KD HiFi is a company which has registered constable success on its business ventures since the 1980’s. This has seen the business diversify from selling only car stereos to home entertainment systems, CDs, and DVDs. The millennium saw KD HiFi also expand to selling TVs, Blu-ray units, gaming consoles, cameras, and computers. But the millennium would bring along some major changes to consumer behaviour with the increased use of the internet where the customer would turn to stream and downloading music and movies. Consumer behaviour would also change from going out to shop to e-commerce shopping which would catch KD HiFi unprepared and have a devastating effect on the businesses sale (Rahayu 2015).
KD HiFi has experienced a serious slowdown in their sales of music and movie CD’s and DVD’s which have fallen to almost Zero due to consumers downloading softcopies directly to their gadgets. KD HiFi hardware sales of items such as TVs, Blu-ray units, gaming consoles, cameras and computers, has also experienced a major fall due to intense competition from e-commerce businesses which have managed to slash prices by almost 50%. This has been achieved due to the businesses utilizing alternative strategies to market, purchase, and store and distributes the products they sell. This has helped reduce overhead costs such as rental, showrooms and utility bills (Kumar and Petersen 2006).
There is a need to improve the management systems for better organisational performance. Thus, this report shall discuss strategies that KD HiFi can adopt with regards to managing a Call Processing Centre and Delivery and Installation Department so as to regain its market position. Both departments would be new to KD HiFi which has relied on traditional business and marketing strategies and this will require major changes and training programs to be implemented so as to allow the business to remain operational and more importantly generate a profit (Khan 2016).
Instructional Systems Design (ISD) model, also known as the ADDIE model (Appendix 1), is an organized procedure consisting of five principles namely; analysing, designing, developing, implementing and evaluating instructions. It is popularly used for the training and development of KD HiFi’s employees to strengthen the quality and effectiveness of instruction and to embed learning throughout the training process (Lebow 1993; Branch 2009). Furthermore, the ISD Model helps KD HiFi identify clearer goals, develop independent process steps and approaches and develop a closed system which would deliver fixed and tested system instructions which would help the business achieve better results.
KD HiFi is a business which specializes in the retaining CD, DVD and entertaining equipment but the business has experience a major decline in sales due to the internet and ecommerce. To combat this problem KD HiFi has decided to implement to strategies to assist reverse the issue namely starting a call centre and offering free delivery and installation to customers who purchase its product. These two factors would allow KD HiFi retain communication and develop a closer relationship with their customers which would allow the business retain its market position. But to achieve this certain factors and points must be closely evaluated to ensure the strategy is effective and delivers the desired results.
Gone are the days when businesses waited for customers to come to their shops to purchase goods or services and today each customer expects the business to be at their service. This is in relation to every aspect of any business thus KD HiFi must turn their attention from utilizing traditional approaches to setting up call centres which are focused on reaching out to the consumer (Langer 2012). The call centres should bridge the gap so as to achieve better communication and interaction between the company and customers. The services would also be focused towards the introduction of new products and services, and be equipped to offer support related to management and maintenance of existing products and services which in turn, allows the company retains its customer’s confidence.
As e-commerce business offer intense competition, KD HiFi must adopt an alternative approach that offers more value for money thus making it an attraction for customers (Mahajan 2007). To achieve, KD HiFi intends on starting up an in-house delivery and installation unit, and focus on delivering and installing goods, products, and services which have been purchased by the businesses customers.
Doing so would make KD HiFi the first company to offer comprehensive sales, delivery, and installation of products and services which would give the business the upper edge in the market. However, to set up an effective Call Centre and Delivery & Installation department, KD HiFi must provide adequate training to the concerns teams so as to ensure the business archives it intended targets and goals.
To implement the new processes KD HiFi will need to utilize its current manpower and resources which would help reduce employee retrenchment and operational costs. Most KD HiFi showrooms will be replaced by an effective e-commerce website which will help reduce overhead costs and expenses (Watt 2007). the website would also offer value added services to consumers such as a user account , a safe payment gateway and instant customer support which are aspects which customers are expect from business today.
KD HiFi must offer an e-commerce website, its customers, which will deliver a more comfortable user interface and experience to its customers. This requires for a professional call processing centre to be set up which would allow the business to connect with its customers with regard to any given customer query. This would also need for existing KD HiFi sales and support person to be trained to handle the call centre process (Sharp 2003). The call centre would service two purposes namely marketing and offering customer support. Inbound calls would offer support and handle customer quarries while the outbound calls would be focused towards marketing and sales.
The Delivery and Installation is another strategy aimed at winning customer confidence as most business do not deliver, unpack the product and install them. KD HiFi intends on offering the delivery and installation services to its customers who will reduce the hassle and costs incurred with delivery and installation charges thus attract most customers (Macintyre, Parry and Angelis 2011). This will help further boost sales but will also need for special training programs to be provided to the personnel.
The KD HiFi Delivery and Installation unit would also need to adopt and train its personnel to use different forms of transportation to minimize delivery time. Delivery personnel would require being prepared to use 2, 3 and 4 wheelers depending on the type, size and distance of each delivery keeping in mind time efficiency and customer satisfaction. This means that KD HiFi would need to invest in different transportation vehicles which can be distributed across the city accordingly thus helping easier transportation of goods and services to customers.
Google maps could be used to provide a more accurate delivery time estimate (Kymal 2004). This would also allow for the customer to directly access the service allowing them to determine exactly where the delivery van is thus allowing them to make a more informed decision regarding the delivery. Maintaining this direct communication helps build customer confidence as they are better able to plan their day and can help avoid delays or issue delivery cancellations if they might be too late. Overall, it would help all stakeholders to remain in constant communication and thus, reducing the business operational costs as time and resources are saved.
To effectively execute the two new processes to the business an effective plan must be developed with relation to each of the processes. Each would need to be developed independently but maintain a close relationship and communication with the other so as to be effective.
The existing sales and marketing personnel would require being enrolled for call centre training programs which would acquaint them with the process involved in marketing, sales and support over a call. This is very different from one to one marketing and sales as the customer’s attention needs to be captured and retained over a phone call. For this to be executed the call centre executive needs to be well versed and have full knowledge with regard to the products and services so as to convince the customer of their capability to deliver on the customer’s expectations (Butler 2007). This would, therefore, require for call centre executives to attend two training programs, one aimed at training the personnel to handle customers over phone calls while the other focusing one developing extensive product and service knowledge. This would provide the call centre executives with the capacity to maintain full control while dealing with KD HiFi customers.
The KD HiFi delivery and installation unit would also require being provided with professional training programs so as to maintain control over their responsibilities. In addition to training programs, KD HiFi would also need to invest in modern Equipment which would allow for easy navigation and communication between the customers, call centre and delivery and installation personnel (Prins and Owen 2010). Being able to know and see the delivery and installation unit’s movements and progress has proven to be effective tools with regard to cab services and it likely to also secure immense customer confidence at KD HiFi.
The secret behind successfully implementing the new processes at KD HiFi would be directly be associated to interlinking all stakeholders using modern digital communication. Communication between all stakeholders is the backbone of success due to it allowing transparency between each stakeholder which helps build consumer confidence (Vidgen 2012). It’s also important to hire professional trainers who would be able to communicate effectively and build a positive relation with the trainees who help speed up the learning and training process. To achieve these managers would require to be trained on how to locate and hire effective trainers who can connect with the teams and communicate their message easily this is critical as having positive bonds between the trainee and trainer will greatly improve the training program success rate.
Call centre executives would require learning and master customer call processing with relation to every aspect thus helping them win consumer confidence and convert sales. They would also need to master the use of multiple communications medium which would allow for the call centre executives to establish and maintain communication with all customers thus allowing them to executive most sales and customer needs (Petouhoff 2006). It’s important to keep in mind not all customers are well versed with modern digital communication and some may require traditional communication mediums to be used thus the executives must also be able to handle those customers’ needs so as to maximize the sales and customer satisfaction.
Time has become a precious commodity for most people today; thus, it is critical to minimize delivery and installation time as much as possible. Today cities offer the most aggressive consumers and many have full-time jobs to attend to. Hence, there is a small-time gap to dedicate to products and service delivery, unpacking and installation. With a set target window of just +/-10 minutes for a delivery to be made, KD HiFi personnel could be trained towards using modern navigation technologies and machinery.
Every business process requires close evaluation and instant up gradation so as to remain efficient and competitive. This makes it important for KD HiFi to constantly evaluate the two departments operations and collect information and data from its customers as well as executives with the objective of improving service delivery.
To help the business reduce the requirement to implement major changes which are likely to ensure the business high expenses, KD HiFi would need to also set up a data collection centre which would collect information which can be organized and presented for gradual change implementation (Thomas 2014). This would help reduce the pressure for large-scale change being made on business operations which are likely to be time-consuming and require high costs. To avoid this constant evolution and gradual change, implementation must be the performance of all KD HiFi operations so as to maintain the business competitive edge and consumer confidence.
To further improve, the proposed business strategy change must also utilize the Kirkpatrick Theory; also known as the effectiveness of training evaluation chain (Appendix 4). This theory requires for four elements namely the reaction, learning, behaviour and result of any proposed business strategy change to be documented and evaluated to determine each stake holder’s reaction and feedback. Changes tend to have a positive and negative effect on different stake holders thus understanding each stakeholder/s views can help identify important approaches which the business strategy change can consider before implementing any proposed changes.
Conclusion
Through process from analysing to evaluation, resources such as manpower and space should be optimised, leading to increased profit and revenue streams. KD HiFi’s new business model will need to gain a better understanding of their current business operations through diagnosis and review of existing workflow, and designing new and/or improved ways to be more efficient and competitive. Moreover, as employees is a vital component of their organization. Employee’s performance, value, commitment and loyalty to their respective work become critical. Therefore, it is important to build on their human capital foundation by strengthening their leadership, adopting effective HR practices as well as attracting and retaining the right talent.
References:
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Butler, D. “Bottom-Line Call Center Management.” Routledge, 2007.
Khan, A.G. “Electronic Commerce: A Study on Benefits and Challenges in an Emerging Economy.” Global Journal of Management and Business Research, 2016.
Kumar, S, and P Petersen. “Impact of e?commerce in lowering operational costs and raising customer satisfaction.” Journal of Manufacturing Technology Management, 2006: 283-302.
Kymal, C. “The ISO/TS 16949 Implementation Guide: Gaining Value from Your ISO/TS 16949 Implementation.” Paton Professional, 2004: 46.
Langer, A. “Applied Ecommerce: Analysis and Engineering for Ecommerce Systems.” Wiley, 2012.
Lebow, D. Constructivist values for instructional systems design: Five principles toward a new mindset. Educational technology research and development, 1993: 41(3), 4-16.
Macintyre, M, G Parry, and J Angelis. “Service Design and Delivery.” Springer Science & Business Media, 2011.
Mahajan, G. “Customer Value Investment: Formula for Sustained Business Success.” SAGE Publications India, 2007: 43.
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Prins, M, and R Owen. “Integrated Design and Delivery Solutions.” Routledge, 2010: 264.
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