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Sustainability > Key Activities 2014 > Boosting Service Quality
Fiscal 2014 Key Activities

Quality and Customer Satisfaction: Boosting Service Quality. Expansion of Japan’s Quality Service Response Capabilities to China.

Why is it Important?

Building a Much-Needed Service System in China in Response to Expanding Market

The Daikin Group’s expansion of its global air conditioning business involves more than just selling more air conditioners; we are also building a comprehensive service system that includes installation and maintenance with the aim of boosting customer satisfaction. We have 27 customer service centers around the world and we conduct satisfaction surveys for customers to gather their opinions in 22 countries. We also conduct other efforts such as technical support to Daikin dealers doing air conditioner installation and maintenance.

Ever since establishing a local subsidiary in the rapidly growing Chinese market in 1995, sales have been growing year by year as we have rapidly expanded our sales territory from major metropolises to provincial areas. This rapid growth has necessitated that we boost both the quality and quantity of our service system in providing the crucial service quality that will raise customer satisfaction.

Net Sales in China

Net Sales in China

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DAIKIN’S APPROACH

Daikin Sales and Service Functions Collaborate with Dealers to Boost Customer Satisfaction

The Daikin Group’s ultimate aim is to interact sincerely with customers and provide meticulous service rooted in exacting technologies.

A major cause of air conditioner breakdowns is faulty installation. Air conditioner manufacturers in China generally do not have their own service engineers but rather have cooperating dealers who handle the installation and maintenance of products. Daikin, on the other hand, has always established our own service companies staffed with service engineers in order to improve the quality of installation and maintenance. However, to keep up with the speed of our business expansion, our own service engineers are not enough and so we need to rely on the help of dealers to handle installation and maintenance.

Under the slogan “We are the DAIKIN Family,” the Daikin Group in China has built up strong bonds with its dealers. We focus on supporting dealers because we believe satisfying them will lead to greater satisfaction among end users. In fiscal 2014, besides stepping up dealer support, we took every measure possible to raise awareness among our service company employees that dealers are important Daikin partners.

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PERFORMANCE

Stepping up Technical Training at Dealers Achieves Japanese Level of Service Quality

Daikin is increasing the number of service bases in China and appointing in-house service engineers at these bases around the country. In fiscal 2014, we opened 30 new bases and placed a particular focus on strengthening the service system in regional cities. Our in-house service engineers conduct guidance at dealers in addition to performing air conditioner installation and maintenance. To ensure they have the capability to provide and lead such service activities, they learn technological prowess at Daikin’s in-house Service University. As of the end of fiscal 2014, 455 in-house service engineers had completed this training.

To help pass on the techniques acquired by our in-house service engineers to the dealers, in fiscal 2014 Daikin service companies and Daikin sales functions collaborated to focus on providing on-site guidance at high-sales-volume dealers and new dealers. Our in-house service engineers worked with dealers in installing air conditioners, with a particular focus on avoiding complex pipework that could lead to defects in air conditioner operation. As a result, dealers’ service engineers are now able to perform proper installations that prevent defects.

Strengthening the Service System in China

Strengthening the Service System in China

Stronger Ties with Dealers Leads to Greater Customer Satisfaction

The Daikin Group in China has established customer service centers in Beijing, Shanghai, and Guangzhou to handle customer inquiries. In fiscal 2014, we established dealer support centers for dealers so that we could offer them a higher level of comprehensive assistance.

We enjoy closer communication with our dealers by offering more advanced technical support and these dealer support centers. The result has been that they can foresee potential problems, consult with Daikin, and quickly solve them on their own. In China, it is a custom to show gratitude to people by presenting them with a banner. In fiscal 2014, we were presented with five times as many banners as the previous year. And thanks to stronger ties between Daikin and dealers, we have better access to customer information gathered by dealers and this has led to more business in the form of replacement purchases and additional purchases.

We have been working on the assumption that greater satisfaction for dealers means greater satisfaction for end users. Thanks to these efforts, on customer satisfaction questionnaires conducted in fiscal 2014 we scored an overall score of 4.7 out of 5, compared to 4.4 on the fiscal 2011 questionnaires.

Service engineer training for dealers

Service engineer training for dealers

Receiving a banner of gratitude from a dealer

Receiving a banner of gratitude from a dealer

Number of banners of gratitude received from dealers 5 times as many as in the previous fiscal year

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NEXT CHALLENGE

Executive Management Candidates Trained in Japanese Level of Quality Service

We believe that to further raise the level of service quality in China, it is crucial that we train executive management candidates who understand and implement the Japanese style of prompt and polite communication with customers. That is why since fiscal 2011 we have been hiring at our Chinese service companies local staff who have studied in Japan and have experienced firsthand Japan’s high level of customer service. In fiscal 2014, we hired six Chinese students who studied in Japan and they underwent nine months of training. Besides acquiring air conditioning and service basics at our Service University in China, they accompanied service engineers on the job for practical training in installation and maintenance, and they underwent training at a contact center for firsthand experience in offering the heartfelt service for which Japan is known.

We will continue to have more frequent exchange with each of our Chinese service companies and strengthen ties with dealers, as well as ingrain the Japanese style of service so that Daikin can be number one in customer service in China.

Stakeholder's comment

Achieving Satisfaction with Customers Through Unparalleled Service

We are grateful to Daikin for all the support they give us, such as by offering installation and maintenance guidance on site. Our customers have praised us, especially for things like prompt delivery of parts.

The market is becoming increasingly competitive and it is getting harder and harder to distinguish yourself from other companies. We look forward to Daikin’s continuing support in further boosting customer service; by helping us make installation techniques standardized and fully ingrained among our service engineers, and by sharing valuable information with us. For example, having information about simple solutions for customers on the Internet would be valuable during dialogue between dealers and customers.

Ren Weiguo Chairman, Jiangsu Dayu Air-condition Facility Co., Ltd. (Daikin Dealer)

Ren Weiguo Chairman, Jiangsu Dayu Air-condition Facility Co., Ltd. (Daikin Dealer)

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