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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

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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.

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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.

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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

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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

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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.