Customer Service Quality Measurement in Co
Transcript of Customer Service Quality Measurement in Co
-
7/31/2019 Customer Service Quality Measurement in Co
1/6
CUSTOMER SERVICE QUALITY MEASUREMENT IN CO-OPERATIVE BANKS
Customer is the backbone of a business. He is also a core component of a
business. Mahathma Gandhi aptly stressed the significance of the customer in a business.
According to him,
A customer is the most important visitor on our premises.
He is not depended on us, we are dependent on him.
He is not an interruption to our work; He is the purpose of it.
He is not an outsider on our business; He is a part of it.
We are not doing him a favour by serving him- He is doing us favour by giving an
opportunity to do so.
This is a strong indication that a business cannot survive without customers and a
well built customer base. The extension of proper consideration to the customers with care and
affection thus becomes a pre-requisite for the survival and success of a business. Thus, to create,
to win and to keep customers is one of the prime concerns of business organisations operating in
the present fast changing and turbulent environment. To achieve this, customers and their needs
are to be cared for with tolerance and attention. The banking sector, one of the major service
sector components is not an exception to this. The customer is the prime-mover of banking
activities. In the global competition, one of the biggest challenges for banks is to meet the rising
customer needs and expectations
Customer service in banks refers to the delivery of services of the type required
by customers in a manner which would provide them maximum satisfaction. It is one area which
has acquired greater significance in banking industry. Caring of customers and providing of
better quality of services to them are indispensable for the banks to gain a niche in the marked
and to thrive, sustain and increase profitability. For ensuring quality in providing services to
customers, while designing the marketing mix for the banks the focus of attention should be
given to customers, because customer is the fifth factor of production. In this endure the banks
should identify customers needs, develop products and services to satisfy their aspirations, price
-
7/31/2019 Customer Service Quality Measurement in Co
2/6
them properly, deliver them at the appropriate time and place, collect the feedback to gauge the
satisfaction as well as dissatisfaction level and to incorporate changes and redesign them if
required. Banks should adopt this procedure as an integral part of their operational agenda to
make the customers more attentive and loyal. Innovations and introduction of customer friendlyschemes at appropriate times make the banks to come and stay with the customers very closely
and to enrich their relationship. The uniqueness and pace in the inauguration of novel schemes
and provision of varied services to quench even the minute requirements of the customers,
attract the attention of existing as well as prospective customers and enable the banks to
build a strong and heavy customer base.
Managing and excelling in customer relationship is the major concern of all
service sector organisations. This is of high relevance as far as banking organisations areconcerned, the banking customers usually being sensitive in nature. Any wrong step on the part
of the bank makes the relationship sour and distorted. Moreover the most important requirement
for achieving better customer service is to maintain quality. Thus providing good quality service
to the customers is the forerunner of cordial relationship with them.
The word quality has many meanings. It is a difficult concept to be defined in a
single definition. Quality can be viewed from two points of view: one from the view point of the
service provider and another from the view point of the customer. From the view point of theservice provider quality means the setting up of standards or specifications in the manufacturing
process as well as in the output which is totally objective and technical in nature. From the view
point of the customer, service quality occurs only when the service firm provides services to the
specifications that satisfy their needs. The idea of quality here is subjective and strongly linked
to the needs and expectations of the customer. The requirements of individuals may differ from
novice to expert and thus the term quality will have a subjective interpretation. The quality of a
product may have the following interpretations for an end user.
Transcendent Quality
It is the innate or inherent excellence of the product as observed by an individual.
It varies from person to person based on the background of the person.
-
7/31/2019 Customer Service Quality Measurement in Co
3/6
ProductBased Quality
The presence or absence of a specified product is the most important factor to
determine this type of quality.
UserBased Quality
This quality can be decided based on how far the product is able to meet with the
users expectations.
ManufacturingBased Quality
This quality is decided based on how far the product confirms to its design
specifications.
ValueBased Quality
This quality depends upon the perception of the end- user and primarily thrives on
personal satisfaction or dissatisfaction. This quality is decided by the perceptibility and
preference of the concerned individual.
Measurement of Quality of Customer Service
Measurement of quality of customer service is a delicate issue. The banksconsider that they are providing better quality services to their customers if there are no
complaints from the side of the customers. However it is not a scientific view. Based on a study
it has been pointed out that there are two methods for measuring the quality of customer
services. They are customer expectation surveys and conduct of mystery shops. R.K. Talwar,
Chairman of a committee appointed by the RBI, identified the four factors which affected the
quality ofcustomers services, namely, expectation of the customers, quality and job knowledge
of bank personnel, employee motivation, and systems and procedures.
On the basis of earlier studies and sharing of experience with the customers to
identify the problem areas of customer service, the researcher opted to conduct a survey among
the customers to assess their likes and dislikes as well as their perception on different aspects of
customer service in co-operative banks has identified the following six dependent variables and
their independent variables.
-
7/31/2019 Customer Service Quality Measurement in Co
4/6
Dependent Variables(DV) Independent Variables(IV)
Guidance facilities and amenities Display of identification board at the counter
Display of May-I-Help you counter
Display of time norms
Adequacy of seating arrangements
Provision of drinking water
Availability of complaint and suggestion boxes
Teller facilities
Computerisation
Time taken for various services Time taken for:
Withdrawal of cash
Deposit of cash
Issue of a cheque book
Getting a bank draft
Collection of local cheque
Collection of outstation cheque
Regularity in dealings Updating pass book
Legibility and accuracy of pass book
Intimation of the maturity of fixed deposit
Execution of standing instruction
-
7/31/2019 Customer Service Quality Measurement in Co
5/6
Communication with customers
Credit- related services Reason for choice of bank for borrowing
Timeliness in sanctioning loans
Timeliness in sanctioning overdraft
Timeliness in sanctioning cash credit
External influence for credit sanction
Attitude of bank employees Employees behavior towards customer
Customer complaints
Promptness in counter service
Customer feedback system Customer feedback mechanism
Redressal of grievances mechanism
Customer service committees
Customer meet
Effectiveness of customer meet
Suggestion schemes
The evaluation is made with the help of both objective and subjective
criteria. In the objective criterion, an optional time for the transactions to be completed for
different services is used and the quality of customer service is then measured by comparing with
the actual time for the transaction to be opened
The subjective criteria depend entirely on the attitude or perspective
of individual customers regarding what is good and what is bad. The subjective criteria are of
-
7/31/2019 Customer Service Quality Measurement in Co
6/6
two types. The first type would elicit a yes or no for answer to questions regarding adequacy
of facilities. The second type has a rating scale, when asked to comment on various aspects of
customer service. The different criteria may be(a) very good,(b) good,(c) fair,(d)bad and
(e) Do not know.
It is expected that such a comprehensive approach to evaluation ofcustomer service is an authentic way to ascertain the voice of the customers and then their choice
into business process for conformance to customer expectations.