Corporate Governance vs Profitability. ABC Transport plc (2)
October 28th, 2008 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
As expected, some Nigerians have had some nasty experiences with office and counter attendants of ABC Transport plc at various times. Some mails have started coming in and one was from Sunday Afolabi in Lagos. His ordeal is detailed below.
“I had similar experience at the ABC office in Lagos.After the attendant had ascertained the weight of what I wanted to send,he added about N2500 (two thousand five hundred naira only) to the official charge and made me believe that she is doing me favor.After a heated argument,I told my wife to give her N1500 because it was already past 7pm at night and would not want to go back home with the load.
After I had left,I felt bad.Not because I paid the money but because this happened in a public quoted corporate organization.I have resolved that should such a thing ever happen again,I will cause a scene and will not leave until I see the station manager.
It is disappointing that the ABC management could allow such to happen under their nose.”
It is apparent from the above customer experience that there is a high possibility the customer will leave for a fellow competitor once a better service point is discovered. Imagine then what the impact would be if this same action is duplicated in all branches of the company. It is very annoying that these things happen right there when a station manager is present.
So what are the likely implications or consequences of poor corporate governance and how can it be corrected. I would detail out a few and expect you to also err your views by sending in your mails.
1. High customer turnover: this simply means getting a large number of new customers because the old ones are leaving.Like most experts would say, it is easier to keep and manage an old customer than getting or managing new ones. This is because a customer that has been there over the years is able to most likely refer other friends to a particular company where he/she is being serviced well. On the other hand, a loyal customer that intends leaving due to poor/bad service also has a high capability of taking others along when leaving if he/she has a high level of persuasion.
Either ways, it’s better to focus more on those that have been there over the years and ensure that they are satisfied with how they are attended to. ABC plc most likely does not even have a database to help track customers that have been patronizing them over the years so this seems to be an impossible task. Some major root causes include poor product quality, customer service response rate and follow-through is poor, delivery late or too slow,over promised and under delivered and lack of organizational structure designed to coordinate and focus all the functional departments responsible for delivering high quality service to satisfied customers.
High customer turnover is therefore bad for business and if left unchecked can actually bring a business to a standstill.
In subsequent episodes, we would treat the impact on profitability and consequently share price movement. Remember to send in your views, experiences or comments to chuks(at) stockmarketnigeria.com.
(1 votes, average: 1 out of 5)
Loading ...
abctransport is just one out of the whole lot that has been reaping us off our monies in the industry.it’s been in existence for years and we as nigerins have somehow become use to it,perhaps because there are no good roads or govt.vehicles on the roads,and we therefore believe that the prrivate operator is ddoing us a favour and we tend to accept whatever they do.to butress my point ,the xmas is here again,take a trip to the bus terminals of all bus operators and see things for yourself then you’ll appreaciate what i’m telling you.we are the architect of our problems .until our govt.is alive wwe may not see the required change that is happening in the US.ours is the survival of the fittest.