BUSINESS PROCESS MODELING AND FAILURE MODES EFFECTS ANALYSIS TO IMPROVE COMPLAINT SERVICE SYSTEM TO INCREASE CUSTOMER RETENTION RATE OF INTERNET SERVICE PROVIDER COMPANY

• Main Author: Paul Usmany, Jovan
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/57247
• Institution: Institut Teknologi Bandung

The positive growth of market needs toward Internet Service Providers (ISP) has adversely impacted Indonesia's renowned ISP (i.e., PT. TELCO). The rapid internet network is very useful in a variety of businesses as well as for speeding up long-distance and short-distance communication. Due to the intense rivalry between telecommunication companies, competing companies have been motivated to gain competition in order to remain superior. In 2020 alone, PT.TELCO has lost 36% of its customers, which indicates poor customer retention performance. In line with the increasing needs and services provided by service providers, PT. TELCO customers are four times faster to leave service (churn) by 30% (± 210,000) in the 2019-2020 period. This research aims to solve PT.TELCO customer retention issue by identifying why customers stop subscribing and providing solution improvement proposition to the existing service complaint systems. For this purpose, we conduct in-depth interviews, customer surveys, and analysis of existing business process standards for customer complaints handling. Next, we conduct five why analysis, Failure Modes and Effects Analysis (i.e., FMEA), and business process modelling to analyse the existing operation and formulate the improvement propositions. we assess three solution alternatives propositions, namely: (1) new direct line from the automated customer system to the technicians, (2) lock-in strategy through customer service, and (3) the combination of the two alternatives Finally, using simulation software to test the validity of each proposition and test each propositions using analytic hierarchy process to give out the best solution and expert validation. Ultimately, the lock-in strategy embedded in the customer complaint system is recommended as the best option to improve customer retention.