Importance of customer satisfaction in banking industry. The Importance of Customer Satisfaction in the Banking Industry 2019-01-09

Service quality and customer satisfaction in the banking industry

Finally, performance is based on the perception of the consumers or costumers on the service quality of the bank. To provide a great customer experience, banks need to deliver on the expectations their customers have in all channels. He identified three 3 types of disconfirmation. Despite the existence of some studies on service quality and customer satisfaction in the banking industry in some African countries, virtually there are few studies on service quality and customer satisfaction for the banking industry in Ghana. So once they have settled on a bank, they expect a high level of customer service. It is virtually impossible for a business organization to survive without building customer satisfaction and loyalty. We know the steps that can be taken to keep your customers loyal.

Customer Satisfaction in Banking Industry

Time and costs also affects customer satisfaction, a quick response can be crucial for satisfying the customer and policies must be drawn and implemented to meet the exact time services as promised to be delivered to customers. Effective Problem-Solving Customers are reasonable. Journal of Retailing, 46, 12 — 40. However, it appears no or little studies have sought to ascertain how service quality practices could lead to customer satisfaction in banks within Ghana. The upgradeability and flexibility of internet technology after unprecedented opportunities for the banks to reach out to its customers. Some factors that affect satisfaction are extended hours of operation and competitive interest rates as confirmed by the study of Levesque and McDougall 1996. According to Kano, delighters are the most powerful and have the potential to lead to the highest gross profit margins.

Service quality and customer satisfaction in the banking industry

It is far more difficult to measure the level of performance and satisfaction when it comes to the intangible expectations. Szymanski and Henard 2001 found in the meta-analysis that the disconfirmation paradigm is the best predictor of customer satisfaction. The relevant research hypotheses are the following: ¨ The better the services, the higher the rate of customer retention for Commercial Bank as the law demand stated. The score shows a -0. The next section covers the data collection for this research. The results of the study could play a great role in improving customer satisfaction in banks.

Research and Writing Made Simpler: Research Proposal

The measures of expectations and perceptions of the service experience tend to focus on a relatively small number of very specific factors, such as how long customers wait to be served etc. The research further showed that when it comes to responsiveness, customer requests and complaints are not authorized and resolved on time enough by the staff and managers of Barclays bank. ª It was realized from the research that service quality and customer satisfaction is the prime objective of the bank but how to approach it was a problem ª It was also found that there is high illiteracy rate among the customers of the bank. Management in Europe is different from the management in Kenya, although they are trained by the principles of the company. It is unclear whether this attribute is expected by the customer. Advancement in science and technology create many opportunities to improve services quality and productivity. The customers showed overall expectations in this dimension at a mean of 8.

The Importance of Customer Retention in Banks

These are the open-ended and close ended type of questions. This information can be presented in a simple bar chart. Furthermore, the survey with the managers of Barclays will help determine the type of measurement they use on determining customer satisfaction. ¨ There is no significant relationship between the duration of the bank transactions and the rate of customer retention. The second hypotheses were also confirmed.

Service quality and customer satisfaction in the banking sector

Service makes the difference in customer experience survey Excellent customer service and the quality of customer experience is the factor for customers choose to stay with a bank. Since a customer journey often touches different parts of the organization, companies need to rewire themselves to create teams that are responsible for the end-to-end customer journey across functions. Excitement attributes are for the most part unforeseen by the client but may yield paramount satisfaction. This is due partly to new entrants into the industry both local and foreign and enforcement of Bank of Ghana regulations. An interview is structured or unstructured way of obtaining information on a focused content. For instance, training frontline service representatives to identify and address specific customer issues through role playing and script guidelines will go a long way toward engendering deeper customer trust. Dissatisfied customers are especially problematic for banks.

Services Quality and Customer Satisfaction in the Banking Industries

It implies that only seven of the respondents of the ten have saved with the bank between the periods of zero to four years. However, as noted by Verhoef, Franses, and Hoekstra 2001 , the link between customer satisfaction and actual, as opposed to intended, purchase behavior is less well established. But when corners are cut to reduce costs, your call center can do more harm than good. Armstrong and Seng 2000 attempted to conceptualize a comprehensive model of satisfaction at the business-to-business level incorporating guanxi Chinese business relationships , relationship marketing and the disconfirmation paradigm. The findings show that improvement in service quality can enhance customer loyalty.

Role of Information Technology (IT) in the Banking Sector

Examine the effect of service quality dimensions on customer satisfaction 2. In conclusion more people will like to shift their customership to another bank because they think the service deliver by the bank are not to their expectation. Because a single negative experience has four to five times greater relative impact than a positive one, companies should focus on reducing poor customer experiences, especially in those areas in which customers come into contact with the organization most often. According to Groth and Dye 1999 , customer criteria determine the definition of quality and the variables that affect perceptions of quality. The more perceptions are close to expectations, the higher the perceived level of quality. Journal of Services Marketing, 14 2 , 147—159. High service quality is therefore required to differentiate offerings in the marketplace.