Social Contribution

Improvement of Customer Value

Implementation and Management Structure

VOC Gathering, Inconveniences and complaints raised Suggestions, inquiries, compliments, integrated Call Center, Quality Management Department, Warning ,Business Segments and RelatedDepartments, Define countermeasures Improve quality, Consultations Identify and feed back cause

Mid-term Roadmap

We will quickly identify regulatory trends, changing customer interest and needs as well as potential quality risks to communicate them with experts in R&D and manufacturing process while transforming our process from the reactive management of customer complaints to the proactive management that identifies customer complaint factors in the initial product development stage and reflects them in product design. Furthermore, we aim to deliver a perfect quality of mass-produced products so as to prevent reoccurring customer complaints through quality monitoring in the entire manufacturing sector including suppliers while integrating customer feedback in product development in order to enhance customer’s trust in our products. In addition, we will develop management standards through systemized business segment-specific quality management systems and management techniques while establishing our unique quality management standards applicable in developing new products and businesses.

Mid-term Roadmap
Focus Area Issues 2016 2017 2018
Customer feedback and communication Reduce the customer complaint rate by 3% compared to 2015 Reduce the customer complaint rate by 4% compared to 2015 Reduce the customer complaint rate by 5% compared to 2015
Prevention of reoccurring customer complaints Resolve prolonged complaints and improve the quality of products Promote prevention of high-risk claims Monitor the quality changes with the control chart and improve the quality of products
Reinforced the quality management system Supplement the process for enhancing the quality of imported products Diagnose and stabilize the quality system of new businesses Create the quality system to support global businesses
Carried out the preliminary management
activities forquality improvement
Establish the customer complaint forecast system Stabilize the preventive system of quality issues Carry out campaigns and events to raise the awareness of quality improvement

Customer Feedback and Communication

We ensure that invaluable customer feedback is fully integrated in improving products further through an integrated system so as to enhance customer value. While our telephone/online counseling and customer complaint handling operations had been dispersed across respective subsidiaries, they were integrated into a single system so as to remove complexity and inefficiency in operating multiple call centers, standardize customer complaint response systems, efficiently respond to internal/external changes and efficiently identify consumer features and patterns through the analyses of consumer data.

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.

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.

Customer Complaint Forecast System

We have established our Customer Complaint Forecast System based on big data to prevent quality-related complaints. By analyzing complaints by product, season, region, and customer category, we predict the causes of frequent complaints and share the result with other business sites to prevent their recurrence. We will continue our efforts to meet the expectations of customers by managing various issues based on this continuously upgraded system and enhancing the employees’ awareness of quality management through newsletters and education programs.