Training ROI for an Oil Major
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The Synopsis: Our client, an oil major, a Fortune 500 company, was losing market share. The last mile connect with the customer – Customer Attendants, didn’t create an impact. To address this, the client partnered with TMI e2E to train Customer Attendants across 270 outlets, focusing on upskilling and behavioural improvement to enhance customer experiences, retain clients, and drive sales of premium fuel variants, despite challenges in managing staff quality at franchisee-owned outlets.
The Challenge: The oil major faces stiff competition in India’s petroleum retail sector, particularly from competitors which have gained customers through premium service and pricing. Field research, in collaboration with TMI e2E, highlighted the need to improve service levels at the Petrol outlets. Demographic profiling of the Customer Attendants showed that they typically came from low-income family backgrounds, with low self-esteem and often were migrants from geographies in which they had not found employment. They were low on skills and motivation and went through the motions of performing the tasks assigned to them, akin to robots, for the wages they were paid. They did not have a natural inclination to go beyond the brief to make an impact on the customers or even try to have a conversation with the customers.
The Solution: The design of the program had 3-fold objectives:
- Make them own up the company brand as the employer and not the Retail Outlet Owner or the Manager (if it were to be owned by the oil major itself) and take pride in their job.
- Make them comfortable about the products, especially premium ones, the process from entry to exit of the vehicle, the quality and safety considerations.
- Make them confident enough to be able to have crucial conversations with the customers, based on their ability to profile the customer and make assumption on their needs.
All the above three objectives had to obviously result in growth in business – “tyrefalls (akin to footfalls in a retail outlet for shopping)”, volume growth of oil products and growth in offtake of premium products. Hard targets were not set for quantitative growth, as this was the first time that the client had attempted to deploy such a complex intervention that involved sustained inputs to Customer Attendants over 15 weeks to modify behaviors and create customer-service oriented retail outlets that would help them compete in an increasingly tough market. This pilot of 270 outlets was to help in setting hard performance improvement targets for the scale-up.
The Impact: The training program resulted in a marked improvement in the customer experience at these outlets. Customer Attendants are now better equipped to handle customer queries and requests and were more knowledgeable about the product they were dispensing. They were able to have meaningful conversations, drive offtake premium products, deliver more “tankful” sales (against the Indian customers normal habit of filling up for a round sum of money). This has resulted in more customers filling up at Indian Oil outlets and improved the margins of the Retailers given that the sale included higher percentage of premium products. Additionally, the Attendants felt valued as they had been given the opportunity to gain skills which would enable them to better serve their customers. This in turn improved employee morale and job satisfaction, which is expected to help in retention.