Integrated Case Study Analysis for OCBC Bank's Credit Card Services

This study analyzes the impact of customer satisfaction and loyalty on the performance of OCBC Bank's credit card services. It examines the challenges faced by the bank and strategies used for improving customer satisfaction and loyalty. The analysis is based on secondary data and provides recommendations for solving the problem.

CASE STUDY ANALYSIS

EXECUTIVE SUMMARY
The following study is based on OCBC Bank which provides customers with the benefit
of credit card service in the highly competitive market. As the bank is facing some issues in
providing better credit card services to customers and this makes them shift to other competitor
companies in the market. In this the researcher has focused on addressing few of the objectives
like understanding about the concept of customer satisfaction and loyalty, impact of high
customer satisfaction on performance of business, challenges faced by company due to low
customer loyalty and satisfaction, and strategies for improving customer satisfaction in the
business market. The researcher has also focused on conducting the whole research on secondary
basis so that they attain the research aim and objectives in an effective manner. With the help of
secondary data the researcher will collect authentic and reliable data related to the research topic.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
CHAPTER 1: Introduction to the case study...................................................................................4
Statement of the problem............................................................................................................4
Research aims and objectives......................................................................................................4
Structure of the rest of the report................................................................................................4
CHAPTER 2: Case brief: Description of the situation....................................................................6
Chapter 3- Problem Statement and plan of analysis.......................................................................1
The concept of customer loyalty and customer satisfaction in context of UK credit service
sector...........................................................................................................................................1
The impact of high customer satisfaction and loyalty for improved performance of OCBC
bank.............................................................................................................................................1
The challenges faced by OCBC bank due to low customer satisfaction and loyalty within the
business organisation..................................................................................................................2
The strategies used by OCBC Bank for improved customer satisfaction and loyalty................2
Chapter 4: Analysis and Findings....................................................................................................4
Chapter 5: Proposed solution to problem.........................................................................................6
Recommendation.........................................................................................................................6
Limitation in the research............................................................................................................7
Scope for further research ..........................................................................................................7
REFERENCES................................................................................................................................8

CHAPTER 1: Introduction to the case study
Statement of the problem
The main problem identified in the present research is customer dissatisfaction where
organisations are unable to provide high level of satisfaction by their quality and valuable
products and services (Simanjuntak and et. al., 2020). The company faces various issues that
results in decreasing the overall rate of profitability, ruined brand image, gaining competitive
advantage and many more. In relation with OCBC Bank, they face the issue in satisfying their
customers by their services related to credit card. Rejection of waivers is also a factor that results
in increasing dissatisfaction among customers in the market of Singapore. This will force their
customers to avail services for credit card from other competitor companies which results in
affecting the overall performance of the company.
Research aims and objectives
Research aim
To identify the effect of customer loyalty and satisfaction in improving the business
performance within the UK credit service sector. A study on OCBC Bank
Research objectives
 To study the concept of customer loyalty and customer satisfaction in context of UK
credit service sector
 To examine the impact of high customer satisfaction and loyalty for improved
performance of OCBC bank
 To determine the challenges faced by OCBC bank due to low customer satisfaction and
loyalty within the business organisation
 To analyse the strategies used by OCBC Bank for improved customer satisfaction and
loyalty
Structure of the rest of the report
Chapter 1: Introduction of the case study: This chapter mainly covers about problem
statement, research aim and objectives and structure related to the report.
Chapter 2: Case-brief: Description of the situation: This chapter will help in summarising
information related to the topic forb understanding the topic in a more effective and efficient
manner.

Chapter3: Problem statement and plan of action: This particular chapter helps in determining
about the detail related to research objectives and research methodology.
Chapter 4: Analysis and Findings: This chapter mainly covers all the details about the topic in
a more detailed way.
Chapter 5: Proposed solution to problem: This chapter will help in providing
recommendations for solving the problems. This chapter also covers limitations and scope of the
research.

CHAPTER 2: Case brief: Description of the situation
OCBC Bank is considered to be one of the famous and renowned bank in Singapore but
is facing issue in providing best services to customers with the help of their credit card facilities.
For solving the issue of credit card services and for improved performance within the business
organisation they have used both media and industry for providing both research and consulting
related services (Özkan and et. al., 2019). On the basis of 2019 report conducted by the CSISG it
is stated that a technique called merchant tie-ups that meet the needs of customers is considered
to be one of the best drivers for satisfying customers. This report also states that it helps the bank
in achieving high competitive advantage and in retaining and satisfying more number of
customers by their quality credit card services. There are various competitor companies that are
providing card holders with no annual fees, automatic fee waivers, free credit cards and lifetime
fee waivers which make customers shift to other banks. The customers are sometimes also
requested to provide with waiver fees and late payment fees if they do not pay the amount related
to the credit card on time. The scope for gaining more number of customers and high growth in
the market it is important for the bank to focus on adopting some of the effective strategies
which are defined as rewards, cashback and miles (Valencia and Layman, 2021). The bank also
focus on providing promotions and discounts to the card holders at the time when customers use
card for availing any other type of service. The OCBC bank focus on satisfying a set of
customers so that they deal with the marketing objectives effectively. The bank provides
Titanium Rewards cards are provided to particular shoppers who opt for a high variance of the
card and many others.

Chapter 3- Problem Statement and plan of analysis
This chapter of research project involved literature review which is a comprehensive
summary of the previous research related to topic. It is used to surveys different books, scholarly
articles and other sources relevant to a specific area of research. This review should describe,
enumerate, summarise, objectively evaluate as well as clarify the previous researches.
The concept of customer loyalty and customer satisfaction in context of UK credit service sector
According to the view of Pekovic and Rolland (2020) customer loyalty is an ongoing
emotional relationship between company and its customer by manifesting itself by knowing how
willing a buyer is to engage with and purchases repeatedly from them versus from their
competitors. If an organisation create a positive and memorable experiences for their customers
then they will increase the chances of them not only to come back for more but spend more in
every purchase.
As per the view of Roach (2021) customer satisfaction refers a measurement that
identifies how customers are happy with the products, services and capabilities of a company. It
reflects health of business by showing how well their products and services resonate with their
buyers. For increasing the satisfaction of customers, company need to understand their
customer's needs, listen to their feedbacks, set realistic expectation, listening to their feedbacks,
paying attention to their competitors, be consistent in communicating with their customers and so
on.
The impact of high customer satisfaction and loyalty for improved performance of OCBC bank
In the perspective of Solimun and Fernandes (2018) it has been identified in previous
researchers that higher level of customer satisfaction results to higher levels of customer loyalty
that converts into higher level of profits. Customers satisfaction and loyalty positively affects the
profitability and value of an organisation within credit service sector. When the customers are
highly satisfied with particular brand and converts into their loyal customers then, it help
company to focus on increasing their business performance in order to provide better service to
them so, they retain with the brand for longer term (Shen and Yahya, 2021). Satisfied customers
makes repeat purchases that enforce company to increase their business performance in order to
fulfil their demand on time and retain them also. Increase in customer satisfaction and loyalty
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leads increase in profitability. When the profitability of the company increase, it provides
effective rewards to their employees that results improved in business performance.
The challenges faced by OCBC bank due to low customer satisfaction and loyalty within the
business organisation
According to the opinion of Pahlevi and Suhartanto (2020) customer satisfaction and
loyalty is important for the company in order to increase their sales and profitability. But when
there is low customer satisfaction and loyalty, several challenges are faced by an organisation.
The first challenge that an organisation faced in loss of current and future sales. When the
customers are not satisfied with particular brand they does not makes their repeat purchases due
to which sales decreases and create a huge loss. Another challenge that an organisation faced due
to low customer satisfaction and loyalty is reputational damage. When dissatisfied customers tell
their friends or broadcasts on social media about negative feedback of the company then the
reputation of the company damage and create huge loss (Slack and Singh, 2020). Due to this
company faced many difficulties in attracting and retaining new and old customers with their
brand. Low customer satisfaction and loyalty also create problem for the company in order to
survive in the competitive market. It because every companies in market are focusing on using
effective strategies for satisfying their customers towards their brand.
The strategies used by OCBC Bank for improved customer satisfaction and loyalty
As per the opinion of Kim, Tang and Bosselman (2019) there are many strategies which
can be used by the organisation in order to improved their customer satisfaction and loyalty in
gain maximum profit. The first strategy that an organisation used is offering discounts to their
customers on their purchases. When a customer realise that an organisation similar kind of
products with discounts, they are more attracted towards it and also referred to their friends.
Another strategy that an organisation can used for improving customer satisfaction and loyalty is
to provide rewards customers (Hawkins and Hoon, 2019). Rewards is an element that make
everyone whether it would be offer to customer or employee. Thus, when customers get rewards
from the company then they are more satisfied and loyal towards that brand. It leads increase in
sales and profit of the company.
Research methodology
Research methodology is considered as the specific techniques or procedures that are
used for finding out, choosing, processing as well as analysing information related to topic. In a
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research or dissertation project, a good research methodology enables the reader to properly
evaluate overall reliability and validity a research.
Research philosophy- Researcher analysed that interpretivism research philosophy is
good for the research. It allows researcher to collect qualitative data and it mainly based on
natural aspects.
Research approach- Researcher examined that inductive research approach is useful in
the current research in order to conduct scientific research. This research approach concerned is
concerned with the generation of new theory emerging from the data (Ellingson and Sotirin,
2020).
Research strategy- Case study strategy has been used by the researcher in the current
research as it helps in generating an in-depth, multi-faceted understanding related to complex
issues related to real-life.
Research choice- Researcher used qualitative research choice for the current research as
it helps in collecting and analysing the in-depth information related to the research topic. It
provide adaptability and subjectivity of research.
Time Horizon- Cross-sectional time horizon is utilised in the current research as it helps
research to examine different variable related to the research topic at a single time in order to
complete research in short time (Levitt, 2021).
Data collection- Researcher used secondary data collection in context of present research
as it provide more cleaned and structured data in the research.
Data Analysis- Thematic data analysis technique is used in the current research as it
enables researcher to generate new concepts and insights derived from data.
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Chapter 4: Analysis and Findings
Theme 1: Concept of customer loyalty and customer satisfaction in context of UK credit
service sector
It is has been discussed from the above analysis that customers satisfaction and customers
loyalty is an important factor that helps in determining how happy customers are feeling with the
company products and services (Solakis, and et. al., 2021). Customers satisfaction is considered
as one of the most essential indicator of customer loyalty and purchase intentions within the UK
credit service sector. It is important for the business organisation to understand their customers
wants and needs in a proper manner so that they gain high level of satisfaction from them.
Whereas customer loyalty is also important for an organisation because this helps in gaining
repeat business from the customer for a particular product or service. More loyal customers
results in achieving higher profits and growth in the competitive business market. Customers are
mostly attracted by good service and by discounts or offers on certain product provided by the
company (Bradley and Wang, 2022). For gaining competitive advantage in the business market it
is necessary for credit service sector to offer suitable discounts and offers to customers for
availing credit card services.
Theme 2: Impact of high customer satisfaction and loyalty for improved performance of
OCBC bank
It has been discussed from the above gathered data that higher customer satisfaction and
loyalty impacts the performance of OCBC Bank in a positive manner. Satisfied customers are
more profitable for the business organisation as they gets retained in the business for more period
of time (Moghavvemi, Lee and Lee, 2018). Customers are more attracted to the company
products and services when they feel that they are getting best experience while using that
product. OCBC Banks provide credit card services to the customers in the market of Singapore
which helps customers in managing their expenses accordingly. Satisfied and loyal customers are
more inclined within the business and helps in making repeat purchase, in improving brand
loyalty and positive word of mouth in the market. When customers are satisfied by the services
of the bank employees they tends to invest and avail for more services of that particular bank and
this results in increasing the level of profitability and growth in the competitive market. Higher
level of satisfaction among customers results in increasing their loyalty by building a good and
positive image of the banking services (Ebbage, 2018). Dealing with the customers wants and
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needs is the most effective practice that banks adopt for achieving high reliability and validity in
the business market.
Theme 3: Challenges faced by OCBC bank due to low customer satisfaction and loyalty
within the business organisation
It has been discussed from the above analysis that the low customer satisfaction and
loyalty leads to several challenges for the company which results in decreasing the overall
performance an productivity of the business in the market (Prihartono, 2021). Low customer
retention is a challenge for the company as they do not find the services and products as much
productive and highly satisfied in the market. Dissatisfaction among customers is also a
challenge for the bank as they do not get satisfied with the services delivered by the business in
the competitive market. When the business organisation do not provide better services to the
customers they feel dissatisfied and shift to other business for availing better services. Long
waiting time for resolving the customer problems regarding a particular product or service results
in creating frustration and irritation among customers (Widodo, 2022). This results in creating
difficulties in retaining and attracting old and new customers for availing the services and
products of the OCBC bank for long period of time. With low customer satisfaction and loyalty
results in creating problem for the business in surviving in the highly competitive business
market.
Theme 4: Strategies used by OCBC Bank for improved customer satisfaction and loyalty
It has been discussed from the above analysis that there are different types of strategies
that OCBC bank can adopt for satisfying and creating loyalty among customers for the services
provided by the bank. Creative and attractive discounts and offers on the credit card services
results in satisfying customers for choosing the particular business in managing their daily
expenses properly (Bagasworo and Simatupang, 2022). Rewarding customers is also an effective
strategy that helps in developing the morale of customers and also builds loyalty among them as
they provide reward points on the purchase done on that particular credit card. Giving cashback
offers is also a premium benefit that bank can provide to its premium customers at the time of
credit card bill payment (Siahaan and et. al., 2021). The bank can also adopt miles for customers
in which the cardholders can transfer their miles to a flyer program for offsetting the air ticket
price of flights. For example, OCBC Voyage card which helps in providing customers with
fruitful benefits to customers at the time of flight booking for travel purpose.
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Chapter 5: Proposed solution to problem
Recommendation
From the above research, it has been analysed that higher satisfaction and loyalty is
important for every organisation not only for increasing their sales and profit but also surviving
long term in the market. There are many issues which has been faced by the OCBC bank due to
its ineffective credit card services. Due to ineffective credit card services of bank, customers
faces many difficulties in order to manage them. Therefore, their loyalty toward bank are
affected and leads low sales. To deal with these problems in better manner, OCBC bank need to
find out the effective ways in order to improve their credit card services for improving customer
satisfaction and loyalty. There are some ways which are recommended to OCBC bank in order to
improve their credit card services for their customers. These are mentioned below:
Reiterate Deferred Payment- The first way that help OCBC bank in order to improve
their credit card services is reiterate deferred payment. The average credit card holders knows
that they have 30-45 days in order to pay off a credit card purchase without incurring any extra
charge. It is not similar to debit card purchases where customer can taken off money from their
bank account within a day. The OCBC bank should convert their debit card users to credit card
users in order to make easier for the customers to pay off their credit amount directly to the bank.
Stop Nickel and Diming- Another way that helps OCBC bank to improve their credit
card service for increasing customer loyalty is to stop nickel and diming. The credit card
statements of customer always specify the payable amount to the second decimal place. Since the
decimal amount seems to be a big problem for the customers as they does not pay or miss out to
pay decimal point amount and end up paying normal point, then they are considered late
payment fees and interest charge. Thus, OCBC bank should avoid that decimal points amount
while providing credit card services to their customers.
Alert Payment Deadlines-Another way that help OCBC bank to improve their credit
services is to alert credit card users about the payment deadlines. There are many situation in
which credit card users may forget in order to make their payment and even they does not get
alert messages from their bank due to which their interests are charged. Thus, it will important
for OCBC bank to make their customer alert about their due payment deadline by sending
reminders a couple of days before the due dates. It will help bank to assuage the common anxiety
related to forgetting to pay the bill on time as well as incurring hefty fees.
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Limitation in the research
This research collect secondary data that based are based on previous research due to
which reliability and validity of the research is low as compared to the primary research. Another
limitation of the research is it lack to analyse the other challenges which faced by the company.
Scope for further research
The scope of the present research is very high because issues which has been identified in
this research is one of the most concerned issue in present time. This research will help
companies to improve customer satisfaction and loyalty so, their sales and profitability increases.
It will also help banking companies to improve their credit card services for their customers so, it
can be easy for them to avail this services effectively.
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