Social Contribution

Improvement of Customer Value

Prevention of Reoccurring Customer Complaints

LG H&H operates the integrated call center to identify and respond to complaints, questions, and suggestions about products and services of the company. In addition, the company shares customers’ opinions, reactions, and demands collected by offline store staff, who deal with customers in person, on the internal network in real-time. The quality department monitors these opinions, preemptively identifies drawbacks of products, and utilizes them in finding solutions, minimizing complaints from customers.

Customer Complaint Rate
Reduction

As part of our activities to lower the customer complaint rate, we run the regular VOC monitoring system, conduct post management to prevent the recurrence of issues, highlight issues related to key product quality, and carry out activities for improvement. In addition, we find frequent cases based on the customer complaint analysis, and promote the preventive campaign and distribute management guidelines. As a result, the customer complaint rate dropped by over 10% compared to the previous year (non-consolidated). In 2016, we started conducting weekly and monthly monitoring of customer claims. We have added the daily report to the list of activities for 2017 to swiftly address the factors triggering customer complaints. To prevent claims, we also analyzed the previous trend in complaints and find out what to do for quality improvement this requires management and assigning the appropriate priority depending on the timing. We distributed relevant training materials in advance to increase employee awareness. Our quality committee holds regular meetings to maintain a close cooperative relationship with relevant departments to identify and address quality issues.

Quality Innovation Project

We implement a system to support employees to explore quality innovation projects aimed at securing continuous competitive advantages in quality and provide rewards for successful performances. We also invite external professional consultants to provide the progress analysis and solutions in each stage in a collective training program to employees participating in such projects. To date, 55% out of 29 themes suggested were completed, and the rest that are in progress will be finalized in 2018. Completed projects achieved the goal by 131%, resulting in four cases of intellectual rights including patent application.

Consumer-centered
Management Certification

To become “the best life culture company dedicated to realizing our customers' beauty and dreams”, our management vision, and establish our consumer-centered management system, we introduced Consumer-centered Management Certification. This system evaluates whether a company organizes all activities focusing on consumers and constantly improves relevant management activities. To acquire this certification, we enacted internal diagnosis and came up with strategies with the TFT in 2016. We also carried out the consumer-centered management education program, developed a manual, and prepared accomplishment reports. Such efforts helped LG H&H, THEFACESHOP, Coca-Cola Beverage Co., and HAITAI htb to achieve this certification, all at the same time.

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