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CUSTOMER SATISFACTION

LG Electronics strives to provide service for customers at the right time, in

the right place, and at the right cost.

We promise to deliver a satisfaction level that exceeds our customers

expectations, and strives to provide the highest value to our customers
through a fast, accurate and differentiated service based on multi-angle
analysis of the customers satisfaction and expectation levels.

Research & VOC Management Towards Customer Satisfaction

LG Electronics assesses local customer service programs implemented by

overseas subsidiaries with the Net Promoter Score (NPS) and makes ongoing
improvement efforts with a focus on detractor management. Standardized in
2012, the NPS questionnaire contains ten questions about the customers
choice of service request channel, satisfaction with the call/repair experience,
the quality and speed of repair service, the quality of service information
provided before/after the repair service, and repair costs. The survey is
conducted monthly on at least 3% of the repair cases processed in the
previous month (performed on approximately 230,000 cases in 2013 and
200,000 cases in 2014).

Based on the results, we have a monthly interview with the subsidiarys

president to review their service process, and provide feedback to related
teams for follow-up measures. Corporate headquarters also regularly monitor
subsidiaries performance on service improvement.

We utilize the Customer Satisfaction Index (CSI) and the Voice of the
Customer (VOC) to reduce customer dissatisfaction and improve the service
quality of its call center, service center, and store networks. In addition, we
have in place a support system to facilitate fast resolution of customer
dissatisfaction, and provide feedback on customer handling. We also
incorporate customer feedback into improving product quality and service
policy and programs based on a regular review process.

Customer-oriented Contact Point Management

LGE operates its call center over the weekend hours to provide a fast and
convenient service for customers. The weekend call centers, currently being
operated in 27 countries, will be further extended to cover every region of the
world. In addition, we support the customer with the dedicated specialists to
resolve complicated cases through phone calls, and provide remote
diagnosis/repair to increase customers convenience even without necessity
of in-home service.

We operate 141 service centers in Korea and over 13,000 worldwide. To

provide a fast and accurate service in line with customer expectations, LGE is
further extending the operation of the LG Mobile Service Vehicle, which
carries the required tools and components to perform on-site repair services.
The technicians are trained to explain the cause of the problem, the details of
the repair, and the necessary preventive measures after repair to keep the
customers informed about repair service and therefore increase their
satisfaction level.

Increasing Customer Satisfaction through Enhancing Service Quality

As part of our efforts to provide customers with quality service, LG Electronics

is continuously expanding the network of directly-managed service locations
around world. As a result, the share of service requests handled by directly-
managed service centers increased to 40.0 percent (2015) from 27.4 percent
(2012). The expanded service infrastructure greatly helped us enhance the
quality of our service, reducing the average time required to complete a
service request to 3.1 days (2015) from 3.7 days (2012) in overseas
locations. In Korea, our improvement effort was particularly effective in
increasing the same-day service rate from 52 percent (2012) to 66 percent
(2015). In order to enhance the quality and level of service, we also placed
emphasis on reducing repeated service requests since customers feel most
frustrated by having to repeat their service requests in order to resolve an
issue. We were able to reduce the rate from 8.0 percent (2012) to 5.3 percent
(2015) through a wide range of initiatives including additional training for
service engineers and effective management of recurring service / repair
issues.

Customer Satisfaction

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2013 2014 2015 2016

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