Update on CRM Initiatives & New Business Development

TNPA Annual Customer Conference: 13 August 2014

Customer Relations Management (CRM)

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1. Three Tier Approach

2. End State – Customer Centric Organization

3. Towards Customer Centric Organization

3.1 Key Initiatives

3.2 Progress Update

Contents

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Three Tier Approach

The following gaps were identified as critical in the recent Blueprint exercise:

▪ Lack of efficient fulfillment and resolution of customer queries/ issues,

▪ Inconsistent customer experience across ports and channels,

▪ Lack of integrated view of the customer,

▪ Lack of multi-channel customer management.

Areas of improvement:

▪ Queries and requests are responded to timeously,

▪ Clear and proactive communication,

▪ Committed to resolving customer queries,

▪ Availability of personnel when needed,

▪ Committed to understanding my business and requirements,

▪ Professionalism of employees,

▪ Understanding customer requirements.

The internal CRM maturity assessment conducted by TIA identified the following risks:

▪ Customer promise is inconsistent with organisation’s capability to deliver,

▪ Poor management of customer complaints

▪ Lack of customer insights,

▪ Inadequate key account and customer management.

CRM Blueprint

TIA Maturity Assessment

Recent Integrated CS

Survey

A

B C

Systems &

Processes

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End State – Customer Centric Culture

Common understanding and appreciation of customers (CSI)

Proactive communication (communiqués, newsletters, forums, roadshows, etc.)

Adoption of the voice of the customer theme – ‘customer is king’

Creating customer centric culture Integrated Customer Management One

customer, one company vision.

Queries and requests attended to speedily (FCR % & MTTR),

Calls answered promptly (80/20 Service Level),

Reduced # of complaints (# complaints as % of # customers),

Complaints resolved timeously (Resolution time in hours or days & Root Cause Analysis),

Continuous Improvement on CSI scores,

Daily, weekly, monthly and annual reports on Service Requests Management.

Fully documented and automated processes for customer service interactions (complaints, queries, service requests, etc.),

Transparent and consistent management of customer issues, tracking and reporting,

CRM system to manage customer data and activities.

Performance management

Capabilities, mindsets and

behavior

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Towards Customer Centric Organization

Key Initiatives

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Contact Centre Telephony Solution

Implementation of CRM Solution

Voice of the customer

Account Management Plans

Improved Customer Experience

Customer Centric Focus

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Contact Centre Telephony

Customer Centric Focus

Implementation of CRM Solution

Account Management Plans

Voice of the customer

Multi channel contact solution (Calls and e-mail management system) Service provider identified and in contract signing stage. Customer Service Agents appointed and currently in training.

Completed business processes to ensure alignment and efficiency. Service provider appointed and currently in development stage. Customer profile update has commenced. Go Live end September 2014. Know the customer campaign. Integrated Customer Management with other OD’s Completed key account plans and customer segmentation.

EXCO customer engagements and visits. Customer and Company driven feedback. (Annual and CRM System surveys) Multi disciplinary team focusing on customer developments and CSI.

Customer service training for all customer facing staff. CSI performance scores incorporated in EXCO BSC. Drafting of Customer Service Charter in progress.

Progress Update on Key Initiatives

New Business Development & s56 Projects

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1. New Business Development (NBD):

1.1 Overview:

Strategy & Planning,

Go to Market Strategies,

1.2 Strategy Implementation – Sector Approach.

2. Section 56 Projects Overview:

2.1 Current s56 Projects,

2.2 Upcoming s56 Projects, 2.3 s56 Challenges and Mitigation.

Contents

Overview: Strategy & Planning

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Develop Market Strategies & Value Propositions Market demand & capacity alignment, Market value proposition development (“What to take to market”).

Go to Market Strategies

HOW: “Who we will target and what we will offer them”, Channels to use to connect with customer.

Develop Sector and Market Plans (CRM)

Industry planning, Account planning, Marketing objectives aligned with strategic plans, Identification & Management of key projects.

Manage the Market Planning Programme

Market Plan monitoring (intelligence), Origination(New Business), Client Returns, Optimal Utilization of capacity at the ports, Market share and share of wallet.

Account Plan Implementation (CRM)

Overview: Go to Market Strategies

Segmentation Dimensions: Products & Service Offering, Customers in the Port Industry, Customers Needs &

Expectations, Value for the Customer.

Value Proposition/Success Factors: Connectivity to Markets -

Regional & Global, Infrastructure/capacity, Efficient Operations, Commercial & Business

Incentives.

Marketing Mix: Product (terminal

capacity/infrastructure, maritime services, transshipment services),

Place (Maritime Industry, Global Investors, East-West Africa, Sub Saharan Regions, BRICS),

Price (enhanced transparency, support & drive beneficiation),

Promotion (port brochures, sales book, DVD’s, Website, conferences & exhibitions).

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Targeted Markets/Regional & Global): Shipping Lines, Terminal Operators, Cargo Owners, Rail Operators, Etc.

Segmentation: Containers & Transshipments, Dry Bulk (Coal, Iron-Ore, Manganese), Automotive, Non Cargo Segments (Cruise liners, Oil Rig Repair, Dry Dock, LNG).

Strategy Implementation – Sector Approach

SECTOR ACTION PLAN METRICS WHEN

Coal Create short term capacity in Richards bay to facilitate trade for small coal miners.

Seamless & structured service offering (customer measure).

2014/15

Manganese Identify alternate use of under utilized break-bulk capacity, e.g. Skiptainers.

Increased berth utilisation & export throughput.

2014/15

Collaborate with container operators to use empty container leg for manganese exports (port of PE).

Increased volume throughput in the port of PE.

2014/15

Iron-Ore Design & implement an access strategy for new emerging miners.

Market analysis, engagement & visitation to new emerging mines.

2014/15

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SECTOR ACTION PLAN METRICS WHEN

Break-Bulk Analyze available break-bulk capacity & utilization thereof (berth & land) and identify alternative use for under utilized break-bulk capacity.

Increased berth utilisation & productive use of existing infrastructure.

2014/15

Agriculture Engage with industry stakeholders for alignment & collaboration, e.g. National Agricultural Marketing Council, Agrimark SA, SASE, etc.

Joint planning & direction of market trends.

2014/15

Identify new fruit export markets in middle East & Africa for contracts.

New reefer calls into the port system.

2014/15

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Strategy Implementation – Sector Approach

SECTOR ACTION PLAN METRICS WHEN

Liquid Bulk Benchmark the liquid bulk models (operational & commercial) with a view to implementing similar services in SA, e.g. Mozambique – (Beira & Matola).

Implementation for improved productivity & efficiency.

2014/15

Automotive Implement an automotive transhipment strategy. Identify hand car importers into SA for storage & transshipment facility.

Increased volume throughput.

2014/15

Create logistics park for value added services (PE automotive terminal).

Increased volume throughput.

2016/17

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Strategy Implementation – Sector Approach

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Section 56 Projects Overview

Current s56 Projects

S56 Project Sector Current Status

Western Cape

• Port of Saldanha LNG Facility • Terminal Operator Agreement (TOA) implementation underway.

• Port of Cape Town Liquid Bulk • TOA implementation awaiting ROD.

Eastern Cape

• Port of Ngqura Liquid Bulk • TOA finalization awaiting conclusion on tariffs from NERSA.

KZN

• Port of Richards Bay

Liquid Bulk • TOA is on development phase.

• Outstanding resolution of environmental issues.

• Operational phase planned for March 2017.

Upcoming s56 Projects

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s56 Projects Sector

Western Cape

• Rig Repair Facility- (Saldanah) Oil & Gas

• Offshore Supply Base - (Saldanah) Oil & Gas

• Cruise Terminal – ( Cape Town) Cruise Liner

Eastern Cape

• HFO – (East London) Liquid Bulk

• Manganese – (Ngqura) Dry Bulk

• Shed 10,11 & 12 – (PE) Break-Bulk

KZN • Cruise Terminal – (Durban)

Cruise Liner

• South Dunes – (Richards Bay) • Lot 100 – (Durban)

Liquid Bulk Liquid Bulk

N.B: Above projects are subject to internal Transnet approvals

s56 Challenges & Mitigations

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Challenges Mitigation

Long lead times & process turn around

Commence to obtain applicable statutory/regulatory approvals prior going on public process, e.g. EIA application,

Early engagements and alignment with Industry bodies, e.g. NERSA.

Address other internal challenges, i.e. resourcing the portfolio with specialized skills & enhance current governance processes.

Statutory precedent requirements and conditions

Thorough listing & analysis of all statutory requirements per projects and addressing these prior project commencement.

Uncontrollable risks impacting on s56 implementation

Identify these and have mitigation measures, e.g. funding guarantees, transformation certifications, etc.

Duration linked investments, i.e. Considering adopting the Antwerp model, i.e. concession periods linked to ROI.

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