Product and Service Responsibility

GRI G4 PR2 | PR5 | PR9 – Material issues: Aspects: Customer Health and Safety; Compliance
HIGH
SATISFACTION
RATES

We encourage our associates
to find solutions for client
dilemmas on a daily basis

Our activities are regulated by the ANATEL (Agência Nacional de Telecomunicações, or Brazilian National Telecommunications Agency), ANCINE (Agência Nacional de Cinema, or Brazilian National Cinema Agency) CVM (Comissão de Valores Mobiliários, or Brazilian Securities Commission) and, as the case may be, by other agencies or regulators. The Company received no relevant fines and/or sanctions in 2014. We introduced a consistent, integrated set of practices to ensure we provide quality services. Some of our initiatives to increase satisfaction in 2014 were:

TOA (Time of Arrival)
We introduced a technological tool that organizes the whole client relations process, from the moment a client makes a request for repair to time the repair is effectively made. This system allows scheduling repairs based on the best logistics for each repairman and crossing more detailed information, such as times when the client is at home, cancellations, etc. This tool has increased operational efficiency, reduced the number of unproductive visits and increased client satisfaction.

Internal Service Island
Focused on innovative initiatives to improve our relationship with clients, we had excellent results in 2014; for example, we decided to install a service island at the Company. That allowed us to understand problems better, see details that went unnoticed and examine incidents systematically from a more realistic point of view.

Cliente Sempre [Clients Always]
Another important initiative is the Cliente Sempre program, which encourages associates to find solutions for client dilemmas on a daily basis. The idea is to strengthen the culture of serving spontaneously in case they receive any requests or detect any problems-even if it is not directly related to their areas of expertise. A practical example is when an associate’s friend or neighbor asks him/her a question about his/her telephone bill. In these cases, the associate has a responsibility because he/she has information straight from Algar Telecom and provides for the client a definitive answer in a transparent and direct manner. To qualify for the award, associates have to describe a real situation and the way he/she handled it. Over 140 situations were reported throughout 2014 and over 37 associates were awarded by the program.


Story told by the associate who won the annual Cliente Sempre award:

“I met someone who had been a client of Algar Telecom, but switched to a competitor because he was not satisfied. I tried to understand the reasons and realized that, in fact, the client had hired a service that was not suited to his user profile. He had low-speed Internet access. I quickly saw an opportunity to regain the client, especially because we offer ultra-broadband internet access in his neighborhood. I told him about our packages and said the price would be very attractive. As he expressed some interest, I asked him to receive a consultant. I asked the consultant to come quickly, and he showed up in 30 minutes. This alone impressed the client. After our professional’s explanations and demonstration, he bought the 40 MB ultra-broadband and landline phone package on April 25. I asked for an expedited installation, which was scheduled for the next day, April 26. I monitored the whole process. The technicians came on the scheduled date/time, but didn’t make the installation, claiming the conduit was blocked. But I didn’t give up. I contacted the technical team to see if other better trained technicians could come to the site for another check. They took another look, and found another way to pass the cable. The client had to make a minor alteration to the place, and the equipment was installed successfully. After all this effort to serve the client, I received a message on my phone: Juliana, thanks a lot for your help. You were an angel! I was very glad to regain the client, make an upgrade and, on top of that, exceed the client’s expectations and help solve the access problem.”

Juliana Batista Reis Veloso


Satisfaction Survey

GRI G4 PR5

Our high satisfaction rates–about 75% at Algar Telecom and 87% at Algar Tech–reflect our culture, based on close relationships with clients and countless initiatives to ensure the effectiveness of our services and products, from client services to a positive purchasing experience. We also evaluate our value propositions in relation to the market.

Independent consulting firms conduct surveys on the attributes, values, image, reputation and functionality of our services. These surveys are usually conducted by phone and segmented by business profile–retail and corporate. In the case of Algar Tech, this segmentation is based on market sector, service and type of client. Another method to measure client satisfaction rates is by using our communication channels, such as our client service centers (phone, e-mail and websites), service offices, accredited stores and events, as means to obtain feedback. Algar Mídia conducted no client satisfaction survey in 2014.

At Algar Telecom, the variable compensation of some executives, including the CEO, are connected with their client satisfaction targets, which, therefore, lead to tactical actions involving the Company’s teams as well. With some of the highest satisfaction levels in the industry, the Company recorded its highest client satisfaction rate – 87% – in its fastest-growing market, the corporate market. Some of our main attributes in this regard are: Uncomplicated/Easy to relate with, at 84%, and Close to clients, at 78%. In the Retail market, our satisfaction rate was 67%. Our mobile phone services, our fastest growing service offering in 2014, were rated positively by 72% of our clients.

The satisfaction survey conducted at Algar Tech, one of whose strategic goals is to be recognized for its commitment to delivering services to clients, shows the company has been consistently transferring its core value proposition to its clients since commitment is perceived as its best positive attribute. Indeed, the satisfaction rates for its components ranged between 79% and 90%.

Satisfaction rates for all Algar Tech’s service offerings (Client Relations, Applications, IT Infrastructure, Managed ICT Services) were above 80%. Managed Services had the highest satisfaction rate – 94% – even though Asyst, acquired in early 2014, had to undergo a whole integration process. The main area of improvement pointed out was related to agility, namely, early communications about delays. Algar Tech has recently restructured its projects department to improve in this regard.