The Nigerian banking market still
remains largely a seller’s market. Before the recent re-capitalization of
banks, there were widespread cased of dissatisfied customers who in most cases,
do not know their rights or remedies to follow. In any business to customer
type of environment, satisfying a customer is the ultimate goal and objective.
remains largely a seller’s market. Before the recent re-capitalization of
banks, there were widespread cased of dissatisfied customers who in most cases,
do not know their rights or remedies to follow. In any business to customer
type of environment, satisfying a customer is the ultimate goal and objective.
Banks by their nature do not produce tangible
goods but provide services which must met the requirements of their customers.
goods but provide services which must met the requirements of their customers.
Characteristics of service
A. Intangibility: Services rendered in banking business
have common characteristics that distinguish them from tangible product. The
first of these is the intangible nature of services. By this, we mean that bank
services can hardly be seen with the naked eyes. Being intangible, services
cannot be touched the same way we can touch a bar soap.
have common characteristics that distinguish them from tangible product. The
first of these is the intangible nature of services. By this, we mean that bank
services can hardly be seen with the naked eyes. Being intangible, services
cannot be touched the same way we can touch a bar soap.
B. Inseparability: Other characteristics of services
rendered in banks are inseparability. This means that the service provider
cannot be separated from the services he/she provides “A”.
rendered in banks are inseparability. This means that the service provider
cannot be separated from the services he/she provides “A”.
C. Heterogeneity: Bank services are heterogeneous in
nature, it is often difficult to standardize or to make banking services
uniform. The reason is that we are dealing with a subject that is often
difficult to measure. The quality of service rendered or received by a customer
“B” who is withdrawing the same sum with customer “A” may be different,
depending on the customer, and the level of professionalism displayed by the
bank teller across the counter.
nature, it is often difficult to standardize or to make banking services
uniform. The reason is that we are dealing with a subject that is often
difficult to measure. The quality of service rendered or received by a customer
“B” who is withdrawing the same sum with customer “A” may be different,
depending on the customer, and the level of professionalism displayed by the
bank teller across the counter.
D. Perishability: Bank services cannot be stored as they
are provided; they seem to evaporate as soon as they are provided yet, each
encounter a customer has with his bankers can create a lasting impassion.
are provided; they seem to evaporate as soon as they are provided yet, each
encounter a customer has with his bankers can create a lasting impassion.
Customer’s expectation and satisfaction
in the various service areas
in the various service areas
Generally, bank customers need could be
classified in the following categories:
classified in the following categories:
i. Borrowing
ii. Cash
deposit and cash management
deposit and cash management
iii. Domestic
and international money transfer
and international money transfer
iv. Services
v. Business
advisory services
advisory services
vi. Agency
services.
services.
1. Borrowing: When a customer approaches a bank to
borrow, his expectation is that he will receive what he perceives as good rates
which will enable his business post a reasonable after-tax-profit. A
prospective borrower also expects that his banker would give him large tenor
with moratorium period, especially if he/she is embarking on a new project.
Most borrower are in search of a bank that could disburse money in a timely
manner, immediately with a bank places undue reliance on collateral instead of
looking at the profitability an degree of reliability of the borrower. A bank
should constantly evaluate if it is able a currently meeting the expectations
of customers. When performance fall short of what the customer desire, a search
for a new banking relationship may commence.
borrow, his expectation is that he will receive what he perceives as good rates
which will enable his business post a reasonable after-tax-profit. A
prospective borrower also expects that his banker would give him large tenor
with moratorium period, especially if he/she is embarking on a new project.
Most borrower are in search of a bank that could disburse money in a timely
manner, immediately with a bank places undue reliance on collateral instead of
looking at the profitability an degree of reliability of the borrower. A bank
should constantly evaluate if it is able a currently meeting the expectations
of customers. When performance fall short of what the customer desire, a search
for a new banking relationship may commence.
2. Cash deposit: When customers who are net placers of
fund deposit money, they would want a bank that pays higher interest rates and
is quick at adjusting the rate upward in line with the dictates of the markets.
Given the volatility of rates in the Nigerian environment, most bank customers
expect a shorter tenor that would enable them make investment switches swiftly.
What is paramount to the Nigerian banks depositor is the safety of his deposits
soundness of a bank is an issue of the perception of the customer. Therefore,
each bank should manage its own public image. When a bank is barred from the
central clearing house or foreign exchange market, it could lead to a conclusion
by a customer that all is not well with the bank. A customer who places a
deposit with a bank is guided by the need to withdraw his money with each at
any of the advertised branches. The frequent breakdown in system in some branches
does not promote customer’s satisfaction. As insignificant as the dispatch of
statement of account could be, customers particularly corporate organizations,
expect their bankers to make bank statements available as and when due.
Customers should be able to vouch for the accuracy and integrity of a bank’s
entries in the statement of account.
fund deposit money, they would want a bank that pays higher interest rates and
is quick at adjusting the rate upward in line with the dictates of the markets.
Given the volatility of rates in the Nigerian environment, most bank customers
expect a shorter tenor that would enable them make investment switches swiftly.
What is paramount to the Nigerian banks depositor is the safety of his deposits
soundness of a bank is an issue of the perception of the customer. Therefore,
each bank should manage its own public image. When a bank is barred from the
central clearing house or foreign exchange market, it could lead to a conclusion
by a customer that all is not well with the bank. A customer who places a
deposit with a bank is guided by the need to withdraw his money with each at
any of the advertised branches. The frequent breakdown in system in some branches
does not promote customer’s satisfaction. As insignificant as the dispatch of
statement of account could be, customers particularly corporate organizations,
expect their bankers to make bank statements available as and when due.
Customers should be able to vouch for the accuracy and integrity of a bank’s
entries in the statement of account.
Indicators of customer dis-satisfaction
A. Inflexibility: Inflexibility is one of the symptoms
of dis-satisfied customers. Banks are not to be slave to rules. When a bank
receives complaints regularly about certain rules, it is time to re-examine
such rules subject to the required internal control. There should be flexibility
in terms of how, when and where a customer can receive payment or make payment
there are exceptional circumstances where you can allow your customer to
withdraw his money by means of letter when a cheque leaf is not available
provided the signature complies with the mandate held by the bank. A bank can
have a standardized withdrawal slip or voucher in the event that a customer
walks into the banking hall and his not his cheque with him of the customer so
desires, he can send in his cheque afterward to replace the withdrawal slip.
of dis-satisfied customers. Banks are not to be slave to rules. When a bank
receives complaints regularly about certain rules, it is time to re-examine
such rules subject to the required internal control. There should be flexibility
in terms of how, when and where a customer can receive payment or make payment
there are exceptional circumstances where you can allow your customer to
withdraw his money by means of letter when a cheque leaf is not available
provided the signature complies with the mandate held by the bank. A bank can
have a standardized withdrawal slip or voucher in the event that a customer
walks into the banking hall and his not his cheque with him of the customer so
desires, he can send in his cheque afterward to replace the withdrawal slip.
B. Delayed
service:
Delay in attending to customers in the various departments, such as cooperate
banking, international operations and funds transfer, could be a source of
dissatisfaction to customers. Many times, the incivility of the people in the
front office to provide satisfactory services is caused by the general service
or administration department.
service:
Delay in attending to customers in the various departments, such as cooperate
banking, international operations and funds transfer, could be a source of
dissatisfaction to customers. Many times, the incivility of the people in the
front office to provide satisfactory services is caused by the general service
or administration department.
C. Stock outs: This is when there are stocks out or
not availability of certain service. If a customer walks into the banking hall
and wants his money paid in certain denominations, but the bank cannot do so,
the customer feel dissatisfied. By paying in the denomination he has, the
banker has not breached any lay, but to the customer, the bank has not
performed satisfactorily. If a bank cannot provide money in various
denominations, no one else would.
not availability of certain service. If a customer walks into the banking hall
and wants his money paid in certain denominations, but the bank cannot do so,
the customer feel dissatisfied. By paying in the denomination he has, the
banker has not breached any lay, but to the customer, the bank has not
performed satisfactorily. If a bank cannot provide money in various
denominations, no one else would.
D. Non
availability of staff at services points: There is also the problem of bank
staff not being available at the service point if a customer walks into the
service point and meets empty cub odes, he could feel dissatisfied, especially,
if there are no people to offer explanation. The issue here could be as trivial
as giving out of statement of account or checking of account balance. The
officer concerned should be available during official hours to attend to
customers.
availability of staff at services points: There is also the problem of bank
staff not being available at the service point if a customer walks into the
service point and meets empty cub odes, he could feel dissatisfied, especially,
if there are no people to offer explanation. The issue here could be as trivial
as giving out of statement of account or checking of account balance. The
officer concerned should be available during official hours to attend to
customers.
E. Unprocessed
conduct/language: Another indicator of poor service is rudeness or
unprofessional conduct by bank staff. When a banker response to a customer’s
enquires does not show professionalism, the customer could be aggrieved. Every
bank staff requires some training in communication skill and customer
relationship management.
conduct/language: Another indicator of poor service is rudeness or
unprofessional conduct by bank staff. When a banker response to a customer’s
enquires does not show professionalism, the customer could be aggrieved. Every
bank staff requires some training in communication skill and customer
relationship management.
F. Poor
standard in record/book-keeping: The quality service provided could form the basis of
dissatisfaction amongst customers. When a bank sends out letters to valued
customers that contain inaccurate balances or information and their various
typographical errors in computation of commission on turnover or interest, the
customer could be dissatisfied. If errors are discovered from time to time by
the customer, the customer will no longer rely on his bank’s judgment if it
makes mistakes at regular intervals.
standard in record/book-keeping: The quality service provided could form the basis of
dissatisfaction amongst customers. When a bank sends out letters to valued
customers that contain inaccurate balances or information and their various
typographical errors in computation of commission on turnover or interest, the
customer could be dissatisfied. If errors are discovered from time to time by
the customer, the customer will no longer rely on his bank’s judgment if it
makes mistakes at regular intervals.
G. Wrong
delivery of customer’s document: Wrong and late delivery of statements of account could
injure the fillings of the customer especially those of them that think the
customer will not be placed in position to do one thing or the other, but
failed to do so, the customer will be aggrieved this happens often when a bank
staff goes beyond his brief or makes certain promises, which the bank’s
internal policy does not permit.
delivery of customer’s document: Wrong and late delivery of statements of account could
injure the fillings of the customer especially those of them that think the
customer will not be placed in position to do one thing or the other, but
failed to do so, the customer will be aggrieved this happens often when a bank
staff goes beyond his brief or makes certain promises, which the bank’s
internal policy does not permit.
Designing customer’s satisfaction programme
The greatest challenges faced by banks
are how to ensure ongoing management of customer’s expectations. In order to
overcome the challenges bank could design customer’s satisfaction programs such
as:
are how to ensure ongoing management of customer’s expectations. In order to
overcome the challenges bank could design customer’s satisfaction programs such
as:
A. Identification
of services priorities
of services priorities
In designing a program for customer’s
satisfaction, there is need to identify customer’s satisfaction priorities and
obstacle to meeting them, it is imperative to understand the characteristics
and behaviour of the bank customers in the various market segment. If a bank does
this, it become easier to determine customer defined quality, expectations and
preferences. Because there is free flow of information within each segment of
the market, there is need to give equal treatment to customers that fall within
the same market segment.
satisfaction, there is need to identify customer’s satisfaction priorities and
obstacle to meeting them, it is imperative to understand the characteristics
and behaviour of the bank customers in the various market segment. If a bank does
this, it become easier to determine customer defined quality, expectations and
preferences. Because there is free flow of information within each segment of
the market, there is need to give equal treatment to customers that fall within
the same market segment.
B. Institute
culture of service
culture of service
There is need to develop quality
service culture within the bank. Every organization that is desirous of having
a good customer service programme should institute a culture of excellence in
providing quality service in every segment of the organization. Everyone in the
bank should have a customer and there should be an understanding of how to
service each customer. Each staff must know the deliverables and the
responsibilities to the customer should be made clean.
service culture within the bank. Every organization that is desirous of having
a good customer service programme should institute a culture of excellence in
providing quality service in every segment of the organization. Everyone in the
bank should have a customer and there should be an understanding of how to
service each customer. Each staff must know the deliverables and the
responsibilities to the customer should be made clean.
C. Get staff and
customers involved
customers involved
In designing customer’s satisfaction
programs, both the customer and staff should be involved. A bank needs the
inputs of the customer in determining how best to service him. Similarly, all
bank staff should know the expectations of the customer and be able to point
out some impediment to performance.
programs, both the customer and staff should be involved. A bank needs the
inputs of the customer in determining how best to service him. Similarly, all
bank staff should know the expectations of the customer and be able to point
out some impediment to performance.
D. Create
opportunities for internal competition
opportunities for internal competition
There should be internal competition
implicit in a customer’s satisfaction programme. Such awards like the best
cashier of the month, the best accountant or relationship officer of the month,
could help in ensuring that every staff is conscious of the need to provide
excellent service of the need to provide excellent service. There should be
transparency in choosing the awareness and everyone should know the parameter
in use.
implicit in a customer’s satisfaction programme. Such awards like the best
cashier of the month, the best accountant or relationship officer of the month,
could help in ensuring that every staff is conscious of the need to provide
excellent service of the need to provide excellent service. There should be
transparency in choosing the awareness and everyone should know the parameter
in use.
E. Redesign
system and process
system and process
Banks need to review and redesign
existing processes in the various services are. Forms may need to be redesigned
and more service points created in order to ensure that the customer enjoys
dealing with the bank. There is need to evaluate the impact of technology and
to carry out system upgrade.
existing processes in the various services are. Forms may need to be redesigned
and more service points created in order to ensure that the customer enjoys
dealing with the bank. There is need to evaluate the impact of technology and
to carry out system upgrade.
F. Set up
measureable standard
measureable standard
Banks need to set up standards against
which they can measure their progress in the customer’s satisfaction program.
The measurement should show the areas when progress is being made and laggards.
A regular review of the operations and credit policy manuals is imperative for
effective customer’s satisfaction program.
which they can measure their progress in the customer’s satisfaction program.
The measurement should show the areas when progress is being made and laggards.
A regular review of the operations and credit policy manuals is imperative for
effective customer’s satisfaction program.
Assessment and measurement of customers
satisfaction in banks
satisfaction in banks
Observation method: Customer’s satisfaction measurement
does not necessarily involve elegant mathematical or statistical analysis. The
existent method is the observation method. This involves observing customer’s
interaction with bank staff. That is why it is necessary for each account or
marketing officer to write a report at the end of every visit to prospective
and existing customers. Customer’s observation or complaints should also be
means of extraction such issues from the visit reports and following up actions
with the respective department. If each account in the bank (deposit and
current accounts) is allocated to officers in the bank to manage and
performance reports are required on each account, it would be easy to detach
where there are customer service problem.
does not necessarily involve elegant mathematical or statistical analysis. The
existent method is the observation method. This involves observing customer’s
interaction with bank staff. That is why it is necessary for each account or
marketing officer to write a report at the end of every visit to prospective
and existing customers. Customer’s observation or complaints should also be
means of extraction such issues from the visit reports and following up actions
with the respective department. If each account in the bank (deposit and
current accounts) is allocated to officers in the bank to manage and
performance reports are required on each account, it would be easy to detach
where there are customer service problem.
Interviewing: The bank should conduct interviews through random sampling
of customers; find out from each customer how they feel about the bank and it
products and service. They are occasions when customers, who are loyal do not
make explicit complaints, but some words used by the could indicate some level
of dissatisfaction. Usually, customers would continue to bank with you as long
as the quality of service is within the zone of tolerance. The zone of tolerance
is the zone between the desired service and what is considered as adequate
service. Adequate service is the minimum acceptable service level. This is
measured by the service provider and customer’s past experience. It should be
the target of each bank to bridge the gap between desired and adequate service.
It is most important that questions are asked when conducting interviews so
that response made by the customer could be of major help.
of customers; find out from each customer how they feel about the bank and it
products and service. They are occasions when customers, who are loyal do not
make explicit complaints, but some words used by the could indicate some level
of dissatisfaction. Usually, customers would continue to bank with you as long
as the quality of service is within the zone of tolerance. The zone of tolerance
is the zone between the desired service and what is considered as adequate
service. Adequate service is the minimum acceptable service level. This is
measured by the service provider and customer’s past experience. It should be
the target of each bank to bridge the gap between desired and adequate service.
It is most important that questions are asked when conducting interviews so
that response made by the customer could be of major help.
Questionnaires: Questionnaire could be sent to customers regularly asking
for their comments and suggestions on the bank’s current level of service
performance.
for their comments and suggestions on the bank’s current level of service
performance.
Conclusion
The best measure of customer’s
satisfaction is growth in the customer base of the bank. In the Nigerian
environment, where most customers do not throw or exercise their level profit,
profit level may not be a sufficient parameter for measuring customer’s
satisfaction. Internally, each bank should establish the deliverable and these
be made known to the customers and staff. Where the bank falls short of its
deliverable, it should review its operations and system. Employee who manages
the service points should be given training on customer’s service management.
Service providers in bank should create good impressions and be solution
providers. They should demonstrate in their promise, and conduct that the bank
is indeed a friend of the customer. Customer should banks should match price
with service quality; regular visits are needed to reassure the customers of
the bank’s preparedness to service the customer better efforts at continually
improving services should be prepared to commit services that could reduce
complaints to the barest minimum.
satisfaction is growth in the customer base of the bank. In the Nigerian
environment, where most customers do not throw or exercise their level profit,
profit level may not be a sufficient parameter for measuring customer’s
satisfaction. Internally, each bank should establish the deliverable and these
be made known to the customers and staff. Where the bank falls short of its
deliverable, it should review its operations and system. Employee who manages
the service points should be given training on customer’s service management.
Service providers in bank should create good impressions and be solution
providers. They should demonstrate in their promise, and conduct that the bank
is indeed a friend of the customer. Customer should banks should match price
with service quality; regular visits are needed to reassure the customers of
the bank’s preparedness to service the customer better efforts at continually
improving services should be prepared to commit services that could reduce
complaints to the barest minimum.
Finally a wining bank is the one that
makes customer’s satisfaction its top priority. Each bank should not just aim
at increasing gross revenge it should create a reservoir of repeat buyers and
buyers for additional products and services primary or complementing customers
for their patronage.
makes customer’s satisfaction its top priority. Each bank should not just aim
at increasing gross revenge it should create a reservoir of repeat buyers and
buyers for additional products and services primary or complementing customers
for their patronage.