INTRODUCTION
Introduction
In the past, consumers primarily focused on saving money and the quality of goods due to limited options and an underdeveloped economy Today, however, with the growth of the economy and an increase in businesses offering similar products, customer care has become a crucial factor in purchasing decisions Shoppers now prioritize the comfort of their shopping experience and the benefits of loyalty to a store According to a 2021 HubSpot Service Blog report, 67% of customers are willing to pay more for a superior customer service experience.
In today's digital age, characterized by rapid advancements in communication technology and the influence of social networks such as Facebook and Instagram, the significance of customer care has become increasingly vital for business success With easy access to customer reviews online, effective customer service not only enhances brand reputation but also serves as a powerful marketing tool, making it a top priority for businesses aiming to thrive in a competitive landscape.
Initially, customers may choose to purchase a product based on its price and quality, but exceptional customer care ultimately determines their loyalty to your store In today's competitive market, enhancing customer satisfaction directly correlates with increased profits Recognizing this, many businesses implement programs aimed at attracting and retaining customers while investing in training skilled customer service representatives A 2019 report by Business Queensland indicates that approximately 80% of companies consider customer satisfaction a key performance indicator.
Background of the study
Customer care is essential for the survival of businesses, as it directly impacts customer retention According to a 2020 report by Entrust Consulting Group, 47% of customers will stop purchasing from a company after a negative experience, while 76% find it easier to switch to a competitor Furthermore, 91% of dissatisfied customers will leave a brand without voicing their complaints These statistics underscore the importance of prioritizing customer care to maintain a loyal customer base in today's competitive market.
Customer care and customer service are often misunderstood as the same concept, but they are distinct Customer service focuses on providing assistance and resolving issues related to products after a purchase, such as handling complaints about shipment delays or facilitating product exchanges In contrast, customer care encompasses a broader approach, emphasizing the overall relationship and experience with customers beyond just transactional support.
Building a personal and emotional connection with customers is essential for exceeding their expectations and understanding their needs throughout the entire purchasing journey By empathizing with customers from pre-purchase to post-purchase, businesses can ensure that customers feel valued as individuals rather than just another number This approach fosters loyalty and attracts customers away from competitors.
Vietnamese businesses, characterized by their youth and dynamism, are actively keeping pace with market trends, particularly in customer care during this integration era Canifa Joint Stock Company exemplifies this commitment, having established itself as a leading fashion brand in Vietnam over the past 21 years With a nationwide distribution network and a diverse customer base, Canifa has implemented various customer care initiatives, including loyalty programs, voucher promotions, and gift-giving schemes, to enhance customer engagement and satisfaction.
However, it may be a misconception to state that the more customer care programs the more customers and profits your business will get The programs must be of buyers’
The effectiveness of customer care programs is crucial for businesses to remain competitive, as they can significantly impact customer satisfaction and loyalty This research focuses on the Canifa Joint Stock Company to assess the success of its customer care initiatives By evaluating these programs, companies can identify unique strategies that are more appealing to customers compared to their competitors.
Objectives of the study
The study aims at evaluating some customer care programs of Canifa Joint Stock company in 2021.
Significance of the study
The study is a reference for Canifa to make changes for its customer care programs
More effective ones will reduce cost burden for the company because retaining existing customers is significantly cheaper than acquiring new ones (Customer care statistics)
Enhancing customer care will significantly boost Canifa's brand value, strengthen its market competitiveness, and attract a broader customer base The dedicated Customer Care Department at Canifa plays a crucial role in achieving these goals.
This research evaluates the effectiveness of programs, providing Canifa's customer care employees with valuable insights into their project outcomes The findings will help identify which initiatives should be prioritized for promotion and which require innovation or discontinuation Ultimately, the researcher aims to enhance the performance of Canifa's Customer Care Department, fostering continuous improvement for the future.
The thesis indirectly helps Canifa’ s customers have better buying experiences in the future so that we could actually create a customer-centric business environment
Scope and limitations of the study
This study evaluates the outcomes of customer care initiatives implemented by Canifa Joint Stock Company, concluding in 2021 It specifically examines voucher-giving programs, focusing on redemption rates and sales performance Additionally, the research assesses gift-giving programs by measuring their effectiveness through customer satisfaction levels.
This study acknowledges several limitations despite the availability of sufficient statistics to analyze the effects of the researched programs Firstly, the programs examined are from 2021, a year significantly impacted by the Covid-19 pandemic, which likely altered customer buying behavior due to factors such as reduced income and a reluctance to visit crowded shopping areas Consequently, the findings may not accurately reflect the long-term potential of these programs Additionally, the research was constrained by time, focusing solely on specific customer care initiatives at Canifa in 2021, rather than encompassing all of the company's customer care activities Lastly, a survey conducted by Miss Linh from the customer care department to assess customer satisfaction with Canifa's gifts in 2021 received limited responses, further impacting the comprehensiveness of the findings.
In 2021, Canifa identified only 212 customers eligible for gifts, a figure that represents a minuscule fraction of their target customer base Consequently, the limited sample size hinders the ability to draw comprehensive conclusions about the effectiveness of Canifa's gift program based solely on these findings.
Definition of terms
Retain: to continue customers shopping at your company after their first buying decision
Loyal customers consistently prefer your company’s products over competitors and actively recommend them to others, forming a vital customer base for businesses.
Loyalty policy: Beneficial policy for loyal customers such as a certain discount voucher for every time shopping at the store or point-giving to exchange for products in the future
A diamond customer at Canifa is defined as a loyal shopper who has spent a minimum of 15 million VND within a twelve-month period This prestigious customer tier represents the highest level of patronage, granting members access to the most extensive benefits and rewards offered by Canifa.
Customer-centric: the way businesses consider their customers a center to create products and services in order to bring back the most excellent and interesting experiences.
Structural organization of the study
Chapter 2: Review of related literature
REVIEW OF RELATED LITERATURE
Literature review
In the early days of the supply industry, customer care was often overlooked, yet its significance to business success is undeniable As the industry evolved, extensive research on customer care, including aspects such as customer satisfaction, service quality, and customer retention, has been conducted globally This body of work highlights the critical role of effective customer care in driving business growth and maintaining competitive advantage.
A master thesis by Yen Nee NG (2005) explores customer satisfaction, return intention, and word-of-mouth endorsement in university dining facilities The study identifies key determinants of customer satisfaction, including food quality, service quality, convenience, atmosphere, price, and value A questionnaire was administered to students from freshman to graduate levels at Oklahoma State University during the spring semester of 2005 The analysis revealed that all five elements positively influence customer satisfaction, with a strong correlation between student satisfaction and their intention to return.
Seyed Ali Araghchi's 2007 master thesis, “Service Quality, Customer Satisfaction, Customer Experience and Behavioral Intention in Iranian Retail Stores,” explores the critical factors influencing customer satisfaction and experience within Iran's Hand-woven Carpet industry The research highlights the essential connection between customer satisfaction and experience, emphasizing that businesses must align their perspectives with those of their customers It posits that while customer satisfaction leads to loyalty, it is outcome-oriented, whereas customer experience is process-oriented and offers deeper insights by requiring attention to detail.
The research highlights that satisfaction arises naturally when one focuses on the experience To ensure reliable conclusions, the researcher employed various methods, including literature review, expert consultations, and sample group interviews However, the study is laden with numerous concepts and definitions, and the data analysis involves complex mathematical calculations, which may hinder reader comprehension.
In her 2011 master thesis, "The Relationship between Customer Satisfaction and Service Quality: A Study of Three Service Sectors in Umeồ," Jenet Manyi Agbor investigated the connection between customer satisfaction and service quality across various service sectors Utilizing a sampling technique to collect quantitative data from customers of Umeồ University, ICA, and Forex, the research revealed a significant relationship between service quality and customer satisfaction, highlighting the crucial role of "reliability" in this dynamic.
“empathy” are factors mostly based on by customers to assess these two
In her 2015 master thesis titled “Customer Care at Hanoi Telecommunications Company,” Mrs Nghiem Thi Phuong evaluates the current state of customer care at VNPT The study identifies the company's strengths and weaknesses in comparison to its competitors and offers recommendations for enhancing the customer care department through analysis, comparison, statistical methods, and investigative approaches.
In her 2018 graduation thesis, "Assessing Service Quality of Customer Care at Hue Co.opmart Supermarket," Trinh Thi Phuong Oanh evaluated the effectiveness of customer care services at the supermarket The study analyzed customer feedback and identified key factors impacting service quality, leading to recommendations for improvement The researcher assessed various customer care initiatives, including free gift wrapping, complimentary bus tickets, and order-taking via phone and vouchers Ultimately, the thesis proposed enhancing reliability and responsiveness as crucial solutions to elevate customer care quality.
In conclusion, all the studies above mentioned detailedly roles of customer care in a business, factors affecting customers’ satisfaction and meaning of customer
While previous research has explored customer satisfaction across various sectors, none have specifically focused on the fashion industry, highlighting a gap in understanding customer care within this unique context The customer care activities of fashion companies, such as Canifa, exhibit distinct characteristics that warrant further investigation This study primarily examined specific customer care programs implemented by Canifa in 2021, rather than providing a comprehensive analysis of the overall customer care system, unlike the works of Trinh Thi Phuong Oanh and Nghiem Thi Phuong.
Theoretical and Conceptual framework
A customer is defined as an individual or organization that seeks to fulfill a need through products and services, ultimately leading to a purchase decision Peter F Drucker, a pioneer in management, described customers as a collection of individuals and groups with a demand for products and services Tom Peters emphasized the significance of customers as valuable assets that are not reflected in financial records, urging businesses to treat them as a vital capital source that requires careful management and nurturing.
In the market, two commonly used terms to define individuals engaging with businesses are "client" and "customer," which have distinct meanings A "customer" refers to a person or organization that regularly shops, directly participating in transactions and interacting with business employees For instance, customers visit stores to purchase items such as clothing, food, or beverages.
The sales cycle is relatively short, while a "client" refers to a customer utilizing services and products from suppliers, typically in sectors like law, finance, media, or investment For instance, a client may subscribe to a monthly internet package from a telecommunications provider or hire a lawyer from a law firm Unlike customers, clients often experience a longer sales cycle, but if they are satisfied with the services provided initially, they are more likely to become loyal customers.
2.2.1.2 Category of customer a Importance of customer categorization
Customer classification involves segmenting customers into distinct groups based on shared characteristics By identifying common traits within these groups, businesses can tailor their strategies and approaches to effectively meet the specific needs of each segment.
Customer classification is vital for businesses to tailor customer care policies effectively It enables companies to pinpoint their target audience, allowing them to offer products and services that align with customers' age, job, and location Additionally, understanding specific customer segments facilitates the acquisition of new clients and helps address their hesitations during the purchasing process, ultimately boosting sales Furthermore, categorizing customers aids businesses in aligning their objectives with customer needs, ensuring they meet the demands of various groups effectively.
Effective customer care not only facilitates the development of marketing campaigns but also optimizes expenses and time By prioritizing customer service, businesses can achieve a high closing rate, ultimately leading to significant sales growth Understanding customer categories further enhances this process.
Depending on different criteria, customers can be of various types In this study, the author groups customers based on the following criteria:
A potential customer is someone who has not yet purchased a business's products or services but may do so in the future For instance, an individual seeking new clothing represents a potential customer for fashion brands such as Canifa.
Travelers are customers who may make a one-time purchase from a business, or they might occasionally shop at a store without having registered for a membership account.
A loyal customer is someone who consistently purchases from a company, demonstrating a strong preference for its products and services This loyalty persists even in the face of minor changes, such as fluctuations in price, variations in product patterns, or adjustments in quantity.
Categorizing according to the perspective of quality management:
Quality management emphasizes that customers are holistic individuals whose needs for product and service quality must be met by businesses According to this perspective, customers can be categorized into two distinct types.
An internal customer refers to individuals connected to a business, including employees, shareholders, and stakeholders, who benefit from its operations This perspective views the entire production or service delivery process as a supplier-customer chain, where each participant serves as both provider and buyer The quality of products and services largely depends on the creators involved in the process.
To create a productive work environment, businesses must prioritize employee well-being by addressing their challenges and needs while implementing recognition programs for outstanding individuals These initiatives foster loyalty and enthusiasm among employees, maximizing their potential Additionally, it is crucial for business managers to carefully select the right team members and establish effective training policies to ensure ongoing development and success.
External customers encompass all individuals and entities with whom businesses engage in the market, including buyers, consumers, authorities, and social organizations They play a crucial role in generating revenue and shaping the reputation of brands.
2.2.1.3 Customer expectation, customer experience and customer satisfaction
Customer expectations are established prior to engaging with a business's services and encompass all the desires and needs that customers anticipate being met by the products and services they utilize.
This diagram below shows sources of customer expectation
Diagram 2.1: Formation of customer expectation
Source: Master thesis “Customer care at Hanoi Telecommunications Company”,
Among the four sources of customer expectations, only advertising is fully controllable by businesses To attract buyers, brands must create compelling advertising campaigns; however, these ads should be truthful and not exaggerate the capabilities of the business This approach helps prevent customer dissatisfaction that may arise when their expectations exceed their actual experiences with the brand.
According to a study of Hà Nam Khánh Giao (2005, pg 57), expectation levels of customers include:
- Await - want or hope to receive
- Adequate - the least level of service accepted by customers
- Accepted zone - between ideal and adequate level
- Forecast - believing that they will respond under any circumstances
Advertisement, spread word of mouth
Diagram 2.2: Model of customer expectation
Source: Master thesis “Customer care at Hanoi Telecommunications Company”,
Expectation of customers should be managed so that businesses can satisfy customer expectation which is corresponding to their reality:
RESEARCH METHODOLOGY
Locale of the study
Founded in 2001, Canifa is a subsidiary of Hoang Duong Commercial and Service Joint Stock Company (HDText Group), established to meet the growing local demand for high-quality and diverse wool and yarn products The brand's initial slogan, "high-quality wool," reflects its commitment to quality in the garment industry.
Canifa's "3 Different" strategy focuses on unique quality, diverse winter woolen weaving, and distinct designs from China The company's transformation from a wholesale business to a modern retail chain began with the opening of its flagship store in Hanoi in 2012, followed by the establishment of a branch in Ho Chi Minh City to tap into a promising market Over the past 20 years, Canifa has emerged as a leading fashion brand in Vietnam and the region, boasting 49 stores, 53 exclusive and consignment agents, and a workforce of 800 employees, with 61% in-store and 39% in offices and depots Canifa's mission is to provide the joy of new clothing every day to millions of consumers.
Contact address: 301 room, GP Invest Building, 170 La Thanh street, Dong Da district, Hanoi, Viet Nam
3.1.2 Customer care Department of Canifa
The Customer Care Department at Canifa, part of the Marketing Department, consists of five employees and is led by Ms Nguyen Thu Trang This department is divided into two teams: one handles hotline calls and addresses customer inquiries while managing customer care programs, and the other focuses on filtering customer data and generating monthly reports on shopping behavior and the effectiveness of customer care initiatives.
The Canifa department is compact, yet the staff and professionals consistently perform their duties effectively, indicating that there is no immediate need for additional hires.
Canifa's Customer Care Department implements regular gift and voucher programs aimed at enhancing customer interaction, encouraging repeat visits, expanding the new customer base, and improving customer relationship management (CRM) These initiatives are communicated exclusively through SMS, targeting customers who opt-in to receive messages from Canifa SMS marketing has emerged as a highly effective strategy for brands to promote their offerings, with data indicating its success, particularly for larger brands like Canifa, which benefit from a vast customer base and lower messaging costs A 2022 survey revealed that 98% of respondents became aware of the Canifa brand through SMS marketing.
Figure 3.1: Marketing channels of Canifa
Source: Canifa’s survey of service quality in 2021
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Research design
This thesis employs a mixed-methods approach, integrating both qualitative and quantitative research to provide a comprehensive analysis of customer care The quantitative methodology involves analyzing actual reports from customer care programs and survey data collected by Canifa's Customer Care Department In contrast, the qualitative method explores the theoretical framework of customer care through various sources, including reports, theses, websites, and articles By combining these research methods, the study aims to achieve its objectives while ensuring clarity for readers.
The thesis answers the following questions:
1 How effective were the programs? And what are the factors influencing the effectiveness of the programs?
(Redeem rate and sales gained from the programs.)
2 Are customers satisfied with the gifts of Canifa?
The research utilizes secondary data, which refers to previously collected information repurposed to align with the author's research objectives Data was sourced from customer care program reports from 2021 and a questionnaire survey conducted by the Customer Care Department of Canifa The reports were extracted from Amax Accounting software, which manages Canifa's trading and inventory activities The survey, designed via Google Forms, was distributed to customers through SMS to gather responses As a result, the information and statistics presented in the study are deemed reliable and objective.
A report is a structured document designed to inform a specific audience about the results of a course, research, activity, or project, characterized by simplicity, clarity, brevity, and accuracy To enhance readability, reports frequently incorporate bullet points, tables, and graphs to summarize information effectively In the business context, reports play a crucial role by providing management with valuable insights on spending, profits, and growth, which are essential for developing forecasts, marketing plans, budget planning, and improving decision-making Additionally, business reports help managers track progress, identify trends, and detect irregularities that may require further investigation.
In Canifa's Customer Care Department, all customer care programs are systematically reported, categorized under three main headings: Sales, Message Effect, and Statistics by Decrease To streamline the analysis and enhance readability, the focus is narrowed to two key tables: Sales and Message Effect The effectiveness of these programs is assessed by comparing observed data outcomes against the Key Performance Indicators (KPIs) established by Canifa The analysis also highlights the various customer classes—Green, Silver, Gold, and Diamond The Green class consists of first-time customers who activate a loyalty account, while the Silver class includes those who have an active loyalty account with a minimum of 2 million VND in accumulated spending The Gold class is defined by customers with at least 5 million VND in spending, and the Diamond class comprises those who have accumulated a minimum of 15 million VND in a shopping period.
In 2021, Canifa introduced birthday and gratitude gift programs for VIP customers, specifically targeting Diamonds and Gold members who accumulated between 1,500 to 2,000 points or at least 2,000 points during the qualifying period, with each point valued at 10,000 VND Birthday gifts were designated for Diamonds who had made purchases totaling at least 30 million VND in the previous year To assess customer satisfaction regarding these gifts, the Customer Care Department conducted a qualitative questionnaire survey.
In 2021, a survey was conducted to assess customer satisfaction with Canifa's customer care gifts, targeting consumers who received these gifts Utilizing a questionnaire, an efficient and cost-effective method for gathering information from a large audience (Saul Mcleod, 2018), the survey comprised six questions—four semi-open and two open-ended This approach allowed for valuable customer insights and deeper qualitative data (Nikhil Dawer, 2019) The author focused on four objectives directly related to the gift program and customers' contributions to Canifa's initiative for analysis.
The survey garnered 212 valid responses, revealing that most participants are aged between 20 and 40, as inferred from customer data accessed through Amax retail software Below, the table presents key anthropological details of the respondents.
Table 3.1: Fundamental anthropological information of participants
Source: The author’s caculation 3.6 Data collection procedure
Step 1: Determining the research topic
With the guidance of the supervisor on effective data collection, the author successfully defined the research topic and objectives After discussing assessment criteria for evaluating a general program and examining Canifa's customer care initiatives, the author opted to focus on sales-related elements and the redemption rate for the study.
Step 2: Ask for data from Customer care Department of Canifa
The researcher said to the leader of the Canifa customer care Department that the author was working on a graduation thesis with a topic related to the department and asked for
Ask for data from Customer care Department of Canifa
Read the reports and survey to choose programs to evaluate
The author has obtained essential statistics and figures from various programs, as they are willing to share their reports Additionally, the author expresses a strong interest in Canifa's gift program and requested permission to utilize a customer satisfaction survey conducted by Miss Linh for further analysis.
Step 3: Read the reports and survey; then choose programs to evaluate for the research
The author expresses gratitude to Ms Ly from the Department for providing reports on Canifa's customer care programs in 2021 After reviewing the programs, the author selected three notable initiatives: the Private Sale Program celebrating 20 years, and the "Excellent" voucher program.
- free shopping program and Autumn voucher program to evaluate their effectiveness 3.7 Data treatment
In conducting the report, the researcher utilizes a table format to filter and analyze key information Given the open and semi-open nature of the survey questions, the responses are varied and unstructured After receiving the collected data from Miss Linh in an Excel file, the author employs Microsoft Excel 2016 to synthesize and categorize similar answers into cohesive items, visualizing the results through charts to a moderate extent.
The data presented in this article is sourced from actual reports and surveys conducted by the Canifa Customer Care Department, which informs the department's future development strategies The author has maintained the integrity of the statistics and figures without any alterations Furthermore, the author's inquiries were thoroughly addressed with the help of the department's staff, ensuring clarity throughout the research process Consequently, the reliability and validity of this research are firmly established.
FINDINGS AND ANALYSIS
Programs
4.1.1 “Excellent” voucher - free shopping program
The program took place from August 20 to August 31 , 2021
- Giving customers a 30 percent-discount voucher when buying kid products with bills from eight hundred thousand VND
Customers nearing a rank upgrade to Silver, Gold, or Diamond classes can receive a 50% discount voucher on full-price products when they spend 800,000 VND, 1,000,000 VND, or 1,200,000 VND, respectively.
Table 4.1 Timeline of the “Excellent” voucher - free shopping program
4 pm: send SMS customer care communication to telecommunication companies
9 am: send data to stores to call customers to inform them about the program
Follow daily number of vouchers used by customers to have timely handling plan
Filter customer data who have not used the vouchers yet, then resend to stores to call to remind customers
Call to survey 100 highest-bill and 100 lowest-bill customers for deeper analysis about the program’s effect
Source: SMS plan of the “Excellent” voucher - free shopping program
Table 4.2: Target customer of the “Excellent” voucher - free shopping program
Customer group Note Number of customer
Top customers who have bought the most kid products from January to
Customers who are about to rank up
(customer base having received SMS in three last programs but did not use the vouchers)
Green close to Silver 100 Silver close to Gold 100
Source: SMS plan of the “Excellent” voucher - free shopping program SMS content
Table 4.3: SMS content of the “Excellent” voucher - free shopping program
“Mua sam tha ga-CANIFA Tang Voucher xxxxxxxxxxx giam 30% khi mua SP tre em voi HD tu 800k.Ap dung tai CH & Online(20-31/8).Link: bit.ly/cnfvc821 LH:18006061(0d).”
Top customers who have bought the most kid products from January to June, 2021
“Mua sam tha ga va thang hang cung CANIFA-
Tang Voucher xxxxxxxxxxx giam 50% HD tu
800k.Ap dung tai CH & Online(20-31/8).Link: bit.ly/cnfvc821 LH:18006061(0d).”
“Mua sam tha ga va thang hang cung CANIFA-
Tang Voucher xxxxxxxxxxx giam 50% HD tu 1 trieu.Ap dung tai CH&Online(20-31/8).Link: bit.ly/cnfvc821 LH:18006061(0d).”
“Mua sam tha ga va thang hang cung CANIFA-
Tang Voucher xxxxxxxxxxx giam 50% HD tu 1,2 trieu.Ap dung CH&Online(20-31/8).Link: bit.ly/cnfvc821 LH:18006061(0d).”
Source: SMS plan of the “Excellent” voucher - free shopping program
Table 4.4: Sales gained from the “Excellent” voucher - free shopping program
Section Value KPI Success rate
Source: The “Excellent” voucher - free shopping program report
Net sales are calculated by summing the sales from the Green, Silver, Gold, and Diamond categories The success rate is determined by the formula: (Value/KPI) * 100% These calculations apply consistently across all programs.
The program's total sales and net sales significantly surpassed the Key Performance Indicators (KPI), with total sales exceeding expectations by 77.4% and net sales by 45.5% Notably, the contributions from the Gold and Diamond classes played a crucial role in achieving these impressive results.
Diamond's sales exceeded expectations, surpassing KPI by more than double, while Gold's sales also exceeded KPI by 33.8 percent In contrast, sales from Green and Silver fell short of anticipated targets.
Canifa typically establishes a single store in each province, often complemented by exclusive and consignment agents However, exceptions are made in major cities like Hanoi, Ho Chi Minh City, and Vinh City in Nghe An, where Canifa operates two stores.
In August 2021, Canifa stores in Hanoi and several Southern provinces, including Ho Chi Minh City, were closed due to the challenging Covid-19 pandemic situation Consequently, the program shifted its focus to customers in Northern provinces and the North-Middle provinces of Nghe An and Thanh Hoa, offering a 50 percent discount voucher to boost sales in these areas.
Source: The “Excellent” voucher - free shopping program report
The provinces of Vinh Phuc, Bac Giang, Bac Ninh, and Quang Ninh experienced the highest sales from the 50 percent discount voucher This success can be attributed to the significant percentage of customers in these areas who received the promotional message.
The "Excellent" voucher program launched in 2021 has facilitated free shopping, revealing that the variation in customer numbers across provinces is minimal This indicates that the differences in sales are primarily influenced by customers' preferences for Canifa's products and their shopping habits.
Figure 4.2: Sale of 30 percent-discount voucher in provinces
Source: The “Excellent” voucher - free shopping program report
Bac Ninh province achieved the highest sales from the 30 percent discount voucher in the "Excellent" voucher free shopping program, despite similar message distribution among provinces However, sales from this voucher type were significantly lower compared to the 50 percent discount voucher, with several provinces reporting no customer purchases at all.
In conclusion, the 50 percent discount voucher proved to be significantly more appealing than the 30 percent discount, as evidenced by total sales figures Stores offering the 30 percent discount did not match the sales generated in Vinh Phuc, Bac Giang, and Bac Ninh provinces, which were the top three locations for customers utilizing the 50 percent discount voucher Additionally, it is noteworthy that Canifa enjoys considerable popularity among customers in Bac Ninh province.
Table 4.5: Massage success of the “Excellent” voucher - free shopping program
Section Value KPI Success rate
Number of customers received the message
Number of Green received the message
Number of Silver received the message
Number of Gold received the message
Number of Diamond received the message
The "Excellent" voucher program has demonstrated a notable redeem rate, calculated by the formula: (Number of customers who made purchases / Number of customers who received the message) * 100% This metric serves as a key performance indicator (KPI) for assessing the program's overall effectiveness in driving customer engagement and shopping activity.
32 program was equal to the average of KPIs of each customer class These calculations are applicable to all the programs
The program's overall redemption rate surpassed expectations, exceeding the KPI by over 17 percent Specifically, the redemption rates for the Green, Silver, Gold, and Diamond tiers were 4 percent, 1.6 percent, 14 percent, and 6 percent, respectively Notably, the Gold tier achieved the highest redemption rate, exceeding the KPI by an impressive 75 percent In contrast, both the Silver and Diamond tiers fell short of expectations, reaching only half or less of their respective KPIs.
Despite the challenging pandemic environment, the eleven-day program yielded impressive results, with sales and redemption rates significantly surpassing KPIs The attractive discount levels of 30% and 50% played a crucial role in driving customer engagement The program effectively targeted top customers, particularly those in the Gold and Diamond tiers, leading to high redemption rates Notably, the Gold class performed exceptionally well, benefiting from the largest number of vouchers distributed (450 recipients) Although only 9 out of 150 Diamond customers redeemed their vouchers, they generated nearly 56 million VND in sales, exceeding their KPI by more than double, with an average transaction value exceeding 6 million VND In contrast, the Green and Silver customer groups, despite having lower KPIs, showed limited interest in Canifa's products, resulting in lower sales figures.
The program took place from September 10 to September 19 , 2021
Giving customers a 30 percent discount voucher when buying full-price products with bills from eight hundred thousand VND
Table 4.6: Timeline of the Autumn voucher program
4 pm: send SMS customer care communication to telecommunication companies
9 am: send data to stores to call customers to inform them about the program
Follow daily number of vouchers used by customers to have timely handling plan
Remind stores to call to customer base who have not used the vouchers
Source: SMS plan of the Autumn voucher program Target customer group
Table 4.7: Target customer group of the Autumn voucher program
Customer group Note Numbers of customer
Customers who had been inactive from
May 1st, 2021 to the program start time
Source: SMS plan of the Autumn voucher program SMS content
“CANIFA Danh tang rieng ban Voucher Mua Thu ma xxxxxxxxxxx giam toi 30% HD tu 800k Ap dung tai CH & Online(10-19/9) Chi tiet: bit.ly/cnfvc821 LH:18006061(0d).”
Table 4.8: Sales gained from the Autumn voucher program
Section Value KPI Success rate
Source: The Autumn voucher program report
The program's performance fell short compared to the "Excellent" voucher shopping initiative, with Green, Silver, and Gold sales significantly below their KPIs; notably, Silver achieved just 18.4 percent of its target, marking the lowest success rate Consequently, total sales and net sales reached only over 20 percent of their KPIs In contrast, Diamond sales surpassed 63.4 percent of its KPI, indicating a strong base of loyal Canifa customers willing to invest in the brand's products.
During the Covid-19 pandemic, the program shifted its focus to stores in Northern provinces and online platforms, as the outbreak affected operations in Southern provinces Additionally, Canifa stores in Hanoi city were closed due to the pandemic restrictions.
Source: The Autumn voucher program report
CONCLUSION AND RECOMMENDATION
Conclusion
This thesis aims to evaluate the effectiveness of Canifa's customer care programs in 2021, focusing on key factors influencing their success The research involved data collection from Canifa's Customer Care Department and selected four specific programs, including three initiatives that offered discount vouchers.
The "Excellent" voucher, Autumn voucher program, and Private sale program mark a significant milestone with 20 years of operation, focusing on enhancing customer engagement and satisfaction These extensive initiatives cater to tens of thousands of customers, while seasonal programs target specific groups of thousands Their primary objectives include fostering interaction between Canifa and its clientele, encouraging repeat visits, expanding the active customer base, and improving overall shopping experiences The success of these programs is measured through statistical data and surveys aligned with the criteria outlined in Chapter 1.
An analysis of three voucher-giving programs revealed that only the “Excellent” voucher-free shopping initiative surpassed expectations in both sales and redemption rates In contrast, the other two programs fell short of their key performance indicators (KPIs) Despite all three programs being implemented during the pandemic, the disparity in their effectiveness may be attributed to specific factors associated with the “Excellent” voucher program.
The free shopping program offered appealing discounts of 30% and 50%, targeting a broad customer base, including participants from the Autumn voucher and Private sale programs celebrating 20 years However, these customers, classified as Green and Silver, showed low return rates and lacked the habit of regular shopping for Canifa’s products, indicating a need for strategies to engage these inactive customers.
An intriguing discovery from the study reveals that, despite the Diamond redemption rate falling short of the key performance indicator (KPI) or merely achieving half of it, sales generated from customers purchasing within this category remain significant.
The sales performance exceeded expectations, with each buyer spending several million VND on average, highlighting the effectiveness of the programs targeting this customer group This suggests that these customers are loyal fans of the brand, eagerly seizing advantageous opportunities to purchase their preferred products.
Survey responses indicated that the gift-giving program was effective, as receiving gifts is generally associated with happiness Additionally, many participants expressed a preference for C-points or vouchers over physical items and suggested that Canifa should offer a wider variety and greater value in gifts These insights will guide Canifa's Customer Care Department in enhancing the quality of the gift-giving program to better meet customer expectations in the future.
In 2021, the Covid-19 pandemic created significant challenges for consumers and businesses in Vietnam Despite these difficulties, Canifa demonstrated its commitment to customer care by consistently implementing programs that engaged customers and offered shopping benefits and gifts This approach highlights Canifa's dedication to prioritizing customers, reinforcing its position as a leading fashion company in the country.
Recommendations 50 REFERENCES APPENDICES
The discount voucher-giving programs
Maintaining these programs is essential due to their proven effectiveness; as confirmed by the Canifa Customer Care Department, the cost of an SMS ranges from 380 to 980 VND, while the net sales generated significantly exceed initial expenses Primarily, these initiatives serve to keep the brand top-of-mind for customers, foster a sense of preferential treatment for members, and encourage repeat visits, ultimately strengthening the relationship between the company and its clientele.
After analyzing the program outcomes, the researcher recommends that the Diamond class customers, who consistently demonstrate strong loyalty to the brand, be designated as a distinct target group for the 30 percent discount voucher customer care program Notably, both the 30 percent and 50 percent discount vouchers have resulted in impressive sales and redemption rates for this loyal customer segment.
To enhance customer loyalty, programs offering a 50 percent discount voucher should prioritize Green, Silver, and Gold class members These individuals are typically new customers or those who have made fewer purchases, making it essential for Canifa's Customer Care Department to provide tailored support that encourages their return and fosters brand loyalty.
50 percent discount programs, same-price programs at the end of the season or great deals when buying products in the new collections at the beginning of the season
To enhance customer satisfaction at Canifa, it's essential to conduct surveys targeting the feelings of Green and Silver class customers regarding their buying experience Additionally, Canifa should consider revising certain programs to offer cash vouchers in place of the existing discount vouchers Finally, effectively communicating the benefits of card class incentives will motivate customers to aspire for higher rankings.
In the short-term, when the pandemic is continuously affecting many people's lives, the
20 percent discount voucher program does not show effectiveness However, in the long-term, that is still an attractive program
Based on survey responses, Canifa should consider thanking customers with brand products or C-points instead of in-kind gifts like socks and face masks, which were popular in 2021 Insights gained during my internship in Canifa's Customer Care Department revealed that in early 2022, they began offering C-point programs for loyal VIP customers (Gold and Diamond classes) and providing high-quality, affordable gifts priced between 300,000 and 500,000 VND The 2021 survey on customer satisfaction with care gifts highlighted customer preferences, prompting necessary improvements To assess the program's effectiveness, a follow-up survey should be conducted at the end of 2022.
To improve the effect of customer care programs in the future, Canifa can refer to some below useful suggestions of the author:
To enhance program recognition, Canifa should showcase customer experiences by sharing photos of those receiving birthday and gratitude gifts, as well as images of Diamond customers utilizing vouchers for their purchases on the website and official social media platforms like Facebook and Instagram This strategy will not only inform target customers about the benefits of vouchers, encouraging them to use them in future transactions, but also build trust among customers concerned about fraud Additionally, it may spark interest among non-target customers and potential clients, motivating them to aspire for the exclusive benefits and gifts offered by Canifa.
Canifa should analyze the customer care strategies of successful global fashion brands, particularly those like Zara and Uniqlo that operate in the Vietnamese market, to identify effective and applicable initiatives that can enhance their own customer service programs.
The Customer Care Department faces challenges in obtaining customer addresses for the birthday gift program, as response rates to SMS requests and successful call attempts are low To enhance customer satisfaction, it is recommended that the department collaborate with the Online Customer Care team, which manages online orders and activities on the Canifa app By announcing eligible customers and providing a gift selection on the app, trust can be built and response rates improved, as customers will be able to view gift images Additionally, since customer addresses are stored in the app, the department can efficiently send gifts to those who have made their selections.
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Questionnaires on The customer satisfaction level of customer care gifts in 2021
KHẢO SÁT MỨC ĐỘ HÀI LÒNG CỦA KHÁCH HÀNG VỚI QUÀ TẶNG CSKH
Qua 20 năm hình thành và phát triển, Canifa luôn tuân thủ giá trị cốt lõi - Kinh doanh trên giá trị thật, với mục tiêu cam kết đặt khách hàng làm trung tâm, mang lại niềm vui mặc mới mỗi ngày, trải nghiệm mua sắm dễ dàng và thân thiện cho người tiêu dùng Việt Canifa liên tục cải tiến và nâng cao chất lượng dịch vụ, chăm sóc khách hàng thông qua việc lắng nghe ý kiến khách hàng Chúng tôi hy vọng sẽ nhận được nhiều chia sẻ, đánh giá của Quý khách về những món quà tặng nhận được từ Canifa.
Canifa tặng E-Voucher mua sắm trị giá 50.000đ cho Quý khách sau khi hoàn thành bài khảo sát dưới đây Mã Voucher sẽ được gửi đến Quý khách sau ngày 1/12/2021.
Mọi thông tin thu thập từ khảo sát chỉ phục vụ cho mục đích nghiên cứu nhằm nâng cao chất lượng dịch vụ của Canifa.
Chân thành cảm ơn và chúc Quý khách có thật nhiều sức khỏe, niềm vui và luôn đồng hành cùng Canifa trên chặng đường sắp tới!
Số điện thoại tích điểm tại Canifa
1 Anh/chị có thấy hài lòng với chất lượng quà tặng của Canifa không?
Nếu câu trả lời là không, vui lòng tích vào mục "Khác" và nêu rõ lý do khiến Anh/Chị không hài lòng o Có o Khác
2 Anh/chị có thấy hài lòng với cách thức tặng quà của Canifa không?
Nếu câu trả lời là không, vui lòng tích vào mục "Khác" và nêu rõ lý do khiến Anh/Chị không hài lòng o Có o Khác
3 Anh/Chị có thường xuyên nhận được quà tặng từ các nhãn hàng khác không? o Có o Không
4 Loại quà tặng Anh/Chị thường nhận từ các nhãn hàng là gì? o Voucher (Phiếu mua hàng) o Quà tặng hiện vật o Khác
5 Ý kiến góp ý của Anh/Chị về quà tặng của CANIFA trong năm 2021.
6 Anh/Chị mong muốn nhận được món quà như thế nào từ CANIFA?
SURVEY OF CUSTOMER SATISFACTION LEVEL TOWARDS CUSTOMER CARE GIFTS IN 2021
Over 20 years since establishment and development, Canifa has always complied with core values - business on true value, with the committed purpose of customer-centricity, bringing the joy of New wear everyday, convenient and friendly buying experience for Vietnamese consumers Canifa has continuously innovated and improved service quality and customer care via listening to customers’ contribution ideas We hope to receive many of your shares and assessment of the gifts from Canifa
Canifa will give the customer a private E-voucher valued at 50,000 VND after the customer finishes the below survey (The voucher code will be sent to you after December 1st 2021).
All collected responses from the survey are only for the purpose of studying to improve the service quality of Canifa
Thank you faithfully and wish you much health, happiness, and always companying with Canifa in the next journey
Phone number to accumulate point at Canifa
1 Are you satisfied with Canifa ’s gift quality?
If not, please tick the “Other” and give reasons why you are not satisfied. o Yes o Other
2 Are you satisfied with Canifa ‘s way of giving gifts?
If not, please tick the “Other” and give reasons why you are not satisfied. o Yes o Other
3 Do you often receive gifts from other brands? o Yes o No
4 What kinds of gifts do you usually receive from brands? o Vouchers o In-kind gifts o Other
5 What are your contribution ideas to Canifa ‘s gifts in 2021?
6 What kinds of gifts would you like to receive from Canifa?