1. I am so glad to join you here this morning at the launch of Customer Centric Initiative for the retail sector.
2. Just a few years ago, the standard of customer orientation in Singapore was ranked among the top 10 in the world in the Global Competitiveness Report published by the World Economic Forum. Today, we are no longer in the top 10. In fact, we are not even in the top 20 - we are now ranked only 21st.
3. Our ranking has dropped over the years because our service standards had stagnated while others have improved by leaps and bounds. Countries and cities that have overtaken us in recent years include Australia, Taiwan, Hong Kong and Korea, just to name a few.
4. Some would say that they have overtaken us because their people are borne with service culture in their blood. I am no expert in life sciences. But if there is a scientific way of counting GST (Greeting, Smiling and Thank you) genes in our DNA, I am quite sure that the number of GST genes found in the DNA of a Singaporean will be about the same as that found in an Australian, Taiwanese and Korean. After all, people all over the world can all smile and say thank you, regardless of where they are borne and what their nationalities are.
5. Instead, what could explain the big difference in service standards across individuals, organizations, cities and countries, I believe, is the way we turn on our GST genes.
6. First, there are people who simply do not bother to turn on their GST genes. For some reasons, they are not interested in serving the customers - “what you want?”; “here have, have; here don’t have, don’t have” are some typical responses we get when we ask for service.
7. Then, there are those who turn on their GST genes with only their heads.
They are the money face type, only interested in customers who are likely to make a big purchase because the calculation in their heads tells them that big purchase = big revenue = big profit = big bonus. So they judge you by your appearance. They will serve you well only if you are well dressed and look like the type who can afford to purchase something expensive from them.
8. The third type is those who turn on their GST genes not with their heads, but with their hearts. This is my favorite type of service staff. They take pride in serving the customers. They greet every customer with the same genuine smile, and serve every customer with the same genuine efforts. They make every customer feel welcomed and feel special at every visit. Their GST genes never go to sleep, because their hearts never stop beating.
9. For Singapore to regain our top 10 position, making incremental improvement here and there will not be enough. We must strive for a quantum leap in the level of service standards in Singapore. To succeed, we must all strive to be better in serving and delighting our customers.
10. Singapore is capable of becoming a global city of service excellence, if we do this together as a nation. The CCI is a win-win-win partnership for everyone:
The workers and unions will win because a higher service standard will lead to higher revenue, better profit and thereby more rewards for our workers.
The companies and management will also win since higher revenue and better profit is certainly good for businesses and shareholders. Last but not least, the economy will win too since a higher service standard will enable Singapore to compete better as a Services Hub, offering a Singapore brand of Service that is a cut above the rest.
Customer Centric Initiative : Better Employers, Better Workers, Better Customers
11. We are launching CCI for the retail sector not because the sector is not doing well. In fact, our retail sector has been doing well. A recent study commissioned by the STB and carried out by global research firm Euromonitor International shows that Singapore is ranked top in terms of price competitiveness as compared to some 8 major cities in the Asia Pacific region, ahead of Kuala Lumpur, Dubai and Hong Kong.
12. However, despite the price competitiveness, Singapore's share of Asian tourism spending has dropped alarmingly, from 8.2 per cent in 1998 to 5.8 per cent in 2002. It is clear that it is more than prices that attract tourists and our locals to shop in Singapore. We need to compete on quality and service too.
13. With the launch of CCI today for the retail sector, we are calling for everyone in here and out there to commit himself and herself to be better --- better employer, better worker and better customer.
Better Employer : Service Leadership is Crucial
14. Employers must pledge to be better employers because a high standard of service delivery starts at the top with CEOs who believe in differentiating their companies through service that is exceptionally good. The CEOs must clearly articulate service quality as a key priority, establish systems to measure the level of service delivered, train the workers and supervisors, and reward good service when it is delivered.
15. I am therefore very encouraged by the good turnout of CEOs and senior management here today. It reflects your commitment to establish and strengthen a sound service culture and system in your companies. You have each developed a service roadmap to further enhance the service standards. You are also taking specific actions at all levels – establishing service standards, improving customer feedback systems and supply chain management, investing in staff training and enhancing rewards for good service.
16. For instance, to spread the culture of good service to all the shop floor, the Cold Storage Group will be appointing Service Ambassadors to audit the service level at all its stores. Courts will set up a customer centre to integrate customer enquiries and customer feedback while Carrefour will improve its checkout process to be more convenient to customers. Metro plans to enhance the language proficiency of its staff to communicate better to customers. Tangs will be launching a new behavioural training to instill a service culture in its workforce, whereas Seiyu will be introducing new reward systems to encourage staff to provide good service. I do not have time to touch on every company, but I do want to acknowledge their participation in the CCI – Best Denki, Cheers Stores, G2000, Giodano, Isetan, John Little, Marks & Spencer, NTUC Fairprice, NTUC Healthcare, Robinson, Takashimaya, The Hour Glass, Watson and Wing Tai Retail. Thank you all.
Better Worker: Going the Extra Mile for Customers
17. Our workers must pledge to be better workers too because we need workers who will go the extra mile to serve and delight the customers. You are the ones who turn on you GST genes with your hearts - Greet, Smile and Thank You to every customer. You must also know your products well, and be prepared to make the extra efforts to help the customer gets what he wants (Takashimaya – stock out; Robinson – sales; Isetan – competition and cooperation).
18. The unions will have an important role to play in helping to rally as many as 20,000 workers participating in the CCI. Besides the NTUC, I would like to acknowledge the active contribution and participation of three unions – SMMWU, SISEU and FDAWU.
Better Customer : Appreciate and Reward Good Service
19. With the launch of CCI today, we are also calling for the public consumers to commit themselves to be better customers. Good customers will draw out the best in the service staff. I hope all shoppers who shop this weekend at these participating outlets will show their appreciation to the sales staff when receiving good service. Such encouragement is important because it will help turn good service today into better service tomorrow.
20. Our government agencies also have a major role to play. SPRING Singapore and the Singapore Workforce Development Agency (WDA) have jointly committed more than $3.7m to support the CCI for the retail sector alone. This government funding supports comprehensive staff training, and consultancy services to help companies develop systems to enhance service standards. In addition, SPRING and WDA will work with the industry and SRA to develop a Singapore Customer Service Indicator to measure and track the general level of service standards in the retail industry. This will serve as a common reference point for our collective efforts to enhance service standards in the retail sector.
Conclusion
21. At the National Day Rally a week ago, PM called on Singaporeans to work together to uplift the service standards in Singapore. I am very happy that the retail sector has responded. In a short while, all of us will be making our personal commitment by putting on a collar pin with the words - “Be Better”. I hope that the efforts of the 20 employers, 3 unions and 20,000 workers in the retail sector will spur many other sectors to join in the CCI movement. Let us all do our part in embracing and spreading the “be better” mindset. Together, as better employers, better workers and better customers, we can transform the service standard in Singapore and regain our top 10 position as a global leader in service quality, sooner rather than later.
