Therefore, customer service is an essential in the banking service to compete in the market driven environment. Measurement of service quality is difficult in banking sector as compare to the manufacturing sector as services are intangible in nature. Increasingly, service quality has used as a strategic tool by the various market players to position themselves effectively in the market. Service quality has become a critical prerequisite for satisfying and retaining valued customers in banks. The interest is largely driven by the realization that high service quality results in customer satisfaction and loyalty with the product or service, greater willingness to recommend someone else, reduction in complaints and improved customer retention (Zeithaml et al., 1996).
3.2. Improvement of customer satisfaction levels. The use of CRM with KM will expand the profits of banks, enabling them to identify the most profitable customers and deliver the highest level of service. The use of CRM increases customer retention, income, faithfulness, satisfaction and, crucially, gives workers the necessary knowledge and procedures to know their customers, understand their requirements and efficiently build relationships between the bank and its customers . 3.3.
SWOT Analysis Opportunities The Canadian Imperial Bank is placed extremely well with a significant and assured customer base from the level of the government and the public sector business. Many government parties will do business with CIBC because they know that the profits of the Bank belong to the people of the country and are used for the country’s development. Business with the bank is seen to create value and opportunity within the communities economy. The availability of modern telecommunication systems and technology will facilitate the improvement and strengthening of the Bank’s international business and ATM services, and the development of new services, such as telephone banking. The increased access to computers by customers will allow the bank to reach more target groups through electronic communication.
This research intends to test whether the Ecobank customers are satisfied with the services provided to them, which in the long run will lead to customer loyalty and customer retention .i.e. the influence of customer service in the banking sector. Banks are involved in a very great effort to offer quality services to customers in other to meet their expectations. The high association with clients is the primary impact of a fruitful specialist organization (Panda, 2003) "which decides consumer loyalty and steadfastness" (Jones, 2002 as referred to by Lymperopoulos et al., 2006). Problem Statement Banking in Ghana has become very competitive, and as such, high-quality customer care is extremely valuable to cultivating and retaining customers.
The banking industry has been undergoing major consolidation in recent years, with a number of global players emerging through successive mergers and acquisitions. Competition is generally considered a positive force in most industries; it is supposed to have a positive impact on an industry’s efficiency, quality of provision, innovation and international competitiveness. However, this issue has always been controversial in banking, as the perceived benefits derived from increased competition have to be weighed against the risks of potential instability (Casu and Girardone, 2009). Internationalization refers to the integration of economies throughout the world by means of trade, financial and technological flows, exchange of technology and
Customer been satisfied gives high retention rate there by increasing profits and also success. Therefore factors that lead to customer satisfaction must be identified and that is a very critical step for a bank that wants to be ahead of competition and also be the preferred bank by all standards. The definition for customer satisfaction is vague and an applied concept and the actual indication for the state of satisfaction will differ from person to person and also on products and services that is offered by the bank. Customer satisfaction state is subject to both physical and mental variables which relates to satisfaction behaviors such as return and recommend rate. The kind of products and services an organization render will also determine the level of satisfaction a customer will gain as the customer will compare products and services from one organization to another.
This is because employees’ satisfaction is an important factor of motivation at work and direct factors that impact job satisfaction as it has correlated relationship with the work performance achievements. Organizations can expand its business through customer loyalty organization, which meet of the value of the service received offering by the employees having good quality of life conditions provided by the organizations (Heskett, 1997). The purpose of this study is to propose the ways to raise the internal banking work environment. This is because it is recognized as the base of offering excellent services, meet customer satisfaction and loyalty. Moreover, we also will study how the working environment and the effective factors like paying attention to marketing, human resources and its impact on the performances of bank employees as well as skill needed to gain the customer satisfaction.
No part of the industries sector can slightly afford to ignore its customers and in case of banks, they are required to give high priority in providing satisfactory and efficient service to their customers. Banking sector has a vital role to play in the rapid growth of the economy. Effectiveness of banking systems depends upon the customer’s satisfaction and the fact is that customer is the kingpin of the banking industry. Efforts should be put forth so as to raise the level of customer satisfaction among all the
Abstract: The Indian banking industry is rapidly changing due to new technology, fierce competition and demanding customers. A business with high service quality will meet customer needs especially in banking sector. High service quality leads to better customer satisfaction. The objective of study is to identify quality of services offered by State Banks of India and HDFC banks to customers. In addition the study tries to uncover gaps and make suggestions for improvement doing comparative analysis of these two banks using five dimensions of Service quality, namely Reliability, Responsiveness, Empathy, Assurance, and Tangibles based on SERVQUAL technique (Parsuraman et al., 1988).
The biggest benefits to the bank are saved costs, reached a new segment of population, efficiency, enhanced the bank reputation in order to provide better customer service and increased customer satisfaction (Ngandu, 2012). The cost of internet transactions was less than the cost of branch transactions (Ngandu, 2012). Internet banking enhanced the relationship between the bank and the customer, because bank provided service directly to customers. Even customers not able to personally appeared at physical branch, this would create customer loyalty (Yohannes, 2010). Internet banking services are a must for banks due to increased online service provided by other financial institutions, for example insurance companies (Raghunandan, 2012).