Customer Service Experience - Assignment

1. Nowadays many banks realize that all advantages, which they want to establish
through their core products are quickly, wore away as others banks has the same
products being offered. However, since it's a well-known fact that no business can
exist without customers, the important strategy is focused on providing the high-
quality service for the customer. Therefore, Better Customer Service Leads to
Better Customer Satisfaction and Brand Loyalty in banking sector. Do you agree or
disagree? Explain with Examples.
Ans: Satisfaction is an overall customer attitude or behavior towards a service provider,
or an emotional reaction towards the difference between what customers expect and what
they receive, regarding the fulfillment of some desire, need or goal. Customer loyalty, on
the other hand, is the result of an organization’s creating a benefit for customers so that
they will maintain and increasingly repeat business with the organization.
Undoubtedly most industries and businesses persistently endeavor to maximize
customer value. Customer service varies by product, industry and customer. It however,
assume important dimension in service delivery and sales of product. This is because
service firms such as banks have to retain their customers and win new ones if they are to
remain in the market. Nevertheless, it is a requirement for corporation survival,
profitability and growth if that service organization wants to hold its own in competition.
The importance of customer satisfaction cannot be dismissed because happy
customers are like free advertising. Many of us have heard of the current trend for
businesses to become highly customer-centric, that is to put the customer at the centre of
our business in terms of our strategies, actions and processes. For most of us, old truths
still hold well, such as it is easier and more profitable to sell to existing customers than to
find new ones. In practice, organizations are increasingly setting themselves strategies to
measure and ensure customer retention, and charging their staff to be more customers
focused and service-oriented. Customer satisfaction holds significant importance in
corporate sector because without satisfied and loyal customers, you don't have a business.
A single unsatisfied customer can send away more business from your organization than
10 highly satisfied customers. The more you focus on customer satisfaction and retention,
the more long-term business you will get. It’s worth to focus on customer satisfaction

strategies; no matter how large or small your organization is as a well known fact is that
referrals only come from customers who are “apostles”.
Banks are competing intensely in a highly competitive environment to offer
quality oriented services according to customers’ expectations. Various important parts of
banking sector like operations, service quality, employee satisfaction, customer
satisfaction, financing products, efficiency, financial performance are being studied by
many researchers to better understand and serve the community at large. The high quality
relationship with customers is the main influence of a successful service provider “which
determines customer satisfaction and loyalty”. Therefore I agree “Better Customer
Service Leads to Better Customer Satisfaction and Brand Loyalty in banking sector.”
2. Today, constant progress in service quality from the bank is a crucial need for their
customers to stay loyal, due to the increasing awareness among bank customers’
rights, their changing demands, and competition. As banking becomes increasingly
digital, one question continues to plague retail financial institutions: Do we still need
branches? Write your opinion and support your ideas with examples.
Ans: The future of banking lies in branches and technology – enabling customers to
bank where they want, how they want and when they want. Yes, customers are adopting
mobile and digital banking at a pace we’ve never seen before. But the importance of
having a branch in a convenient location is as important as ever for consumers.
There are customer segments who value the customer experience associated with
familiar faces and working with people you know. While certain banking products lend
themselves to automation, other products such as those pertaining to commercial banking
and wealth management perform best with the deeper level of interaction found in branch
banking relationships.
Consumers continue to see the value of branches for the “human factor.” In a
research 24 percent of consumers say they would consider a branchless bank, nearly 90%
of customers believe that they will continue to use their branches, and an increasing

number of consumers believe that the branch is the single most important channel. The
key to success will be to create a new mission for branches—moving away from simply
serving customers—to adding tangible value for customers by educating them through
digital tools, assisting them through problem solving and enabling them to make their
own financial decisions with thoughtful and well-timed advice.
There are many reasons for the continued necessity of branches, including
concerns over internet security, simplicity of use and a lack of knowledge surrounding
the capabilities of online and mobile banking. However, the most powerful force that will
keep physical branches alive and well for many years to come is the instinctual human
desire to meet the people they are entrusting with their money. There is no technological
substitute for the trust building that occurs when you can meet with someone face to face
and shake his or her hand.
For example, maximum population of Nepal may not know the process of using
digital platform or may not have availability of such platform. Reducing the number of
branches might affect the experience of that population.
Branches are not in demand like they once were, due to the rise of digital banking.
But retail branches will continue to maintain a prevalent role in acquiring, retaining and
serving customers across digital and physical channels. Fewer, smaller, smarter and more
open: That’s the future of retail bank branches. The role of the bank branch is still essential for
financial institutions and allows them to differentiate on customer experience and brand value.
They’re evolving, but still very much needed by consumers. Hence, I believe banks still need
branches even though banks are increasingly becoming digital.
3. The World Wide Web has permeated virtually every aspect of modern life. If you
have access to a computer with an Internet connection, an almost limitless amount
of goods, services and entertainment choices are at your fingertips. You can do just
about anything online, including your banking and financial transactions. What are
the advantages and disadvantages of online banking? Explain with examples.