Ms.MinhAnh:Quitelackofresponsibilityintermsofsolvingcustomer‘sissue.Ifeelliket a l k i n g w i t h a r o b o t w i t h n o understandingandn o e m p a t h y t o customer.T h e answertheyprovi deis not intime,whichmakesmefeelirritated.

Linh:What isyoursuggestion toLazmallcustomerservice teamto makecustomer happier?

Ms.M i n h A n h:T h e y s t a f f s h o u l d bem o r e caringands p e n d i n g m o r e t i m e t o u n d e r s t a n d customersbetter,likeagentsinTiki.ApparentlytheLazmallfrontlinestaffisansweringmel i k e arobot,allofthemanswersimilartoeachother.Forexample,whenshowingempathytocustom er,everytimeIcontact,theyalwayssay:―Wearesosorryfortheinconvenienceyouarefacing‖.Ifeell iketheydonotreally empathizewithme.

Linh:ThankyousomuchMs Minh Anhforspendingyourvaluabletimewith metodayfort h e interview.Wishyouafruitfulworkingday

Ms.Minh Anh:Ok.Thankyouandhaveagooddaytoo.

Interviewer:HoHoangVietLinhIntervi ewee:Ms.NguyenThucHienTitle:Laz mallcustomer

Linh:Goodmorning.Firstofall,Iwouldliketothankyouforspendingtimeforthemeetingw i t h m e today.Couldyoupleaseintroduceaboutyourself(name,age,workexperience)

Ms.ThucHien:Goodmorning,mynameisNguyenThucHienandIhavemore than1yearss h o p p i n g onlineonLazada.

Ms.ThucHien:Yess o m e t i m e I expectgoodquality.However,w h e n I p u r c h a s e d o n

Lazmall,t h e items t i l l g o t problemsl i k e wr on g delivered,b r o k e n o r m i s s i n g freebies.T h i s r e a l l y gotmelosehopeaboutLazmallproductsingeneral,becauseIknowthatIhadtopaymore, but thequalitystill not too outstandingandworthy.

Linh:What doyouexpectwhencontacting customerservice staffofLazmall?

Ms.T h u c Hien:W e l l ,I j u s t h o p e theycanu n d e r s t a n d mysituationa n d resolvei t atfirstplac e.I d o n o t wantt o contactmanyt i m e I d o n o t wantt o waiti n l o n g t i m e f o r t h e resolu tion.

Ms.ThucHien:Badcustomerservice.Theypromisemeagainandagainandaskmetowaitf o r 48h ours morethan t w o times I amloosingtrustto Lazmallservice.The CSstaff was t a l k i n g to mesoroboticandunfriendly,liketheyarein rush.

Linh:What isyoursuggestion toLazmallcustomerservice teamto makecustomerhappier?

Ms.ThucHien:Theystaffshouldimprovetheirsofts- killandshouldbefriendliertocustomers.Inadditionto that,w e expectanappropriates o l u t i o n t o Lazmallcustomers,providedbythestaffinaprofessionalmanner.

Linh:ThankyousomuchMs ThucHienfor spendingyourvaluabletimewith meto dayfort h e interview.Wishyouafruitfulworkingday

Interviewer:HoHoangVietLinhInterviewe e:Mr.NguyenDucHungTitle:Lazmallandn on-LazmallcustomerAge:28yearsold

Linh:Goodmorning.Firstofall,Iwouldliketothankyouforspendingtimeforthemeetingw i t h m e today.Couldyoupleaseintroduceaboutyourself(name,age,workexperience)

Mr.H u n g : G o o dmorning,myn a m e i s NguyenD u c H u n g andI h a v e m o r e t h a n 2 yearssh opping onlineonLazada.

Mr.H u n g : Yes,o f c o u r s e BecauseI expectbetterproductq u a l i t y w i t h m o r e guarantee p o l i c y fromLazada.SometimeIalsobuynon-Lazmallproductsaswell.

Linh:What doyouexpectwhencontacting customerservice staffofLazmall?

Mr.Hung:IdonotunderstandwhysometimeIcallLazada,thestaffasksformyissuesandstatedt h a t t h e y u n d e r s t o o d myissue,b u t t h e y askedm e t o waitf o r t h e m t o transfert o Lazm allcustomerservice staff.Itreallytakesmytimeandsometime,Idecided to hangup thep h o n e becauseo f t h a t I d o n o t carew h o w i l l solvemyproblem,I j u s t wantt o havet h e s o l u t i o n i n time.

Mr.H u n g : N o tasgoodasmyexpectation.Sometimesproblemsw i t h itemreceiveds t i l l happe ned,andthe deliverytime is notalwaysaspromised

Linh:What isyoursuggestion toLazmallcustomerservice teamto makecustomerhappier?

Linh:ThankyousomuchMr Hungforspendingyourvaluabletime with me to dayfortheinterview.Wishyouafruitful workingday

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