CLIENT ALIGNEMENT

According to the Rockefeller Foundation, 68% of clients end a business relationship because they do not feel that the company is looking out for them. This is just one study, but there are hundreds more confirming that the quality of client relations is a key pillar of any business.

In 2015, GFK-Rus International Institute of Marketing and Social Research measured the degree of client satisfaction with SIBUR. Based on the anonymous survey results, the loyalty of the Company’s clients was rated to be above average. Most of them mentioned that they view SIBUR as a key partner valued for its open and cooperative attitude and also noted the strength of its management team. No matter how good the result, there is always room for improvement, especially as the clients also pointed at the Company's weaker areas.

As such, for instance, they mentioned its time consuming decision-making process, while also admitting they understand that SIBUR is a large corporation with complex interaction between the business units.

SIBUR feels there is still a lot of work to be done on the long way to achieving true client centricity, which includes a constant focus on understanding and forecasting client needs along with the implementation of specific tools to improve customer service. Hence, it welcomes client feedback and also seeks ongoing contribution fr om external professionals, including Igor Mann, a leading Russian marketing and business adviser, who supports our team, and McKinsey experts, who share their vision of best B2B marketing practices.

ACCORDING TO MCKINSEY, IF IMPLMENTED FOR JUST TWO OR THREE YEARS, A CUSTOMER-FOCUSED APPROACH TRANSLATES INTO TANGIBLE RESULTS. SALES INCREASE BY 10–15%, WHILE THE CLIENT CHURN RATE DROPS BY THE SAME PERCENTAGE. EMPLOYEE INVOLVEMENT RISES BY 20–30% AND TOTAL CLIENT SATISFACTION GAINS ANOTHER 20%.

“It is a common mistake to look at clients through rose-coloured glasses,” says Igor Mann. “That is, to assume that if a client does openly express dissatisfaction, there is nothing to improve. This is not the case, and statistics speak volumes: while 86% of western companies claim to be customer-focused, the same percentage of clients think exactly the opposite. That is why feedback obtained through anonymous surveys is really helpful.” Given this, SIBUR decided to carry out annual client satisfaction surveys to monitor the evolution of their perception of the Company, its products and their relationship.

“Our ultimate goal is not just to win our clients as trusted counterparties, but also as SIBUR's true followers,” says Artem Krupinov, Head of Sales and Marketing Development at SIBUR. “It is not only about our respect for the client and our care for their interests and needs. It is about our willingness to contribute to their development and serve as a driver for that, while also learning from the client.”

According to McKinsey, true customer-focused market leaders are distinguished by certain aspects of their approach to clients. For example, they manage client expectations (by identifying them at an early stage, starting from a carefully planned product introduction, emphasising and communicating any CRM improvements, etc.), develop customer-focused skills and culture within their organisations, streamline and simplify operational processes and systems. They also know for sure that the quality of customer service is a competitive edge, which is essential for long-term growth of a B2B company.

SIBUR is clearly committed to enhancing its customer focus and has a strong team to drive this enhancement. They have a positive attitude, host of ideas and vigour to deliver it. “We have a long journey ahead and our target is to make sure our clients are always left with a positive and satisfying experience of working with SIBUR,” says Artem Krupinov.

SIBUR managers at a customer focus training session


Just in time

SIBUR’s subsidiary BIAXPLEN is the largest Russian and one of the leading European producers of biaxially-oriented polypropylene (BOPP) film. Currently its portfolio includes more than 40 types of BOPP-films used in the production of soft packaging, labels, adhesive tape, tobacco and barrier films. “We are ready to develop new grades as well as modify the existing ones, if our clients require new product properties or improved functionality,” says Konstantin Morozov, chief marketing and sales expert at BIAXPLEN’s Basic Polymers Division.

He also believes that in the current market environment “it is essential for a business to shift from an internal production focus to a customer-focused strategy”. “Our practices as a major market player are important as our customer service and experience improvements influence a significant range of clients in the industry. In addition, any such improvements spread further along the supply chain, all the way down to food producers as end customers,” says Konstantin Morozov.

BOPP films production. BIAXPLEN’s branch in Kursk

One of the key areas of work is careful planning, which seeks alignment not only with the direct customer, but with the end consumer who buys packaging from the printing company. This end-to-end framework enables us to build a production process based on the “just in time” principle. This reduces storage time of finished products and mitigates the risk of disruption. “To reduce the delivery time, we operate warehouses wh ere we can assemble an order with products supplied by different plants (the Company runs five of them – Ed.)” says Konstantin Morozov.

Another efficient mechanism of interaction is providing marketing support to clients. “We are always ready to share the packaging market data and customs statistics if our client is looking to, let us say, enter the new areas of import substitution, and also help them with product pricing analytics and forecasting,” adds Konstantin Morozov. On top of that, BIAXPLEN is ready to offer flexible solutions tailored to individual customer needs, including those pertaining to pricing formulas. The company’s near future target is to develop a framework that would enable clients to plan and receive product deliveries at ten day intervals, rather than once a month.”

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