Hong Kong's latest ranking was an improvement of three places on its position in 2003. Two possible contributing factors to the improved score were government campaigns that emphasise the importance of good service and the impact of initiatives of the Hong Kong Association for Customer Service Excellence.

A few years ago, pop star and actor Andy Lau Tak-wah told the Hong Kong public in a government-funded campaign that the kind of service the city gave was no longer acceptable. The campaign promoted the idea that customers who were once accommodating of poor service may not be that tolerant any more, especially in an increasingly competitive market. Poor service only resulted in lost custom.

As a service-based economy, Hong Kong depended on good service and competitiveness for economic success. More than 85 per cent of Hong Kong's working people were engaged in the service industry, according to Buston Chu Yat-chiu, vice-chairman of the Hong Kong Association for Customer Service Excellence (HKACE).

'With such a high percentage of our workforce depending on the success of the service industry, customer service is very important,' Mr Chu said. 'This was recognised by a number of business organisations and business leaders. They saw a need to set up an association to improve service quality.'

Formed in February 2000, the main objective of the association is to promote customer service excellence. The ability to sense and understand customer needs and expectations lies at the core of good customer service. This essentially protects against dissatisfied customers who would otherwise take their business elsewhere. To help the workforce understand customers' needs, the association conducts its own research and gathers data collected by other organisations.

'Every year we do research to understand what is meant by professionalism from the customer's point of view. Our work is to foster consumer understanding and to guide managers as they incorporate a customer service strategy in their business,' Mr Chu said.

In fact, the very act of conducting a customer satisfaction survey had a positive effect, with consumers being assured of the organisation's genuine interest in them, he added.

While profit is the ultimate goal of any business, sustainable profit starts with the employee being focused on the customer. 'Entrepreneurs sometimes ignore employee satisfaction as they concentrate on profit and loss. But focusing on the result and forgetting the process is not good in the long term. The moment of truth for the customer is the selling process,' Mr Chu said.

The association has about 30 members and is preparing to accept new members by invitation only for now.

From January next year, any organisation may apply for membership. Organisations must demonstrate that they offer excellent customer service. This is usually supported by customer service awards or references. The applications are reviewed by a committee.

Gaining membership brings several benefits, including shared research and the opportunity to attend special workshops. Members will soon be able to display association stickers at their premises and in their company literature.

'We are not a consumer council,' Mr Chu pointed out. 'A consumer council protects consumer rights. We help organisations achieve consumer excellence.

'However, if we received several complaints from customers about a particular organisation, we would terminate that organisation's membership.'

The association has teamed up with the University of Hong Kong to offer a graduate diploma in service excellence and leadership.

The programme equips senior managers and executives with marketing and management strategies and leadership skills for sustainable service excellence. The six-month course takes about 120 hours to complete part-time.

HKACE Objectives

To share best customer service practices among members and with other service sectors in Hong Kong and overseas

To pursue continuous customer service improvement among members

To promote the benefits of customer-focused culture in Hong Kong

To establish and maintain relationships with service excellence providers and advocates

To act as catalyst of positive changes and improvements in Hong Kong's service culture

To deal with the Hong Kong government on customer service matters and research findings

To advise the government on customer service issues