Print   |   Bookmark   |   Enlarge text    |   Reduce text

Customers

 

Introduction

Customers influence the business of every operation in the Altron group. By listening to customer concerns, meeting customer needs, ensuring outstanding customer service and following a philosophy of ongoing product innovation, the company ensures its ongoing sustainability in the many markets in which it operates. The most significant customer issues facing the Altron group include:

Depending on the Altron subsidiary and the type of product or service on offer, these customers are either end-consumers or business-to-business customers. Different material issues affect these differing business relationships. For example, customer service may be more material to a company such as Altech Netstar, which supplies products for both businesses and end-consumers, while other Altron group companies in the business-to-business space may have more of a need to expand their customer base.

The company’s responses to these issues are therefore largely dealt with on an individual company basis, and specific responses noted in the sections that follow are not necessarily applicable to the Altron group as a whole.

Material issue

Customer service

In an increasingly competitive business environment, customer service is often the difference between success and failure. Enhancing customer service that retains existing customers and secures new customers can have a direct impact on the long-term sustainability of a company. Considering the different market environments pertaining to different business avenues, each company manages customer service in its own unique way.
 
POWERTECH
During 2007, Powertech Transformers improved its test failure rate to its best level yet since that company started measuring it in 1998, while the on-time delivery rate was close to 100% by the end of the year. DPM’s on-time delivery rate is currently at 80%.
 
Altech NetstarALTECH
Altech Netstar places a strong emphasis on customer service; the managing director (MD) receives daily performance statistics and monthly reports highlighting service trends. His office deals with customer complaints while divisional managers are held personally accountable for service standards within their departments. Altech Netstar achieved outstanding customer service levels during 2007: 90% of calls were answered within 20 seconds, compared with a call centre norm of 80% in 20 seconds. This is a radical improvement on the previous year, where customer service levels were at 30% of calls answered within 20 seconds.

Altech Autopage Cellular increased the number of staff and developed new procedures and systems to service customers more efficiently. An independent customer survey commissioned by ACS showed a total service rating of between 80% and 90%, significantly higher than other companies ranked (which scored between 60% and 80%) on the same survey by the same independent organisation.

BYTES
A significant portion of Bytes’ business is based on service-related offerings and the provision of professional solutions and technical support. Customer service levels and the customer service feedback loop are critical to Bytes’ business, and in this regard the various operations conduct regular customer satisfaction surveys. This provides among others an understanding of customers’ perception of adherence to service level agreements and highlights problem areas and matters requiring attention. Proper and direct customer feedback follows.

Call centres are present in most of the operations throughout the Bytes group. Several hundred of Bytes’ employees are engaged in this function where they interface with customers on a daily basis. Response times, percentage of ‘dropped calls’ and the like are regularly measured and benchmarked against industry standards.

Material issue

Meeting the evolving needs of customers

Outlining the issue
As new technologies are made available, customer expectations soon adapt to the new standards and the demand for the latest innovations rapidly makes itself felt. In this evolving arena, technology companies such as Altron need to ensure that they remain at the forefront of the latest technological product developments and innovations in order to retain their competitive edge.
 
Addressing the challenge
For certain companies within the Altron group this issue is of key importance. These companies have placed a strong emphasis on continuously improving their technology in order to be able to meet the evolving needs and expectations of customers.

Battery technology is changing rapidly and Powertech Batteries has experienced an increasing demand to supply products that comply with the latest technical specifications. The unreliability of Eskom power has also created new opportunities for the business to supply backup power, standby battery and solar power solutions.

An amount of R110 million has been earmarked to upgrade the automotive manufacturing facility and a further R30 million will be spent on upgrading the industrial manufacturing facility.

Altech Netstar developed the new VBU 505 fleet management product which enables insurance companies to monitor customer driver behaviour at a very competitive price. At present Altech Netstar instals around 800 units per month. Other new products which were launched in 2008 include the Guardian personal tracking unit and the Boomerang mobile vehicle unit.

Material issue

Liberalisation of the telecommunications market

The convergence of voice and data over broadband Internet Protocol (IP) networks is creating a whole new realm for the creation of new products and services that greatly increase customers’ convenience and functionality. In 2007, Altech Stream, in partnership with Samsung Electronics, successfully commissioned its trial network in Gauteng based on the test WiMax 802.16e licence awarded earlier in the year by ICASA. The network is focused on the wireless delivery of triple play services, including video streaming, internet access and voice-over IP to both PCs as well as new-generation handsets. Considering that the WiMax 802 standard is now widely expected to emerge as the dominant wireless IP delivery technology, we are confident that this initiative will exploit to the full the opportunities presented by media convergence over broadband delivery systems.

Altech believes that deregulation will encourage competition in the industry, to the benefit of the most advanced and nimble service providers, to the ultimate benefit of consumers. While liberalisation in the South African market is proceeding at a slow pace, opportunities in the rest of Africa are opening up and Altech has gained bridgeheads in key African markets in this regard. In June 2007, Altech Stream Rwanda Limited was awarded internet and gateway licences, as well as a frequency spectrum in the WiMax bands. Already, Altech is installing a network in Kigali that will begin distributing IP-based services over broadband in the last quarter of 2008. The acquisition of controlling interests in Kenya Data Networks Limited (KDN), Swift Global (Kenya) Limited and Infocom Limited has added markets in the central African region to Altech’s portfolio.

Material issue
Expansion of customer base
Altron is continually looking for ways to expand its customer base, not only to increase its profitability and market share, but also to mitigate any potential risk posed by the loss of a key contract or the possible reduction in demand from an important customer.

As such, the company has formulated and rolled out strategies to investigate, develop and grow new customers at Altech, Bytes and Powertech. Interventions differ depending on the nature of the company’s business and the type of customers required to ensure ongoing sustainability: